A farmer pilots a new model of a harvesting machine in Chau Thanh district, An Giang Province. — VNA/VNS Photo Trang Duong

HA NOI (Biz Hub) — The Ministry of Agriculture and Rural Development (MARD) has launched a restructuring plan for agricultural production till 2020, which focuses on equitisation and divestments by the state in corporations and groups.

Currently, MARD manages 13 corporations and groups with total investment capital of up to VND3.562 trillion (US$161 million).

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 single-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.

These are Agricultural and Rural Development Construction Corporation, Viet Nam National Sea Products Corporation and Viet Nam National Vegetable, Fruit and Agricultural Product Corporation.

The other three are Viet Nam National Tea Corporation, Viet Nam General Corporation of Agricultural Materials and Viet Nam Forest Corporation.

MARD will continue to divest 64 per cent stake in the Sugar Corporations I and II and hand over the Viet Nam 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 in a stable manner thanks to enhanced scientific and technical investment. Corporate revenue and profits, and annual budget payments of many companies have increased rapidly.

After equitisation, due to requirements of increased production 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 with difficultly.

MARD said it will promote building of sustainable link models on a voluntary basis and ensure the harmonious legitimate interests of the companies involved in the models.

It will also focus on the key role of involving investment companies and agricultural production businesses to ensure the value chain from production, processing and marketing of products. — VNS