What is the auction deposit for participating in auction of motor vehicle license plates in Vietnam? When should the auction winners submit the winning bid?
What is the auction deposit for participating in auction of motor vehicle license plates in Vietnam?
Pursuant to Article 12 of Decree 39/2023/ND-CP stipulates:
Auction deposit
1. Deposits shall be sent to a separate checking account of auction organizations. Deposit can be made from participation registration date until 3 days before auction date. Auction participants that win the auction shall have their deposits transferred to collection accounts of the Ministry of Public Security in order to be submitted to the state budget as per the law.
2. Handling of deposits in specific cases shall conform to Article 39 of the Law on Property Auction.
Thus, deposit can be made from participation registration date until 3 days before auction date.
Handling of deposits in specific cases shall conform to Article 39 of the Law on Property Auction 2016
Refer to Article 39 of the Law on Property Auction 2016 as follows:
Advance payment and handling thereof
1. A bidder shall make an advance payment, which shall be agreed upon by the property auction organization and property seller and must be between five percent and twenty percent of the reserve price of the auctioned property.
The advance payment shall be deposited into a separate payment account opened by the property auction organization at a commercial bank or foreign bank branch in Vietnam. If the advance payment is valued at under five million Vietnam dong, a bidder may make it directly to the property auction organization. The bidder and property auction organization may reach agreement on substitution of bank guarantee for advance payment.
2. The property auction organization may only collect an advance payment from a bidder within 3 working days before the date an auction opens, unless otherwise agreed upon by this organization and bidder but the collection must be earlier than the date the auction opens. The property auction organization may not use the bidder’s advance payment for any other purpose.
3. The bidder may refuse to participate in an auction and be refunded the advance payment in case of a change in the reserve price, quantity or quality of property with information thereon already displayed or disclosed, and may receive any interest on such advance payment.
4. In case the bidder does not win the auction the property auction organization shall refund the advance payment and pay an interest thereon (if any) within 3 working days after the date the auction ends or within another time limit agreed upon by the parties, except the case specified in Clause 6 of this Article.
5. If the bidder wins the auction, the advance payment and interest thereon (if any) shall be converted into a deposit to secure the performance of a transaction or a contract on purchase and sale of the auctioned property or an obligation to buy the auctioned property after obtaining approval from a competent agency. The deposit shall be handled in accordance with the civil law and other relevant laws.
Thus, the handling of deposits to participate in the auction of motor vehicle license plates is carried out according to the regulations mentioned above.
What is the auction deposit for participating in auction of motor vehicle license plates in Vietnam? When should the auction winners submit the winning bid?
What is the auction cost paid to auction organizations for auction of motor vehicle license plates in Vietnam?
In Article 7 of Decree 39/2023/ND-CP on elaborating the Resolution No. 73/2022/QH15 on pilot auction of motor vehicle license plates, it is stipulated:
Auction service agreements, auction service commissions, and auction cost paid to auction organizations
...
2. Auction service commissions and auction cost paid to auction organizations
a) For each license plate to be auctioned, auction service commissions paid to auction organizations shall equal 8% of starting bid and do not include VAT and auction costs;
b) Auction costs paid to auction organizations shall equal 10.000 VND for each license plate put up for auction.
Thus, auction costs paid to auction organizations shall equal 10.000 VND for each license plate put up for auction and at the same time, for each license plate to be auctioned, auction service commissions paid to auction organizations shall equal 8% of starting bid and do not include VAT and auction costs;
Vietnam: When should the auction winners submit the winning bid?
Pursuant to Article 16 of Decree 39/2023/ND-CP stipulates as follows:
Submission of winning bid
Within 15 days from the date on which notice on winning auction is issued, auction winners must submit the winning bid minus their deposits to collection account of the Ministry of Public Security opened in banks, foreign bank branches. Winning bid does not include vehicle registration charges.
Thus, within 15 days from the date on which notice on winning auction is issued, auction winners must submit the winning bid.
Accordingly, the amount payable will be deducted from the deposit amount to collection account of the Ministry of Public Security.
LawNet