Regulations on the sale of public assets by auction in Vietnam from February 28, 2025

Regulations on the sale of public assets by auction in Vietnam from February 28, 2025​ (Image from the internet)

On February 28, 2025, the Government of Vietnam issued Decree 50/2025/ND-CP amending and supplementing a number of articles of the Decrees detailing some provisions of the 2017 Law on Management and Use of Public Assets.

Regulations on the sale of public assets by auction in Vietnam from February 28, 2025

In Clause 12 Article 1 of Decree 50/2025/ND-CP, it has amended and supplemented Article 24 of Decree 151/2017/ND-CP (as amended and supplemented by Decree 114/2024/ND-CP) regarding selling public assets by auction form as follows:

- The sale of public assets must be conducted openly in the form of an auction, except for cases where assets are sold in listed price form or by direct appointment as stipulated in Clause 1 Article 26 and Clause 1 Article 27 of Decree 151/2017/ND-CP.

- Determination of starting price:

+ The head of the agency assigned to organize the sale of assets stipulated in Clause 3 Article 23 of Decree 151/2017/ND-CP decides the starting price for the auctioned asset, ensuring conformity with the market price of similar or equivalent assets in terms of technical standards, quality, and origin at the time of price determination.

+ The head of the agency assigned to organize the sale of assets as stipulated in Clause 3 Article 23 of Decree 151/2017/ND-CP establishes a price appraisal council according to pricing laws or hires a valuation enterprise to conduct an appraisal to serve as a basis for deciding the starting price.

The appraisal of prices by the price appraisal council or the valuation enterprise will be carried out in accordance with pricing laws. The selection of a valuation enterprise is in accordance with relevant legal provisions.

+ The price of the asset determined under this clause does not include Value Added Tax (VAT).

- Individuals prohibited from participating in public asset auctions shall follow the legal regulations on asset auctions.

- The agency assigned to organize the sale of assets as stipulated in Clause 3 Article 23 of Decree 151/2017/ND-CP shall hire an asset auction professional organization to conduct the auction; the selection of a professional auction organization shall be in accordance with asset auction laws and other related legal provisions. If unable to hire a professional auction organization, an Asset Auction Council shall be established to conduct the auction; the establishment and operation of this Council shall be in accordance with asset auction laws.

- The procedures for public asset auctions shall follow legal regulations on asset auctions. Information regarding the auction of public assets shall be publicly listed and announced following asset auction laws. The agency tasked with organizing the asset sale shall oversee the auction process and perform other rights and obligations of the asset auction owner under asset auction laws.

- The selling price of public assets by auction is the winning bid price. Within 7 working days upon receiving the asset auction results from the asset auction professional organization or Asset Auction Council, the agency tasked with organizing the asset sale shall sign a Sales Contract with the auction winner. The sale is executed following civil law regulations.

- The payment for purchasing the asset shall be executed as follows:

+ Within 5 working days from the signing of the Sales Contract, the asset buyer must pay for the asset to the agency tasked with selling the asset as stipulated in Clause 3 Article 23 of Decree 151/2017/ND-CP. This agency must deposit the money into a temporary account within 3 working days from receiving the payment, and simultaneously send a copy of the Sales Contract to the temporary account holder.

+ If the asset buyer fails to pay the full asset purchase price by the deadline at point a of this clause, the agency tasked with selling the asset at Clause 3 Article 23 of Decree 151/2017/ND-CP will cancel the signed Contract, and the asset buyer must compensate an amount equivalent to the deposit. The agency can sell the asset to the next highest bidder if the next bid plus the deposit equals or exceeds the winning bid and the next highest bidder agrees to purchase the asset. If the bid plus deposit is less than the winning bid or the next highest bidder refuses, the agency will handle according to Article 25 of Decree 151/2017/ND-CP.

Specific payment deadlines and contract cancellation terms must be clearly stated in the Auction Sale Regulations, and the Sales Contract.

- The agency tasked with executing asset sales stipulated in Clause 3 Article 23 of Decree 151/2017/ND-CP is responsible for issuing sale invoices to the buyer in accordance with Decree 151/2017/ND-CP and the laws on invoices and documents. The asset delivery to the buyer is conducted at the asset's location after the buyer completes the payment.

Decree 50/2025/ND-CP is effective from February 28, 2025.

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