Deputy Prime Minister Vuong Dinh Hue made the statement while chairing a teleconference hosted by the Steering Committee for Business Renovation and Development and the Ministry of Agriculture and Rural Development on October 28, reviewing the restructuring and the renovation of agro-forestry companies during the 2015-2017 period.
After the Politburo issued Resolution No. 30-NQ/TW dated March 12, 2014 on reorganizing, renovating and improving operation efficiency of agro-forestry companies, the Government and relevant ministers and agencies have taken measures to realise Resolution 30 with the essential initial results. In the coming time, ministries, branches, People's Committees of provinces and cities under central level, and economic groups and corporations owning agro-forestry companies will step up solutions to complete the work by 2018. Localities will urgently complete approval of schemes of such companies under the master plan approved by the Prime Minister in Q4 2017.
The Ministry of Agriculture and Rural Development will coordinate with the Government Office to consider and submit, to the Prime Minister, for consideration the proposals from localities and units requesting adjustment of the model of arranging agricultural companies in November 2017, while completing measurement, demarcation and issuance of land use right certificates to them by the second quarter next year.
Deputy Minister of Agriculture and Rural Development Ha Cong Tuan said that the Prime Minister has approved most of the master plans for restructuring and renovating agriculture and forestry companies of 41 provinces and cities and large agro-forestry corporations with more than 254 companies needing to be reorganised.
Leaders of Lao Cai, Khanh Hoa and Binh Dinh provinces reported that after implementing the decision by the Prime Minister, several companies have achieved more positive production and business operation than before. Especially in regards to the equitisation model, the revenue and profit targets have increased, as Binh Duong Rubber JSC net in VND133 billion in profits compared to VND49 billion before rearrangement, Binh Duong Agro-Forestry Company with VND34 billion compared to VND26 billion before, and Bau Can Tea JSC VND4 billion compared to VND277 million previously.
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Delegates at the conference said that after implementing restructuring plans, agro-forestry companies have achieved more positive production and business operation than before. (Credit: VGP)
However, local leaders also pointed out difficulties for such companies in accessing capital and the potential delay in providing additional capital, especially those located in upland and isolated areas who are facing difficulties in getting loans from banks.
Due to the above difficulties, the implementation of reorganisation, renovation and improvement of agro-forestry companies under Resolution 30 are still slow. Up to now, only ten out of 238 companies (accounting for 19.6%) have been equitised; 12/38 companies transferred into two-member limited liability companies (31.28%) and 11 companies (39%) disbanded.
Speaking at the conference, Deputy PM Hue stated that to date, most localities have approved their projects on the reorganisation of agro-forestry companies with improved operation after restructuring. However, the Deputy PM also noted that the implementation progress in some units is still slow.
Emphasising the importance of arranging and renovating agro-forestry companies on the restructuring of the agricultural sector, the renewal of SOEs and the lives of millions of people, the deputy PM stressed that 2018 must be the ideal year to complete the work according to Resolution 30. In 2019, the Government will propose the State Audit to fully audit the operation of such companies in order to define the results and find obstacles and then report these findings to the National Assembly.
To better implement these tasks, he assigned the Ministry of Agriculture and Rural Development and Natural Resources and Environment and other sectors to closely follow their tasks and solve problems faced by enterprises and localities in the fields of equitisation, forming a two-member company, determining the value of enterprises, and approving the land use plan, while updating the forest and land management system.
The Ministry of Finance was urged to guide localities to call for private capital to set up agricultural and forestry limited companies with two or more members, ensuring that they operate efficiently and sustainably. The State Bank should continue to focus on directing credit finances and commercial banks to review and restructure the debts of agro-forestry companies.
According to the Ministry of Agriculture and Rural Development, the total land area managed by agro-forestry companies, before re-arrangement, is 2.4 million ha. By September 15, 2017, their book assert value was at VND53.1 trillion; average profit before tax during 2014-2016 at VND2.2 trillion.
