Law on Auctioning Assets No. 01/2016/QH14

LAW

AUCTION OF ASSETS

On the basis of the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Auction of Assets Law.

PART 1

GENERAL PROVISIONS

This Law stipulates principles, procedures, and auction processes; auction officers, auction organizations; remuneration for auction services, costs of auctioning assets; handling violations, nullifying auction results, compensating damages; state management of asset auctions.

Article 2. Applicability

1. Auction officers, auction organizations, Auction Councils.

2. Organizations wholly owned by the State with 100% capital contribution established by the Government to handle bad debts of credit institutions.

3. Persons with auctioned assets, participants in auctions, successful bidders, purchasers of auctioned assets.

4. Other individuals and organizations related to asset auction activities.

Article 3. Application of the Auction of Assets Law and provisions on auction procedures in other laws

1. In cases where there are differences between the auction procedures prescribed in this Law and those prescribed in other laws, the provisions of this Law shall apply, except for the cases provided for in Clause 2 of this Article.

2. Auctions of securities shall be conducted in accordance with the laws on securities; auctions of State assets abroad shall be conducted in accordance with the laws on the management and use of State assets.

Article 4. Auctioned Assets

1. Assets that must be sold through auctions as prescribed by law include:

a) State assets as prescribed by the laws on the management and use of State assets;

b) Assets established as the property of the entire people as prescribed by law;

c) Land use rights as prescribed by the laws on land;

d) Collateral assets as prescribed by the laws on secured transactions;

đ) Execution assets as prescribed by the laws on civil enforcement;

e) Seized assets from administrative violations that are confiscated into the State treasury, assets attached to ensure the execution of administrative penalty decisions as prescribed by the laws on administrative violation handling;

g) National strategic reserves as prescribed by the laws on national strategic reserves;

h) Fixed assets of enterprises as prescribed by the laws on the management and use of State capital invested in production and business at enterprises;

i) Assets of enterprises and cooperatives declared bankrupt as prescribed by the laws on bankruptcy;

k) Infrastructure assets of roads and the right to collect fees for using infrastructure assets of roads as prescribed by the laws on the management, use, and exploitation of road traffic infrastructure;

l) Mineral exploitation rights as prescribed by the laws on minerals;

m) Rights to use and ownership of production forests as prescribed by the laws on forest protection and development;

n) Rights to use radio frequency bands as prescribed by the laws on radio frequency bands;

o) Bad debts and collateral assets of bad debts of organizations wholly owned by the State with 100% capital contribution established by the Government to handle bad debts of credit institutions as prescribed by law;

p) Other assets that must be sold through auctions as prescribed by law.

2. Assets belonging to individuals and organizations voluntarily choosing to sell through auctions according to the procedures and processes prescribed in this Law.

Article 5. Definitions

In this Law, the following terms shall be understood as follows:

1. Bid increment is the minimum difference between the bid price in the next round and the previous bid price in the case of an ascending auction. The bid increment is decided by the owner of the auctioned asset and notified in writing to the auction organization for each auction.

2. Auction of assets is a form of selling assets with two or more participants bidding according to the principles, procedures, and processes prescribed in this Law, except for the cases prescribed in Article 49 of this Law.

3. Starting price is the lowest initial price of the auctioned asset in the case of an ascending auction; the highest initial price of the auctioned asset in the case of a descending auction.

4. Price reduction is the minimum difference between the bid price in the next round and the previous bid price in the case of a descending auction. The price reduction is decided by the owner of the auctioned asset and notified in writing to the auction organization for each auction.

5. Owner of the auctioned asset is an individual or organization owning the asset, a person authorized by the asset owner to auction the asset, or a person entitled to put the asset up for auction under an agreement or as prescribed by law.

6. Purchaser of the auctioned asset is the successful bidder who signs a purchase and sale contract for the auctioned asset or is approved by the competent authority for the auction result.

7. Participant in the auction is an individual or organization meeting the conditions to participate in the auction to purchase the auctioned asset as prescribed in this Law and other relevant laws.

8. Successful bidder is an individual or organization offering the highest bid compared to the starting price or equal to the starting price when there is no higher bid than the starting price in an ascending auction; an individual or organization accepting the starting price or reduced price in a descending auction.

9. Descending auction method is an auction method whereby the auction officer offers prices from high to low until a person accepts the price offered by the auction officer.

10. Ascending bid method is an auction method whereby participants offer bids from low to high until the highest bid relative to the starting price is determined.

11. Auctioned asset is an asset permitted to be traded as prescribed by law.

12. Auction organization includes Auction Service Centers and auction enterprises.

Article 6. Principles of Auctioning Assets

1. Compliance with legal regulations.

2. Ensure independence, honesty, transparency, fairness, and objectivity.

3. Protect the rights and legitimate interests of the asset owner, auction participants, successful bidders, bona fide purchasers of auctioned assets, asset auction organizations, and auctioneers.

4. The auction must be conducted by an auctioneer, except in cases where the auction is carried out by an Asset Auction Council.

Article 7. Protection of Rights and Legitimate Interests of the Asset Owner, Auction Participants, Successful Bidders, and Bona Fide Purchasers of Auctioned Assets

1. State agencies within their scope of duties and powers shall be responsible for ensuring the implementation of the rights and legitimate interests of the asset owner, auction participants, successful bidders, and bona fide purchasers of auctioned assets.

2. In cases where a third party disputes ownership over the auctioned asset, ownership still belongs to the bona fide purchaser of the auctioned asset.

Disputes regarding ownership of the auctioned asset, complaints, and lawsuits concerning the legal effect of a successful auction and the cancellation of the auction result shall be resolved through expedited procedures under civil litigation laws as stipulated in Clauses 2, 3, and 4 of Article 72 of this Law.

3. In cases where there is a court decision or administrative decision by a competent state agency to amend part or revoke all decisions related to the auctioned asset before it is put up for auction but the auction process complies with the provisions of this Law, the asset remains the property of the bona fide purchaser of the auctioned asset, except when the auction result is canceled according to Article 72 of this Law.

Article 8. Starting Price and Appraisal of Auctioned Assets

1. The starting price of auctioned assets is determined at the time:

a) Before signing the service contract for asset auction;

b) Before establishing the Asset Auction Council, except where otherwise provided by law;

c) Before organizing an auction by a state-owned entity established by the Government to handle non-performing loans of credit institutions conducting self-auction.

2. The starting price of auctioned assets is determined as follows:

a) For assets subject to Clause 1 of Article 4 of this Law, the starting price is determined according to the applicable laws governing such assets;

b) For assets subject to Clause 2 of Article 4 of this Law, the starting price is determined by the asset owner themselves or authorized to an asset auction organization or another individual or organization to determine.

3. Auctioned assets shall be appraised in accordance with the law or upon request by auction participants and with the consent of the asset owner. The appraisal procedure shall comply with the applicable laws governing such assets. In case of an appraisal upon request, the requester shall bear the appraisal costs.

Article 9. Prohibited Acts

1. Auctioneers are strictly prohibited from performing the following acts:

a) Allowing other individuals or organizations to use their Auction Practice Certificate;

b) Exploiting the status of an auctioneer for personal gain;

c) Colluding or coordinating with the asset owner, auction participants, valuation organizations, asset appraisal organizations, or other individuals or organizations to distort asset information, suppress prices, or falsify auction records or results;

d) Restricting individuals or organizations from participating in auctions contrary to the law;

đ) Violating professional ethics rules for auctioneers;

e) Other prohibited acts as prescribed by relevant laws.

2. Asset auction organizations are strictly prohibited from performing the following acts:

a) Allowing other organizations to use their name or registration certificate to conduct asset auction services;

b) Colluding or coordinating with the asset owner, auction participants, valuation organizations, asset appraisal organizations, or other individuals or organizations to distort asset information, suppress prices, or falsify auction records or results;

c) Obstructing or making it difficult for auction participants to register or participate in auctions;

d) Disclosing information about registered auction participants for personal gain;

e) Other prohibited acts as prescribed by relevant laws.

3. The Asset Auction Council is strictly prohibited from performing the acts specified in Points b, c, d, and e of Clause 2 of this Article.

4. The asset owner is strictly prohibited from performing the following acts:

a) Colluding or coordinating with auctioneers, asset auction organizations, or other individuals or organizations to distort asset information, suppress prices, or falsify auction records or results;

b) Receiving any money, assets, or benefits from auctioneers, asset auction organizations, or other auction participants to distort auction results;

c) Other prohibited acts as prescribed by relevant laws.

5. Auction participants, successful bidders, and other individuals or organizations are strictly prohibited from performing the following acts:

a) Providing false information or using forged documents to register for or participate in auctions;

b) Colluding or coordinating with auctioneers, asset auction organizations, the asset owner, other auction participants, or other individuals or organizations to suppress prices or distort auction results;

c) Obstructing asset auction activities; causing disturbances or disorder during auctions;

d) Threatening or coercing auctioneers or other auction participants to distort auction results;

đ) Other prohibited acts as prescribed by relevant laws.

