{"id":1602,"date":"2026-03-01T09:40:32","date_gmt":"2026-03-01T09:40:32","guid":{"rendered":"https:\/\/lawpage.vn\/?p=1602"},"modified":"2026-08-08T10:15:35","modified_gmt":"2026-08-08T10:15:35","slug":"law-on-recovery-and-bankruptcy-no-142-2025-qh15-takes-effect-on-march-1-2026","status":"publish","type":"post","link":"https:\/\/lawpage.vn\/en\/law-on-recovery-and-bankruptcy-no-142-2025-qh15-takes-effect-on-march-1-2026\/","title":{"rendered":"Law on Recovery and Bankruptcy No. 142\/2025\/QH15 takes effect on March 1, 2026."},"content":{"rendered":"
I) Summary of this Law:<\/p>\n

<\/span><\/strong><\/div>\n

<\/div>\n
Chapter I \u2013 General Provisions<\/div>\n
This chapter includes:<\/div>\n
\u2022 Defines the scope of regulation, fundamental principles, and State policies.<\/div>\n
\u2022 Provides definitions of key terms: risk of insolvency, insolvency, recovery, bankruptcy, creditors, insolvency administrators, etc.<\/div>\n
\u2022 Establishes the jurisdiction of the Court, duties of Judges, Insolvency Administrators, and enforcement agencies.<\/div>\n
\u2022 Specifies rights and obligations of participants in recovery\/bankruptcy procedures; establishment of the Creditors\u2019 Committee; supervision by the Procuracy; fees and costs of recovery\/bankruptcy.<\/div>\n
<\/div>\n
\n
Article 5. Interpretation of Terms<\/em><\/strong><\/div>\n
In this Law, the following terms are construed as follows:<\/em><\/div>\n
    \n
  • \n
      \n
    • An enterprise or cooperative at risk of insolvency means an enterprise or cooperative that is unable to pay a debt that will fall due within 06 months, or a debt that has become due but has not exceeded 06 months past its due date.<\/em><\/li>\n
    • An insolvent enterprise or cooperative means an enterprise or cooperative that fails to perform its obligation to pay a debt after 06 months from the due date of payment.<\/em><\/li>\n
    • Recovery means the status in which an enterprise or cooperative is no longer at risk of insolvency and has been issued a court decision terminating recovery procedures, or is not insolvent and has been issued a court decision terminating recovery procedures.<\/em><\/li>\n
    • Bankruptcy means the status in which an enterprise or cooperative is insolvent and has been issued a court decision declaring bankruptcy.<\/em><\/li>\n
    • Creditor means an individual, agency, or organization entitled to request an enterprise or cooperative to perform its obligation to pay a debt, including unsecured creditors, partially secured creditors, and fully secured creditors.<\/em><\/li>\n
    • Unsecured creditor means an individual, agency, or organization entitled to request an enterprise or cooperative to perform its obligation to pay a debt that is not secured by assets of the enterprise, cooperative, or a third party.<\/em><\/li>\n
    • Secured creditor means an individual, agency, or organization entitled to request an enterprise or cooperative to perform its obligation to pay a debt that is secured by assets of the enterprise, cooperative, or a third party.<\/em><\/li>\n
    • Partially secured creditor means an individual, agency, or organization entitled to request an enterprise or cooperative to perform its obligation to pay a debt that is secured by assets of the enterprise, cooperative, or a third party, where the value of the secured assets is lower than the debt that the enterprise or cooperative must pay.<\/em><\/li>\n
    • Insolvency administrator means an individual practicing in the field of management and liquidation of assets of an enterprise or cooperative during the process of resolving recovery or bankruptcy cases.<\/em><\/li>\n
    • Asset management and liquidation enterprise means an enterprise practicing in the field of management and liquidation of assets of an enterprise or cooperative during the process of resolving recovery or bankruptcy cases.<\/em><\/li>\n
    • Persons conducting recovery or bankruptcy procedures include the Chief Justice of the Court, Judges, Court Clerks; the Chief Procurator, Procurators; Insolvency Administrators, asset management and liquidation enterprises; Heads of civil judgment enforcement agencies, Enforcement Officers, and other competent persons as prescribed by law during the process of resolving recovery or bankruptcy cases.<\/em><\/li>\n
    • Persons participating in recovery or bankruptcy procedures include creditors; employees; enterprises or cooperatives; shareholders or groups of shareholders of joint-stock companies; members or groups of members of limited liability companies; partners of partnerships; owners of private enterprises; members of cooperatives or member cooperatives of cooperative unions; debtors of the enterprise or cooperative; and other persons having related rights and obligations during the process of resolving recovery or bankruptcy cases.<\/em><\/li>\n
