Competence in bankruptcy settlement of the People’s Court in Vietnam

Competence in bankruptcy settlement of the People’s Court in Vietnam (Internet image) 

1. Competence in bankruptcy settlement of the provincial People’s Court in Vietnam

The People’s Court of central-affiliated cities and provinces in Vietnam (hereinafter referred to as provincial People’s Court) has the competence in bankruptcy settlement for enterprises and cooperatives registered in the province and for one of the following cases:

(1) There are overseas assets or involving entities

- Overseas assets refer to assets defined in regulations of the Civil Code and located outside the territory of the Socialist Republic of Vietnam at the time when the petition for initiation of bankruptcy proceedings is entertained by the Court.

- Overseas entities involved in bankruptcy proceedings consist of:

= Individuals who are not present in Vietnam at the time the petition for initiation of bankruptcy proceedings is entertained by the Court;

= Legal entities that do not have head offices, branches, representative offices or representatives as referred to by the laws in Vietnam at the time the petition for initiation of bankruptcy proceedings is entertained by the Court.

(2) The insolvent entity has branches and/or representative offices located in district and/or cities of various provinces;

(3) The insolvent entity has real estate in district and/or cities of various provinces;

(4) The provincial People’s Court takes the bankruptcy cases under the management of the People’s Court of a district/city of the province due to their complicacy.

- Complicated bankruptcy cases includes bankruptcy cases other than those mentioned in (1), (2), (3), and cases where an enterprise or co-operative requested to initiate bankruptcy proceedings:

= Has at least 300 (three hundred) employees, or has at least VND 100,000,000,000 (one hundred billion dongs) of charter capital of;

= Is a credit institution, or a business or co-operative providing public utility products and services, or a business servicing national defense and security defined in laws;

= Is a state corporation, general company or a foreign-invested business;

= Has debts guaranteed by the Government or gets involved in the implementation of international treaties to which the Socialist Republic of Vietnam is a signatory, or written agreements on investment with foreign agencies or organizations;

= Has a transaction subject to any claim for being declared invalid as referred to in Article 59 of the Law on Bankruptcy 2014.

- Provincial people’s court may, at its discretion or upon the request of a district or higher-level people’s court, handle any of the complicated bankruptcy cases as regulated above

- Upon the receipt of a petition for initiation of bankruptcy proceedings for any of the cases regulated above, the district people’s court shall, based on regulations in Point c Clause 1 Article 32 of the Law on Bankruptcy 2014, send a written request, enclosed with the petition for initiation of bankruptcy proceedings and relevant documents and evidences, to the provincial people’s court having jurisdiction for consideration, and give written notices thereof to the petitioner for initiation of bankruptcy proceedings and the people’s procuracy of same level.

- In case a petition for initiation of bankruptcy proceedings has been entertained by a district people's court within its jurisdiction but there is any change in residence or address of an involved entity or any new fact occurs while handling a bankruptcy case, which makes that case become one of the cases covered by Clause 1 Article 8 of the Law on Bankruptcy 2014 and regulated in Clause 1 of Article 3 of Resolution 03/2016/NQ-HDTP, the district people's court still remains competence to handle that bankruptcy case.

(Clause 1, Article 8 of the Law on Bankruptcy 2014, Article 3 of Resolution 03/2016/NQ-HDTP)

2. Competence in bankruptcy settlement of the district People’s Court in Vietnam

The district People’s Court has the competence in bankruptcy settlement for enterprises and cooperatives of which the headquarters are located in the district.

(Clause 2, Article 8 of Law on Bankruptcy 2014)

Diem My

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