The Ministry of Agriculture and Rural Development (MARD) has issued a plan to reorganise agricultural production in the 2014-2020 period, with focuses on equitisation and state divestments in its corporations and groups, the Vietnam Economic News reported.

Currently, MARD manages 13 corporations and groups with total investment capital up to 3.562 trillion VND (about 150 million USD). Many of them are effectively operating and significantly contributing to the development of agriculture and national economy while some of them are not.

Under the guidance of the government on promoting equitisation in state enterprises, MARD has boosted equitisation and state divestments since 2006. Specifically, since 2012, all agricultural and forestry enterprises have been transformed into one-member limited companies, agricultural joint stock companies or protection forest management boards. There are now six groups and corporations with 145 agricultural affiliates, 148 forestry affiliates, three joint stock affiliates, and 87 protection forest management affiliates.

Under the restructuring plan approved by the Prime Minister, six corporations under MARD’s management must complete settlement and conversion to joint stock companies until 2016 include Agricultural and Rural Development Construction Corporation; Vietnam National Sea Products Corporation; Vietnam National Vegetable, Fruit and Agricultural Product Corporation; Vietnam National Tea Corporation; Vietnam General Corporation of Agricultural Materials; and Vietnam Forest Corporation.

MARD will continue to divest 64 percent stake to the Sugar Corporations I, II and hand over the Vietnam Livestock Corporation to the State Capital Investment Corporation (SCIC). Companies of agriculture and forestry will be merged and equitised with state held controlling stake.

According to MARD, reorganised agricultural companies have been developed stably thanks to enhanced scientific and technical investment. Corporate revenue and profit, and annual budget payments of many companies have increased rapidly.

After equitisation, due to requirements of increased production scales to meet market demands, links in agricultural production and product consumption must be developed in diverse forms and in accordance with the production conditions of each region and locality. However, these linkages grow slowly and difficultly.

MARD said it will promote the construction of sustainable link models on a voluntary basis, ensure harmonious legitimate interests of the companies involved in the models, focus on the key role of involved investment companies and agricultural production businesses to ensure the value chain from production, processing and marketing of products.-VNA