Additional assets auctioned in the Ministry of National Defense in Vietnam

Additional assets auctioned in the Ministry of National Defense in Vietnam (Internet image)

On November 11, 2023, the Minister of National Defense issued Circular 83/2023/TT-BQP amending and supplementing a number of articles of circulars under the promulgation authority of the Minister of National Defense.

1. Additional assets auctioned in the Ministry of National Defense in Vietnam

According to Article 17 of Circular 126/2020/TT-BQP, as amended in Circular 83/2023/TT-BQP, the following public assets are conducted in the form of auction, except for the sale of public assets of small value in the form of a public listing or designated sale according to Government regulations, including:

- Items, raw materials, and scrap recovered after asset treatment cannot be used for repair, producing ammunition or using it as a model for training, or deforming, completely disabling the fire and explosion properties and the ability to restore the original shape for recycling for production;

- Assets that are technical equipment, equipment, supplies, and goods after deactivating military functions are sold at public auction to units with legal status inside and outside the Army;

- Special assets can only be sold for separate parts that cannot be salvaged, used for repairs, technical assurance, and items recovered after processing.

2. Principles of asset auction in the Ministry of National Defense

According to Article 18 of Circular 126/2020/TT-BQP, regulating asset auction principles including:

- Comply with legal regulations.

- Ensure honesty, openness, transparency, fairness, and objectivity.

- Protecting the interests of the state and the legal rights and interests of auction participants, auction winners, and buyers of auctioned assets.

- The auction must be conducted by the Asset Auction Council.

3. Contract for buying and selling auctioned assets in the Ministry of National Defense

Pursuant to Article 34 of Circular 126/2020/TT-BQP regulating auction asset purchase and sale contracts, as follows:

- The auctioned asset purchase and sale contract is signed between the person who has the auctioned asset and the auction winner. The auctioned asset purchase and sale contract is implemented in accordance with the provisions of civil law.

- The content of the contract for sale and purchase of assets processed for auction must contain the following contents:

+ Payment term is from the date the asset sale and purchase contract for disposal is signed;

+ Payment method, delivery method, contract liquidation, and other regulations (if any).

- Asset sale records processed:

+ Minutes of auction of handled assets;

+ Asset sale and purchase contract;

+ Cash receipt for processed assets certified by the financial agency;

+ Warehouse release note.

- The auction winner is considered to have accepted to enter into the auctioned asset purchase and sale contract from the time the auctioneer announces the auction winner, except for the case where the auction winner refuses to sign the auction minutes as prescribed in Clause 3, Article 32 of Circular 126/2020/TT-BQP or refuses the auction winning results as prescribed in Article 38 of Circular 126/2020/TT-BQP.

From this point on, the rights and obligations of the parties are implemented in accordance with the provisions of civil law and other relevant laws.

4. Rights and obligations of auctioned assets in the Ministry of National Defense in Vietnam

(1) The person whose property is auctioned has the following rights:

- Supervise the process of organizing and implementing the auction;

- Attend the auction;

- Request the asset auction organization to stop holding the auction when there are grounds to believe that the Asset Auction Council has violated the provisions of Points b and c, Clause 2, Article 9 of the Law on Asset Auctions;

- Request the Asset Auction Council running the auction to stop the auction when there are grounds to believe that the Asset Auction Council has violated the provisions of Point c, Clause 1, Article 9 of the Law on Asset Auctions; Auction participants commit violations specified in Points b, c, or d, Clause 5, Article 9 of the Law on Asset Auctions;

- Other rights as provided for by law.

(2) People with auctioned assets have the following obligations:

- Responsible for assets put up for auction;

- Sign an auctioned asset purchase and sale contract or submit it to a competent authority for approval of the asset auction results;

- Deliver assets and documents related to the auctioned assets to the buyer of the auctioned assets as agreed in the auctioned asset purchase and sale contract or according to the provisions of law;

- Report to the competent authority on the selection of an asset auction organization, auction developments, and asset auction results in the case of state asset auctions;

- Other obligations as prescribed by law.

(Article 35 of Circular 126/2020/TT-BQP)

5. Rights and obligations of the auction winner in Vietnam 

(1) The auction winner has the following rights:

- Request the person having the auctioned property to sign a contract to buy and sell the auctioned property or submit to a competent authority for approval of the property auction results according to the provisions of law;

- Receive auctioned assets and have ownership rights to auctioned assets according to the provisions of law;

- Be granted a certificate of ownership and use rights for auctioned assets by a competent state agency for assets that must have ownership and use rights registered according to the provisions of law;

- Other rights as agreed in the auctioned asset purchase and sale contract and according to the provisions of law.

(2) The winning bidder has the following obligations:

- Sign auction minutes and auction asset purchase and sale contracts;

- Full payment of the auctioned asset purchase price to the owner of the auctioned asset as agreed in the auctioned asset purchase and sale contract or according to relevant laws;

- Other obligations as agreed in the auctioned asset purchase and sale contract and according to the provisions of law.

(Article 36 of Circular 126/2020/TT-BQP)

More details can be found in Circular 83/2023/TT-BQP, taking effect on November 12, 2023.

Ho Quoc Tuan

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