Restructuring to make the business operate more effectively

Difficult times

In the period of 2021 - 2025, due to fluctuations in the world economy and the epidemic situation, the production and business activities of Khanh Viet Corporation and Khanh Hoa Salanganes Nest Company encountered certain difficulties. For Khanh Viet Corporation, out of 11 dependent accounting units, only 7 business units were profitable, including: Khatoco Khanh Hoa Tobacco Factory, Khatoco Phu Yen Tobacco Factory, Khatoco Nghe An Tobacco Factory, Khatoco Raw Material Tobacco Company, Khatoco Garment Factory, Khatoco Branch in Gia Lai, Khatoco Branch in Ho Chi Minh City. The remaining 4 units have been making losses for many years, including: Khatoco Quang Nam Ostrich Breeding Center; Khatoco Ninh Hoa Ostrich Breeding Center; Khatoco Ostrich - Crocodile Trading Company; Yang Bay Tourist Park. In addition, of the 8 companies in which Khanh Viet Corporation holds less than 50% of charter capital, 6 companies operate inefficiently and even incur losses.

Production activities at Khatoco Garment Factory.

For Khanh Hoa Salanganes Nest Company, from 2021 to 2024, the company encountered many difficulties. However, with certain efforts, out of 18 dependent accounting units, 2 business units were at a loss. For 3 enterprises in which the company holds more than 50% of the charter capital, all have the largest revenue in the entire system. Particularly, of 8 enterprises in which the company holds 100% of the charter capital, only 1 company is operating effectively, the rest are still at a loss or operating ineffectively.

Mr. Nguyen Tan Tuan - Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee, Secretary of the Provincial Party Committee: In order for enterprises to operate more effectively, the Provincial People's Committee requests relevant departments, branches and sectors to promptly complete legal procedures to hand over natural islands to Khanh Hoa Salanganes Nest Company for management to preserve forests and ensure national defense and security. Regarding Khanh Viet Corporation, relevant units also quickly completed legal documents for Trang E Industrial Cluster to attract secondary investors. At the same time, Khanh Viet Corporation and Khanh Hoa Salanganes Nest Company urgently completed the project to restructure state-owned enterprises, arrange member units to operate effectively, increase budget revenue, and maintain the brand. Regarding the issue of equitization, the Provincial People's Committee will report to the Prime Minister for comments on further handling.

Ms. Trinh Thi Hong Van - Chairwoman of the Board of Members of Khanh Hoa Salanganes Nest Company said that in 2021 and 2022, the Covid-19 epidemic situation has greatly affected the production and business activities of the company. In addition, the company's products are also facing fierce competition with other salanganes nest products on the market. The current situation of counterfeit goods and brand imitations occurring openly and complicatedly has greatly affected the production and business tasks of the entire system.

drastic change

In order to respond to the new situation, it is time for Khanh Viet Corporation and Khanh Hoa Salanganes Nest Company to determine that there must be breakthrough changes; it is necessary to dissolve the affiliated enterprises that are making losses. Mr. Chau Ngo Anh Nhan - Director of the Department of Finance suggested that, in the immediate future, the two enterprises need to focus on restructuring and divesting state capital so that the enterprises can operate more effectively. Regarding the issue of equitization, it should be after 2026, based on the actual situation, then there will be a suitable plan. Because Khatoco is a long-standing brand and has made a great contribution to the state budget. Similarly, Khanh Hoa Salanganes Nest Company, in addition to production and business issues, also manages natural bird nest islands, related to national security and defense.

Refining bird's nest at Khanh Hoa Bird's Nest Beverage Joint Stock Company.

According to the Project on restructuring state-owned enterprises of Khanh Viet Corporation, the goal for the period up to the end of 2025 is that the unit will continue to build and develop in a sustainable and effective direction on the basis of promoting the advantages of organization and operation according to the parent company - subsidiary model. In particular, Khanh Viet Corporation will continue to be maintained as a limited liability company with 100% charter capital held by the State; maintain 10 dependent accounting units; divest all capital in 2 subsidiaries with over 50% charter capital held by Khanh Viet Corporation; maintain the ratio of charter capital held in 2 enterprises with less than 50% charter capital held by the corporation. Mr. Le Quoc Thanh - Chairman of the Board of Members of Khanh Viet Corporation affirmed that the issue of divestment and restructuring of enterprises will be implemented quickly by the unit. The immediate goal is that the corporation will calculate and rearrange to operate effectively. For units that need to divest, focusing on how to preserve state capital is the top priority.

Khanh Hoa Salanganes Nest Company is also oriented to streamline its apparatus in conjunction with restructuring the management team, retaining essential and effective units, and focusing on the main business areas. The Company will proceed to dissolve non-essential and ineffective single-member LLCs; continue to preserve and increase the Khanh Hoa Salanganes Nest brand; restore double-digit growth in revenue and profit; preserve and develop State capital in the enterprise; pay attention to improving the lives and incomes of cadres, employees, and workers. Along with that, Khanh Hoa Salanganes Nest Company will continue to be a LLC in which the State holds 100% of the charter capital. “In addition to the 15 dependent accounting units that the company continues to maintain, 2 new units have been established and 8 dependent accounting units have been dissolved. At the same time, the enterprises in which Khanh Hoa Salanganes Nest Company holds more than 50% of the charter capital will continue to be maintained. The company will restructure its affiliated units strongly and drastically; streamline the apparatus so that the enterprise can operate more effectively and efficiently,” Ms. Trinh Thi Hong Van affirmed.

DINH LAM

Source: https://baokhanhhoa.vn/kinh-te/202505/tai-co-cau-de-doanh-nghiep-hoat-dong-hieu-qua-hon-96e6eb8/