Promote business resilience, protect the legitimate rights and interests of parties

Basically agreeing with the Submission and Review Report of the Bankruptcy Law Project (amended), delegates said that the Law project will create a legal corridor to remove difficulties and obstacles, unblock resources, promote the ability to recover business operations, protect the rights and legitimate interests of the parties, in accordance with international practices and Vietnam's conditions.

Discussion scene of group 2 ( Ho Chi Minh City National Assembly Delegation)

Concerned about the process, responsibilities and costs in bankruptcy and business recovery procedures, National Assembly Deputy Le Thanh Phong agreed to include the responsibility of state management agencies in participating with businesses in resolving business recovery procedures within a certain period of time, avoiding the situation of taking advantage of the recovery mechanism to prolong the process, causing impacts to businesses.

National Assembly Delegate Le Thanh Phong (Ho Chi Minh City) speaks

Delegate Le Thanh Phong also agreed with the state's provisional payment of bankruptcy costs because in reality, many businesses do not have enough money to pay bankruptcy costs, leading to a deadlock in resolving cases.

Delegates also suggested that, to avoid abuse, the draft Law should add provisions on responsibility for bearing costs.

“If a business loses all its assets due to the fault of the business manager, especially when they intentionally transfer assets illegally during the recovery process, the court has the right to force them to bear the costs,” the delegate stated.

During the asset management process, if the administrator or competent asset management authorities are slow or have errors in handling, leading to loss of assets, it is also necessary to determine the error to calculate costs.

National Assembly Delegate Nguyen Thi Yen (Ho Chi Minh City) speaks

National Assembly Deputy Nguyen Thi Yen agreed that the advance payment costs are guaranteed by the State and are arranged in the court's annual budget estimate.

According to the delegate, if the enterprise still has assets, the advance payment for bankruptcy costs will be returned to the State according to the provisions of the State Budget Law and legal provisions on litigation costs. This provision will create conditions for enterprises to restore production and business or facilitate the acceleration of the bankruptcy process in accordance with legal provisions.

Delegate Nguyen Thi Yen also highly agreed with the content of Article 60 of the draft Law to overcome the cumbersome procedures for enterprise recovery and bankruptcy.

The delegate pointed out that in reality, a business that wants to go bankrupt takes up to 3-5 years because it involves many issues. If a business wants to recover, the procedures need to be short to quickly resolve the business so that it can go into operation. If a business goes bankrupt and then continues to establish a new business, the regulation of shortened bankruptcy procedures will also make it easier for the business to return to the market and not affect the economy .

In addition, delegate Nguyen Thi Yen also proposed that the Government tighten the process of establishing new enterprises, especially checking addresses and financial capacity to avoid the situation of massive establishment of enterprises but low quality, leading to a high number of enterprises withdrawing from the market.

National Assembly Delegate Truong Trong Nghia (Ho Chi Minh City) speaks

National Assembly Deputy Truong Trong Nghia said that problems related to land and labor responsibilities have caused many bankruptcy cases to drag on for decades. Based on this reality, the delegate suggested that it is necessary to study and propose simultaneous amendments to other laws related to bankruptcy, including the Land Law and the Labor Code, to ensure uniformity and effectiveness.

Regarding the recovery process, delegate Truong Trong Nghia said that it is necessary to be careful in designing the process from the time a business loses its ability to pay until it goes bankrupt, in order to avoid cases where businesses take advantage of bankruptcy to avoid responsibility; at the same time, avoid prolonging it, causing huge damage to the economy and creating recovery opportunities for businesses.

The delegate noted that the recovery process requires the goodwill of the creditors' council. "If everything is handed over to the creditors' council and the creditors' council keeps arguing and cannot reach an agreement, it would be a pity because there are businesses that are financially insolvent but the factories, technology, human resources, and labor are still there..., unlike businesses that are just shells , as we say, with no assets left."

Source: https://daibieunhandan.vn/day-manh-kha-nang-phuc-hoi-hoat-dong-kinh-doanh-bao-ve-quyen-va-loi-ich-hop-phap-cua-cac-ben-10392589.html