What are regulations on the procedures for conducting online auctions in Vietnam applied from September 1, 2023?
What are the regulations on conducting online auctions from September 1, 2023 according to Decree No. 47/2023/ND-CP?
Pursuant to Article 9 of Decree No. 62/2017/ND-CP (amended in Clause 1, Article 1 of Decree No. 47/2023/ND-CP) on conducting online auctions as follows:
- In the case of an online auction, the property auction organization, the property auction council, or organizations in which the State owns 100% of the charter capital, established by the Government to handle bad debts of credit institutions shall carry out the order and procedures for property auction specified in Chapter III and Chapter IV of the Law on Property Auction, and in Chapter III of Decree No. 62/2017/ND-CP.
- A property auction organization, a property auction council, an organization in which the State owns 100% of the charter capital, established by the Government to deal with bad debts of a credit institution, conduct online auctions through renting, using the Online Auction Information Site.
The online auction information page is set up and operated in accordance with the law on information and communication, the law on e-commerce, including National Online Auction Information Site, Online Auction Information Site of organizations in which the State owns 100% of charter capital, established by the Government to handle bad debts of credit institutions and the online auction information site of property auction organizations.
- Organizations in which the State owns 100% of charter capital established by the Government to deal with bad debts of credit institutions may only use their organization's online auction website to organize an auction in the form of an online auction for assets that are bad debts and collateral assets of bad debts in accordance with regulations of law.
- The cost of participating in the National Online Auction Information Page, the cost of hiring an property auction organization with an Online Auction Information Page to organize the auction in the form of an online auction are included in the cost of property auction specified in Clause 2, Article 66 of the 2016 Law on Property Auction of Vietnam.
- The Ministry of Justice shall assume the prime responsibility for, and coordinate with the Ministry of Finance, relevant ministries and branches in, stipulating the cost of using the National Online Auction Information Site under the National Property Auction Portal.
What are regulations on the procedures for conducting online auctions in Vietnam applied from September 1, 2023?
What are regulations on the procedures for conducting online auctions in Vietnam applied from September 1, 2023?
Pursuant to Article 10 of Decree No. 62/2017/ND-CP (amended by Clause 2, Article 1 of Decree No. 47/2023/ND-CP) stipulating as follows:
Procedures for conducting online auctions
1. The property auction organization, the property auction council, and the organization in which 100% charter capital is owned by the State established by the Government to deal with bad debts of credit institutions shall publish the Auction Rules, Publicly announce the fake auction, together with the list of assets, images and documents related to the property (if any) on the online auction information page.
2. Auction participants view auctioned assets online or view assets in person according to the Auction Rules; Register to participate in the auction on the Online Auction Information Page. Auction participants who purchase auction participation documents will be granted an account to access through their registered email address. Auction participants use their login account to receive instructions on how to submit an online auction application, make a reservation through online payment methods, and how to participate in the auction and other necessary contents when participating in the Online Auction Information Page.
3. Auction participants who submit an application for registration to participate in the auction and a valid deposit may use their login account to participate in the auction in accordance with the Auction Rules.
A person who is eligible to participate in the auction but does not access the account that has been granted to participate in bidding according to the time specified in the Auction Rules shall be considered not to participate in the auction specified at Point a, Clause 6 Article 39 of the Law on Property Auction of Vietnam, except for force majeure cases. The bidding time of the auction shall be agreed upon by the property auction organization with the property owner, but at least fifteen minutes.
4. The property auction organization shall assign an auctioneer, the asset seal council, and an organization in which the State owns 100% of the charter capital, established by the Government to deal with bad debts assigned by the credit institution, shall assign members of the auction operator on the Online Auction Information Page. At the end of the auction, the determination of the auction winner is done as follows:
a) In case the bidding is done by the method of bidding up, the auction winner is the person with the highest bid recorded by the auction network system;
b) In case the bid is made by putting down the bid, the auction winner is the first to accept the starting price or the fake has been recorded by the asset price tag network. The auction winners specified at Points a and b, Clause 4 of this Article shall be announced on the online auction network right after the auction ends.
5. The results of the fake online auction are publicly posted on the Online Auction Information Page and sent to the email address of the auction participant registered with the property auction organization, the property auction council, organizations in which the State owns 100% of charter capital, established by the Government to handle bad debts of credit institutions immediately after announcing the auction winners on the online auction information site.
Thus, the procedures for conducting online auctions from September 1, 2023 are as follows:
Step 1: The property auction organization, the property auction council, and the organization set up by the State to deal with bad debts of the credit institution shall publish the Auction Rules, Publicly announce the fake auction, enclosed with the following documents: according to the list of assets, images and documents related to the property (if any) on the online auction information page.
Step 2: Auction participants view the auction property online or view the property in person
Step 3: Register to participate in the auction on the Online Auction Information Page.
Note:
- Auction participants who purchase auction participation documents will be granted an account to access through their registered email address.
- Auction participants use their login accounts to receive instructions on how to submit online auction participation documents, pay pre-orders through online payment forms, how to participate in auctions, pay prices and other necessary content when participating in the Online Auction Information Page.
Step 4: Auction participants submit an application to participate in the auction and a valid deposit is allowed to use their login account to participate in the auction according to the Auction Rules.
Note: Persons who are eligible to participate in the auction but do not access the account that has been granted to participate in bidding according to the time specified in the Auction Rules are considered not to participate in the auction, unless majeure. The bidding time of the auction shall be agreed upon by the property auction organization with the property owner, but at least fifteen minutes.
Step 5: The property auction organization shall assign an auctioneer, the Asset Seal Council, and an organization in which the State owns 100% of the charter capital, established by the Government to handle bad debts of the credit institution that has assigned members of the auction operator on the Online Auction Information Page.
Note: At the end of the auction, the determination of the auction winner is done as follows:
+ In case the bidding is done by the method of bidding up, the auction winner is the person with the highest bid recorded by the auction network system;
+ In case the bidding is done by the method of putting down, the auction winner is the first person to accept the starting price or the fake has been recorded by the asset price stamp network. Auction winners are announced on the online auction network right after the auction ends.
Step 6: The results of the online fake auction are publicly posted on the Online Auction Information Page and sent to the email address of the auction participants registered with the property auction organization, the property auction council, an organization in which the State owns 100% of charter capital, established by the Government to deal with bad debts of credit institutions immediately after announcing the auction winners on the online auction information page.
How to register to participate in property auctions in Vietnam?
Pursuant to Article 38 of the 2016 Law on Property Auction of Vietnam, the registration for participation in property auctions in Vietnam is as follows:
- An individual or organization shall register for participation in an auction by submitting a valid auction dossier and making an advance payment to a property auction organization in accordance with this Law and other relevant laws. A bidder must satisfy the law-prescribed conditions, if any, for participation in an auction, and may authorize in writing another person to participate in the auction on the bidder’s behalf.
- A property auction organization shall sell auction dossiers and receive them within working hours continuously from the date of public display of information on property auction to the date which is 2 days earlier than the date an auction opens.
- In addition to the conditions for registration for participation in an auction prescribed in this Law and other relevant laws, the property seller or property auction organization may not set out any other requirements or conditions on bidders.
Decree No. 47/2023/ND-CP takes effect from September 1, 2023.
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