Setting the target of 100% forestry and agricultural firms companies earn profit

According to the target plan by 2025, one hundred percent of agriculture and forestry businesses completely solve all financial and land problems as well as earn profit.

Representative photo. 

Focusing on definitively handling shortcomings

The content is included in the Government’s plan on continuing to arrange, reform, develop and improve the work efficiency of forestry and agricultural businesses. Besides, it can achieve the common criteria of corporate governance according to international standards.

Ministries, departments, and localities are demanded to continue implementing Resolution No. 30-NQ/TW and Conclusion No. 82-KL/TW, closely following up viewpoints, goals, directions, drastic implementation of tasks, and solutions stated in the Resolution and Conclusion of the Politburo.

Concurrently, ministries, departments, and localities are also required to focus on some key missions and solutions including promoting the effectiveness of arrangement, reform, and development of agricultural and forestry businesses; continue to perfect the mechanism, policies on promoting the effectiveness of arrangement, reform, and development of agricultural and forestry businesses; strengthen the effectiveness of management, improve the efficiency of land and forest use in agriculture and forestry companies; strengthen inspection and supervision; improve management capacity and operational efficiency of agricultural and forestry companies.

When it comes to mechanisms and policies to remove difficulties and obstacles in arranging agricultural and forestry companies, legal regulations on the model of limited liability companies must be completed to meet market demand and exporting to meet common international standards.

Ensuring the State's govern right over agricultural and forestry companies managing large areas (from 500 ha or more for agricultural companies, from 1,000 ha or more for forestry companies). Setting specifying conditions, forms, criteria, order, and principles for investor selection; method of valuing assets contributed as capital, capital contribution ratio to establish a limited liability company with two or more members.

The demand also features regulations on the proportion of charter capital held by the State in equitized agricultural and forestry companies that manage large land; regulations on merger and consolidation of several agricultural and forestry companies in the same area, with the same owner; regulations on funding to support the settlement of financial problems for agricultural and forestry companies that are dissolved without payment capacity; support from the central budget for measuring, installing landmarks, cadastral mapping, and granting land use right certificates for localities that are meeting difficulties to balance the budget.

Strengthening working effectiveness

Building the mechanisms and policies to develop and enhance the operational effectiveness of agricultural and forestry businesses after arranging, reforming, amending, and supplementing specific regulations on finance and land use tax in agricultural and forestry production and business.

Exemption and reduction of land rent for forest trees and perennials, stable and long-term contracted areas for households, individuals, communities, and areas for replanting orchards and plantations; appropriate mechanism of financing and preferential credit for production and business activities in strategic areas combining economic with national defense and security.

Researching and proposing a mechanism for transferring capital and assets on land from agricultural and forestry companies to the locality by the method of recording increase or decrease of capital for the area handed over by these companies in the process of arrangement and change; regulations on the mechanism for ordering public utility tasks for the management and protection of natural forests, special-use forests and interleaved protection forests, and assign them to agroforestry companies for management following the actual situation of corporate financial management mechanism.

Exempting and reducing land rent for forest trees and perennials, stable and long-term contracted areas for households, individuals, communities, and areas for replanting orchards and plantations. 

Enhancing the effectiveness and land and forest use

The decision clearly states the strengthening of management effectiveness and improves land and forest use efficiency at agricultural and forestry companies. Specifically, expeditiously complete the boundary review, installing landmarks, measuring and mapping cadastral maps, granting land use right certificates, and making cadastral dossiers; review and approve land use plans retained by agricultural and forestry companies based on clearly defining the location, boundaries, and area of land.

Complete land transfer dossiers, rent land, and forest to ensure the balance between the model of business administration, production model labor force, and the remaining land area.

People’s Committees at the provincial and municipal levels under the Central taking legal responsibility must assign local levels to receive, manage and use legally and effectively the allocated land area, avoiding the situation of derelict land, dispute, encroachment, law violation; stipulate the responsibility for making the land use plan, handing over to the locality for management and handling of assets on the land.

Groups, corporations, agricultural and forestry companies must review the plan on using the allocated or leased land, maintain the contracting mechanism for households and communities until the end of the contract legally; quickly, and drastically resolve the shortcomings.