15 Types of property to be auctioned in Vietnam

15 Types of property to be auctioned in Vietnam (Internet image)

1. What is a property auction?

According to Clause 2, Article 5 of the Law on Property Auction 2016, property auction means a method of selling property involving two or more bidders according to the order and procedures prescribed in Law on Property Auction 2016, except the case specified in Article 49 of Law on Property Auction 2016.

2. Types of property to be auctioned in Vietnam

Specifically, in Clause 1, Article 4 of the Law on Property Auction 2016, property required by law to be sold through auction, including:

(1) State property as defined by the law on management and use of state property;

(2) Property over which ownership by the entire people is established in accordance with law;

(3) Property being land use rights as defined by the land law;

(4) Collateral as defined by the law on secured transactions;

(5) Property for judgment enforcement as defined by the law on enforcement of civil judgments;

(6) Property being exhibits or means used in administrative violations which are forfeited into the public funds, property distrained to secure the execution of administrative sanctioning decisions in accordance with the law on handling of administrative violations;

(7) Property being national reserve goods as defined by the law on national reserves;

(8) Fixed assets of enterprises as defined by the law on management and use of state capital invested in production and business at enterprises;

(9) Property of enterprises and cooperatives declared bankrupt in accordance with the law on bankruptcy;

(10) Property being road infrastructure facilities and the right to collect charges for use of road infrastructure facilities in accordance with the law on management, use and operation of road infrastructure facilities;

(11) Property being the mining right in accordance with the mineral law;

(12) Property being the right to use or own planted production forests in accordance with the law on forest protection and development;

(13) Property being the right to use radio frequencies in accordance with the law on radio frequencies;

(14) Property being non-performing loans and collateral for such non-performing loans of the wholly state-owned organization established by the Government to settle non-performing loans of credit institutions in accordance with law;

(15) Other property required by law to be sold through auction.

Property owned by individuals and organizations which will be sold through auction of their own free will according to the order and procedures prescribed in Law on Property Auction 2016.

3. Reserve price and appraisal of property to be auctioned in Vietnam

3.1. Reserve price of property to be auctioned

According to Clause 1, Article 8 of the Law on Property Auction 2016,  The reserve price of an auctioned property item shall be determined before:

- The signing of a property auction service contract;

- A property auction council is formed, unless otherwise provided by law;

- The wholly state-owned organization established by the Government to settle non- performing loans of credit institutions conducts by itself the auction.

In which, the reserve price of an auctioned property item shall be determined as follows:

- For the types of auctioned property specified in Clause 1, Article 4 of Law on Property Auction 2016, their reserve prices shall be determined under the relevant regulations applicable to such types of property;

- For the types of auctioned property specified in Clause 2, Article 4 of Law on Property Auction 2016, their reserve prices shall be determined by their sellers or by property auction organizations or other individuals or organizations as authorized by their sellers.

(Clause 2, Article 8 of the Law on Property Auction 2016)

3.2. Appraisal of property to be auctioned

 An auctioned property item shall be appraised in accordance with law or at the request of bidders and with the consent of its seller.

The appraisal order and procedures must comply with the relevant regulations applicable to relevant types of property.

In case of appraisal upon request, the requester shall pay appraisal expenses.

(Clause 3, Article 8 of the Law on Property Auction 2016)

4. Principles for property auction in Vietnam

According to Article 6 of the Law on Property Auction 2016, the principles of asset auction are as follows:

- Compliance with law.

- Assurance of independence, honesty, publicity, transparency, equality and objectivity.

- Protection of lawful rights and interests of auctioned property sellers, bidders, winning bidders, auctioned property buyers, property auction organizations and auctioneers.

- Auctions shall be conducted by auctioneers, except those conducted by property auction councils.

Thanh Rin

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