VIETNAM Trends and Developments Contributed by: Thang Nguyen, Minh Nguyen and Nguyet Le, ACSV Legal
The new reforms in the Draft Amended LCA make arbitration regulations of Vietnam more in line with the UNCITRAL Model Law and inter - national arbitration practices, paving the way for a wider adoption of arbitration in handling disputes in Vietnam. Modernising insolvency regulations: Vietnam advances towards digitalisation and international best practices The need to revise the current Law on Bank - ruptcy has been widely acknowledged, with leg - islators highlighting the importance of a com - prehensive update to reflect modern economic conditions and align with international best prac - tices. The proposed amendments – now in their third draft (“Draft Law”) – aim to enhance legal certainty, streamline insolvency procedures, and strengthen mechanisms for business recovery. Here are some key amendments that should be watched out for in this draft. • Digitalisation of bankruptcy proceedings – the Draft Law introduces provisions for online bankruptcy filings, digital submission of docu - ments and virtual hearings. These measures are expected to improve efficiency, transpar - ency and accessibility for parties involved in insolvency cases.
• Establishment of specialised bankruptcy courts – a new specialised court system will be created to handle bankruptcy matters within the territorial jurisdiction where the rel - evant enterprise or co-operative is located. • Promotion of mediation – the Draft Law requires the trustee/liquidator to facilitate mediation in disputes involving enterprises or co-operatives undergoing bankruptcy, upon their request. This supports amicable dispute resolution during the insolvency process. • Adoption of international recovery plan procedures – according to the Draft Law, the recovery plan can allow distressed busi - nesses to be restructured and/or to continue operations, aligning with global practices in insolvency reform. As can be seen, the current Law on Insolvency is expected to be amended in a way that marks a significant step towards harmonising Vietnam’s insolvency regime with international standards, while also reinforcing the role of judicial over - sight in insolvency proceedings.
928 CHAMBERS.COM
Powered by FlippingBook