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First Vietnamese State-Owned Enterprise Declared Bankrupt
A forestry product enterprise in Vietnam's southern Dong Nai Province has been declared bankrupt by the provincial court after being found incurring losses for years, Vietnam's official news agency VNA reported Thursday.
This is the first Vietnamese state-owned enterprise declared bankrupt under the country's Law on Bankruptcy.
The Dong Nai Forestry Product Processing Enterprise was found to have defaulted on debts totaling 2.5 billion Vietnamese dong (US$178,600) since March 1997.
Meanwhile, the debts owed to the entity stood at just 124.5 million dong (US$8,586) or one-20th of its overdue debts.
The Dong Nai provincial court prohibited Tran Quoc Nam, director of the bankrupt Dong Nai enterprise, from setting up any business in three years starting from the date when his enterprise was declared bankrupt. Any executive position for Nam at an economic organization has also been ruled out for the period.
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