Property required by law to be sold through auction in Vietnam

Property required by law to be sold through auction in Vietnam (Internet image) 

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

1. Property required by law to be sold through auction in Vietnam

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

- State property as defined by the law on management and use of state property;

- Property over which ownership by the entire people is established in accordance with law;

- Property being land use rights as defined by the land law;

- Collateral as defined by the law on secured transactions;

- Property for judgment enforcement as defined by the law on enforcement of civil judgments;

- 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;

- Property being national reserve goods as defined by the law on national reserves;

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

- Property of enterprises and cooperatives declared bankrupt in accordance with the law on bankruptcy;

- 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;

- Property being the mining right in accordance with the mineral law;

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

- Property being the right to use radio frequencies in accordance with the law on radio frequencies;

- 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;

- Other property required by law to be sold through auction.

2. Regulations on property auction service contract in Vietnam

Regulations on property auction service contract according to Article 33 of the Law on Property Auction 2016 are as follows:

- A property seller shall sign a property auction service contract with a property auction organization to conduct property auction. Such a contract shall be made in writing and must comply with the civil law and the Law on Property Auction 2016.

- When signing the property auction service contract, the property seller shall provide the property auction organization with documents of title to prove his/her right to own, use or sell property in accordance with law and take responsibility before law for such documents.

- The property auction organization shall check information on the right to sell property provided by the property seller, and is not responsible for the value and quality of the auctioned property unless this organization fails to adequately and accurately provide bidders with necessary information on the value and quality of the auctioned property under the property auction service contract.

- Rights and obligations of the property auction organization and property seller must comply with the property auction service contract, the Law on Property Auction 2016, civil law, and other relevant laws.

- The property seller or property auction organization may unilaterally terminate the performance of the property auction service contract in accordance with the civil law before the property auction organization receives the bidder’s dossier for participation in auction, unless otherwise prescribed by law.

- The property seller may cancel the property auction service contract when having one of the following grounds:

+ The auction is held by an organization without the property auction function or conducted by an individual other than an auctioneer, unless it is held by a property auction council;

+ The property auction organization intentionally allows an unqualified person to participate in an auction who later becomes the winning bidder;

+ The property auction organization commits one of the following acts: failing to publicly display information on property auction; failing to disclose information on property auction; improperly implementing regulations on the sale of auction dossiers or organizations registering for participation in auction; or impeding or restricting bidders from registering for participation in auction;

+ The property auction organization colludes or is in cahoots with bidders during the auction, thus falsifying information on the auctioned property, auction dossier or property auction results;

+ The property auction organization holds an auction at variance with regulations on auction forms and methods according to the rules of the auction, thus falsifying the property auction results.

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