PART II

AUCTIONEERS AND ASSET AUCTION ORGANIZATIONS

Section 1

AUCTIONEERS

Article 10. Auctioneer Standards

An auctioneer must meet the following criteria:

1. A Vietnamese citizen residing in Vietnam, abiding by the Constitution and laws, with good moral character;

2. Possessing a bachelor's or higher degree in one of the fields of law, economics, accounting, finance, or banking;

3. Completing the auction profession training course as stipulated in Article 11 of this Law, except for those exempted from such training as provided in Article 12 of this Law;

4. Meeting the requirements of the examination on the results of the probationary period for practicing auctions.

Article 11. Auction Profession Training

1. Individuals meeting the criteria set forth in Clause 1 and Clause 2 of Article 10 of this Law, who have worked in their field of study for at least three years, may participate in the auction profession training course.

2. The duration of the auction profession training course is six months. Upon completion of the training course, individuals will be issued a certificate of graduation from the auction profession training course by the training institution.

Article 12. Individuals Exempted from Auction Profession Training

1. Individuals who are already lawyers, notaries, judicial scriveners, bankruptcy administrators, or arbitrators with at least two years of practice experience.

2. Individuals who are judges, prosecutors, or enforcement officers.

Article 13. Probationary Period for Practicing Auctions

1. Individuals holding a certificate of graduation from the auction profession training course and those exempted from such training may undergo the probationary period for practicing auctions at an asset auction organization.

2. The probationary period for practicing auctions lasts six months. The probationary period begins on the day the asset auction organization notifies the Department of Justice of the location where the organization is headquartered about the list of individuals undergoing the probationary period for practicing auctions.

3. The asset auction organization assigns auctioneers to guide individuals during their probationary period. The guiding auctioneer must provide guidance, supervision, and be responsible for the tasks performed by the individual undergoing the probationary period.

During the probationary period, individuals are guided in professional skills and perform tasks related to asset auctions as assigned by the guiding auctioneer and are accountable to the guiding auctioneer for these tasks. Individuals undergoing the probationary period are not allowed to conduct auctions.

4. Individuals completing the probationary period as specified in Clause 2 of this Article are eligible to participate in the examination on the results of the probationary period for practicing auctions.

The examination on the results of the probationary period for practicing auctions includes professional skills in auctions, laws on asset auctions, relevant laws, and the Code of Ethics for Auctioneers.

5. The Examination Council on the Results of the Probationary Period for Practicing Auctions conducts the examination. The Ministry of Justice establishes the Examination Council; its members include representatives from the Ministry of Justice as Chairperson, representatives from relevant agencies and organizations, and some auctioneers as members.

Article 14. Issuance of the Auction Practice Certificate

1. Individuals meeting the criteria set forth in Article 10 of this Law submit a complete application package for the Auction Practice Certificate to the Ministry of Justice and pay the prescribed fee. The application package includes:

a) Application for issuance of the Auction Practice Certificate;

b) Certified copy or original copy for verification of a bachelor's or higher degree in one of the fields of law, economics, accounting, finance, or banking;

c) Certified copy or original copy for verification of the certificate of graduation from the auction profession training course;

d) Written confirmation of meeting the requirements of the examination on the results of the probationary period for practicing auctions;

đ) Criminal record sheet;

e) One color photograph measuring 3 cm x 4 cm.

2. Within fifteen days from the date of receiving a complete and valid application package, the Minister of Justice decides to issue the Auction Practice Certificate; in case of refusal, the reasons must be communicated in writing. Individuals refused the Auction Practice Certificate have the right to appeal or file a lawsuit according to the law.

3. Individuals holding the Auction Practice Certificate are issued an Auctioneer Card by the Department of Justice upon request of the asset auction organization where they practice. The Auctioneer Card will be revoked if the Auction Practice Certificate is revoked according to Article 16 of this Law.

The Government shall specify detailed regulations on the issuance and revocation of the Auctioneer Card.

Article 15. Cases where a Professional Practice Certificate for Auctions shall not be issued

1. Not meeting the criteria stipulated in Article 10 of this Law.

2. Currently serving as an officer, professional soldier, worker, or defense civil servant in agencies or units under the People's Army; as an officer, non-commissioned officer in specialized positions, or technical officers, non-commissioned officers in agencies or units under the People's Public Security; as a cadre, civil servant, or employee, except in cases where they are civil servants or employees applying for a Professional Practice Certificate for Auctions to work at Asset Auction Service Centers.

3. Having lost or been restricted in their capacity for civil acts; having difficulties in recognizing and controlling their actions.

4. Being pursued for criminal responsibility; having been convicted and the judgment has become legally binding; having been convicted but not yet rehabilitated; having been convicted of fraudulently appropriating assets or corruption offenses, including cases where rehabilitation has already taken place.

5. Currently subject to administrative measures involving compulsory drug rehabilitation centers or compulsory education centers as prescribed by laws on handling administrative violations.

Article 16. Revocation of Professional Practice Certificate for Auctions

1. A person who has been issued a Professional Practice Certificate for Auctions shall have their certificate revoked in the following circumstances:

a) Belongs to one of the cases specified in Article 15 of this Law;

b) Has not practiced auctions as stipulated in Clause 1, Article 18 of this Law within two years from the date of issuance of the Professional Practice Certificate for Auctions, except in cases of force majeure;

c) Has been administratively sanctioned according to laws on handling administrative violations due to violations of provisions at point b or point c, Clause 1, Article 9 of this Law;

d) Ceases practice according to personal preference;

đ) Is declared missing or dead.

2. The revocation of the Professional Practice Certificate for Auctions shall be carried out according to the following procedures:

a) Within twenty days from the date of receiving information about a person who has been issued a Professional Practice Certificate for Auctions belonging to the case of revoking the Professional Practice Certificate for Auctions as stipulated in Clause 1 of this Article, the Department of Justice where the organization's headquarters is located or the Department of Justice where the person resides if the person has been issued a Professional Practice Certificate for Auctions but has not practiced shall be responsible for conducting examination and verification;

b) Within seven working days from the date of confirming that a person who has been issued a Professional Practice Certificate for Auctions belongs to the case of being revoked the Professional Practice Certificate for Auctions, the Department of Justice shall issue a document requesting the Ministry of Justice to revoke the Professional Practice Certificate for Auctions of that person along with relevant documents;

c) Within fifteen days from the date of receiving the request document from the Department of Justice, the Minister of Justice shall issue a decision to revoke the Professional Practice Certificate for Auctions. The decision to revoke the Professional Practice Certificate for Auctions shall be sent to the person whose certificate is revoked, the organization where the person practices, and the Department of Justice which has issued the request. In cases where there is insufficient basis to revoke the Professional Practice Certificate for Auctions, the Ministry of Justice shall notify in writing the relevant authorities, organizations, and individuals.

Article 17. Reissuance of Professional Practice Certificate for Auctions

1. A person whose Professional Practice Certificate for Auctions has been revoked as stipulated in point a, Clause 1, Article 16 of this Law may be considered for reissuance of the Professional Practice Certificate for Auctions when they meet the criteria stipulated in Article 10 of this Law and the reason for revoking the Professional Practice Certificate for Auctions no longer exists.

2. A person whose Professional Practice Certificate for Auctions has been revoked as stipulated in point b, Clause 1, Article 16 of this Law may be considered for reissuance of the Professional Practice Certificate for Auctions one year after the date of revocation of the Professional Practice Certificate for Auctions.

3. A person whose Professional Practice Certificate for Auctions has been revoked as stipulated in point d, Clause 1, Article 16 of this Law may be considered for reissuance of the Professional Practice Certificate for Auctions upon application for reissuance of the Professional Practice Certificate for Auctions.

4. A person who has been issued a Professional Practice Certificate for Auctions, if losing the Professional Practice Certificate for Auctions or the certificate being damaged and unusable, may be considered for reissuance of the Professional Practice Certificate for Auctions.

5. A person whose Professional Practice Certificate for Auctions has been revoked shall not be eligible for reissuance of the Professional Practice Certificate for Auctions in the following cases:

a) The Professional Practice Certificate for Auctions has been revoked as stipulated in point c, Clause 1, Article 16 of this Law;

b) Convicted of fraudulently appropriating assets or corruption offenses, including cases where rehabilitation has already taken place.

6. A person whose Professional Practice Certificate for Auctions has been revoked as stipulated in Clause 1 of this Article shall submit a complete application for reissuance of the Professional Practice Certificate for Auctions to the Ministry of Justice and pay the fee as prescribed by law. The application includes:

a) An application for reissuance of the Professional Practice Certificate for Auctions;

b) Documents proving that the reason for revoking the Professional Practice Certificate for Auctions no longer exists;

c) One color photograph measuring 3 cm x 4 cm.

