Procedures and mechanisms for resolving corporate financial distress in the french republic and recommendations for Vietnam’s Law on bankruptcy

Abstract

After more than a decade of implementation, the 2014 Bankruptcy Law still exhibits limitations and has not fully achieved its intended effectiveness, one of which is the restricted and inadequate framework governing bankruptcy procedures, which fails to meet practical demands and align with international standards. The Law on Bankruptcy should be reformed to ensure that it is not merely a legal framework for the “termination” of enterprises but rather a mechanism for “revitalizing” them, offering a more diverse range of “remedies” and support mechanisms. This article examines the legal framework for corporate financial distress resolution in France, compares it with Law on Bankruptcy 2014 of Vietnam, and provides recommendations for its improvement.