    • Recovery and bankruptcy fees mean the amount payable by the person requesting the application of recovery or bankruptcy procedures for the Court to accept the petition.<\/em><\/li>\n
    • Recovery and bankruptcy costs mean the amount payable for resolving recovery or bankruptcy cases, including fees for Insolvency Administrators, asset management and liquidation enterprises, audit costs, costs for enforcing court decisions, and other necessary and reasonable expenses for implementing recovery or bankruptcy procedures.<\/em><\/li>\n
    • Fees for Insolvency Administrators and asset management and liquidation enterprises mean the amount payable for their work in resolving recovery or bankruptcy cases.<\/em><\/li>\n
    • Advance payment of recovery and bankruptcy costs means the amount temporarily calculated by the Judge to cover costs during the implementation of recovery or bankruptcy procedures.<\/em><\/li>\n
    • Recovery and bankruptcy cases include requests for applying recovery or bankruptcy procedures; requests for assistance in foreign recovery or bankruptcy cases; and requests for recognition and enforcement of foreign court judgments or decisions on recovery or bankruptcy as prescribed in this Law.<\/em><\/li>\n
    • Debts related to compulsory social insurance, unemployment insurance, health insurance, occupational accident and disease insurance mean amounts of late payment or evasion of compulsory social insurance, unemployment insurance, health insurance, and occupational accident and disease insurance as prescribed by law.<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>\n
      <\/div>\n
      Chapter II \u2013 Recovery Procedures<\/div>\n
      This chapter includes:<\/div>\n
      \u2022 Defines persons entitled to file a recovery petition, required documents, and procedures for acceptance.<\/div>\n
      \u2022 Verification of creditor lists; temporary suspension of asset-related obligations.<\/div>\n
      \u2022 The enterprise may continue operating under supervision; prohibited acts are specified.<\/div>\n
      \u2022 Creditors\u2019 Meeting: convening, composition, voting rules, and resolutions.<\/div>\n
      \u2022 Recognition of resolutions; implementation of the recovery plan; amendments; termination of recovery procedures and consequences.<\/div>\n
      <\/div>\n
      Chapter III \u2013 Bankruptcy Procedures<\/div>\n
      This chapter includes:<\/div>\n
      \u2022 Defines persons entitled and obligated to file for bankruptcy.<\/div>\n
      \u2022 Acceptance of bankruptcy petitions; temporary suspension of asset-related obligations.<\/div>\n
      \u2022 Decision to open bankruptcy procedures; supervision of enterprise operations after commencement.<\/div>\n
      \u2022 Handling secured debts, joint liabilities, and order of asset distribution.<\/div>\n
      \u2022 Voidable transactions; contract termination; set-off of obligations.<\/div>\n
      \u2022 Asset inventory, preparation of creditor lists; Creditors\u2019 Meeting under bankruptcy procedures.<\/div>\n
      \u2022 Recognition of recovery plans within bankruptcy; termination of bankruptcy procedures; declaration of bankruptcy; review of bankruptcy decisions.<\/div>\n
      <\/div>\n
      Chapter IV \u2013 Summary Recovery and Bankruptcy Procedures<\/div>\n
      This chapter includes:<\/div>\n
      \u2022 Conditions for summary procedures (\u226420 unsecured creditors, debts \u226410 billion VND, small\/micro enterprises, etc.).<\/div>\n
      \u2022 Time limits shortened to half of regular procedures.<\/div>\n
      \u2022 Creditors\u2019 Meeting under summary procedures requires only 51% of debt approval.<\/div>\n
      \u2022 Special provisions for credit institutions and insurance\/reinsurance enterprises.<\/div>\n
      <\/div>\n
      Chapter V \u2013 Requests for Foreign Assistance; Assistance to Foreign Proceedings; Recognition and Enforcement of Foreign Judgments<\/div>\n
      This chapter includes:<\/div>\n
      \u2022 Vietnamese courts may request foreign authorities to assist in verification, inventory, and asset recovery.<\/div>\n
      \u2022 Vietnam may assist foreign recovery\/bankruptcy proceedings upon request.<\/div>\n
      \u2022 Conditions for recognition and enforcement of foreign recovery\/bankruptcy judgments and decisions.<\/div>\n
      <\/div>\n
      Chapter VI \u2013 Enforcement of Bankruptcy Judgments<\/div>\n
