THE PRESIDENT THE SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

No. 11/2014/L-CTN Hanoi, June 30, 2014

ORDER
On the promulgation of law1

THE PRESIDENT OF THE SOCIALIST REPUBLIC OF VIETNAM

Pursuant to Articles 88 and 91 of the Constitution of the Socialist

Republic of Vietnam;
Pursuant to Article 91 of the Law on Organization of the National
Assembly;
Pursuant to Article 57 of the Law on the Promulgation of Legal
Documents,

PROMULGATES:

The Law on Bankruptcy,

which was passed on June 19, 2014, by the XIIIth National Assembly of
the Socialist Republic of Vietnam at its 7th session.

President of the Socialist Republic of Vietnam

TRUONG TAN SANG

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 THE NATIONAL THE SOCIALIST REPUBLIC OF VIETNAM
ASSEMBLY Independence - Freedom - Happiness

No. 51/2014/QH13

LAW ON BANKRUPTCY2
Pursuant to the Constitution of the Socialist Republic of Vietnam;
The National Assembly promulgates the Law on Bankruptcy.
Chapter I
GENERAL PROVISIONS
Article 1. Scope of regulation
This Law prescribes the order and procedures for submission and
acceptance of petitions for initiation of bankruptcy procedures, and for
initiation of bankruptcy procedures; the determination of property obligations
and measures to preserve property in the course of bankruptcy settlement; the
procedures for business restoration, the declaration of bankruptcy and
enforcement of decisions on declaration of bankruptcy.
Article 2. Subjects of application
This Law applies to enterprises, cooperatives and unions of cooperatives
(below collectively referred to as cooperatives) which are established and
operate in accordance with law.
Article 3. Application of the Law on Bankruptcy
1. The Law on Bankruptcy applies when the bankruptcy of enterprises
and cooperatives established in the territory of the Socialist Republic of
Vietnam is settled.
2. Where a treaty to which the Socialist Republic of Vietnam is a
contracting party contains provisions different from those of this Law, the
provisions of such treaty prevail.
Article 4. Interpretation of terms
In this Law, the terms and expressions below are construed as follows:
1. Insolvent enterprise or cooperative means an enterprise or a
cooperative that fails to perform the obligation to pay its debts within 3
months after such debts become due.

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 2. Bankruptcy means the state of insolvency of an enterprise or a
cooperative which is declared bankrupt by a peoples court.
3. Creditors means individuals, agencies and organizations that have the
right to request an enterprise or a cooperative to perform the obligation to pay
debts. Creditors include unsecured creditors, partially secured creditors and
secured creditors.
4. Unsecured creditor means an individual, agency or organization that
has the right to request an enterprise or a cooperative to perform the
obligation to pay a debt not secured with assets of the enterprise or
cooperative or a third party.
5. Secured creditor means an individual, agency or organization that has
the right to request an enterprise or a cooperative to perform the obligation to
pay a debt secured with assets of the enterprise or cooperative or a third
party.
6. Partially secured creditor means an individual, agency or
organization that has the right to request an enterprise or a cooperative to
perform the obligation to pay a debt secured with assets of the enterprise or
cooperative or a third party in case the value of the security assets is lower
than that of such debt.
7. Asset management officer means an individual who practices
management and liquidation of assets of an insolvent enterprise or cooperative
in the course of bankruptcy settlement.
8. Asset management and liquidation firm means an enterprise that
practices management and liquidation of assets of an insolvent enterprise or
cooperative in the course of bankruptcy settlement.
9. Bankruptcy procedure-conducting persons include chief justices of
peoples courts, judges; chief procurators of peoples procuracies,
procurators; asset management offiers, asset management and liquidation
firms; heads of civil judgment enforcement agencies and enforcers in the
course of bankruptcy settlement.
10. Bankruptcy procedure participants include creditors; employees;
insolvent enterprises and cooperatives; shareholders and groups of
shareholders; cooperative members or cooperatives being members of unions
of cooperatives; debtors of enterprises and cooperatives and other persons
having related benefits and obligations in the course of bankruptcy
settlement.
11. Fee for filing petitions for initiation of bankruptcy procedures
(below referred to as bankruptcy fee) means a sum of money payable by a

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