As expected, the draft Law on Obstetrics and Gynecology (amended) will be submitted to the National Assembly for comments at the upcoming 9th session.
One of the outstanding new contents of the draft Law on Bankruptcy (amended) is the regulation on business recovery before bankruptcy.
Accordingly, the draft Law supplements the Chapter on recovery procedures, stipulates the opening of recovery procedures, and develops a plan to restore business operations.
This Chapter also stipulates the priority payment order in the business recovery plan; activities of enterprises and cooperatives after opening recovery procedures; measures to encourage recovery: deducting tax debts, temporarily suspending contributions to pension and death funds...
Appreciating this new content in the draft Law, National Assembly delegate working full-time at the Economic and Financial Committee Phan Duc Hieu said that many countries in the world consider bankruptcy as a normal activity of the business process, even understanding bankruptcy in the sense of recovery as the main thing, ending one thing to move to another.
However, in Vietnamese culture, bankruptcy is still considered a bad thing, a failure. Therefore, it is necessary to supplement regulations on business recovery when amending the Bankruptcy Law.
Mr. Hieu suggested that if the recovery was unsuccessful, the bankruptcy process must be "activated".
"In reality, there are many businesses that have been bankrupt for a long time but continue to operate at a disadvantage to enjoy mechanisms, policies, premises, etc., causing damage to national interests" - delegate Phan Duc Hieu emphasized.
Sharing the same view, Permanent Deputy Chairman of the Economic and Financial Committee Le Quang Manh commented that the current need to resolve bankruptcy procedures is very large, but the number of cases resolved is not much, the procedures are long. Many businesses have been unable to pay for a long time but have not been able to resolve bankruptcies.
According to this leader, these types of businesses cause some consequences such as still occupying land, labor, and even business owners fleeing, causing social resources to be blocked and wasted; unresolved debts cause bad debts in the banking system; Laws are not enforced, weakening the trust of people and investors.
Therefore, Mr. Manh also supports the viewpoint of changing the thinking about business bankruptcy, prioritizing the implementation of recovery procedures before bankruptcy.
However, this person suggested that it is necessary to "agree" to add this content in a clearer direction to increase the initiative and flexibility of this procedure at an earlier stage, when new businesses are only at risk of losing their ability to pay.
"If the business has not yet fallen into a situation of inability to pay, the recovery will be meaningful" - Mr. Manh added.
Regarding this new content of the Bankruptcy Law project (amended), Chairman of the Economic and Financial Committee Phan Van Mai emphasized that in the world, there are many large brands, global brands that have been reborn from the threshold of bankruptcy.
Meanwhile, Vietnam does not have a legal framework and policies strong enough to encourage recovery before bankruptcy.
Accordingly, Mr. Mai said that we must do what we can to ensure that we have enough legal framework for large companies and investment funds to participate in restructuring businesses on the brink of bankruptcy.
At the same time, for bankruptcy to be considered a normal procedure in business, bankruptcy procedures must be simple and concise.
