Strengthening the monitoring mechanism related to bankruptcy proceedings

Photo caption — National Assembly Chairman Tran Thanh Man, a National Assembly delegate from Can Tho city, speaks. Photo: Doan Tan/VNA

Notably, the bill has established an independent recovery procedure; shortened bankruptcy procedures; applied digital technology and improved the role of related parties such as administrators and asset management enterprises; state support mechanism; expanded the scope of application, including bankruptcy of individuals and foreign enterprises. However, the National Assembly Chairman also requested the drafting agency and the Economic and Financial Committee to continue reviewing potential problems that may arise.

Regarding the risk of abusing the rehabilitation procedure, the National Assembly Chairman noted that the priority of independent rehabilitation could be exploited to prolong the time, avoid real bankruptcy, leading to loss of assets or affecting the interests of creditors. This is an issue that needs attention.

Regarding the impact on the state budget, the National Assembly Chairman said that the regulation of advance spending from the budget could cause waste and not control the source tightly. Therefore, it is necessary to assess the financial impact and stipulate specific funding sources according to the State Budget Law passed by the National Assembly at the 9th Session.

Regarding the authority to handle disputes, according to the National Assembly Chairman, assigning the Court to resolve all related disputes is positive but may lead to overlap with other laws such as the Civil Code, Arbitration Law..., therefore, it is necessary to continue to review to avoid conflicts.

The National Assembly Chairman also noted the lack of detailed regulations on asset sales. The new bill only stipulates principles and leaves it to the Government to provide guidance. The National Assembly Chairman said that this could cause delays in asset handling.

Regarding the application to foreign enterprises, the National Assembly Chairman said that expanding the scope is good, but specific instructions are needed to avoid complicating procedures, especially issues related to international law.

From the above analysis, National Assembly Chairman Tran Thanh Man suggested that the bill should strengthen the monitoring mechanism to prevent abuse. It should add a regulation on the maximum time for the recovery procedure (for example, not exceeding 6 months or 12 months), along with an independent monitoring mechanism from the state agency or the creditor council. It is possible to learn from the experience of other countries on this issue.

Along with that, focus on perfecting financial and budgetary regulations. It is necessary to clearly define criteria for advance payments from the budget to avoid waste. It should only be applied to businesses that no longer have assets but have the potential to recover, combined with a repayment mechanism after selling assets. At the same time, it is necessary to integrate other support policies such as tax reduction and deferral, ensuring consistency with current tax laws, this is a very important issue.

The National Assembly Chairman also proposed to enhance training and professionalize administrators. Specifically, the Law should require international certificates or periodic training for administrators. At the same time, it is necessary to build an online registration system to increase the quantity and quality of this team, helping to reduce processing time and enhance the confidence of foreign investors.

According to the National Assembly Chairman, deeper integration of technology is needed. In addition to digitalization, the use of AI or Blockchain to verify assets and transactions should be regulated, helping to make asset distribution transparent. An online system can be applied to "virtual" creditors' conferences to reduce travel costs. This is a new issue, the National Assembly Chairman suggested that the drafting agency and the verification agency need to study further.

The National Assembly Chairman also noted the issue of harmonization with international law. Accordingly, it is necessary to supplement regulations on cross-border bankruptcy, referencing international conventions; at the same time, avoid overlapping with the 2020 Enterprise Law and the 2015 Civil Code.

The National Assembly Chairman emphasized that this is a specialized law and is very difficult; therefore, he proposed to strengthen the Government's role in supervising its implementation. Accordingly, the Government should establish a committee to supervise the implementation of this law in the first 2-3 years, collect feedback from businesses and the courts to make timely adjustments.

At the discussion groups, delegates agreed on the need to amend the Bankruptcy Law to overcome current shortcomings and improve feasibility, transparency and efficiency in the implementation process.

In addition, many opinions said that it is necessary to carefully evaluate the use of the budget and apply measures to support businesses in bankruptcy; it is necessary to add rehabilitation procedures in bankruptcy procedures in the draft law, but it is necessary to evaluate the economic efficiency and state management efficiency of this measure.

Delegate Nguyen Van Quang (Da Nang) pointed out that the biggest difficulty and problem at present is the time to resolve. The reason is that on average, a case lasts from about 18 months to 24 months, and some cases even last up to 36 months, which means about 3 years, or even up to 4 years, to resolve a bankruptcy case.

"Regarding current procedures and processes, if we do not resolve and apply special procedures, the effectiveness of resolving a bankruptcy case will not be achieved," the delegate stated.

Delegate Nguyen Van Quang said that although the procedures in this amended Bankruptcy Law have been shortened, the difficulties and problems that arise during the resolution process are the issues that need to be considered.

Some delegates gave their opinions on the regulations that are still problematic and inadequate in practice; removing bottlenecks in resolving bankruptcy cases; creating a favorable legal corridor for enterprises and cooperatives to restore business operations; declaring bankruptcy and promptly liquidating enterprises and cooperatives that are no longer able to recover, freeing up resources, supporting production and business, promoting the economy, building a healthy business environment; contributing to improving the investment and business environment and enhancing national competitiveness...

Source: https://baotintuc.vn/thoi-su/tang-cuong-co-che-giam-sat-lien-quan-thu-tuc-pha-san-20251023170731997.htm