      This\u00a0 chapter includes:<\/div>\n
      \u2022 Civil judgment enforcement agencies issue enforcement decisions for bankruptcy.<\/div>\n
      \u2022 Insolvency Administrators conduct valuation, sale, and recovery of assets.<\/div>\n
      \u2022 Handling leased assets, post-bankruptcy assets, disputes during enforcement, and completion of enforcement procedures.<\/div>\n
      <\/div>\n
      Chapter VII \u2013 Responsibilities, Violations, Complaints, and Denunciations<\/div>\n
      This chapter includes:<\/div>\n
      \u2022 Handling violations during recovery\/bankruptcy procedures.<\/div>\n
      \u2022 Prohibition on holding certain positions after bankruptcy for specific individuals.<\/div>\n
      \u2022 Complaints and denunciations regarding acts or decisions in recovery\/bankruptcy procedures.<\/div>\n
      <\/div>\n
      Chapter VIII \u2013 Implementation Provisions<\/div>\n
      This chapter includes:<\/div>\n
      \u2022 Effective date: March 1, 2026.<\/div>\n
      \u2022 Repeals the 2014 Bankruptcy Law (with transitional provisions).<\/div>\n
      \u2022 Transitional rules for ongoing cases.<\/div>\n
      <\/div>\n
      \n

      \nII) Impact Analysis of the 2025 Recovery and Bankruptcy Law<\/p>\n

      <\/span><\/strong><\/span><\/div>\n

      \n
      The 2025 Recovery and Bankruptcy Law creates a comprehensive \u201creconstruction\u201d of how Vietnam handles financially distressed enterprises. Its impact extends beyond legal procedures, influencing corporate behavior, creditor power, market transparency, and the investment environment. Below is an in-depth analysis by stakeholder group.<\/div>\n
      <\/div>\n
      1. Impact on Enterprises<\/div>\n
      1.1. Enterprises gain a \u201csecond chance\u201d before bankruptcy<\/div>\n
      For the first time, the 2025 Law establishes an independent recovery procedure, allowing enterprises to restructure without being labeled \u201cbankrupt.\u201d This changes enterprise behavior in three ways:<\/div>\n
      \u2022 Proactively seeking recovery early when facing a \u201crisk of insolvency\u201d (within 6 months).<\/div>\n
      \u2022 Reducing fear and stigma associated with bankruptcy, since recovery is not viewed negatively.<\/div>\n
      \u2022 Increasing the likelihood of saving enterprises, preserving jobs, and maintaining supply chains.<\/div>\n
      <\/div>\n
      Practical impact:\u00a0\u00a0Enterprises will be more willing to seek legal support instead of prolonging bad debt situations.<\/div>\n
      <\/div>\n
      1.2. Enhanced transparency and financial discipline<\/div>\n
      The Law requires:<\/div>\n
      \u2022 Supervision of business operations during recovery.<\/div>\n
      \u2022 Mandatory audits when necessary.<\/div>\n
      \u2022 Prohibition of asset dissipation and abnormal transactions within 6 months prior to proceedings.<\/div>\n
      <\/div>\n
      This forces enterprises to:<\/div>\n
      \u2022 Improve risk management.<\/div>\n
      \u2022 Increase financial transparency.<\/div>\n
      \u2022 Prevent \u201crunning away from debt\u201d or transferring assets before bankruptcy.<\/div>\n
      <\/div>\n
      1.3. Reduced cost and time of proceedings<\/div>\n
      Summary procedures help:<\/div>\n
      \u2022 Small and micro enterprises resolve cases faster.<\/div>\n
      \u2022 Reduce legal and insolvency administrator costs.<\/div>\n
      \u2022 Minimize business disruption.<\/div>\n
      <\/div>\n
      This is especially important for SMEs, which account for over 97% of Vietnamese enterprises.<\/div>\n
      <\/div>\n
      1.4. Government support for restructuring<\/div>\n
      For the first time, the Law provides State support in:<\/div>\n
      \u2022 Taxes and fees<\/div>\n
      \u2022 Credit and interest rates<\/div>\n
      \u2022 Digital transformation<\/div>\n
      \u2022 Land and technology<\/div>\n
      <\/div>\n
      This helps enterprises:<\/div>\n
      \u2022 Access resources for recovery.<\/div>\n
      \u2022 Reduce the risk of systemic bankruptcy.<\/div>\n
      \u2022 Increase the likelihood of successful restructuring.<\/div>\n
      <\/div>\n
      1.5. Increased accountability of enterprise managers<\/div>\n
      The Law stipulates:<\/div>\n
      \u2022 A 3-year ban on holding certain positions if the enterprise is declared bankrupt.<\/div>\n
      \u2022 Increased personal liability for asset dissipation and fraud.<\/div>\n
      <\/div>\n
      This creates pressure for:<\/div>\n
      \u2022 More professional corporate governance.<\/div>\n
      \u2022 Reduced \u201cabandonment\u201d of failing enterprises.<\/div>\n
