Removing obstacles and improving the operational efficiency of forestry companies

Inefficient operation

Luc Nam Forestry One Member Limited Liability Company was assigned by the State to manage and use more than 2,700 hectares of economic forest land in the communes of Dong Phu, Tam Di, Dong Hung, and Bao Son. Currently, all of this area has been assigned to households. According to Mr. Nguyen Van Kiem, Chairman of the Board of Directors and Director of the Company, for many years the unit has been in a difficult situation, currently owing the bank about 29 billion VND, while the amount of money that people owe the Company is about 34 billion VND but is difficult to recover.

Luc Nam Forestry One Member Limited Liability Company produces seedlings to supply the market.

This greatly affects the production and business results of the unit. When accounting, the revenue cannot be compensated, leading to many years of losses or break-even. In addition, because the entire forest land area has not been granted a certificate of land use rights, if a dispute occurs, there is no basis for resolution. Due to bad debt and no collateral, the Company cannot borrow capital from credit institutions...

During a recent inspection and working session at Luc Nam Forestry One Member Limited Liability Company, Mr. Phan The Tuan, Vice Chairman of the Provincial People's Committee, said that in the context of strong development of the forestry economy, especially the sharp increase in the amount of raw wood from planted forests in recent times, the Company has not yet made a breakthrough, which is worth paying attention to. He requested that the Company needs to be more proactive and creative, especially to innovate and eliminate the subsidy mindset to strive to overcome difficulties.

At the same time, it is necessary to have a specific, drastic and more determined plan to overcome the problem, develop a specific plan and roadmap to be granted a land use right certificate for the forest land area assigned for management. At the same time, convert the operating model to a two-member limited liability company according to regulations. He also requested the Department of Agriculture and Environment to support the procedures so that the Company can soon be granted a forest land use right certificate.

Mai Son Forestry One Member Limited Liability Company was assigned by the State to manage more than 1,800 hectares of forestry land, including more than 1,000 hectares of natural forest land. However, for a long time, the Company operated ineffectively, leading to a lack of capital for production and unpaid wages for workers, and a debt to the bank of about 10 billion VND. It is worth mentioning that although it was assigned to manage a large forest land, due to lack of responsibility and lax management, the Company allowed people to illegally cut down, destroy and encroach on natural forest land to plant trees for timber. Recently, the Company's leaders and a number of related individuals were prosecuted and detained by the Provincial Police's Investigation Security Agency.

Removing difficulties and obstacles

Implementing the Central Government's direction, since 2016, Bac Giang province has had the Prime Minister approve the overall plan to reorganize and innovate forestry companies. However, to date, only 2 out of 4 forestry companies have been converted to the two-member model, while the remaining one-member limited liability forestry companies Luc Nam and Mai Son have not completed the conversion. The reason why the second members are not keen on contributing capital is because the company's land has been contracted to households since the 90s of the last century (previously contracted for 20 years, 30 years, now contracted periodically), while the company's bank debt is large and long-standing.

Furthermore, the second member wants to take control, but according to Conclusion No. 82-KL/TW dated July 29, 2020 of the Politburo, for forestry companies with 1,000 hectares or more, the State holds control, so Thien Lam Dat Joint Stock Company previously registered to be the second member of Luc Nam and Mai Son Forestry Companies, but later requested not to participate in contributing capital.

According to Mr. Nguyen Van Kiem, recently, Luc Nam Forestry One Member Limited Liability Company had a business requesting to become the second member to contribute capital, the parties met to discuss and propose necessary steps and specific solutions. However, according to Decree No. 04 dated January 12, 2024 of the Government amending and supplementing a number of articles of Decree No. 118/2014/ND-CP dated December 17, 2014 of the Government on arrangement, innovation and development, improving the operational efficiency of agricultural and forestry companies, to become the second member, it is necessary to meet a number of additional requirements such as: Having a production and processing plan applying high technology, meeting the needs of domestic and foreign markets according to the criteria; must evaluate the assets of the enterprise and bid competitively...

Mr. Ha Minh Quy, Deputy Director of the Department of Agriculture and Environment, said that while the companies that have completed the conversion of their operating models according to regulations (Yen The Forestry Two-Member Limited Liability Company and Luc Ngan Forestry Two-Member Limited Liability Company) are producing and doing business effectively, maintaining good management, protection and development of forests, Luc Nam and Mai Son Forestry Companies have not completed the conversion and are facing many difficulties.

To overcome this, the Department of Agriculture and Environment has assigned the forest rangers to coordinate with localities and enterprises to properly manage the existing land and forest areas of forestry companies. At the same time, it requires enterprises to strictly implement the contract according to regulations; continue to maintain and ensure production and business activities according to plan; strictly manage land and assets on land, prevent encroachment and avoid disputes.

Strengthen guidance on converting to crop production with higher productivity and economic efficiency; support procedures for enterprises to complete the issuance of land use right certificates on the area assigned by the State as well as procedures for converting the model to a two-member company. In the long term, relevant agencies need to advise the province on measures to remove difficulties and obstacles, thereby helping to improve the operational efficiency of forestry companies, as well as meet production requirements in the new situation.

Article and photos: Nguyen Huong

Source: https://baobacgiang.vn/go-vuong-nang-hieu-qua-hoat-dong-cac-cong-ty-lam-nghiep-postid416782.bbg