7. A person whose Professional Practice Certificate for Auctions has been revoked as stipulated in Clause 2 and Clause 3 of this Article and the case stipulated in Clause 4 of this Article shall submit a complete application for reissuance of the Professional Practice Certificate to the Ministry of Justice and pay the fee as prescribed by law. The application includes documents as stipulated in point a and point c of Clause 6 of this Article.

8. Within ten working days from the date of receiving a complete and valid application, the Minister of Justice shall decide on reissuing the Professional Practice Certificate for Auctions; in cases of refusal, reasons must be notified in writing. A person refused reissuance of the Professional Practice Certificate for Auctions has the right to lodge complaints or initiate lawsuits according to the law.

Article 18. Forms of Practice for Auctioneers

1. Auctioneers shall practice in the following forms:

a) Practicing at Property Auction Service Centers;

b) Practicing at Property Auction Enterprises;

c) Practicing at organizations wholly owned by the State with capital contributions established by the Government to handle non-performing loans of credit institutions.

2. The practice of auctioneers as stipulated in point a, Clause 1 of this Article shall be carried out in accordance with this Law, laws on cadres and civil servants, and laws on public officials.

3. The practice of auctioneers as stipulated in point b, Clause 1 of this Article shall be conducted through the establishment or participation in the establishment or working under labor contracts at property auction enterprises. Each auctioneer may only establish or participate in establishing one property auction enterprise or sign a labor contract with one property auction enterprise in accordance with this Law and other relevant laws.

4. The practice of auctioneers as stipulated in point c, Clause 1 of this Article shall be carried out in accordance with this Law and labor laws.

Article 19. Rights and Obligations of Auctioneers

1. Auctioneers have the following rights:

a) To practice throughout the territory of Vietnam;

b) To directly manage auctions;

c) To revoke the right to participate in auctions of participants who violate the provisions set forth in Clause 5, Article 9 of this Law;

d) To stop auctions when discovering collusion, price suppression, or disruption of order during auctions and to report to the property auction organization;

đ) To manage auctions according to the contract between the Property Auction Council and the property auction organization where the auctioneer practices, in cases where the auction is conducted by the Council or by an organization wholly owned by the State with capital contributions established by the Government to handle non-performing loans of credit institutions, in cases where the organization conducts its own auction;

e) To guide and supervise the probationary period of persons undergoing training to become auctioneers;

g) Other rights as prescribed by law.

2. Auctioneers have the following obligations:

a) To comply with the principles, procedures, and auction processes prescribed in this Law;

b) To follow the Code of Professional Ethics for Auctioneers;

c) To bear responsibility before the law and the property auction organization for auctions they conduct;

d) To be responsible for tasks performed by persons undergoing training to become auctioneers whom they guide, as stipulated in Clause 3, Article 13 of this Law;

đ) To participate in professional liability insurance as prescribed in Article 20 of this Law;

e) Other obligations as prescribed by law.

Article 20. Professional Liability Insurance for Auctioneers

1. Auctioneers shall participate in professional liability insurance through property auction organizations or organizations wholly owned by the State with capital contributions established by the Government to handle non-performing loans of credit institutions.

2. Property auction organizations, organizations wholly owned by the State with capital contributions established by the Government to handle non-performing loans of credit institutions have the obligation to purchase professional liability insurance for their auctioneers.

Article 21. Professional Associations of Auctioneers

1. Professional associations of auctioneers are self-managed organizations established to protect the legitimate rights and interests of auctioneers; to provide legal knowledge and professional skills training for auctioneers; to monitor compliance with the Code of Professional Ethics for Auctioneers; and to perform other tasks as prescribed by laws on associations and the Charter of professional associations of auctioneers.

2. The establishment, organizational structure, functions, duties, and powers of professional associations of auctioneers shall be implemented in accordance with laws on associations and this Law.

Section 2

PROPERTY AUCTION ORGANIZATIONS

Article 22. Auction Service Center

1. The Auction Service Center shall be established by the People's Committee of the province.

2. The Auction Service Center is a public service unit under the Department of Justice, having its own office, seal, and separate account. The Director of the Auction Service Center must be an auctioneer.

Article 23. Property Auction Enterprises

1. Property auction enterprises may be established, organized, and operate in the form of private businesses or joint-stock companies according to this Law and other relevant laws.

2. The name of a private property auction enterprise shall be chosen by the business owner, while the name of a joint-stock property auction company shall be agreed upon by its members and selected according to the Enterprise Law but must include the phrase "private property auction enterprise" or "joint-stock property auction company."

3. Conditions for registering to conduct business activities of property auction enterprises:

a) A private property auction enterprise must have a business owner who is an auctioneer and also serves as the Director of the enterprise; a joint-stock property auction company must have at least one member who is an auctioneer, and the General Manager or Director of the joint-stock property auction company must be an auctioneer.

b) Possessing a headquarters, material facilities, and necessary equipment to ensure the operation of property auctions.

4. Matters related to the establishment, organization, operation, and cessation of operations of property auction enterprises not specified in this Law shall be carried out according to the provisions of the Enterprise Law.

Article 24. Rights and Obligations of Auction Organizations

1. Auction organizations have the following rights:

a) Providing auction services according to the provisions of this Law;

b) Hiring auctioneers to work for the organization according to the law;

c) Requesting the person with the auctioned property to provide complete and accurate information and documents related to the auctioned property;

đ) Appointing auctioneers to manage the auction;

e) Implementing services to transfer ownership and usage rights of the property, manage the property, and other related services according to agreements;

g) Determining the initial price when selling the property through auction as stipulated in Clause 2, Article 4 of this Law, upon authorization from the person with the auctioned property;

h) Assigning auctioneers to guide trainees in their practice;

i) Unilaterally terminating, canceling the auction service contract, or requesting the court to declare the auction service contract void according to civil law and this Law;

k) Other rights as prescribed by law.

2. Auction organizations have the following obligations:

a) Conducting property auctions according to the principles, procedures, and formalities stipulated in this Law and being responsible for the results of the auction;

b) Issuing Rules of the Auction according to Article 34 of this Law and other relevant laws;

c) Organizing continuous auctions strictly according to the announced time and location, except in cases of force majeure;

d) Requesting the person with the auctioned property to hand over the property and related documents to the buyer of the auctioned property; if the person with the auctioned property has entrusted the property and related documents to be kept or managed, then handing them over to the buyer of the auctioned property;

đ) Compensating for damages when conducting auctions according to the law;

e) Fulfilling obligations according to the auction service contract;

g) Maintaining a Register of Auctioned Properties and a Registration Book for Auctions;

h) Proposing the Department of Justice where the organization is headquartered to issue or revoke the Auctioneer Card;

i) Purchasing professional liability insurance for auctioneers of the organization according to Article 20 of this Law;

k) Reporting to the Department of Justice where the organization is headquartered a list of practicing auctioneers and trainees in the organization annually or as required; for enterprises with branches, they must also report to the Department of Justice where the branch is registered to operate;

l) Reporting to the Department of Justice where the organization is headquartered on organizational structure and annual activities or in case of emergency as required; for enterprises with branches, they must also report to the Department of Justice where the branch is registered to operate;

m) Complying with requests from competent state agencies regarding inspections and audits;

n) Other obligations as prescribed by law.

Article 25. Registration of Auction Business Activities

1. An enterprise that meets the provisions of Article 23 of this Law shall submit a set of application documents for registration of auction business activities to the Department of Justice at the location where the enterprise is headquartered and pay the fee as prescribed by law. The documents include:

a) A registration application form;

b) The articles of incorporation of the enterprise for a limited liability auction company;

c) Certified copies or copies with original counterparts for verification of the Auction Practice Certificate of the owner of a private auction enterprise, the Auction Practice Certificate of the general partners, the General Director or Director of a limited liability auction company;

d) Documents proving the headquarters of the auction enterprise, commitment to ensure necessary material and equipment for auction activities.

2. Within ten working days from the date of receiving complete and valid documents, the Department of Justice shall issue a registration certificate for the auction enterprise; if it refuses, it must notify the reasons in writing. An enterprise refused issuance of a registration certificate has the right to lodge complaints or initiate lawsuits in accordance with the law.

3. The auction enterprise commences operations from the date it receives the registration certificate.

Article 26. Change of Registered Content, Reissue of Registration Certificate for Auction Enterprises

1. In case an auction enterprise changes its registered content regarding name, headquarters address, branch office, representative office, legal representative of the enterprise, it shall proceed as follows:

a) Within ten working days from the date of decision to change, the auction enterprise shall submit a change request form to the Department of Justice at the location where the enterprise is registered;

b) Within five working days from the date of receipt of the change request form, the Department of Justice shall decide on changing the registered content for the auction enterprise; if it refuses, it must notify the reasons in writing. An enterprise refused change of registered content has the right to lodge complaints or initiate lawsuits in accordance with the law.