      <\/div>\n
      2. Impact on Creditors<\/div>\n
      2.1. Creditors gain greater power in recovery proceedings<\/div>\n
      The 2025 Law grants creditors:<\/div>\n
      \u2022 The right to participate in Creditors\u2019 Meetings in both recovery and bankruptcy.<\/div>\n
      \u2022 The right to propose changes to insolvency administrators.<\/div>\n
      \u2022 The right to request recovery of debtor assets.<\/div>\n
      \u2022 The right to request interim emergency measures.<\/div>\n
      <\/div>\n
      This helps creditors:<\/div>\n
      \u2022 Avoid passivity.<\/div>\n
      \u2022 Better control restructuring processes.<\/div>\n
      \u2022 Reduce the risk of capital loss.<\/div>\n
      <\/div>\n
      2.2. Creditors\u2019 Committee \u2013 a new mechanism protecting major creditors<\/div>\n
      The Law allows the establishment of a Creditors\u2019 Committee (up to 5 members).<\/div>\n
      <\/div>\n
      Impact:<\/div>\n
      \u2022 Major creditors gain stronger influence.<\/div>\n
      \u2022 Reduces situations where enterprises \u201cgame the system\u201d to favor certain creditors.<\/div>\n
      \u2022 Enhances professionalism in recovery negotiations.<\/div>\n
      <\/div>\n
      2.3. Increased ability to recover debts<\/div>\n
      Thanks to:<\/div>\n
      \u2022 Clear rules on voidable transactions.<\/div>\n
      \u2022 Stronger powers for insolvency administrators in asset recovery.<\/div>\n
      \u2022 Tight supervision by civil judgment enforcement agencies.<\/div>\n
      <\/div>\n
      Creditors:<\/div>\n
      \u2022 Recover more assets.<\/div>\n
      \u2022 Reduce losses from asset dissipation.<\/div>\n
      \u2022 Receive better protection in asset distribution order.<\/div>\n
      <\/div>\n
      2.4. Greater transparency in asset distribution<\/div>\n
      The 2025 Law standardizes:<\/div>\n
      \u2022 Asset distribution order.<\/div>\n
      \u2022 Valuation and sale procedures.<\/div>\n
      \u2022 Treatment of secured assets.<\/div>\n
      <\/div>\n
      This helps creditors:<\/div>\n
      \u2022 Predict recovery amounts more accurately.<\/div>\n
      \u2022 Reduce disputes.<\/div>\n
      \u2022 Increase trust in the legal system.<\/div>\n
      <\/div>\n
      3. Impact on the Market and the Economy<\/div>\n
      3.1. Reduced risk of chain bankruptcies<\/div>\n
      Recovery procedures help:<\/div>\n
      \u2022 Rescue weak enterprises early.<\/div>\n
      \u2022 Reduce spillover effects on suppliers, banks, and workers.<\/div>\n
      <\/div>\n
      3.2. Increased investor confidence<\/div>\n
      The new Law is:<\/div>\n
      \u2022 More transparent.<\/div>\n
      \u2022 More protective of creditors.<\/div>\n
      \u2022 Lower in legal risk.<\/div>\n
      <\/div>\n
      This leads to:<\/div>\n
      \u2022 Improved capital mobilization.<\/div>\n
      \u2022 Increased foreign investment.<\/div>\n
      \u2022 Higher national credit ratings.<\/div>\n
      <\/div>\n
      3.3. A healthier business environment<\/div>\n
      Enterprises can no longer:<\/div>\n
      \u2022 Dissipate assets.<\/div>\n
      \u2022 Evade debts.<\/div>\n
      \u2022 Abuse bankruptcy to erase obligations.<\/div>\n
      Creditor protection \u2192 safer credit market.<\/div>\n<\/div>\n
      <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

      I) Summary of this Law: Chapter I \u2013 General Provisions This chapter includes: \u2022 Defines the scope of regulation, fundamental principles, and State policies. \u2022 Provides definitions of key terms: risk of insolvency, insolvency, recovery, bankruptcy, creditors, insolvency administrators, etc. \u2022 Establishes the jurisdiction of the Court, duties of Judges, Insolvency Administrators, and enforcement agencies. […]\n","protected":false},"author":78,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-1602","post","type-post","status-publish","format-standard","hentry","category-legal-updates"],"_links":{"self":[{"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/posts\/1602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/users\/78"}],"replies":[{"embeddable":true,"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/comments?post=1602"}],"version-history":[{"count":0,"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/posts\/1602\/revisions"}],"wp:attachment":[{"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/media?parent=1602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/categories?post=1602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/tags?post=1602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}