Hanoi, Vietnam, October 20, 2015
—IFC, a member of the World Bank Group, is supporting Vietnam’s Ministry of Justice in training more than 90 insolvency practitioners to help them quickly and efficiently manage the assets of insolvent businesses. This will improve resource allocation and create a more stable environment for creditors and investors, spurring increased credit flow and business interest in Vietnam.
During October 20-21 in Hanoi and October 23-24 in Ho Chi Minh City, experts from IFC and the International Association of Restructuring, Insolvency, and Bankruptcy Professionals (INSOL International) will train participants in the key areas of insolvency proceedings including case engagement management, assessment of the debtor’s business, case strategy, maximizing the value of debtor’s assets, and agreeing and paying claims.
“The training will equip insolvency practitioners with the necessary professional knowledge of insolvency resolution to enable them to practice their job more effectively, helping increase the efficiency of insolvency resolution in Vietnam,” said Tong Anh Hao, Deputy Chief Judge from Vietnam People’s Supreme Court.
Vietnam currently ranks only 109th out of 185 economies for resolving insolvency in the World Bank Group’s Doing Business 2015 report. It generally takes more than five years to complete the official procedures and secured creditors on average have recovered only 18.6% of the outstanding value.
“Improvements to the insolvency resolution system will encourage insolvent businesses to go through official procedures and reduce the time and costs required,” said Kyle Kelhofer, IFC’s Country Manager for Vietnam, Cambodia and Lao PDR. “Vietnam’s investment climate will benefit from increased use of professional insolvency practitioners who can increase resolution efficiency, helping to reduce costs and maximize the recovery value for the parties concerned.”
Following the enactment of Vietnam’s Law on Bankruptcy 2014, insolvency administration is now a regulated profession. The Ministry of Justice has licensed more than 250 insolvency practitioners, who are mainly lawyers or who have a background in accountancy and auditing
“Vietnam’s move to license insolvency practitioners is an important step that is in line with good practice in major economies such as the United Kingdom, France, Japan, China and Russia,” said Neil Cooper, former president of INSOL International. “INSOL International is looking forward to working with the Government of Vietnam and the World Bank Group in training the first cohort of Vietnamese insolvency practitioners.”
Participants will also take part in a second training session on corporate restructuring, which is planned for early 2016. Implemented in partnership with Switzerland’s State Secretariat for Economic Affairs (SECO), the training program is part of IFC’s continued support to the Vietnamese government to bring the country’s insolvency procedures into line with international good practices.
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