Procedures for organizing auctions via online auction method in Vietnam from January 1, 2025

Procedures for organizing auctions via online auction method in Vietnam from January 1, 2025​ (Image from Internet)

Procedures for organizing auctions via online auction method in Vietnam from January 1, 2025

Article 11 of Decree 172/2024/ND-CP stipulates the procedures for organizing auctions via online auction method in Vietnam from January 1, 2025 as follows:

- Participants purchase auction invitation documents and register an access account on the National Asset Auction Portal or the online auction website.

Auction participants use the access account to receive guidance on how to purchase the dossier, submit the dossier for online auction participation, pay the deposit, bid, and perform other necessary activities when participating in an online auction on the National Asset Auction Portal or online auction information page.

- Auction participants who submit a valid dossier and deposit will be allowed to use the access account to attend the auction according to the Auction Rules.

Qualified auction participants are responsible for logging into their account to register attendance at the auction according to the time specified in the Auction Rules. Qualified participants will bid with a unique identifier.

If a qualified auction participant fails to log into their account to register attendance within the prescribed time in the Auction Rules, it will be considered as not participating in the auction as specified at point a, clause 6, Article 39 of the Law on Asset Auctions, except for force majeure cases.

- The auction time is determined by agreement between the asset auction organization and the asset auction owner but is at least 15 minutes.

If the highest bidder withdraws their bid within 1 minute before the auction ends, the bidding time is extended by an additional 3 minutes after the auction concludes.

- The asset auction organization assigns auctioneers, the Asset Auction Council, and entities 100% owned by the state established by the State Bank of Vietnam to manage bad debts of credit institutions to conduct the auction on the National Asset Auction Portal or online auction information page.

At the conclusion of the auction, the determination of the winning bidder is as follows:

+ In the case of upward bidding, the winning bidder is the one with the highest bid recognized by the online auction system;

+ In the case of descending bidding, the winning bidder is the first to accept the starting or reduced price recognized by the online auction system.

The code of the winning bidder and the winning price as stipulated in point a, point b, clause 4, Article 11 of Decree 172/2024/ND-CP is announced on the National Asset Auction Portal or the online auction website immediately after the auction concludes.

- The results of the online auction are publicly posted on the National Asset Auction Portal or the online auction website and are sent to the email address registered by the auction participants with the asset auction organization, Asset Auction Council, entities 100% owned by the state established by the State Bank of Vietnam to manage bad debts of credit institutions after the winning bidder's code and winning price are announced on the National Asset Auction Portal or the online auction website.

More details can be found in Decree 172/2024/ND-CP effective from January 1, 2025.

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