HÀ NỘI — National Assembly deputies discusses draft amendments to Law on Deposit Insurance and Law on Bankruptcy during a session on Thursday in Hà Nội.

Deputies said the draft draft amendments to Law on Deposit Insurance should be further improved to better protect the legitimate rights of depositors and enhance the stability and safety of the credit institution system.

Deputy Vũ Xuân Hùng from the central province of Thanh Hóa said it is necessary to adjust the deposit insurance payout level to match the current reality, while supplementing provisions on financial security, coordination mechanisms and communication procedures in the event of incidents within the credit institution system.

He pointed out that the current payout limit remains unclear, lacks guiding principles and is insufficiently specific for application, so the maximum payout should be revised in accordance with the current scale of deposits.

Deputy Nguyễn Văn Quảng from Đà Nẵng City contributed opinions on the draft, emphasising the need to clarify how much money depositors will actually receive when an insured event occurs. The draft states that “the maximum payout equals the total amount of insured deposits.” According to him, this could imply that if a depositor holds VNĐ1 billion, the payout might be the same amount, but the draft fails to mention any minimum payout level.

Deputy Đỗ Đức Hồng Hà from Hà Nội delegation commented on the timing of the deposit insurance payment obligation, suggesting the inclusion of cases where the State Bank issues a decision to suspend the deposit-taking activities of a credit institution under special control if it has accumulated losses exceeding 100 per cent of its charter capital and reserves. In practice, he said, waiting for bankruptcy approval often causes long delays, preventing depositors from accessing their insurance payments.

Early payment in under strict conditions such as special control status, suspension of deposit-taking, and cumulative losses above 100 per cent of capital would allow depositors to quickly access their insured funds, restore confidence, and facilitate the resolution of weak credit institutions, he added.

They urged the drafting committee to carefully consider and incorporate all feedback. Improving the draft, they concluded, will not only strengthen public trust in the banking system but also ensure financial security, system stability and social order.

Bankruptcy

National Assembly deputies backed the necessity of the bankruptcy law but urged careful review of new provisions, particularly rehabilitation procedures, to ensure feasibility, effectiveness and prevent exploitation.

“Bankruptcy is a normal occurrence – we must accept it as a rule of the market,” said Deputy Trịnh Xuân An from the southern province of Đồng Nai, highlighting the need for a clear legal framework. Referring to several new approaches, he noted overlaps between chapters 2 and 3 of the draft law concerning rehabilitation procedures.

On Article 33 regarding electronic processing, Deputy Trịnh Xuân An agreed it was necessary but questioned its feasibility.

“If all rehabilitation and bankruptcy procedures are handled online, how will authentication be ensured? The idea is good, but its feasibility is questionable,” he said.

Deputy Nguyễn Công Long, also from Đồng Nai Province, also emphasised the rehabilitation chapter as the most noteworthy aspect of the amended bankruptcy law. To ensure practicality and prevent abuse, he urged reconsideration of certain provisions. For instance, Article 27 stipulates that once a rehabilitation plan is requested, the execution of obligations is suspended.

“In practice, many businesses exploit bankruptcy proceedings to delay or avoid debt repayment. Once insolvency occurs, solutions must be found – so this article should be reviewed carefully to prevent abuse,” he said.

Many deputies agreed that expanding rehabilitation as an independent process preceding bankruptcy was a constructive intention. However, they cautioned that making it a separate procedure could be unrealistic and risk abuse of state support, prolonging case resolution. They recommended rehabilitation remain a stage within the bankruptcy process. — VNS