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Use the capital in the State-owned enterprises

Wednesday, 23/05/2018

In the process of reorganizing and reforming State-owned enterprises (SOEs), many enterprises have been equitized in the province to increasingly promote the effectiveness of capital resources, contributing to promote active spirit, creativity in production and business activities, raising operational efficiency.

Lien Son Irrigation One Member Limited Liability Company is one of the enterprises effectively using the State capital after equitization.

SOEs in the province mainly operate in providing public-utility products and services such as: irrigation, urban environment, production and distribution of clean water, road repairing. Therefore, every year, these units focus on their main sectors, ensuring the assigned political tasks for the production and supply of public services and products of the province, basically comply with regulations on tax policy, salary policy and etc.

In which, two enterprises maintain and develop the capital are Lien Son Irrigation Company Limited, Vinh Phuc Lottery One Member Limited Liability Company; four enterprises are guaranteed the capital (Phuc Yen Irrigation Company Limited, Lap Thach Irrigation Company Limited, Tam Dao Irrigation Company Limited, Tam Dao Agricultural One Member Company Limited).

In the past years, these enterprises have actively developed and implemented production plans, business plans, financial plans and development strategies of enterprises. As a result, the total turnover of the enterprises in the period of 2011 - 2017 reached over VND 1,470 billion; the average turnover growth rate of enterprises reached 4.7%; the profit before tax was more than 30 billion dong; and the contribution to the State budget was VND 127 billion; the average income of workers increased.

Through equitization, the enterprises protected the State's capital and assets, fully contributed to the State budget; invested in building and buying fixed assets in order to expand their capacity and production and business to increase turnover and raise the quality of products, thus boosting the production and business efficiency.

Workers in enterprises were assigned under the right level of professional qualification and skills; created conditions on technical means to raise labor productivity; raised the management of assets, meeting the assigned political tasks on the production and supply of public-utility products and services.

Nevertheless, the usage of capital at SOEs still faces some difficulties because: SOEs' investment capital is the capital from the State budget; the accumulation capital from enterprises for investment is very limited;

equipments and technology is slowly innovated; low mobilization capacity leading to high depreciation costs; there is a lack of highly skilled laborers and low labor productivity.

In order to further use the capital in SOEs, the provincial People's Committee propagated the resolutions of the Party and State policies on continuing to organize, improve the efficiency of SOEs to the Party committees at all levels, departments and organizations in the enterprises;

promote information and propaganda activities on the mass media in localities in the province in order to raise awareness, create unity and consensus of the whole political system in implementing the reorganization and innovation of SOEs;

request enterprises to keep on seriously implementing the restructuring and divesting the State capital in enterprises according to the plan of the provincial People's Committee;

intensify the inspection and supervision of the performance of tasks and the usage of capital at State enterprises to mobilize free capital in the society and carry out economic restructuring.

Vinh Phuc News


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