2. In case the registered content of the enterprise has been changed but later it is discovered that the information declared in the change registration application documents is false, the Department of Justice shall issue a notice of the violation by the enterprise and revoke the changes in the registered content of the enterprise, while notifying the competent authority to handle according to the law.

3. In case an auction enterprise requests reissuance of the registration certificate due to loss, damage, fire, or other forms of destruction, it shall proceed as follows:

a) The auction enterprise shall submit a reissue request form for the registration certificate to the Department of Justice at the location where the enterprise is registered;

b) Within seven working days from the date of receipt of the reissue request form, the Department of Justice shall reissue the registration certificate for the auction enterprise; if it refuses, it must notify the reasons in writing. An enterprise refused reissuance of the registration certificate has the right to lodge complaints or initiate lawsuits in accordance with the law.

Article 27. Provision of Information on the Content of Business Registration for Asset Auction Enterprises

Within seven working days from the date of issuance of the Business Registration Certificate or change in the business registration content of asset auction enterprises, the Department of Justice shall notify in writing to the tax authority, statistical agency, planning and investment agency where the enterprise has its headquarters; publish the content of the business registration of the asset auction enterprise as stipulated in Clause 1 of Article 28 of this Law on the electronic portal of the Department of Justice.

Article 28. Publication of the Content of Business Registration for Asset Auction Enterprises

1. Within thirty days from the date of issuance of the Business Registration Certificate, the asset auction enterprise must publish in three consecutive daily newspapers of the central or local level where it registers the following main contents:

a) The name of the asset auction enterprise;

b) The address of the headquarters of the asset auction enterprise, branch offices, representative offices;

c) The number, date of issuance, and place of business registration of the Business Registration Certificate;

d) The name, surname, and Auction Practitioner Certificate number of the owner of a private asset auction enterprise; the name, surname, and Auction Practitioner Certificate number of the general partner, managing director, or director of a limited liability asset auction company.

2. In case of changes in the business registration content, the asset auction enterprise must publish the changed contents according to the provisions of Clause 1 of this Article.

Article 29. Branches of Asset Auction Enterprises

1. Branches of asset auction enterprises may be established within or outside the province or centrally administered city where the asset auction enterprise registers its business. The asset auction enterprise is responsible for the activities of its branches. The asset auction enterprise appoints an auctioneer of the enterprise to serve as the head of the branch.

2. The asset auction enterprise submits a set of documents for the business registration of the branch to the Department of Justice where the branch is located. The documents include:

a) A request for business registration of the branch;

b) Decision on establishment of the branch;

c) Certified copy or copy with original for comparison of the Business Registration Certificate of the enterprise;

d) Certified copy or copy with original for comparison of the Auction Practitioner Certificate of the branch head;

đ) Documents proving the office address of the branch.

3. Within seven working days from the date of receipt of complete and valid documents, the Department of Justice issues the Business Registration Certificate for the branch; if rejected, it must notify the reasons in writing. The enterprise that is rejected has the right to appeal or file a lawsuit in accordance with the law.

4. The branch operates from the date of issuance of the Business Registration Certificate. Within seven working days from the date of issuance of the Business Registration Certificate for the branch, the enterprise must notify in writing along with a copy of the Business Registration Certificate of the branch to the Department of Justice where the enterprise registers its business.

Article 30. Representative Offices of Asset Auction Enterprises

1. Representative offices of asset auction enterprises are established by the enterprise within or outside the province or centrally administered city where the enterprise registers its business. Representative offices are not allowed to conduct asset auctions.

2. Within five working days from the date of establishment of the representative office, the enterprise must notify in writing the address of the representative office to the Department of Justice where the representative office is located and the Department of Justice where the enterprise registers its business.

Article 31. Termination of Activities of Auction Enterprises

1. An auction enterprise shall terminate its activities in any of the following cases:

a) Dissolution;

b) Merger, absorption;

c) Bankruptcy;

d) Revocation of the Business Registration Certificate in accordance with Clause 1, Article 32 of this Law.

2. Within seven working days from the date on which the auction enterprise terminates its activities, the Department of Justice shall notify in writing the tax authority, statistical agency, planning and investment agency where the enterprise is located; and publish information about the termination of the auction enterprise's activities on the Department of Justice’s electronic portal.

Article 32. Revocation of Business Registration Certificate of Auction Enterprises

1. An auction enterprise shall have its Business Registration Certificate revoked in any of the following cases:

a) Not meeting the requirements stipulated in Clause 3, Article 23 of this Law;

b) False information in the registration dossier;

c) Ceasing operations for one year without notifying the Department of Justice where the enterprise is registered;

d) Being administratively penalized for failing to submit reports as prescribed in Point 1, Clause 2, Article 24 of this Law and committing the same offense again;

đ) Other cases decided by the Court.

2. The revocation of the Business Registration Certificate of an auction enterprise shall be carried out according to the following procedures and formalities:

a) In the case prescribed in Point a, Clause 1 of this Article, the Department of Justice shall issue a written request for the auction enterprise to meet the conditions stipulated in Clause 3, Article 23 of this Law within thirty days from the date of issuance of the request; if the auction enterprise still fails to meet these conditions at the end of the aforementioned period, the Department of Justice shall issue a decision to revoke the Business Registration Certificate of the enterprise;

b) In the case prescribed in Point b, Clause 1 of this Article, the Department of Justice shall issue a notice of the violation committed by the enterprise and a decision to revoke the Business Registration Certificate of the enterprise;

c) In the case prescribed in Point c, Clause 1 of this Article, the Department of Justice shall send a written notice and require the legal representative of the enterprise to come to the Department of Justice’s office to explain; if the person required does not attend within ten working days from the end of the period specified in the notice, the Department of Justice shall issue a decision to revoke the Business Registration Certificate of the enterprise;

d) In the case prescribed in Point d, Clause 1 of this Article, the Department of Justice shall issue a decision to revoke the Business Registration Certificate of the enterprise.

3. The Department of Justice where the auction enterprise is registered shall publish information about the revocation of the Business Registration Certificate of the enterprise on the Department of Justice’s electronic portal; notify in writing the tax authority, statistical agency, planning and investment agency where the enterprise is registered; and report to the Ministry of Justice.

CHAPTER III

PROCEDURES AND FORMALITIES FOR AUCTION OF ASSETS

Article 33. Service Contract for Auction of Assets

1. The owner of the asset to be auctioned shall enter into a service contract for the auction of assets with an auction organization to carry out the auction of the asset. The service contract for the auction of assets must be drawn up in writing and implemented in accordance with the provisions of civil law and this Law.

2. When signing a service contract for the auction of assets, the owner of the asset to be auctioned shall be responsible for providing the auction organization with evidence proving ownership, right to use, or right to sell the asset in accordance with the law and bear legal responsibility for such evidence.

3. The auction organization shall be responsible for verifying the information provided by the owner of the asset to be auctioned regarding the right to sell the asset. The auction organization shall not be liable for the value or quality of the auctioned asset, except in the case where the auction organization fails to fully and accurately inform participants in the auction of the necessary information related to the value and quality of the auctioned asset as stipulated in the service contract for the auction of assets.

4. The rights and obligations of the auction organization and the owner of the asset to be auctioned shall be implemented in accordance with the service contract for the auction of assets, the provisions of this Law, the provisions of civil law, and other relevant laws.

5. The owner of the asset to be auctioned or the auction organization may unilaterally terminate the service contract for the auction of assets before the auction organization receives the participation dossier of the participant in accordance with the provisions of civil law, unless otherwise provided by law.

6. The owner of the asset to be auctioned has the right to cancel the service contract for the auction of assets in any of the following cases:

a) The organization conducts an auction without having the function of operating auctions or an individual who is not an auctioneer conducts the auction, except in the case where the auction is conducted by the Auction Council;

b) The auction organization intentionally allows individuals who do not meet the conditions to participate in the auction as prescribed by law to participate in and win the auction;

c) The auction organization commits one of the following acts: failing to publicly announce the auction of assets; failing to properly implement the regulations on selling participation registration dossiers and organizing participation registration; hindering or limiting participants from registering to participate in the auction;

d) The auction organization colludes or conspires with participants during the auction process, leading to distortion of information on the auctioned asset or participation registration dossier or the auction result;

đ) The auction organization conducts an auction that does not comply with the prescribed form and method of auction as stipulated in the Auction Regulations, leading to distortion of the auction result.

Article 34. Auction Rules

1. The auction organization shall issue Auction Rules applicable to each auction before the auction property listing date.

2. The Auction Rules shall include the following main contents:

a) Name of the property or list of properties, quantity, quality of the auctioned property; location of the auctioned property; documents on ownership rights and usage rights for the auctioned property;

b) Time and place to view the auctioned property;

c) Time and place to sell bidding documents;

d) Starting price of the auctioned property in cases where the starting price is publicly announced;

đ) Bidding document purchase fee, bid deposit;

e) Time, place, conditions, and methods for registering to participate in the auction;

g) Time and place to organize the auction;

h) Form of auction, bidding method;

i) Cases where participants are deprived of their right to participate in the auction; cases where the bid deposit will not be refunded.

