Dissemination Workshop on Law on Rehabilitation and Bankruptcy of Enterprises
Vientiane, 17 September 2020. Ministry of Justice organized the Dissemination Workshop on Law on Rehabilitation and Bankruptcy of Enterprises at Landmark Mekong Riverside Hotel. The meeting was chaired by H.E Dr. Seumsouk SIMPHAVONG, Deputy Minister of the Ministry of Justice. The participants were representatives from various agencies and ministries including, public and private sectors.
The objectives of the workshop was to disseminate and increase understanding of rehabilitation and bankruptcy of the enterprise in order to address the issues that enterprises are facing or about to face bankruptcy. This workshop was to ensure the benefits and rights of the creditors, debtors and other related stakeholders and further increase the reliability of the credit system, maintain the stability of the economic system and to create a strong resolving insolvency regime for a sound business environment for enterprise to operate in Lao PDR.
The first version of the bankruptcy law was approved and enforced in 1994. However, the law had never gone through revision and since then there had been no cases submitted to the insolvency process. The newly revised law on rehabilitation and bankruptcy law is expected to improve the ease of doing business in Lao PDR in particular the indicator # 10 on Resolving Insolvency based on the Prime Minister Order No. 02/PM issued on 01 February 2018. The Ministry of Justice has been assigned to coordinate with relevant sectors to improve and strengthen the resolving insolvency regime including the revision of the 1994 version of the Law on bankruptcy and related reforms implementation.
The workshop discussed various topics related to the revised law on rehabilitation and bankruptcy of enterprise, such as the definition and the importance of the law on the rehabilitation and bankruptcy of the enterprise and the procedures of prosecution and insolvency application, enterprise rehabilitation and its characteristics, the procedures for bankruptcy declaration, court procedures and compliance as well as roles and responsibilities of concerned parties.
In the end of the workshop, Deputy Minister Dr. Seumsouk summarized the key points discussed especially on the importance of implementation of the law as well as the insolvency system and procedures that businesses have to comply with and expressed his great gratitude to all participants for very active discussions. Finally, the Chairman thanked the Lao PDR’s Competitiveness and Trade Project (LCTP) and all donor partners for the support to such reform initiative.
