Shortcomings and challenges in current legislation on enterprise dissolution and recommendations for improvement

Abstract

The dissolution of enterprises in the private economic sector has been regulated in Vietnam since the enactment of the 1990 Law on Enterprises and the 1990 Law on Sole Proprietorship; these provisions were later supplemented and refined through the 1999, 2005, 2014, and 2020 laws on enterprises. The provisions regarding enterprise dissolution have demonstrated significant regulatory effectiveness, with many enterprises that no longer wished to operate or failed to meet the conditions for operation successfully undergoing dissolution procedures. However, with the continuous development of the economy, the current legal framework governing enterprise dissolution has revealed various shortcomings and challenges in practical application. This article identifies several fundamental issues in the law concerning enterprise dissolution, including the grounds for dissolution, conditions for dissolution, requirements for dissolution, and dissolution procedures. Additionally, it proposes specific amendments to the relevant legal provisions to address these challenges effectively.