Proposing to reorganize, innovate, develop and improve the operational efficiency of agricultural and forestry companies

DNHN - The Ministry of Agriculture and Rural Development is drafting a Decree amending and supplementing some articles of the Government's Decree No. 118/2014/ND-CP dated December 17, 2014, on the arrangement, renovation and development, improving the operational efficiency of agricultural and forestry companies.

The Ministry of Agriculture and Rural Development proposed the draft Decree No. 118/2014/ND-CP including 4 articles. The proposed amendments and supplements include: Amending and supplementing regulations on transforming state-owned agricultural companies holding 100% of charter capital into joint-stock companies, with the State holding controlling shares in agricultural companies. an agricultural company that has a land-use plan of 500 hectares or more approved by the provincial People's Committee or whose main business is planting and processing rubber in strategic, remote and isolated areas. with national defence and security; regulations on establishing limited liability companies with two or more members; and maintaining, consolidating and developing State-owned forestry companies holding 100% of charter capital… 

According to the Ministry of Agriculture and Rural Development, as of December 31, 2021, after 7 years of implementing Resolution 30-NQ/TW and Decree 118/2014/ND-CP, there are 256 agricultural companies nationwide, forestry by 49 localities, groups and corporations managed, arranged and renovated. 

In the process of implementing Decree 118/2014/ND-CP, there are still some shortcomings and shortcomings such as: After 7 years of implementing the Decree, there are still 90 agroforestry companies that have not been completed. reorganization and renewal, accounting for 35.2% of the total number of enterprises, of which 86 enterprises have approved the plan and 04 have not completed the plan to approve the plan. 

Some agroforestry companies have not been efficient in their production and business, their financial situation is still difficult, they have not met the requirements of the law on management and use of state capital, doing business at a loss, contracted land but could not manage land and contracted products. Most of the companies that maintain the model of one-member limited liability companies perform public duties but cannot supplement their charter capital. The mechanism for ordering and assigning public tasks to protective forests, special-use forests interspersed, and production forests which are natural forests that are temporarily suspended from exploitation has not yet been implemented. 

Most of the agricultural and forestry companies, which are controlled by the State's shares, operate inefficiently and have not been able to attract outside investment capital; the formation of concentrated commodity production areas in association with the processing industry and the market has existed but not much; Some companies cannot manage contracted products and have not found strategic partners. Some companies have switched to the form of limited liability companies with 2 or more members, but have not yet improved their production and business situation, and have not established concentrated agricultural and forestry product production areas associated with the industry. 

In addition, land management is still inadequate: the measurement, review, boundary marking, cadastral mapping, and issuance of land use right certificates are slow. Currently, there are 22 companies and branches in 11 provinces that have not yet completed the boundary review and set up boundary markers; 11 companies have not completed cadastral surveying and mapping; 123 companies have not yet approved land use plans; Only 57 companies and branches were granted land use right certificates, accounting for 27.54% of the total retained area. 

The financial situation of many companies has not been improved, facing many difficulties, low production and business efficiency; Although employment and income of workers have improved, they are still at a low level. Rent and tax on land resources for protection, special-use and production forests are natural forests that still exist and have not been completely handled. Some agricultural and forestry companies, when making arrangements, could not handle debts from loans from programs and projects 327, 661, ODA, and bank loans; Dissolution records of some companies do not have sufficient documents to compare debts, and there is no direction to handle according to the current regulations of law. 

Several agricultural and forestry companies, after model transformation, have not been able to attract capital, apply advanced technologies to production, resulting in the limited effective use of land and forest resources, and have not yet formed production of agricultural and forestry products, concentrated intensive farming associated with the processing industry and the market. 

For the above reasons, according to the Ministry of Agriculture and Rural Development, it is necessary to develop a Decree amending and supplementing many articles of Decree No. 118/2014/ND-CP.

Anh Dung