Brian Jeffrey
Allowing business owners to stay out on bail during legal proceedings could enable them to address any losses and keep their enterprises running. Some lawmakers believe that extended imprisonment may threaten the stability of larger corporations and weaken their market position.
In the proposed National Assembly Resolution focused on fostering the private sector’s growth, Clause 4 of Article 5 indicates that legal infractions should not be applied retroactively in ways detrimental to businesses, business families, or individual entrepreneurs.
During a discussion on May 15 in the National Assembly, Deputy Ha Sy Dong (Quang Tri) suggested that provisions be added to prioritize bail for business leaders during criminal cases, reserving detention only for essential situations.
“If business executives are permitted to remain out on bail, they can take active steps to rectify damages or keep their companies afloat. While prolonged detention may resolve a minor legal issue, it could significantly harm a substantial company and reduce its international competitiveness,” stated Dong.
Addressing a clause that permits businesses to tackle damages voluntarily to evade criminal charges, Deputy Dao Chi Nghia (Can Tho) raised concerns about potential misuse. He recommended implementing strict deadlines for rectifying violations to avoid prolonged unresolved scenarios.
He emphasized that this provision could overlook serious crimes such as extensive tax evasion or fraud, thereby weakening the message of legal consequences.
Clause 8 of Article 5 also discusses the differentiation between legally obtained assets and those derived from unlawful activities. Nghia highlighted the difficulties involved in making this distinction, especially regarding significant economic crimes.
“We require clear parameters for identifying lawful and unlawful assets, in addition to bolstered investigative capacities and temporary oversight mechanisms to prevent asset loss while safeguarding legitimate business interests,” he remarked.
On the topic of bankruptcy procedures, Nghia urged for the adoption of modern technology, particularly online systems, to hasten the process.
Deputy Dong supported expedited bankruptcy processes but insisted on including guidelines to manage commercial disputes, which often obstruct private sector development.
He stressed the necessity of strictly observing legal deadlines for adjudicating and enforcing commercial matters. According to him, delays in resolution and enforcement should trigger a review and hold accountable those responsible.
“Businesses are incredibly frustrated by the lengthy timelines in commercial disputes. We need to target an enforcement success rate of over 80% for cases that are executable,” Dong asserted.
Deputy Le Xuan Than (Khanh Hoa) added that in a market economy, disputes are unavoidable. Therefore, the draft should incorporate mechanisms for commercial mediation, arbitration, and specialized courts to create a transparent legal framework.
“Mediation should be the initial approach. If it fails, parties can then proceed to court or commercial arbitration. These processes need to be institutionalized legally,” Than suggested.
Concerning Clause 3 of Article 4, which demands strict measures against the misuse of inspections to intimidate businesses, Deputy Nguyen Manh Hung (Can Tho) recommended a more forceful wording: such misuse should be clearly “forbidden.”
Deputy Dong further suggested that during inspections, regulatory agencies should refrain from requesting documents that they have previously issued or that are already accessible in public databases.
He also proposed that businesses should be able to reference past official conclusions on similar matters to protect their rights during inspections or licensing. Should regulatory bodies arrive at a different conclusion in a new case, they must provide an explanation, thereby reducing arbitrary judgments.