3. The auction organization has the responsibility to publicly announce the Auction Rules.

Article 35. Listing the Auction of Property

1. The auction organization lists the auction of property as follows:

a) For movable property, the auction organization must list the auction at its own office, display location (if any), and auction venue at least seven working days before the auction opening day;

b) For immovable property, the auction organization must list the auction at its own office, auction venue, and People's Committee of the commune where the immovable property is located at least fifteen days before the auction opening day.

2. Main information that must be listed includes:

a) Name and address of the auction organization and the owner of the auctioned property;

b) Contents specified in points a, b, c, d, đ, e, g, and h of Clause 2, Article 34 of this Law.

3. The auction organization retains documents and images of the auction listing as stipulated in Clause 1 and Clause 2 of this Article in the auction file. In cases where the listing is made at the People's Committee of the commune where the immovable property is located, the auction organization retains documents and images of the listing or prepares a document with confirmation of the listing from the People's Committee of the commune.

4. In addition to the listings stipulated in Clause 1 and Clause 2 of this Article, the auction organization implements public announcements of the auction according to Article 57 of this Law upon request of the owner of the auctioned property.

Article 36. Viewing Auctioned Property

1. From the date of listing the auction of property until the auction opening day, the auction organization organizes for participants to directly view the property or sample property for at least two continuous days. On the property or sample property, the name of the owner of the auctioned property and information about the property must be clearly marked.

2. From the date of listing the auction of property until the auction opening day, for auctioned property that is property rights or property requiring registration of ownership and usage rights, the auction organization organizes for participants to view documents on ownership and usage rights of the property and related documents for at least two continuous days.

Article 37. Location of Auction

The auction shall be organized at the office of the asset auction organization, at the location of the auctioned assets, or at another agreed-upon location between the owner of the auctioned assets and the asset auction organization, except where otherwise provided by law.

Article 38. Registration to Participate in Auction

1. Individuals and organizations register to participate in the auction by submitting valid participation application forms and pre-payment to the asset auction organization in accordance with this Law and other relevant laws. In cases where the law stipulates conditions for participating in auctions, participants must meet those conditions. Participants may authorize another person in writing to represent them in the auction.

2. The asset auction organization sells participation application forms, accepts participation application forms during regular working hours continuously from the date of publicizing the auction until two days before the auction opening.

3. Apart from the registration conditions prescribed in this Law and other relevant laws, the owner of the auctioned assets and the asset auction organization shall not impose additional requirements or conditions on participants.

4. The following individuals are not allowed to register to participate in the auction:

a) Individuals without civil capacity, individuals who have lost or are restricted in their civil capacity, individuals with difficulties in understanding and controlling their actions, or individuals who cannot understand and control their actions at the time of registering to participate in the auction;

b) Employees of the asset auction organization conducting the auction; parents, spouses, children, brothers, sisters of the auctioneer managing the auction; individuals directly appraising or valuing the assets; parents, spouses, children, brothers, sisters of individuals directly appraising or valuing the assets;

c) Individuals authorized by the asset owner to handle the assets, individuals with the right to decide to sell the assets, individuals signing service auction contracts for the assets, individuals with the right to decide to sell others' assets as prescribed by law;

d) Parents, spouses, children, brothers, sisters of individuals specified in point c of this clause;

đ) Individuals who do not have the right to purchase the auctioned assets according to the applicable law for that type of asset.

Article 39. Pre-payment and Handling of Pre-payment

1. Participants in the auction must pay a pre-payment. The amount of pre-payment is agreed upon by the asset auction organization and the owner of the auctioned assets, but it must be at least five percent and at most twenty percent of the initial price of the auctioned assets.

The pre-payment must be deposited into a separate settlement account opened by the asset auction organization at a commercial bank or foreign bank branch in Vietnam. If the pre-payment amount is less than five million dong, the participant can pay it directly to the asset auction organization. The participant and the asset auction organization may agree to replace the pre-payment with a bank guarantee.

2. The asset auction organization may only collect pre-payments from participants three working days before the auction opening date, unless there is a different agreement between the asset auction organization and the participant prior to the auction opening date. The asset auction organization may not use the pre-payment for any other purpose.

3. Participants have the right to refuse to participate in the auction and to receive back the pre-payment if there are changes in the initial price, quantity, or quality of the publicly announced assets; if the pre-payment generates interest, the participant is entitled to receive that interest.

4. The asset auction organization is responsible for returning the pre-payment and paying any accrued interest within three working days from the end of the auction or within another agreed period, except in the case provided for in Clause 6 of this Article.

5. In the event of winning the auction, the pre-payment and any accrued interest will be converted into a deposit to ensure the performance of the contract or the sale contract of the auctioned assets or the obligation to purchase the auctioned assets after approval by the competent authority. The handling of the deposit follows the provisions of civil law and other relevant laws.

6. Participants in the auction shall not be entitled to receive back the pre-payment in the following cases:

a) Having paid the pre-payment but not participating in the auction or the price announcement session without being subject to force majeure circumstances;

b) Being disqualified from participating in the auction due to violations stipulated in Clause 5 of Article 9 of this Law;

c) Refusing to sign the auction record as stipulated in Clause 3 of Article 44 of this Law;

d) Withdrawing the bid price or accepted price as stipulated in Article 50 of this Law;

đ) Refusing the auction win result as stipulated in Article 51 of this Law.

7. Apart from the cases specified in Clause 6 of this Article, the asset auction organization shall not specify additional cases where participants are not entitled to receive back the pre-payment in the Auction Regulations.

8. The pre-payment specified in Clause 6 of this Article belongs to the owner of the auctioned assets. In cases where the owner of the auctioned assets is a state agency, the pre-payment shall be deposited into the state budget in accordance with the law, after deducting the costs of auctioning the assets.

Article 40. Forms and methods of auction

1. The auction organization agrees with the owner of the auctioned property to choose one of the following forms to conduct the auction:

a) Oral auction at the auction site;

b) Direct ballot auction at the auction site;

c) Indirect ballot auction;

d) Online auction.

2. Methods of auction include:

a) Bid-up method;

b) Bid-down method.

3. The form and method of auction must be stipulated in the Auction Regulations and publicly announced to participants in the auction.

4. The Government shall provide detailed regulations on point d of Clause 1 of this Article.

Article 41. Oral auction at the auction site

1. The auctioneer conducts the oral auction at the auction site according to the following procedures:

a) Introduce themselves and assistants; announce the list of auction participants and take attendance to confirm the participants;

b) Read the Auction Regulations;

c) Introduce each auctioned asset;

d) Reiterate the starting price if the starting price is publicly disclosed;

đ) Announce the bid increment and the maximum time interval between bids;

e) Issue numbers to auction participants;

g) Guide the bidding process, acceptance of bids, and answer questions from participants;

h) Conduct the bidding and acceptance of bids according to the provisions of Clause 2 and Clause 3 of this Article.

2. The bidding process for the bid-up method is carried out as follows:

a) The auctioneer requests participants to make bids;

b) Participants make bids. The bid must be at least equal to the starting price if it is publicly disclosed. Subsequent bidders must bid higher than the previous bidder;

c) The auctioneer announces each bid made and encourages other participants to continue bidding;

d) The auctioneer announces the highest bidder as the winner after repeating the highest bid three times and confirming that there are no higher bids above the starting price.

3. The acceptance of bids for the bid-down method is carried out as follows:

a) The auctioneer presents a price for participants to accept. The person accepting the starting price is the winner;

b) The auctioneer announces the price reduction and continues the auction if no one accepts the starting price or reduced price. The person accepting the reduced price is the winner;

c) If two or more people accept the starting price or reduced price, the auctioneer organizes a draw to select the winner.

Article 42. Direct ballot auction at the auction site

1. The auctioneer conducts the direct ballot auction at the auction site according to the following procedures:

a) Implement the provisions of points a, b, c, d, đ, e, and g of Clause 1 of Article 41 of this Law;

b) Reiterate the requirements for valid bid ballots, and the time to complete the ballot;

c) Conduct the bidding and acceptance of bids according to the provisions of Clause 2 and Clause 3 of this Article.

2. The bidding process for the bid-up method is carried out as follows:

a) Participants receive a bid ballot, write their desired bid on the ballot. After the ballot time ends, the auctioneer requests participants to submit their bid ballots or place them in the ballot box; count the number of ballots issued and received; announce each bid ballot and the highest bid ballot under the supervision of at least one participant;

b) The auctioneer announces the highest bid of the round and invites participants to continue bidding for the next round. The starting price of the next round is the highest bid of the previous round;

c) The auction concludes when no one continues bidding. The auctioneer announces the highest bidder and declares them the winner;

d) If two or more people bid the highest price, the auctioneer conducts another round of bidding among those who bid the highest to select the winner. If the highest bidder does not agree to continue bidding or there are no higher bids, the auctioneer organizes a draw to select the winner.

