Corporate restructuring - A "booster" to enhance competitiveness

(Baonghean) -Enterprise restructuring plays an important role in economic development strategy, and especially in the current period, restructuring is a necessary issue for enterprises in our province to "increase strength" to improve competitiveness and develop steadily in the market mechanism.

On average, each month, the Department of Planning and Investment of Nghe An issues business registration certificates (BCCs) to more than 100 enterprises. Since the beginning of 2011, the province has issued BCCs to more than 1,100 enterprises. This shows that despite the difficult economic situation, the development of enterprises has still achieved high results. According to statistics, there are currently more than 9,000 enterprises in the province, including 2,900 joint stock companies; more than 2,142 LLCs with 2 or more members; 1,304 LLCs with 1 member and more than 2,700 private enterprises. Although growing strongly in quantity, a worrying reality in businesses in our province is that they do not pay attention to quality, which is clearly shown in: The scale of small businesses, currently 21% of businesses are micro-sized, 59% are small businesses and 16% are medium-sized businesses.

As a small business, family-style management, fragmented and small-scale business, lacking connection and cooperation in business and business development... Being in the period of "tightening" investment, the difficult economic situation is a strict condition for screening and selecting businesses with the strength to survive, and at the same time is an opportunity for businesses to choose investment and development plans suitable to the situation. In fact, in the past time, in our province, there have been many businesses that have not stood firm in the market, had to accept to reduce production, leading to losses and dissolution of businesses. According to the investigation results of the authorities, currently in the province, there are more than 800 businesses that have had to stop operating), 590 businesses have not been dissolved, but have closed their tax codes, and 28 businesses have announced to stop operating.

The Government is continuing to resolutely direct the implementation of Resolution 11 and issue Directive 1792 on strengthening the management of investment in state budget capital and government bonds, continuing to cut public investment, converting investment forms, changing sources and payment methods... which will affect the business operations. Therefore, in the coming time, businesses must make great efforts to stabilize production, restructure... In that difficult situation, there has been a "good" signal, that is, private, small-scale enterprises have begun to boldly "remove" the practice of family-style management, production and business, and instead use public governance models such as joint ventures, mergers, shares... which are clear, public, transparent and especially enhance the potential to compete and stand firm in the market mechanism.

Some businesses that have developed in this direction include Thanh Thanh Dat, which started out as an "unknown" business with a family-style business style, but after a short time struggling with the market, has now begun to affirm its big brand in Nghe An with very successful business lines such as: Wood chip export; Real estate business; Road and sea freight transport; Construction of civil, industrial, traffic, and irrigation works; Production of paper materials; Production and processing of agricultural, forestry, and aquatic products... and recently has been very "generous" in investing in the agricultural and industrial sector to the Lao market. Or a famous private enterprise in Nghe An, Hue Loc, which started out as a motorbike trading business, then became a strong business in real estate, hotels... and the goal is to develop in a multi-industry direction.

As mentioned above, due to the characteristics of small-scale enterprises in our province, it is very difficult to survive and stand firm in the current difficult period. And then in fact, in recent times, there has been an "undercurrent" in the unhealthy conversion of ownership forms between enterprises. Some strong enterprises "take over" other enterprises by spending money to buy stocks and shares with the purpose of owning enterprises with advantages in land and large premises in prime locations in Vinh City, but after obtaining an important position, that enterprise does not continue to invest capital to expand production and business... Some people think that this incident is just a move labeled: Enterprise restructuring. But according to research, it is just an excuse for enterprises to do other things...

Although there are some “sand grains” that negatively affect the restructuring and development of enterprises, they are not obstacles in the process of innovation and development of enterprises in Nghe An. One way to survive and develop steadily in the new mechanism is that enterprises must make great efforts to mobilize investment capital, stabilize production and business, and restructure... And the important thing in the province's enterprise development goal is to continue to maintain and develop enterprises through expanding the scale and diversifying production and business sectors, investing in technological innovation and business management skills, increasing market competitiveness, innovating mechanisms and open policies to support enterprise development.

Hoang Vinh