BAC GIANG - Regarding restructuring, renovating and improving the efficiency of state-owned enterprises (SOE), Bac Giang province has implemented many drastic solutions but the operations of these businesses are still limited.
The province now has 12 SOE, six businesses with state capital contribution. All are small and medium-sized enterprises, mostly operating in the fields of public utility and social security.
In general, the production and business activities of SOE are not highly effective. Some are profitable but their budget contributions are low. The dividends distributed on the State's capital contribution are insignificant.
In 2023, Bac Giang province issued plan to divest all capital from 10 enterprises with state capital contribution that do not need to be controlled, but there are still many obstacles so the divestment failed to complete the target.
The slow and hard State capital divestment was resulted because it depended largely on shareholder structure and the current state of the enterprise. Most businesses have small scale, limited financial capacity, inefficient production and business, low competitiveness. So it is hard for them to attract partners and investors to contribute capital and buy shares. Some do not have advantages in land or trade.
On the other hand, the ownership ratio of State shareholders is too small or there are other shareholders with controlling rights (over 51%) in the enterprise which reduces the attractiveness of state capital contribution.
To promote production and business and continue improving the efficiency of SOE as well as soon complete the goal of divesting state capital in enterprises, Bac Giang will focus on a number of solutions in the upcoming time.
Particularly, the province strives to complete divesting all State capital in 10 joint stock enterprises with State capital contribution, continue arranging and organizing the management structure to improve the operational efficiency of the two forestry companies during 2023-2025 period.
At the same time, Bac Giang requested the Government to issue specific instructions on the order and procedures to divest state capital in joint stock companies with state capital; have special mechanism for capital transfer for companies with a low percentage of State capital contribution, controlling shareholders, inefficient business operations that are not attractive to investors.
The province also proposed the State Bank of Vietnam to preside over and coordinate with the Ministry of Finance to guide the method of handling old loans of agricultural and forestry companies as well as amend and supplement the mechanism to handle old debts, including principal and interest debts, of forestry companies.