Vietnam: The buyer of a wholly state-owned enterprise must place a deposit equivalent to 10% of the starting price

The buyer of a wholly state-owned enterprise must place a deposit equivalent to 10% of the starting price (Illustration)

According to Clause 7, Article 13 of Decree 128/2014/ND-CP, buyers must submit a purchase registration form and a deposit to the professional auction organization according to the following regulations:

• The purchase registration form and deposit must be submitted no later than 05 (five) working days before the auction day.
• The purchase registration form must state the specific minimum purchase price, which cannot be lower than the starting price.
• The deposit must be 10% of the starting price.
• When submitting the purchase registration form, the buyer must present an identity card (for Vietnamese individuals), passport (for foreign individuals), power of attorney (for organizations), and sign a commitment to abide by the auction regulations. Upon receiving the registration and deposit, the professional auction organization will issue a certificate of receipt of the registration form and a receipt for the deposit. The professional auction organization is responsible for keeping the bid price of the registered buyers confidential.
• During the registration period, the registered buyer has the right to withdraw their registration and will be refunded the deposit immediately.

Note: The auction will proceed if there are at least two valid registrations with the deposit paid.

See details at Decree 128/2014/ND-CP, effective from March 1, 2015.

Ty Na

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