"See bankruptcy as an economic behavior, like the life cycle of birth, aging, sickness, and death"

(Dan Tri) - Delegate Tran Hoang Ngan said that the number of businesses withdrawing or temporarily suspending is large, but the number completing bankruptcy procedures is very small. The mindset about bankruptcy in Vietnam is still heavy, and bankruptcy procedures are complicated.

On October 23, speaking at the discussion group on the draft Bankruptcy Law (amended), according to National Assembly delegate Tran Hoang Ngan (HCMC), the current law has many shortcomings and many consequences.

According to Mr. Ngan, the number of businesses withdrawing every year is quite large, in 2024, about 197,900 businesses temporarily suspended or withdrew from the market; in the first 9 months of 2025, the whole country had about 174,900 businesses completing procedures to temporarily suspend or withdraw from the market.

Stating that the number of businesses withdrawing or temporarily suspending operations is large, but the number completing bankruptcy procedures is very small, Mr. Ngan said that the mindset about bankruptcy in Vietnam is still heavy and bankruptcy procedures are complicated.

National Assembly Delegate Tran Hoang Ngan (Photo: Pham Thang).

According to the delegate, in Vietnam, bankruptcy is considered very bad and negative, but in other countries or in the development practices of enterprises, doing business, losing money, and going bankrupt are normal things.

"Bankruptcy must be considered as an economic act, like the life cycle of "birth, aging, sickness, death". If we can save them, we will try to save them, but if not, we will quickly resolve it for them," Mr. Ngan said, adding that Vietnam's bankruptcy procedures over the past 10 years have been very difficult.

According to Mr. Ngan, bankruptcy of businesses without completing procedures will give rise to a series of problems such as businesses being entangled in debt, disputes with partners, and the destruction of business will.

The delegate emphasized the need for mechanisms and laws to quickly resolve bankruptcy issues.

Assessing that this draft law adds many solutions to support and rescue businesses so they can recover, Mr. Ngan supports the option of the State budget advancing bankruptcy costs for businesses instead of the previous regulation that businesses must advance bankruptcy costs.

"When they have already gone bankrupt, why do you ask them to pay in advance to do the procedures for you? In principle, businesses live, exist and develop, making a big contribution to the budget, but when they go bankrupt, it is completely reasonable for the State budget to pay in advance to do the bankruptcy procedures for them. This also speeds up the process of resolving administrative procedures in bankruptcy," Mr. Ngan said.

Regarding this issue, Chief Justice of the Supreme People's Court Le Minh Tri said that the State needs to support but needs to consider how to support in a fair and reasonable manner. According to Mr. Tri, it is impossible to just use the fund as some delegates proposed because it does not meet all the requirements.

Chief Justice of the Supreme People's Court Le Minh Tri (Photo: Pham Thang).

Mr. Tri said that in reality, in bankruptcy settlement in recent times, a business is governed by many other legal relationships. "Now that the court is handling bankruptcy settlement, other legal relationships are being processed, and they are gathered into one single source, only then can it be done quickly," said the Chief Justice of the Supreme People's Court.

Mr. Tri also emphasized that "it is very difficult to take advantage of the State's support policy", because whether or not to recover is up to the business and the creditors to decide. The State's policy to support businesses is to extend debt, not exempt it.

"We do not have the right to interfere with the business's debt repayment responsibility, so there is no need to worry," Mr. Tri stated.

The Chief Justice of the Supreme People's Court also said that the direction when amending the Bankruptcy Law is to expand the scope of the law, the biggest purpose is to resolve quickly, because the need for recovery, including bankruptcy, is very large but the resolution is still slow, affecting not only businesses but also the economy because resources are not cleared.

Source: https://dantri.com.vn/thoi-su/xem-pha-san-nhu-mot-hanh-vi-kinh-te-giong-vong-doi-sinh-lao-benh-tu-20251023141811930.htm