3. The acceptance of bids for the bid-down method is carried out as follows:

a) Participants receive an acceptance ballot, write their acceptance and the starting price proposed by the auctioneer on the ballot. After the ballot time ends, the auctioneer requests participants to submit their acceptance ballots or place them in the ballot box; count the number of ballots issued and received;

b) The auctioneer announces each participant's acceptance under the supervision of at least one participant;

c) The auctioneer announces the person accepting the starting price and declares them the winner. If no one accepts the starting price, the auctioneer announces the price reduction and proceeds with the ballot for the reduced price;

d) If two or more people accept the starting price or reduced price, the auctioneer organizes a draw to select the winner.

4. The owner of the auctioned property and the auction organization agree on the method of conducting the ballot and the number of rounds specified in Clauses 2 and 3 of this Article.

Article 43. Auction by Indirect Bidding

1. When registering to participate in the auction, participants shall receive bidding sheets, instructions on how to fill out the bidding sheet, the deadline for submitting the bidding sheet, and the session for announcing prices; they shall be introduced to each auctioned asset by the auction organization, reminded of the starting price if it is publicly announced, have their questions answered, and other contents according to the Auction Regulations.

2. The bidding sheet of the participant must be enclosed in a secure material, with the bidder's signature on all edges of the envelope containing the sheet. The bidding sheet can be sent through postal service or submitted directly and placed into the ballot box by the auction organization. The ballot box must be sealed immediately upon the expiration of the submission period.

3. At the session for announcing the bids made by participants, the auctioneer managing the auction introduces themselves and their assistants; reads the Auction Regulations; announces the list of participants and roll call to confirm the participants; announces the number of issued ballots and the number of returned ballots.

The auctioneer managing the auction invites at least one participant to supervise the integrity of the ballot box. If there are no further comments regarding the supervision result, the auctioneer proceeds to unseal the ballot box.

The auctioneer managing the auction invites at least one participant to supervise the integrity of each bidding sheet; proceeds to open each bidding sheet, announce the number of valid ballots, the number of invalid ballots, announce each bidding sheet, the highest bid, and announce the person with the highest bid as the successful bidder.

4. In cases where two or more persons make the highest bid simultaneously, the auctioneer shall organize a direct auction between those making the highest bid to select the successful bidder right at the price announcement session. The auctioneer decides on the form of direct oral bidding or direct bidding by ballot. If the highest bidder does not agree to continue bidding or there is no higher bid, the auctioneer shall organize a draw to select the successful bidder.

Article 44. Auction Minutes

1. The auction ends when the auctioneer announces the successful bidder or when the auction fails as stipulated in Clause 1 of Article 52 of this Law.

2. The course of the auction must be recorded in the auction minutes. The auction minutes must be prepared during the auction and signed by the auctioneer managing the auction, the minute taker, the successful bidder, the owner of the auctioned asset, and representatives of the participants. In cases where the auction is conducted by the Asset Auction Council, the auction minutes must also bear the signature of the Chairman of the Council.

3. A refusal by the successful bidder to sign the auction minutes is deemed as not accepting the conclusion of the purchase and sale contract for the auctioned asset or not accepting the purchase of the auctioned asset in cases where, according to the law, the auction results must be approved by the competent authority.

4. The auction minutes must be stamped by the auction organization; in cases where the auction is conducted by the Asset Auction Council, the minutes must also be stamped by the authorized body deciding to establish the Asset Auction Council.

Article 45. Transfer of Auction Records

1. Within one working day from the date of the auction's conclusion, the auction organization must record the auction results in the Auction Property Registration Book and notify the property owner in writing. In cases where the auction is conducted by the Auction Property Committee, within one working day from the date of the auction's conclusion, the Committee must notify the authorized authority to establish the Committee of the auction results in writing.

2. Within three working days from the date of the auction's conclusion, the auction organization or the Auction Property Committee must transfer the auction results, the auction minutes, and the list of successful bidders to the property owner for signing the purchase and sale contract of auctioned property or to the competent authority for approval of the auction results and completion of related procedures, except as otherwise provided by law.

Article 46. Purchase and Sale Contracts of Auctioned Property, Approval of Auction Results

1. The auction results serve as the basis for the parties to conclude the purchase and sale contract of auctioned property or as the foundation for the competent authority to approve such results.

2. The purchase and sale contract of auctioned property is concluded between the property owner and the successful bidder, or between the property owner, the successful bidder, and the auction organization if all parties agree, except as otherwise provided by law. The purchase and sale contract of auctioned property shall be executed in accordance with the provisions of civil law.

3. The successful bidder is deemed to have accepted the conclusion of the purchase and sale contract of auctioned property from the moment the auctioneer announces the successful bidder, unless the successful bidder refuses to sign the auction minutes as stipulated in Clause 3, Article 44 of this Law or refuses the winning result as stipulated in Article 51 of this Law. From this point onwards, the rights and obligations of the parties shall be implemented in accordance with the provisions of civil law and other relevant laws.

4. The procedures, formalities, and authority for approving the auction results shall be carried out in accordance with the relevant laws.

Article 47. Rights and Obligations of the Property Owner

1. The property owner has the following rights:

a) To supervise the process of organizing and conducting the auction;

b) To participate in the auction;

c) To request the auction organization to stop organizing the auction when there is evidence that the auction organization has violated the provisions at point b and point c, Clause 2, Article 9 of this Law;

d) To request the auctioneer to stop the auction when there is evidence that the auctioneer has violated the provisions at point c, Clause 1, Article 9 of this Law; or that the auction participants have violated the provisions at points b, c, or d, Clause 5, Article 9 of this Law;

đ) To unilaterally terminate, cancel the service auction contract, purchase and sale contract of auctioned property, or request the court to declare the service auction contract, purchase and sale contract of auctioned property void in accordance with the provisions of this Law and civil law;

e) Other rights as prescribed by law.

2. The property owner has the following obligations:

a) To be responsible for the property put up for auction;

b) To sign the purchase and sale contract of auctioned property or submit the auction results to the competent authority for approval;

c) To deliver the property and related documents to the buyer according to the agreement in the purchase and sale contract of auctioned property or as prescribed by law;

d) To report to the competent authority on the selection of the auction organization, the course of the auction, and the auction results in cases of state asset auctions.

đ) Other obligations as prescribed by law.

Article 48. Rights and Obligations of the Successful Bidder

1. The successful bidder has the following rights:

a) To request the owner of the auctioned property to sign a purchase and sale contract for the auctioned property or to submit the auction result to the competent authority for approval in accordance with the law;

b) To receive the auctioned property and have ownership rights over the auctioned property in accordance with the law;

c) To be issued a certificate of ownership or right to use the auctioned property by the competent state agency for properties that require registration of ownership or right to use in accordance with the law;

d) Other rights agreed upon in the purchase and sale contract for the auctioned property and in accordance with the law.

2. The successful bidder has the following obligations:

a) To sign the auction record and the purchase and sale contract for the auctioned property;

b) To fully pay the purchase price for the auctioned property to the owner of the auctioned property as stipulated in the purchase and sale contract for the auctioned property or in accordance with relevant laws;

c) Other obligations agreed upon in the purchase and sale contract for the auctioned property and in accordance with the law.

Article 49. Auction in Cases Where Only One Person Registers to Participate in the Auction, Only One Person Participates in the Auction, Only One Person Bids, or Only One Person Accepts the Price

1. The auction of property in cases where only one person registers to participate in the auction, only one person participates in the auction, only one person bids, or only one person accepts the price can only be conducted after the first auction fails and shall be carried out as follows:

a) In the case of an auction using the ascending bid method, if after the deadline for registering to participate there is only one person who registers to participate in the auction, or if there are multiple people who register to participate but only one person participates in the auction, or if there are multiple participants but only one person bids, or if there are multiple bidders but only one person offers the highest bid which is at least equal to the starting price, the property will be sold to that person if the owner of the auctioned property agrees in writing;

b) In the case of an auction using the descending bid method, if there is only one person who registers to participate in the auction, or if there are multiple people who register to participate but only one person participates in the auction and accepts the starting price or the reduced price, the property will be sold to that person if the owner of the auctioned property agrees in writing.

2. The auction of property as provided for in Clause 1 of this Article can only be conducted after completing all procedures and formalities for the auction of property in accordance with this Law and without any complaints related to the procedures and formalities until the date of the auction.

3. The auction record, in addition to the contents specified in Clauses 2 and 4 of Article 44 of this Law, must also reflect the process of the auction where only one person participates in the auction or only one person bids and accepts a valid price; the agreement of the owner of the auctioned property.

Article 50. Withdrawal of a Bid or Accepted Price

1. At an auction conducted through the ascending bid method in the form of direct oral bidding or direct ballot voting during the auction, if the highest bidder withdraws their bid before the auctioneer announces the successful bidder, the auction continues and starts from the bid of the next highest bidder.

