Too much debt cannot be divested
According to the reporter's research, the current State capital at Cao Bang Livestock Seed and Food Joint Stock Company accounts for more than 80%, equivalent to about 4 billion VND. However, this enterprise has long been unable to make a profit.
The divestment of State capital in the company has been implemented since 2018, but has still encountered many difficulties, mainly due to the large accumulated loss. As of the end of December 2018, the company had lost more than VND 26.6 billion.
Previously, in 2001, the Provincial People's Committee approved the investment project to build a Veterinary Food Processing Factory with a capacity of 20,000 tons/year, with a total investment of nearly 30 billion VND. However, due to many reasons, the project was delayed and the completion time had to be delayed until the fourth quarter of 2004 to officially operate.
Since its operation in early 2006, the factory has only reached about 3% of the designed capacity and has gradually decreased in the following years. Recently, the operating capacity has only reached over 1%, mainly to serve Duc Chinh Grade I Breeding moved farm - a unit under the company.
Due to low output, the product is not competitive in the market, while the cost of interest and depreciation is large, the company is in a state of imbalance in revenue and expenditure. The company cannot borrow outstanding loans because it does not have mortgaged assets, causing production activities to stagnate.
Currently, the company no longer has resources to repay investment credit loans from the Cao Bang Development Bank Branch, with a total debt of more than 34 billion VND.
It is noted that the company's headquarters in Hung Dao commune (Cao Bang city) is almost abandoned, with only a few rows of dilapidated houses and no passersby. Poultry breeding, artificial insemination or technology services centers also only have signs on the four walls, the roof has collapsed for a long time.
The high-quality animal feed factory built in the company's premises has now rusted, and the machinery is lying idle. Not far away, Duc Chinh pig farm (Vinh Quang commune, Cao Bang city) is also in a state of disrepair and devastation.
All activities are still
Local people said that before 2018, there were still workers taking care of the pigs here. However, after the African swine fever epidemic, all pigs died, and livestock farming activities ended. "Recently, Lam Anh Cooperative rented it to raise pigs, it must be rented from the company" - a resident said.
Talking to reporters, Mr. Vo Xuan Dong - representative of the State capital part at the company - informed: "Currently, the State capital accounts for more than 80%, the company is in the process of divestment, so it cannot invest more to repair degraded facilities".
Regarding the animal feed processing factory, according to Mr. Dong, it has been inactive for a long time and is being rented by a unit as a warehouse. Duc Chinh pig farm still has regular visitors. Mr. Dong said that Lam Anh Cooperative appeared here, so they may only temporarily raise some pigs.
The current situation of Cao Bang Livestock Seed and Food Joint Stock Company is a clear demonstration of the stagnation and waste of resources at a number of state-owned enterprises that are slow to restructure. The State's assets invested tens of billions of VND in the factory machinery system but then left it unused over time.
