Vietnam's Bankruptcy Crisis: 58,000 Firms Close, Only 150 Declare Bankruptcy
Over 58,000 businesses withdrew from the market in January 2025 alone, highlighting a significant issue in Vietnam's economy. Despite the high number of firms ceasing operations, only a tiny fraction, around 1,500, went through bankruptcy proceedings in courts between 2015 and 2023.
Out of these, only 150 businesses were formally declared bankrupt, and just six entered a recovery process. This discrepancy has raised concerns among lawmakers. NA deputy Nguyễn Minh Sơn of Đồng Tháp Province emphasized the need to accelerate the process and deal with businesses that are effectively 'dead but unburied'.
The National Assembly's Economic and Financial Committee reported that the 2014 law already includes provisions for recovery, but implementation has been hindered by a lack of clear procedural guidance. In response, NA Vice Chairman Lê Minh Hoan proposed a shift in perspective, viewing bankruptcy not as an end, but as an opportunity for renewal. He suggested changing the law's title to 'Law on Renewal and Insolvency' to signal a more humane and supportive approach. This proposal was endorsed by NA Vice Chairman Trần Quang Phương, who emphasized the need for simplified and faster procedures.
With an average of 26,300 businesses ceasing operations each month in the first quarter of 2025, the need for efficient bankruptcy and recovery processes is clear. Lawmakers are working to improve the system, with proposed changes aiming to make the process more supportive and streamlined.
Read also:
- India's Agriculture Minister Reviews Sector Progress Amid Heavy Rains, Crop Areas Up
- Sleep Maxxing Trends and Tips: New Zealanders Seek Better Rest
- Over 1.7M in Baden-Württemberg at Poverty Risk, Emmendingen's Housing Crisis Urgent
- Life Expectancy Soars, But Youth Suicide and Substance Abuse Pose Concern
