Forms of practice by auctioneers in Vietnam

Forms of practice by auctioneers in Vietnam (Internet image)

Regarding this matter, LawNet would like to answer as follows:

1. Forms of practice by auctioneers in Vietnam

Forms of practice by auctioneers in Vietnam according to Article 18 of the Law on Asset Auctions 2016 are as follows:

- Auctioneers may practice in:

+ Property auction service centers;

+ Property auction businesses;

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

- The practice by auctioneers specified at Point a, Clause 1 of Article 18 of the Law on Asset Auctions 2016 must comply with this Law, the law on cadres and civil servants and the law on public employees.

- The practice by auctioneers specified at Point b, Clause 1 of Article 18 of the Law on Asset Auctions 2016 may be carried out through establishing, participating in the establishment of, or working under labor contracts in, property auction businesses. An auctioneer may establish, or participate in the establishment of, or sign a labor contract with, only one property auction business in accordance with this Law and other relevant regulations.

- The practice by auctioneers specified at Point c, Clause 1 of Article 18 of the Law on Asset Auctions 2016 must comply with the Law on Asset Auctions 2016 and the labor law.

2. Rights and obligations of auctioneers in Vietnam

Rights and obligations of auctioneers in Vietnam according to Article 19 of the Law on Asset Auctions 2016 are as follows:

- Auctioneers have the following rights:

+ To practice throughout the territory of Vietnam;

+ To directly conduct auctions;

+ To deprive bidders who commit the acts prescribed in Clause 5, Article 9 of the Law on Asset Auctions 2016 of their right to participate in an auction;

+ To stop an auction when detecting an act of collusion, suppressing prices or disturbing or causing disorder at the auction, and to notify such to the property auction organization;

+ To conduct auctions under contracts between the property auction council and property auction organizations where they practice in case such auctions are held by the council or by the wholly state-owned organization established by the Government to settle non-performing loans of credit institutions;

+ To instruct and supervise the internship of auction practice interns;

+ Other rights provided by law.

- Auctioneers have the following obligations:

+ To comply with the property auction principles, order and procedures prescribed in this Law;

+ To comply with the professional code of ethics of auctioneers;

+ To take responsibility before law and property auction organizations for auctions they conduct;

+ To take responsibility for jobs performed by auction practice interns whom they instruct under Clause 3, Article 13 of the Law on Asset Auctions 2016;

+ To participate in professional liability insurance prescribed in Article 20 of the Law on Asset Auctions 2016;

+ Other obligations prescribed by law.

3. Regulations on branches of property auction businesses in Vietnam

Regulations on branches of property auction businesses according to Article 29 of the Law on Asset Auctions 2016 are as follows:

- A branch of a property auction business may be established in or outside the province or centrally run city where such business has made its operation registration. The property auction business shall take responsibility for operation of its branches and appoint an auctioneer to act as the head of the branch.

- A property auction business shall submit a dossier for registration of operation of its branch to the provincial-level Justice Department of the locality where it is located. Such a dossier must comprise:

+ A written request for branch operation registration;

+ The branch establishment decision;

+ A certified copy or a copy enclosed with the original of the operation registration certificate of the business;

+ A certified copy or a copy enclosed with the original of the auction practice certificate of the branch head;

+ Papers proving the existence of the branch office.

- Within 7 working days after receiving a complete and valid dossier, the provincial- level Justice Department shall grant an operation registration certificate to the branch. In case of refusal to grant such certificate, it shall notify in writing the reason. The business that has its request for branch operation registration rejected may file a complaint or initiate a lawsuit in accordance with law.

- A branch shall commence its operation from the date it is granted an operation registration certificate. Within 7 working days after being granted a branch operation registration certificate, a business shall send a written notice enclosed with a copy of the branch operation registration certificate to the provincial-level Justice Department of the locality w here it has made its operation registration.

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