Draft Bankruptcy Law (amended): Carefully consider rehabilitation procedures to avoid taking advantage of policies

On the morning of October 23, during the discussion at Group 6 (National Assembly Delegation of Dong Nai, Lang Son, Hue City) on the draft Bankruptcy Law (amended) and the Law on Deposit Insurance (amended), the National Assembly Deputies all emphasized the necessity of promulgating the Law. However, many delegates suggested that the drafting agency should carefully consider and review the new regulations, especially on the recovery procedures in the Bankruptcy Law to ensure feasibility, effectiveness and avoid the situation of enterprises taking advantage of and abusing the policy.

Recommend careful consideration of some new content

Scene of the discussion session at Group 6 on the morning of October 23. Photo: Ho Long

Bankruptcy is a very normal thing, we accept it as a rule. Emphasizing this, National Assembly member Trinh Xuan An ( Dong Nai ) said that it is necessary to have a legal corridor for this issue. Mentioning some new viewpoints, the representative also acknowledged that between Chapter 2 and Chapter 3 of the draft Law, the regulations on recovery procedures are still intertwined and overlapping. Because, the regulations in Articles 22 and 23, if technical measures are introduced, it will lead to complications in the recovery process. Therefore, it is necessary to consider carefully when introducing this very new content, representative Trinh Xuan An noted.

National Assembly Delegate Trinh Xuan An (Dong Nai) speaks. Photo: Ho Long

Regarding the regulation in Article 33 on electronic processing, the delegate said that this is a necessary regulation, but expressed concern that if all recovery and bankruptcy procedures are processed electronically, how will the authentication be? This regulation is good but not feasible, the delegate suggested to consider it more carefully.

Also interested in the new provisions of the draft Law, National Assembly Deputy Nguyen Cong Long (Dong Nai) said that the most important content of the draft Bankruptcy Law (amended) is the issue of recovery - this is a new chapter. However, to ensure feasibility and prevent businesses from taking advantage of the policy, the drafting agency is requested to carefully consider and weigh a number of contents. The delegate cited that in Article 27 of the draft Law, the spirit of this provision is that when requesting a recovery plan, the performance of obligations must stop. However, in reality, many businesses have taken advantage of bankruptcy to not perform or delay debt repayment. The delegate said that when a business has gone bankrupt, there must be a solution, so it is necessary to carefully consider the provisions of this Article to avoid abuse.

National Assembly Deputy Nguyen Cong Long (Dong Nai) speaks at the discussion. Photo: Ho Long

Discussing this issue, many delegates also affirmed: expanding the scope of regulation of the draft Law in the direction of building and perfecting the rehabilitation procedure as an independent procedure carried out before the bankruptcy procedure. However, separating the rehabilitation procedure into an independent procedure carried out before the bankruptcy procedure is not suitable for practice, not feasible, and may lead to the abuse of the State's support policies during the recovery period, prolonging the time to resolve the bankruptcy case. Therefore, it is proposed to stipulate that the rehabilitation procedure is a step in the process of carrying out bankruptcy procedures.

Clarifying the inspection authority of the Deposit Insurance of Vietnam

Commenting on the draft Law on Deposit Insurance (amended), National Assembly deputies said that the development of the Law on Deposit Insurance (amended) closely follows and fully institutionalizes the Party's guidelines and policies, the State's policies; 5 policies approved by the Government ; inherits regulations that are still suitable for practice and overcomes shortcomings and limitations through the implementation of the Law on Deposit Insurance in 2012.

National Assembly Deputy Pham Trong Nghia ( Lang Son ) speaks during the discussion on the Draft Law on Deposit Insurance (amended). Photo: Ho Long

According to National Assembly Deputy Pham Trong Nghia (Lang Son), the drafting of the Law on Deposit Insurance (amended) must ensure consistency with other legal regulations; refer to the experiences of other countries on the basis of suitability with the reality in Vietnam. However, the delegate suggested that the Drafting Agency should add more regulations on the application of technology and digital transformation in deposit insurance activities to improve efficiency and transparency.

Specifically, regarding the inspection authority of the Deposit Insurance of Vietnam, delegates were particularly interested in assigning the Deposit Insurance Organization to conduct inspections of participating organizations according to the plan assigned by the State Bank (Clause 10, Article 14). Regarding this issue, delegates said that this is necessary, in line with international practice, helping to detect weak organizations early, prevent collapse and support resources for the inspection work of the State Bank. However, there are currently many agencies performing the inspection and examination functions (SBV, Government Inspectorate, Ministry of Finance...), so delegates requested the Drafting Agency to clarify the legal value of the inspection results conducted by the Deposit Insurance Organization, especially when this is a state financial institution. At the same time, it is necessary to strengthen the mechanism for information sharing and effective coordination among relevant agencies to limit overlapping and duplicate inspections and examinations, ensuring compliance with the principle of only conducting inspections and examinations once a year for enterprises, except in cases where there is clear evidence of violations.

Regarding the regulation on the insurance payment limit (Article 22), National Assembly Deputy Pham Trong Nghia expressed his agreement with the decentralization of the authority to set the limit in each period to the Governor of the State Bank to increase flexibility, in line with the policy of decentralization and decentralization. The delegate supported the regulation allowing the Governor of the State Bank to decide on the maximum payment limit using all deposits in special cases, because this is an important crisis response tool to protect the rights of depositors and stabilize the system. However, the delegate said that with the current payment limit of 125 million VND, although it covers 92.46% of depositors, it is necessary to consider adjusting the payment level according to the percentage of the deposit amount to avoid leveling, to be fairer and more consistent with reality, although the Draft has Article 25 on handling deposits exceeding the limit.

Source: https://daibieunhandan.vn/du-thao-luat-pha-san-sua-doi-xem-xet-ky-ve-thu-tuc-phuc-hoi-de-tranh-loi-dung-chinh-sach-10392564.html