What properties are required to be sold through auction? What are the principles for property auction in Vietnam?
What properties are required to be sold through auction?
Article 4 of the 2016 Law on Property Auction in Vietnam provides for property to be auctioned as follows:
Property to be auctioned
1. Property required by law to be sold through auction, including:
a/ State property as defined by the law on management and use of state property;
b/ Property over which ownership by the entire people is established in accordance with law;
c/ Property being land use rights as defined by the land law;
d/ Collateral as defined by the law on secured transactions;
dd/ Property for judgment enforcement as defined by the law on enforcement of civil judgments;
e/ Property being exhibits or means used in administrative violations which are forfeited into the public funds, property distrained to secure the execution of administrative sanctioning decisions in accordance with the law on handling of administrative violations;
g/ Property being national reserve goods as defined by the law on national reserves;
h/ Fixed assets of enterprises as defined by the law on management and use of state capital invested in production and business at enterprises;
i/ Property of enterprises and cooperatives declared bankrupt in accordance with the law on bankruptcy;
k/ Property being road infrastructure facilities and the right to collect charges for use of road infrastructure facilities in accordance with the law on management, use and operation of road infrastructure facilities;
I/ Property being the mining right in accordance with the mineral law;
m/ Property being the right to use or own planted production forests in accordance with the law on forest protection and development;
n/ Property being the right to use radio frequencies in accordance with the law on radio frequencies;
o/ Property being non-performing loans and collateral for such non-performing loans of the wholly state-owned organization established by the Government to settle non-performing loans of credit institutions in accordance with law;
p/ Other property required by law to be sold through auction.
2. Property owned by individuals and organizations which will be sold through auction of their own free will according to the order and procedures prescribed in this Law.
Thus, according to the above provisions, property required by law to be sold through auction, including:
- State property as defined by the law on management and use of state property;
- Property over which ownership by the entire people is established in accordance with law;
- Property being land use rights as defined by the land law;
- Collateral as defined by the law on secured transactions;
- Property for judgment enforcement as defined by the law on enforcement of civil judgments;
- Property being exhibits or means used in administrative violations which are forfeited into the public funds, property distrained to secure the execution of administrative sanctioning decisions in accordance with the law on handling of administrative violations;
- Property being national reserve goods as defined by the law on national reserves;
- Fixed assets of enterprises as defined by the law on management and use of state capital invested in production and business at enterprises;
- Property of enterprises and cooperatives declared bankrupt in accordance with the law on bankruptcy;
- Property being road infrastructure facilities and the right to collect charges for use of road infrastructure facilities in accordance with the law on management, use and operation of road infrastructure facilities;
- Property being the mining right in accordance with the mineral law;
- Property being the right to use or own planted production forests in accordance with the law on forest protection and development;
- Property being the right to use radio frequencies in accordance with the law on radio frequencies;
- Property being non-performing loans and collateral for such non-performing loans of the wholly state-owned organization established by the Government to settle non-performing loans of credit institutions in accordance with law;
- Other property required by law to be sold through auction.
What properties are required to be sold through auction? What are the principles for property auction in Vietnam? (Image from the Internet)
What are the principles for property auction in Vietnam?
In Article 6 of the 2016 Law on Property Auction in Vietnam, the principles of property auction include:
- Compliance with law.
- Assurance of independence, honesty, publicity, transparency, equality and objectivity.
- Protection of lawful rights and interests of auctioned property sellers, bidders, winning bidders, auctioned property buyers, property auction organizations and auctioneers.
- Auctions shall be conducted by auctioneers, except those conducted by property auction councils.
How to determine the reserve price and appraisal of property to be auctioned?
In Article 8 of the 2016 Law on Property Auction in Vietnam stipulating the reserve price and appraisal of property to be auctioned as follows:
- The reserve price of an auctioned property item shall be determined before:
+ The signing of a property auction service contract;
+ A property auction council is formed, unless otherwise provided by law;
+ The wholly state-owned organization established by the Government to settle non- performing loans of credit institutions conducts by itself the auction.
- The reserve price of an auctioned property item shall be determined as follows:
+ For the types of auctioned property specified in Clause 1, Article 4 of this Law, their reserve prices shall be determined under the relevant regulations applicable to such types of property;
+ For the types of auctioned property specified in Clause 2, Article 4 of this Law, their reserve prices shall be determined by their sellers or by property auction organizations or other individuals or organizations as authorized by their sellers.
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