Nguyen Duc Kien, Deputy Chairman of the National Assembly's EconomicCommittee, spoke to Vietnam News Agency about draft amendments to theLaws on Enterprises and Bankruptcy.
*Could you point out the amendments to the draft Bankruptcy Law?
Inthe ten-year period since the Law on Bankruptcy came into force, onlyaround 250 enterprises filed for bankruptcy and a modest 88 of themcompleted the procedures.
The 2004 Bankruptcy Law has certain limitations that affect the operation of the market mechanism.
The draft law has two core changes.
Thefirst change is about the bankruptcy process. Under the current law,companies must liquidate their assets before they announce bankruptcy.
This regulation makes enterprises hesitant to file for bankruptcy as it takes time to clarify an enterprise's debts.
Asa result, the order is reversed under the draft law. Enterprises wouldbe allowed to announce bankruptcy before implementing asset liquidationand others necessary requirements.
Secondly, the draft bankruptcy law aims to set up an organisation which would be in charge of managing bankruptcy issues.
The amendments aim to make the law more applicable in reality.
*What changes have been made in the draft Law on Enterprises?
TheLaw on Enterprises, which took effect in 2005, was compiled and issuedwhile Vietnam was reviewing its legal documents to ensure theircompatibility with the integration process into the World TradeOrganisation.
After nine years, gaps in the law have been exposedthat have caused problems with the management of many problems thatenterprises encounter, one of which is the management of State capitalat State-owned enterprises. The management of State capital could beregulated in a separate law.
The draft Law on Enterprises tries to tie in the rules of the market mechanism as much as possible.
A core amendment is that enterprise management regulations would be more flexible.
Thedraft law also aims to reduce the power of major shareholders whileprotecting small stakeholders. This would prevent the decision-makingpowers being left to major shareholders only.
In addition,administrative reforms should aim to meet enterprises' demands.Foreign-invested companies are different from domestic companies. Withthat viewpoint, foreign investors would be granted investmentcertificates and business registration certificates separately.
*Arethere any regulations in the draft laws which would limit thedomination of foreign enterprises in some key economic sectors?
We are happy for Vietnamese exports to occupy a large market share.
However,in a flat world and during the globalisation process, market sharesshould be mixed. If Vietnam holds a major market share in one particularsector of the economy, other countries could corner the market inanother.
What's important is to ensure the rights of labourers as well as the whole nation in general.
Goodsmust not be exported at any cost to expand market share, but at pricesthat can ensure resources are reinvested for future development.-VNA
*Could you point out the amendments to the draft Bankruptcy Law?
Inthe ten-year period since the Law on Bankruptcy came into force, onlyaround 250 enterprises filed for bankruptcy and a modest 88 of themcompleted the procedures.
The 2004 Bankruptcy Law has certain limitations that affect the operation of the market mechanism.
The draft law has two core changes.
Thefirst change is about the bankruptcy process. Under the current law,companies must liquidate their assets before they announce bankruptcy.
This regulation makes enterprises hesitant to file for bankruptcy as it takes time to clarify an enterprise's debts.
Asa result, the order is reversed under the draft law. Enterprises wouldbe allowed to announce bankruptcy before implementing asset liquidationand others necessary requirements.
Secondly, the draft bankruptcy law aims to set up an organisation which would be in charge of managing bankruptcy issues.
The amendments aim to make the law more applicable in reality.
*What changes have been made in the draft Law on Enterprises?
TheLaw on Enterprises, which took effect in 2005, was compiled and issuedwhile Vietnam was reviewing its legal documents to ensure theircompatibility with the integration process into the World TradeOrganisation.
After nine years, gaps in the law have been exposedthat have caused problems with the management of many problems thatenterprises encounter, one of which is the management of State capitalat State-owned enterprises. The management of State capital could beregulated in a separate law.
The draft Law on Enterprises tries to tie in the rules of the market mechanism as much as possible.
A core amendment is that enterprise management regulations would be more flexible.
Thedraft law also aims to reduce the power of major shareholders whileprotecting small stakeholders. This would prevent the decision-makingpowers being left to major shareholders only.
In addition,administrative reforms should aim to meet enterprises' demands.Foreign-invested companies are different from domestic companies. Withthat viewpoint, foreign investors would be granted investmentcertificates and business registration certificates separately.
*Arethere any regulations in the draft laws which would limit thedomination of foreign enterprises in some key economic sectors?
We are happy for Vietnamese exports to occupy a large market share.
However,in a flat world and during the globalisation process, market sharesshould be mixed. If Vietnam holds a major market share in one particularsector of the economy, other countries could corner the market inanother.
What's important is to ensure the rights of labourers as well as the whole nation in general.
Goodsmust not be exported at any cost to expand market share, but at pricesthat can ensure resources are reinvested for future development.-VNA
