Businesses must "renew" themselves

(Baonghean)With the policy of changing investment forms, changing capital sources, payment methods..., many enterprises in our province have fallen into a difficult situation. Therefore, converting enterprises is a suitable step for enterprises to survive and develop in the current period.

“New wind”.

A sad reality of state-owned enterprises (under provincial management) is that the production and business results are always not commensurate with the scale of capital and assets invested by the State. The situation of waste and loss of state assets in enterprises has not been thoroughly handled, the organizational apparatus and operating mechanism are not suitable... Therefore, state-owned enterprises need to have a major change in quality and quantity, to do so, they must boldly innovate enterprises to operate more effectively. After a period of efforts by all levels and functional branches, up to now, our province has basically completed the arrangement and innovation of state-owned enterprises under provincial management and in this field, 169 enterprises have converted their ownership forms such as equitization, contract sale, dissolution, conversion to revenue-generating public service units and mergers into central and local enterprises, bankruptcy, conversion to single-member LLCs.



Package manufacturing enterprises in Thanh Chuong need to innovate technology to achieve efficiency in production and business.

After the change in the form of operation, most enterprises have stabilized production and business and made a profit. A survey of 26 enterprises showed that the production and business results were very positive, with a total revenue of nearly 866 billion VND. Some enterprises, after the conversion, faced a difficult period due to the economic recession, but still achieved encouraging results such as: Nghe An Trading Joint Stock Company with a total revenue of nearly 344 billion VND; Nghe An Tea Development and Investment One Member Co., Ltd. with a total revenue of nearly 111 billion VND; Seeds Joint Stock Company with a revenue of more than 99 billion VND; Waterway and Road Traffic Construction and Management Joint Stock Company with a revenue of nearly 56.5 billion VND; Song Hieu Forestry One Member Co., Ltd. with a revenue of more than 56.5 billion VND...

After converting the operating model, the profits of enterprises in the following year are always higher than the previous year and besides, they also fully fulfill their obligations to the State, pay high dividends, gradually increase the income of workers, and make great contributions to social security. Enterprise innovation has created a "new wind" that changes the face of enterprises in our province. The leader of the Department of Finance said: This conversion has restructured and recovered a part of the state capital spent, at the same time creating motivation for enterprises to promote their ownership in production and business.

Building a "locomotive" business

Despite facing many difficulties due to the tightening investment policy... in our province, businesses are still developing. In the first 7 months of 2012, the Department of Planning and Investment granted business registration certificates to 551 businesses, but a very worrying issue is that small-scale businesses account for a high proportion (currently, up to 21% of businesses are micro-enterprises, 59% are small businesses and 16% are medium-sized businesses). Because the reality is that small and micro-enterprises still account for a large proportion and because of the family-style thinking and working style, lack of connection, mutual support and "each doing their own thing", small businesses find it very difficult to maintain and stabilize production and business.

A business director said: “We are a small business specializing in the production and trading of aluminum and glass products and the main source of goods is purchased from large agents in the northern provinces. As a small business, the imported goods are expensive, so we are forced to increase the selling price. Luckily, we have not invested heavily in this business. Otherwise, we would have suffered losses and accumulated debts if we had encountered a difficult consumer market like now.” The problem that limits small businesses in the province is the lack of capital, management experience and suitable business plans, so the number of businesses operating at a loss is increasing. Up to now, 985 businesses have temporarily suspended or stopped operating; 553 businesses have closed their tax codes (an increase of 64% over the same period...)

Currently, the Government continues to vigorously implement Resolution 11, Directive 1792 on strengthening the management of investment capital from the State budget and Government bonds, continuing to cut public investment, converting investment forms, changing sources and payment methods... so it has created a "narrow door" and there is no other choice but for businesses to "renew" themselves with appropriate directions. Just like the good way of innovating state-owned enterprises, small and medium enterprises in our province, bold innovation will bring success to those businesses that know how to take advantage of opportunities and build appropriate transformation plans.

A typical example of the transformation from a small-scale enterprise with family-style management, production and business practices to a large enterprise with a modern and scientific business management model is Thanh Thanh Dat enterprise.

Hoang Long Food Processing Joint Stock Company, export turnover reached 15.8 million USD with 3 main products: cassava starch, rubber and sugar... With the majority of enterprises in our province being small and medium-sized, the fact that enterprises boldly transform to develop, become "leading" enterprises affirming strong brands in the market is very much needed to be recognized, commended and this is the motivation for other enterprises to learn and follow...

Prioritize capital

Besides the enterprises that have really increased their position and strength after the renovation, there are also many enterprises that have encountered many difficulties in many aspects, especially in terms of capital. Therefore, in order to improve the operational efficiency of enterprises, in the coming time, related industries need to create many "channels" to support capital. This is one of the important steps to create a foundation for enterprises to boldly invest in production development, innovate modern technology, and at the same time take advantage of production and business opportunities.

Along with solving capital difficulties, businesses in our province are currently in great need of assistance to expand their consumption markets, train and improve the qualifications of business management staff as well as workers...

According to statistics, currently in our province there are more than 10,500 enterprises and to ensure that enterprises exist and develop sustainably in the market mechanism, the province needs to innovate mechanisms, have policies to support enterprises, especially in terms of capital to invest in technological innovation, expand production scale and diversify production and business sectors... and especially support and create favorable conditions for enterprises when innovating to improve production and business efficiency.

Hoang Vinh