Circular 18/2014/TT-BTP: Determination of the reserve price of the auctioned assets in Vietnam

Circular 18/2014/TT-BTP: Determination of the reserve price of the auctioned assets in Vietnam (Internet image)

Circular 18/2014/TT-BTP stipulates the determination of the reserve price of the auctioned assets in Vietnam. The reserve price of the auctioned assets shall be determined before Vietnam Asset Management Company signs a contract to hire a professional auctioneering organization to hold the auction or before Vietnam Asset Management Company holds the auction itself. Vietnam Asset Management Company shall decide and take responsibility for the reserve price of the auctioned assets. The reserve prices of auctioned assets being bad debts shall be determined as follows:

- In case Vietnam Asset Management Company purchased bad debts from a credit institution at market value, they shall hire an appraisal company to assess the bad debts or assess the bad debts themselves in order to determine the reserve price.

- In case Vietnam Asset Management Company purchased bad debts from a credit institution at book value with special bonds, they shall negotiate an agreement with such credit institution on the reserve price.

In case Vietnam Asset Management Company puts up the collateral against the bad debts for auction, it shall negotiate an agreement with the owner of such collateral on the reserve price of the auctioned assets; in case Vietnam Asset Management Company puts up the land use right (hereinafter referred to as land) for auction, they shall negotiate an agreement with the pledgor on the reserve price.

In case both parties fail to reach an agreement on the reserve price as prescribed above within five (05) working days from the day on which the decision to put assets up for auction is issued, Vietnam Asset Management Company shall hire an appraisal company to assess the assets or assess themselves in order to determine the reserve price.

More details can be found in Circular 18/2014/TT-BTP which comes into force from November 10, 2014.

Ty Na

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