Clifford Chance

Vietnam: New bankruptcy law 2014 [Japanese translation]

30 October 2014

A new bankruptcy law was recently adopted by the National Assembly of Vietnam which will replace the bankruptcy law introduced in 2004.  This briefing will outline some of the significant changes that the new law introduces in Vietnam.

Key issues

• A creditor's request is no longer required to trigger the insolvent status of an insolvent enterprise
• The court can now apply "brief procedures" to declare the insolvent entity as bankrupt
• The quorum requirement of a creditors meeting now only requires the presence of creditors representing at least 51% of the total unsecured debts
• The concept of an asset manager and liquidator for an insolvent/ bankrupt entity is introduced
• Procedures under the Bankruptcy Law shall also be applicable to credit institutions that are insolvent

 

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