2. At the announcement of the bid of the participant in the auction conducted through indirect ballot voting, if the highest bidder withdraws their bid before the auctioneer announces the successful bidder, the auction continues and starts from the bid of the next highest bidder. The auctioneer decides on the form of direct oral bidding or direct ballot voting.

3. At an auction conducted through the descending bid method, if the person who accepts the initial price or the reduced price withdraws their acceptance before the auctioneer announces the successful bidder, the auction continues and starts from the price of the withdrawing person.

4. A person who withdraws their bid or accepted price as stipulated in Clauses 1, 2, and 3 of this Article loses the right to participate in the auction.

Article 51. Refusal of Auction Result

1. In the case of an auction conducted through the ascending bid method, after the auctioneer announces the successful bidder, if at the auction the person refuses the result of being the successful bidder, then the next highest bidder shall be deemed the successful bidder, provided that the next highest bid plus the deposit amount is at least equal to the bid of the person who refused the result of being the successful bidder and the next highest bidder agrees to purchase the auctioned property.

If the next highest bid plus the deposit amount is lower than the bid of the person who refused the result of being the successful bidder or the next highest bidder does not agree to purchase the auctioned property, then the auction fails.

2. In the case of an auction conducted through the descending bid method, after the auctioneer announces the successful bidder, if at the auction the successful bidder refuses the result of being the successful bidder, then the auction continues starting from the price of the person who refused the result of being the successful bidder. If there is no subsequent bidder, then the auction fails.

Article 52. Unsuccessful Auction

1. The cases of an unsuccessful auction include:

a) The registration period has expired without any registrant participating in the auction;

b) At the auction, there is no bidder or no acceptance of the price;

c) The highest bid is still lower than the starting price in cases where the starting price is not publicly disclosed and the auction is conducted through the ascending bid method;

d) The successful bidder refuses to sign the auction record as stipulated in Clause 3, Article 44 of this Law;

đ) The person who made a bid withdraws their bid, the person who accepted the price withdraws their acceptance according to Article 50 of this Law and there is no subsequent bidder;

e) The refusal of the auction result as stipulated in Article 51 of this Law;

g) The registration period has expired with only one registrant participating in the auction for the property specified in Article 59 of this Law;

2. Within three working days from the date of the unsuccessful auction, the auction organization returns the property and related documents to the owner of the auctioned property, except where the parties have agreed otherwise or where the law provides differently.

3. The handling of an unsuccessful auction is carried out in accordance with the provisions of the law or the auction is conducted again according to the agreement between the owner of the auctioned property and the auction organization.

Article 53. Simplified Auction Procedure

1. The auction organization and the owner of the auctioned property may agree to conduct the auction through a simplified procedure in the following cases:

a) Auctioning execution assets, confiscated items, or means of committing administrative violations where the total starting price of all auctioned properties in one auction is less than fifty million dong;

b) Re-auctioning after the second auction has failed;

c) Auctioning the property specified in Clause 2, Article 4 of this Law when choosing a simplified procedure.

2. The announcement of the auction is made as follows:

a) For movable property, the auction organization must announce the auction at least three working days before the auction date;

b) For immovable property, the auction organization must announce the auction at least five working days before the auction date.

3. The auction organization sells the participation documents, accepts participation documents during regular business hours continuously from the day of the announcement of the auction until one day before the auction date.

Article 54. Archiving auction records

1. The person with the auctioned property, the organization conducting the auction, and the person authorized to establish the Auction Committee shall retain the auction records for a period of five years from the date of completion of the auction.

2. The procedures and formalities for archiving shall be carried out in accordance with the provisions of the law on archiving.

PART IV

AUCTION OF PROPERTY AS REQUIRED BY LAW

TO BE SOLD THROUGH AUCTION

Section 1

SOME GENERAL PROVISIONS

Article 55. Procedures and formalities for auctioning property that must be sold through auction as required by law

The auction of property specified in Clause 1, Article 4 of this Law shall be conducted in accordance with the procedures and formalities stipulated in Chapter III of this Law and those stipulated in this Chapter.

Article 56. Selection of organizations to conduct auctions

1. After receiving the decision of the authorized person regarding the auction of the property, the person with the auctioned property shall publicly announce on their own electronic information website and the specialized electronic information website on property auctions about the selection of organizations to conduct the auction.

2. The public announcement about the selection of organizations to conduct the auction shall include the following main contents:

a) Name and address of the person with the auctioned property;

b) Name, quantity, quality of the auctioned property;

c) Starting price of the auctioned property;

d) Criteria for selecting organizations to conduct the auction as stipulated in Clause 4 of this Article;

đ) Time and place for submitting registration documents to participate in the auction organization;

3. The person with the auctioned property shall base on the registration documents submitted by the organizations to conduct the auction, and the criteria stipulated in Clause 4 of this Article to select the organization to conduct the auction and bear responsibility for the selection.

4. The criteria for selecting organizations to conduct the auction include:

a) Physical facilities and equipment necessary to ensure the auction of the type of auctioned property;

b) Feasible and effective auction plans;

c) Competence, experience, and reputation of the organization to conduct the auction;

đ) Being listed in the list of organizations to conduct the auction published by the Ministry of Justice;

e) Other criteria suitable for the auctioned property decided by the person with the auctioned property.

5. In cases where the law requires the selection of organizations to conduct the auction through bidding, it shall be implemented in accordance with the provisions of this Law and the law on bidding.

Article 57. Public announcement of the auction of property

1. In addition to the provisions on posting the auction of property stipulated in Clauses 1, 2, and 3 of Article 35 of this Law, for movable property with a starting price of fifty million dong or more and immovable property, the organization conducting the auction must make at least two public announcements in central or provincial newspapers or television programs in the location of the auctioned property and the specialized electronic information website on property auctions; each public announcement must be separated by at least two working days.

2. In cases of simplified auction procedures as stipulated in point b, Clause 1, Article 53 of this Law, the organization conducting the auction shall make one public announcement of the auction of property in central or provincial newspapers or television programs in the location of the auctioned property.

3. The second public announcement must be made at least seven working days before the auction for movable property and fifteen working days for immovable property. The public announcement stipulated in Clause 2 of this Article shall be carried out simultaneously with the posting of the auction of property stipulated in Clause 2 of Article 53 of this Law.

4. The content of the public announcement of the auction of property includes:

a) Name and address of the auction organization and the owner of the auctioned property;

b) Time and place of the auction;

c) Name of the property, location of the auctioned property;

d) Starting price of the auctioned property if the starting price is announced; advance payment;

đ) Time, place, conditions, and methods for registering to participate in the auction.

5. The organization conducting the auction shall keep documents and images related to the public announcements stipulated in Clauses 1 and 2 of this Article in the auction file.

Article 58. Publicizing the Starting Price and Auction Method

1. The person with the auctioned property must publicize the starting price.

2. The auction of the property shall only be conducted through the bid-up method.

Article 59. Auction of Property in Cases Where Only One Person Registers to Participate in the Auction, Participates in the Auction, or Makes a Bid

The auction of property in cases where only one person registers to participate in the auction, participates in the auction, or makes a bid, as stipulated in Article 49 of this Law, does not apply to the following properties:

1. State-owned assets as prescribed by laws on the management and use of state-owned assets;

2. Land use rights when the State grants land for use with payment of land use fees or leases land according to the provisions of the law on land;

3. Other properties that the law prescribes shall not be auctioned in cases where only one person registers to participate in the auction, participates in the auction, or makes a bid.

Section 2

AUCTION PROPERTY BOARD

Article 60. Establishment of the Auction Property Board

1. The person with the auctioned property who is required by law to sell through auction decides to establish the Auction Property Board to auction the property in the following cases:

a) The Law stipulates that the auction of the property shall be carried out by the Auction Property Board;

b) It is unable to select an organization to conduct the auction as provided for in Article 56 of this Law.

2. The person authorized to decide on the establishment of the Auction Property Board is responsible for all activities of the Board.

3. The Auction Property Board consists of three members or more; the Chairman of the Board is the person with the auctioned property or their authorized representative; members of the Board are representatives of financial agencies, judicial agencies at the same level, and representatives of relevant agencies or organizations as prescribed by law. The Auction Property Board may enter into a contract with an auction organization to appoint an auctioneer to manage the auction.

Article 61. Principles of Operation of the Auction Property Board

1. An auction conducted by the Auction Property Board must have at least two-thirds of the Board members present.

2. The Auction Property Board operates under the principle of centralization, collective discussion, and decision-making by majority vote through ballot or secret ballot. In case the voting result or number of votes is equal, the Chairman of the Board has the right to make the final decision.

3. The Auction Property Board dissolves itself upon completion of the auction and transfers the auction file according to the provisions of Article 45 of this Law.

