The National Assembly passed the Law on Bankruptcy and Recovery.

Deputy Speaker of the National Assembly Nguyen Duc Hai presides over the session. Photo: Pham Thang

Prioritize recovery, ensuring timely and effective recovery and bankruptcy proceedings.

The Law on Bankruptcy and Recovery, comprising 8 chapters and 88 articles, will come into effect on March 1, 2026.

The law stipulates the principles, procedures, and processes for resolving cases of business and cooperative/cooperative union rehabilitation and bankruptcy; the duties and powers of those conducting rehabilitation and bankruptcy procedures; and the rights and obligations of those participating in rehabilitation and bankruptcy procedures.

This law applies when resolving cases of business and cooperative recovery and bankruptcy. If the Bankruptcy Law does not provide for such cases, other relevant legal provisions shall apply. The provisions on recovery procedures and simplified recovery procedures of this Law do not apply to credit institutions and insurance companies.

According to the new law, the guiding principle is to prioritize recovery, ensuring timely and effective recovery and bankruptcy proceedings, harmonizing interests, optimizing the asset value of enterprises and cooperatives; and ensuring transparency and openness.

The National Assembly votes to pass the amended Bankruptcy Law. Photo: Pham Thang

The State has policies to support businesses and cooperatives facing difficulties in business operations, including tax breaks, fees, credit, interest rates, land, technology, digital transformation, and other support measures, to facilitate recovery and bankruptcy procedures aimed at restructuring, restoring, or terminating business operations in an orderly manner, contributing to improving the investment and business environment and strengthening the economy .

The guiding principle is to prioritize recovery, ensuring timely and effective recovery and bankruptcy proceedings, harmonizing interests, optimizing the asset value of enterprises and cooperatives; and ensuring openness and transparency.

The State budget guarantees bankruptcy costs and advances bankruptcy costs.

Before proceeding to the vote, the National Assembly heard a report presented by Phan Van Mai, Chairman of the Economic and Financial Committee, on the revisions, amendments, and explanations regarding the draft Law on Bankruptcy and Recovery.

Regarding the case where the State budget guarantees bankruptcy costs and advances bankruptcy costs (Article 20), the Standing Committee of the National Assembly stated that, in practice, the handling of bankruptcy cases at the People's Courts shows that bankruptcy costs in cases where the State budget guarantees them are not significant.

Chairman of the Economic and Finance Committee Phan Van Mai presents the report on the acceptance, revision, and explanation of the draft Law on Bankruptcy and Recovery. Photo: Pham Thang

Member of the Standing Committee of the National Assembly, Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai presented the report on the acceptance, revision, and explanation of the draft Law on Bankruptcy Recovery.

In addition, the Bankruptcy Law of 2014 stipulates that the advance payment of bankruptcy costs is not required (exempt) in cases where the applicant requesting bankruptcy proceedings is an employee, a trade union, or in cases where the enterprise or cooperative no longer has assets.

However, the 2014 Bankruptcy Law does not specify a source of funding to ensure advance payment of bankruptcy costs in cases where this exemption applies, leading to a bottleneck in resolving bankruptcy cases due to the lack of funds to cover bankruptcy expenses.

Delegates attending the session. Photo: Quang Khánh

Therefore, to resolve practical difficulties in determining the source of payment for bankruptcy costs in cases where advance payment of bankruptcy costs is not required (exempt), Clause 3 of Article 20 of the draft law has been revised to ensure that advance payment of bankruptcy costs will be guaranteed by the State budget in cases where the applicant requesting bankruptcy proceedings is an employee, trade union, tax authority, social insurance agency, or in cases where the enterprise or cooperative no longer has assets (or has assets but cannot liquidate or recover them, or has assets but not enough to pay advance bankruptcy costs or settle bankruptcy costs).

In this case, the advance payment for bankruptcy costs will be immediately reimbursed to the State budget upon the sale of the assets of the enterprise or cooperative.

Source: https://daibieunhandan.vn/quoc-hoi-thong-qua-luat-phuc-hoi-pha-san-10400147.html