Order of mineral extraction right auctions in Vietnam

Specifically, according to Article 21 of Decree No. 22/2012/NĐ-CP of Vietnam’s Government, order and principles of mineral extraction right auctions are prescribed as follows:

- At the beginning of an auction, the auction council secretary shall introduce auction council members and representatives of relevant agencies and organizations; introduce the auction rules; announce the list of eligible bidders; call the roll of bidders and bid makers; and answer inquiries (if any).

- The auction council president or auctioneer shall conduct the auction by direct secret bid through uninterrupted bidding rounds. The auction only closes after the auction winner is chosen. The auction winner is the single organization or person offering the highest bid compared to the reserve price after all bidding rounds or the organization or person winning the draw in the case specified at Point a, Clause 5 of this Article.

- After each bidding round, the auction council president or auctioneer shall publicly notify the highest bid of the round. When two or more equal highest bids are offered, the auction council president or auctioneer shall continue distributing bid notes for another bidding round. The reserve price of the next bidding round is the highest bid of the previous round. The bid written in a bid note  is valid when it equals the reserve price plus the bid increment multiplied by an integer.

- The progress of an mineral extraction right auction shall be recorded in writing. After the auction, the auction council president or the auctioneer shall publicly notify the council’s conclusions and the auction winner. The auction winner must sign the auction record right at the auction.

- Special cases:

- If after three consecutive bidding rounds, there are still two or more bidders offering the same highest bid, the auction council president or auctioneer shall hold a draw to choose the auction winner;

- When the auction winner refuses the auction winning result, the bidder offering the second highest bid shall be considered and approved by the auction council to be the substitute winner;

- When the substitute winner refuses the auction winning result, the auction council shall make the written cancellation of the auction result and report the case in writing to the agency competent to issue licenses for consideration and decision.

View details at Decree No. 22/2012/NĐ-CP of Vietnam’s Government, effective from May 15, 2012.

Le Vy

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