Decree 172/2024/ND-CP detailing the implementation of certain articles of the Law on Asset Auction in Vietnam
Decree 172/2024/ND-CP detailing the implementation of certain articles of the Law on Asset Auction in Vietnam
On December 27, 2024, the Government of Vietnam promulgated Decree 172/2024/ND-CP guiding the Asset Auction Law 2016, which was amended by the Amended Asset Auction Law 2024.
Decree 172/2024/ND-CP applies to asset auction practicing organizations, Asset Auction Councils, organizations that are 100% state-owned capital established by the State Bank of Vietnam to handle bad debts of credit institutions, state management agencies for asset auction activities, auctioneers, asset owners for auction, auction participants, auction winners, individuals, and organizations concerned.
Traders and organizations not engaged in asset auctioning professions who establish online auction platforms under e-commerce laws do not fall within the scope of Decree 172/2024/ND-CP.
Decree 172/2024/ND-CP takes effect on January 1, 2025.
Decree 172/2024/ND-CP detailing the implementation of certain articles of the Law on Asset Auction in Vietnam (Image from the Internet)
What are conditions for the National Asset Auction Portal and Online Auction Platforms in Vietnam?
Pursuant to Article 5 of Decree 172/2024/ND-CP, requirements and conditions for the National Asset Auction Portal and online auction platforms are stipulated as follows:
Article 5. Requirements and Conditions for the National Asset Auction Portal and Online Auction Platforms
- Requirements
a) Public, transparent, unrestricted access, and information accessibility;
b) The time on the National Asset Auction Portal and online auction platforms must be real-time and standard international time (GMT) in online auctions;
c) Stable, continuous operation ensuring information system security;
d) Ensuring safety and confidentiality of auction participants' information and access accounts;
dd) Meeting technical infrastructure, information technology standards to connect, integrate, and share data via data integration, sharing platforms;
e) Meeting technical infrastructure, physical facilities, and necessary personnel requirements for operating the National Asset Auction Portal and online auction platforms.
- Conditions
a) Achieving Level 3 according to legal provisions on ensuring information system safety by level;
b) Ensuring each individual, organization can register only one auction participation, bidding account;
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The National Asset Auction Portal and online auction platforms must meet the following conditions:
- Achieve Level 3 according to legal provisions on ensuring information system safety by level
- Ensure each individual, organization can register only one auction participation, bidding account
- Ensure auction bidding access and display bid prices via the unique code of auction participants
- Publicly display registration time for auction participation, access time for the auction session accounts, the start and end time of auction sessions
- Publicly and truthfully display bid attempts and bid prices of auction participants by unique code, highest bid; record and retrieve all auction information, sessions
- Continuously display starting price of auctioned assets, highest bid for ascending bid method and lowest reduced price for descending bid method throughout the session for participants to view
- Ensure auction participants cannot submit participation documents after the submission deadline and cannot place bids after the auction ends
What actions are strictly prohibited for the Asset Auction Council in Vietnam to perform?
According to Clause 3, Article 9 of the Asset Auction Law 2016:
Article 9. Prohibited Acts
[...]
- Prohibiting the Asset Auction Council from conducting acts specified in Points b, c, d, and e of Clause 2 of this Article.
[...]
Prohibited acts by the Asset Auction Council include:
- Fabricating lists of registered auction participants
- Creating fake records, counterfeit records for asset auction activities
- Colluding, conspiring with asset owners, auction participants, appraisal organizations, auction asset appraisal organizations, individuals, or other organizations to falsify auction asset information, auction invitations, auction participation records, lowering or hiking prices, altering auction results
- Hindering, obstructing auction participants from registering or attending auction sessions
- Disclosing information about registered auction participants
- Other prohibited acts according to relevant legal regulations.
