Enterprise Restructuring Consulting

Characteristic Challenges in Emerging Markets like Vietnam.

  1. Court procedures and enforcement remain slow, despite improvements in new laws.
  2. High levels of bank non-performing loans and maturing corporate bonds → out-of-court restructuring (negotiations with creditors) is far more common than court-led processes.
  3. Foreign ownership limits and complex capital transfer regulations in certain sectors.
  4. Family-owned businesses dominate → restructuring often hindered by succession planning issues and power control dynamics.
  5. Geopolitical pressures and supply chain shifts (China+1 strategy) force many FDI enterprises to restructure their footprint in Vietnam.

    Major Changes in the Legal Environment We Must Pay Attention To:

    • Major Turning Point in Insolvency & Rehabilitation Law: Law on Rehabilitation and Bankruptcy No. 142/2025/QH15The Law on Rehabilitation and Bankruptcy No. 142/2025/QH15, effective from March 1, 2026, replaces the 2014 Bankruptcy Law. This new law represents a significant shift toward an early-intervention, debtor-in-possession model, prioritizing rehabilitation over liquidation. It introduces a much more flexible moratorium mechanism to protect assets, along with court supervision that is far more practical than before.This is a very important change for Vietnamese enterprises currently facing financial difficulties.
    • Capital Market & Upgrade Status: Vietnam was recently upgraded by FTSE Russell to Secondary Emerging Market status (end of 2025), creating both pressure and opportunities for restructuring to improve transparency, liquidity, and corporate governance. Many enterprises (especially in banking, real estate, and manufacturing) are now required to adjust in order to meet emerging market standards.