Nghe An continues to reorganize and convert agricultural and forestry companies.
(Baonghean.vn) - Nghe An has been actively implementing the Government's direction on restructuring and converting agricultural and forestry companies; however, the production and business efficiency of the converted units has not had any new breakthroughs.
Strengthening units in strategic areas
According to Decree No. 118/2014/ND-CP dated December 17, 2014 of the Government regulating the reorganization, management mechanism and policies for agricultural and forestry companies, the principles for reorganization must be consistent with the development policy and orientation, improving the operational efficiency of state-owned enterprises, associated with restructuring the agricultural sector and the economy.
The innovation arrangement aims to specifically identify land users and forest owners, strictly manage, improve land use efficiency, protect and develop forests and forest resources.
Create fundamental changes in the method of organizing, managing and administering businesses, linked to the processing industry and the market according to the commodity value chain.
Also according to the Government's plan, Nghe An will maintain, consolidate, develop and restructure the State-owned single-member LLC with 100% charter capital to carry out the task of producing and supplying public products and services for a number of companies.
On that basis, the Provincial People's Committee issued Decisions No. 6184, 6271, 6273 in 2017 on maintaining, consolidating and improving the operational efficiency of the following companies: Song Hieu Agricultural Forestry Company Limited, Tuong Duong Forestry Company Limited, Con Cuong Forestry Company Limited and Do Luong Forestry Company Limited. These are enterprises in strategic locations, border areas and remote areas associated with national defense and security tasks.
Nghe An also equitized agricultural companies including: Song Con Agricultural Company Limited; 3/2 Agricultural Company Limited; Nghe An Tea Investment and Development Company Limited and Nghe An Coffee - Rubber Company Limited.
Completed equitization of 3 enterprises
Currently, Nghe An has completed the equitization and switched to the joint stock company model for 3 enterprises:
Song Con Agricultural One Member Co., Ltd. was transformed into Song Con Agricultural Joint Stock Company in 2018; charter capital of VND 20,760 million, of which the State capital is VND 7,718 million, accounting for 37.18% of charter capital.
3/2 Agriculture One Member Co., Ltd. was transformed into 3/2 Agriculture and Industry Joint Stock Company since 2018; charter capital of 15,996 million VND, of which the State capital is 5,561 million VND, accounting for 34.76% of charter capital.
Nghe An Tea Development Investment Company Limited was transferred to Nghe An Tea Corporation Joint Stock Company, operating as a joint stock company from April 14, 2022; charter capital of VND 34,156 million, of which the State capital is VND 17,420 million, accounting for 51% of charter capital.
Regarding Nghe An Coffee - Rubber Company Limited: On October 25, 2022, the company coordinated with the consulting unit to complete the determination of enterprise value and submitted it to the Provincial People's Committee and the Steering Committee for equitization for appraisal and approval. However, the equitization of Nghe An Coffee - Rubber Company Limited has not been continued due to problems with the orange garden assets in Vinh city.
Also according to the direction in Official Dispatch No. 321/TTg-DMDN dated February 26, 2016 of the Prime Minister, Nghe An province has 3 100% state-owned enterprises owned by the Provincial People's Committee converted into limited liability companies with two or more members. They are: Nghe An 1/5 LLC, Xuan Thanh Agricultural LLC and An Ngai Agricultural LLC. However, the conversion has not been implemented due to the lack of specific instructions on the auction of capital contributions to limited liability companies with two or more members. Therefore, the conversion is currently suspended pending new instructions.
The leader of the Department of Finance said: In Official Dispatch No. 321/TTg-DMDN dated February 26, 2016, the Prime Minister agreed to convert Quynh Luu Forestry One Member Co., Ltd. into a Protection Forest Management Board operating under the mechanism of a public service unit with revenue and merging with the Quynh Luu Protection Forest Management Board. The conversion of this company was completed in 2018.
Discussing the effectiveness after the restructuring, Mr. Vo Dinh Toan - Head of the Department of Corporate Finance - Department of Finance said: After restructuring, in general, the business results of agricultural and forestry enterprises have not had any new breakthroughs. The revenue of enterprises has increased but the profit and budget payment have not grown. For example, for 3/2 Agricultural Industry Joint Stock Company, the State capital contribution ratio as of December 31, 2022 is 34.76%, in 2022 the total revenue reached 23.8 billion VND, in 2023 it is expected to be lower, the profit after tax is negative 2 billion VND, the budget payment is 907 million VND. Song Con Agricultural Joint Stock Company, the State capital contribution ratio is 37.18%, the total revenue in 2022 is 41 billion VND, the profit after tax is only 45 million VND...
Enterprises have not yet attracted the workforce, especially highly skilled workers. After the transformation, most enterprises still do not have new strategies in production, and the production model has not been innovated compared to the period 10 years ago (2013). This continues to be a problem for leaders of business management units as well as relevant state management agencies.
In the coming time, Nghe An will continue to implement the remaining contents according to the Government's plan for Nghe An 1/5 One Member Co., Ltd., Xuan Thanh Agricultural One Member Co., Ltd. and An Ngai Agricultural One Member Co., Ltd....
The province's guiding spirit is to speed up the reorganization process but do it strictly to avoid loss of State assets. The process of considering the equitization plan prioritizes strategic investors, with capacity, inheritance and the ability to build investment plans, in-depth linkages, and product chains to fully exploit the value of land.
Currently, regarding strategic investors, Nghe An Tea Corporation has two strategic investors, TH Group and Song Con Sugarcane Corporation; other companies have not seen the appearance of strategic investors due to remaining problems or unattractive investment environment.