Regulations on oral auction in Vietnam

Oral auction is one of the forms of auction prescribed in the Law on Property Auction 2016. A property auction organization shall reach agreement with a property seller on oral auction.

Regulations on oral auction specified in Article 41 of the Law on Property Auction 2016 are as follows:

Procedure for conducting an oral auction in Vietnam

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 Article 41 of the Law on Property Auction 2016.

Regulations on oral auction in Vietnam (Internet image)

Instructions on offer of bids in case of ascending-price auction in Vietnam

The offer of bids in case of ascending-price auction is prescribed as follows:

- The auctioneer requests bidders to offer bids;

- Bidders offer bids. A bid offered must at least equal the reserve price, in case such price is publicized. A bidder shall offer a bid higher than that offered by the preceding bidder;

- The auctioneer announces every bid offered by a bidder and asks other bidders to continue offering bids;

- The auctioneer declares the bidder who has offered the highest bid to be the winning bidder after having repeated three times the highest bid which is higher than the reserve price while no one else offers a higher bid.

Instructions on acceptance of set prices in case of descending-price auction in Vietnam

The acceptance of set prices in case of descending-price auction is prescribed as follows:

- The auctioneer sets a price for bidders to accept. A person who accepts the reserve price is the winning bidder;

- The auctioneer announces a bid decrement and continues conducting the auction if no one accepts the reserve price or decreased price. A person who accepts the decreased price is the winning bidder;

- If two or more persons accept the reserve price or decreased price, the auctioneer shall hold a lot draw for selecting the winning bidder.

Mai Thanh Loi

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