Discussion on the model of organization, innovation, improvement of operational efficiency of agro-forestry companies

In the morning of August 21, in Hanoi, the Ministry of Agriculture and Rural Development (MARD) organized a seminar on Model of organization, innovation and improvement of operation efficiency of agro-forestry companies. Attending and chairing the seminar were Deputy Prime Minister Vuong Dinh Hue, together with Standing Deputy Minister of MARD Mr Ha Cong Tuan, and representatives of People's Committees of provinces and cities nationwide.

Speaking at the opening of the seminar, Deputy Prime Minister Vuong Dinh Hue said that the Political Bureau had Resolution No. 30-NQ/TW dated March 12, 2014 of the Politburo on reorganization and renewal, development and improvement of the operational efficiency of agricultural and forestry companies. Based on this Resolution, the Government issued Decree 118/2014/ND-CP dated December 7, 2014 on reorganizing, renovating and improving the operational efficiency of agricultural and forestry companies. After nearly 5 years of implementation of Resolution No. 30-NQ / TW, there have been some positive effects with better and faster arrangement process in large enterprises. The Steering Committee for enterprise renovation and arrangement has directly instructed the implementing agency, MARD directly instructed the editorial board to prepare the final report to proceed to the preliminary review conference on the 5-year implementation of Decision No. 30-NQ/TW.

According to Resolution No.30-NQ/TW, there are 4 types of arrangement, which include: maintaining and developing agricultural and forestry companies with 100% state-owned charter capital; transferring agro-forestry companies with 100% state-owned charter capital into joint-stock companies; establishment of one-member limited company; Dissolution of agricultural and forestry companies. Regarding the consolidation, maintenance and improvement of a 100% state-owned agriculture and forestry company, the Government has issued a list and awaits specific comments from the implementing agencies. For the second type, the Deputy Prime Minister requested all related ministries and administration bodies to comply with the order and consider the suitability of each case. Besides, Deputy Prime Minister Vuong Dinh Hue said that the conversion to the two-member limited liability company encountered many problems, although that was a very good mechanism.

According to Permanent Deputy Minister of MARD Ha Cong Tuan, as of June 30, 2019, there have been 160 companies completed the conversion process to be put into operation under the new model, accounting for 62.5%. The companies which are implementing and expected to complete the arrangement in 2019 and move into operation under the new model will be 69 companies, reaching 29.95%. And 27 companies have not yet reorganized, accounting for 10.54% of the total number of companies that must be restructured by the Prime Minister's order.

In particular, many localities have implemented the Resolution with good results such as Lao Cai, Ha Tinh, Quang Binh, Khanh Hoa, Binh Dinh, Kien Giang, Quang Nam, Kon Tum, Long An, Vietnam Rubber Industry Group, Vietnam Forestry Corporation.

Summarizing the comments at the seminar, Deputy Prime Minister Vuong Dinh Hue emphasized that all the activities would need to comply with the provisions of the Law on Agricultural Land Use Tax and the National Assembly's Resolution on exemption from land use tax. It is necessary to clearly state the conversion principles, specify 9-step transformation process and enterprises must develop these contents. The goal of the government is to basically complete the re-arrangement of agro-forestry companies by 2020.