Regulations on forms of property auctions in Vietnam

Regulations on forms of property auctions in Vietnam (Internet image)

1. What is property auction?

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

Auctioned property means a property allowed to be traded in accordance with law.

(Clause 2, 11 Article 5 of the Law on Property Auction 2016)

2. Auction forms in Vietnam

According to Clause 1, Article 40 of the Law on Property Auction 2016, a property auction organization shall reach agreement with a property seller on selecting one of the following auction forms:

- Oral auction;

- Casting bid tickets directly at an auction;

- Delivering sealed bid tickets;

- Online auction.

3. Oral property auction in Vietnam

Pursuant to Clause 1, Article 41 of the Law on Property Auction 2016, an auctioneer shall conduct an oral auction in the following order:

- Introducing himself/herself and his/her assistant; publicizing a list of bidders and taking the roll call for identifying bidders;

- Reading out the rules of the auction;

- Introducing every auctioned property item;

- Repeating the reserve price, in case such price is publicized;

- Notifying bid increment/decrement and the maximum interval between times of bid offer and price setting;

- Delivering bid tickets to bidders;

- Guiding methods of offering bids and accepting set prices, and answering questions raised by bidders;

- Conducting the offer of bids and acceptance of set prices under Clauses 2 and 3 of this Article

4. Auction in form of directly casting bid tickets in Vietnam

According to Clause 1, Article 42 of the Law on Property Auction 2016, the auctioneer shall conduct an auction in the form of casting bid tickets directly at the auction in the following order:

- Introducing himself/herself and his/her assistant; publicizing a list of bidders and taking the roll call for identifying bidders;

- Reading out the rules of the auction;

- Introducing every auctioned property item;

- Repeating the reserve price, in case such price is publicized;

- Notifying bid increment/decrement and the maximum interval between times of bid offer and price setting;

- Delivering bid tickets to bidders;

- Guiding methods of offering bids and accepting set prices, and answering questions raised by bidders;

- Repeating requirements for a valid bid ticket, and time for ticket writing;

- Conducting the offer of bids and acceptance of set prices under Clauses 2 and 3 of this Article.

5. Auction in form of delivering sealed bid tickets in Vietnam

Article 43 of the Law on Property Auction 2016 stipulates Auction in form of delivering sealed bid tickets as follows:

- When registering for participation in an auction, a bidder shall be delivered a bid offer ticket and provided with guidance on the method of writing in the ticket, deadline for submitting the ticket, and time of the price announcement session.

The property auction organization shall introduce to the bidders each item of auctioned property, repeat the reserve price in case such price is publicized, answer questions raised by the bidders, and perform other jobs as stated in the rules of the auction.

- At the session for announcing bids offered by bidders, the auctioneer introduces himself/herself and his/her assistant; reads out the rules of the auction; announces the list of bidders and takes the roll call for identifying bidders; and announces the number of tickets delivered and number of tickets collected.

+ The conducting auctioneer shall invite at least one bidder to supervise the intactness of the ticket box. If no opinion is given on the supervision result, the auctioneer shall break the seal of the ticket box.

+ The auctioneer shall invite at least one bidder to supervise the intactness of every bid offer ticket; tear open every ticket, announce the number of valid tickets and number of invalid tickets, every bid offer ticket and ticket with the highest bid, and announce the person who has offered the highest bid to be the winning bidder.

- If two or more persons offer the highest bid, right at the bid announcement session, the auctioneer shall hold another auction for these persons in order to select the winning bidder.

The auctioneer shall decide to hold an oral auction or an auction by directly casting bid tickets. If one of these persons rejects holding another auction or none of them offers a higher bid, the auctioneer shall hold a lot draw for selecting the winning bidder.

6. Procedures for conducting online auctions in Vietnam

Article 10 of Decree 62/2017/ND-CP stipulates the procedures for conducting online auctions as follows:

- The property auction organization shall post the Regulation on auction on the online auction website.

- When a bidder registers to bid online, he/she shall be issued with an account, provided with guidelines for using the account, how to bid and necessary information on the online auction website.

- Bidders shall use their accounts and make their bids according to types of auctions, opening time and closing time, bid increments that are announced.

- At the closing of the auction, the auctioneer who is assigned by the property auction organization, property auction council, or bad debt management organization to conduct the online auction shall determine the successful bidder as follows:

+ In case of ascending price auction, the successful bidder is the person who makes the highest bid recorded by the online auction system at the closing time;

+ In case of descending price auction, the successful bidder is the first person who accepts the starting price or decreased price recorded by the online auction system.

- As soon as practicable after determining the successful bidder, the auctioneer who is assigned by the property auction organization, property auction council, or bad debt management organization to conduct the online auction shall announce the successful bidder on the online auction system.

- As soon as practicable after announcing the successful bidder on the online auction system, the results of online auction shall be published on the online auction system and sent to emails of bidders who registered with:

+ The property auction organization, property auction council,

+ Bad debt management organization.

Van Trong

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