According to the Official Dispatch No. 20/TANDTC-PC dated January 21, 2025 of the Supreme People's Court on soliciting opinions on the Draft Bankruptcy Law (amended).
According to the Supreme People's Court, the purpose of developing the Law on Bankruptcy (amended) is to create a favorable legal corridor for enterprises and cooperatives to restore production and business activities; declare bankruptcy and promptly liquidate enterprises and cooperatives that are no longer able to recover. Resolve bankruptcy cases effectively, contribute to improving the investment and business environment and enhancing national competitiveness; protect the legitimate rights and interests of parties participating in the procedure, in accordance with international practices and socio-economic conditions of Vietnam.
Specifically, including: (1) Encourage early application of business recovery procedures; (2) Develop simplified procedures for resolving bankruptcy cases that meet legal conditions; (3) Apply electronic methods in resolving bankruptcy cases; (4) Improve the order and procedures for resolving bankruptcy to overcome difficulties and shortcomings and conform to international practices; (5) Enhance the role and increase the responsibility of the Administrator, the person conducting bankruptcy proceedings, and the person participating in bankruptcy proceedings.
In particular, the scope of regulation of the Law includes: the order and procedures for submitting applications, accepting and opening rehabilitation proceedings, bankruptcy proceedings for enterprises and cooperatives; determining property obligations and measures to preserve assets during the process of resolving rehabilitation requests and declaring bankruptcy; enforcing bankruptcy decisions; duties and powers of the person conducting and participating in rehabilitation and bankruptcy proceedings.
The subjects of application are enterprises, cooperatives, and cooperative unions established and operating in accordance with the provisions of Vietnamese law and agencies, organizations, and individuals related to bankruptcy cases. Foreign participants in bankruptcy cases must comply with the provisions of Vietnam's bankruptcy law.
Accordingly, the draft dossier of the Bankruptcy Law Project (amended) is built with 184 articles, with 12 chapters, including: Chapter I, general provisions (including 63 articles, from Article 1 to Article 63); Chapter II, conciliation procedures (including 04 articles, from Article 64 to Article 67); Chapter III, rehabilitation procedures (including 37 articles, from Article 68 to Article 104);
Chapter IV, bankruptcy procedures (including 29 articles, from Article 105 to Article 133); Chapter V, rehabilitation procedures, simplified bankruptcy (including 11 articles, from Article 134 to Article 144); Chapter VI, bankruptcy procedures for credit institutions (including 08 articles, from Article 145 to Article 152); Chapter VII, request for foreign assistance in bankruptcy proceedings (including 02 articles, Article 153 and Article 154);
Chapter VIII, support for foreign bankruptcy cases (including 04 articles, from Article 155 to Article 158); Chapter IX, procedures for recognition and enforcement of foreign court judgments and decisions on bankruptcy (including 06 articles, from Article 159 to Article 164); Chapter X, enforcement of decisions declaring enterprises and cooperatives bankrupt (including Article 12, from Article 165 to Article 176);
Chapter XI, responsibilities of related parties, prohibited acts and handling of violations (including 05 articles, from Article 177 to Article 181); Chapter XII, enforcement provisions (including 03 articles, from Article 182 to Article 184).
The Vietnam Banking Association requests member organizations to provide comments on this Draft Law.
Please send your comments (including word files) to the Vietnam Banks Association via email: thuptm.vnba@gmail.com before February 10, 2025; Mobile: 0339.120.916 - Ms. Minh Thu).
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