Article 62. Rights and Obligations of the Auction Property Board

1. The Auction Property Board has the following rights:

a) To disqualify participants in the auction who engage in disruptive behavior, collusion, or other actions that affect the objectivity and honesty of the auction, and to prepare a record of such actions;

b) To suspend the auction and report to the authorized person for handling when violations of auction procedures or actions that affect the objectivity and honesty of the auction are discovered, including collusion or other actions by the auction manager;

c) To request valuation and appraisal of the auctioned property;

d) To choose the auction method prescribed in Clause 1, Article 40 of this Law to auction the property;

đ) Other rights as prescribed by law.

2. The Auction Property Board has the following obligations:

a) Obligations as prescribed in point b and point d, Clause 2, Article 24 of this Law;

b) To issue regulations governing the operation of the Auction Property Board;

c) To organize and conduct auctions in accordance with the Board's operational regulations, auction regulations, and related laws;

d) To be responsible for the results of the auction before the law and the authorized person for establishing the Board;

đ) To handle complaints and denunciations during the auction process; to accept and resolve complaints within its authority or to refer complaints arising after the auction to the authorized person for establishing the Board for resolution; to compensate for damages in accordance with the law;

e) To report to the authorized person for establishing the Auction Property Board about the results of the property auction;

g) Other obligations as prescribed by law.

Article 63. Duties and powers of the Chairman and members of the Auction Council for Assets

1. The Chairman of the Auction Council for Assets shall have the following duties and powers:

a) Organize the implementation of the rights and obligations of the Auction Council for Assets as prescribed in Article 62 of this Law;

b) Chair meetings of the Auction Council for Assets; assign responsibilities to each member;

c) Direct the auction or delegate a member of the Council or an auctioneer to direct the auction in accordance with the operational regulations of the Auction Council for Assets;

d) Other duties and powers as prescribed in the operational regulations of the Auction Council for Assets and relevant laws.

2. Members of the Council shall perform tasks assigned by the Chairman of the Council and be responsible to the Chairman of the Auction Council for Assets.

Section 3

AUCTION OF NON-PERFORMING LOANS AND COLLATERAL FOR NON-PERFORMING LOANS

Article 64. Auction of non-performing loans and collateral for non-performing loans

1. An organization wholly owned by the State with 100% capital contribution established by the Government to handle non-performing loans of credit institutions may only auction non-performing loans and collateral for non-performing loans as defined in point o, Clause 1, Article 4 of this Law.

2. Non-performing loans and collateral for non-performing loans sold through auction in accordance with the law shall enter into an auction service contract with an auction organization or conduct the auction themselves. The auction must follow the procedures and formalities prescribed in this Law.

Article 65. Rights and obligations of organizations wholly owned by the State with 100% capital contribution established by the Government to handle non-performing loans of credit institutions in auction activities

1. Organizations wholly owned by the State with 100% capital contribution established by the Government to handle non-performing loans of credit institutions shall have the following rights:

a) Enter into labor contracts with auctioneers practicing at the organization;

b) Appoint auctioneers to direct the auction;

c) Conduct the auction at their own headquarters, where the auctioned asset is located, or another suitable location based on the requirements of the auction;

d) Other rights as prescribed by the law on auctioning assets.

2. Organizations wholly owned by the State with 100% capital contribution established by the Government to handle non-performing loans of credit institutions shall have the following obligations:

a) Conducting property auctions according to the principles, procedures, and formalities stipulated in this Law and being responsible for the results of the auction;

b) Issuing Rules of the Auction according to Article 34 of this Law and other relevant laws;

c) Deliver the asset and related documents to the buyer who has acquired the auctioned asset;

d) In cases of auctioning assets as prescribed in Article 49 of this Law, they must obtain the written consent of the owner of the auctioned asset in accordance with the law;

đ) In cases of self-conducted auctions, they must be responsible for the value and quality of the auctioned asset;

e) Compensate for losses caused by the organization during the auction process in accordance with the law;

g) Maintaining a Register of Auctioned Properties and a Registration Book for Auctions;

h) Propose the Department of Justice where the organization is headquartered to issue an Auction License for auctioneers practicing at the organization;

i) Purchasing professional liability insurance for auctioneers of the organization according to Article 20 of this Law;

k) Report to the Ministry of Justice annually or upon request in special circumstances the list of auctioneers currently practicing at the organization;

l) Report to the Ministry of Justice and the State Bank of Vietnam semi-annually, annually, or upon request in special circumstances about the auction activities;

m) Comply with the requirements of competent state agencies regarding inspections and audits of auction activities;

n) Other obligations as prescribed by law.

3. Strictly prohibited from conducting the following acts:

a) Colluding or coordinating with participants in the auction, appraisal organizations, asset evaluation organizations, individuals, or other organizations to distort information about the auctioned asset, auction files, or the results of the auction;

b) Obstructing or creating difficulties for participants in the auction in purchasing auction registration files, registering to participate in the auction, participating in the auction, delivering, or receiving the auctioned asset;

c) Receiving any amount of money, property, or benefit from auction participants outside of auction costs and other service fees related to the auctioned asset as prescribed by law;

d) Other strictly prohibited acts as prescribed by relevant laws.

4. The Government shall provide detailed regulations:

a) On the initial valuation of non-performing loans and collateral for non-performing loans;

b) On the establishment of the Auction Council for non-performing loans and collateral for non-performing loans with large values.

FEES FOR AUCTION SERVICES, AUCTION COSTS FOR ASSETS

Article 66. Auction service fees and auction costs for assets

2. Auction costs include costs for public notice and other reasonable actual expenses for the auction of assets, which shall be agreed upon between the asset owner and the auction organization.

Article 67. Costs for services related to transferring ownership, usage rights, and management of auctioned assets

Individuals or organizations that request and receive from the auction organization services for transferring ownership, usage rights, and management of auctioned assets, and other related services must pay service costs to the auction organization as agreed between the parties.

1. The management and use of auction service fees, auction costs, service costs, and other revenues of the Asset Auction Service Center shall be carried out in accordance with the financial regulations applicable to public service units with revenue.

2. The management and use of auction service fees, auction costs, service costs, and other revenues of asset auction enterprises shall be carried out in accordance with the provisions of the law.

Chapter VI

VIOLATIONS HANDLING, CANCELLATION OF AUCTION RESULTS,

COMPENSATION FOR DAMAGE

Article 69. Handling violations by auction officers, asset auction organizations, Auction Councils, and organizations wholly owned by the State established by the Government to handle bad debts of credit institutions

1. An auction officer who commits a violation as provided for in Clause 1, Article 9, Clause 2, Article 19, or other provisions of this Law shall be subject to disciplinary action, administrative penalty, or criminal prosecution, depending on the nature and severity of the violation, and if damage is caused, compensation shall be made in accordance with the law.

2. An asset auction organization, Auction Council, or organization wholly owned by the State established by the Government to handle bad debts of credit institutions that commits a violation as provided for in Clause 2, Clause 3, Article 9, Clause 2, Article 24, Clause 3, Article 65, or other provisions of this Law shall be subject to administrative penalty or criminal prosecution, depending on the nature and severity of the violation, and if damage is caused, compensation shall be made in accordance with the law.

Article 70. Handling violations by auction participants, successful bidders, and related individuals or organizations

An auction participant, successful bidder, individual, or organization related to the auction who commits a violation as provided for in Clause 5, Article 9, or other provisions of this Law shall be subject to disciplinary action, administrative penalty, or criminal prosecution, depending on the nature and severity of the violation, and if damage is caused, compensation shall be made in accordance with the law.

Article 71. Handling Violations by the Subject with Auctioned Property

The subject with auctioned property who commits violations as stipulated in Clause 4, Article 9, Clause 2, Article 47, or other provisions of this Law shall be disciplined, administratively sanctioned, or criminally pursued for responsibility, depending on the nature and degree of violation, and if causing damage, must compensate according to the law.

Article 72. Annulment of Auction Results

The auction results shall be annulled in the following cases:

1. By agreement among the subject with auctioned property, the auction organization, and the successful bidder regarding the annulment of the auction results, or between the subject with auctioned property and the successful bidder regarding the annulment of the purchase and sale contract of auctioned property, provided that such actions do not cause damage or affect the interests of the State, lawful rights and interests of individuals and organizations;

2. When the service auction contract or the purchase and sale contract of auctioned property is declared void by the court under civil law regulations due to the successful bidder's violation as stipulated in Point b, Clause 5, Article 9 of this Law;

3. When the service auction contract is annulled as stipulated in Clause 6, Article 33 of this Law;

4. When the subject with auctioned property, participants in the auction, the successful bidder, the auction organization, and the auctioneer engage in collusion, connivance, or price suppression during the auction process, leading to distortion of information about the auctioned property or the bidding participation dossier or the auction results;

5. Based on the decision of the competent authority to impose administrative sanctions when there is one of the grounds specified in Clause 6, Article 33 of this Law in the case of state asset auctions.

Article 73. Legal Consequences of Annulment of Auction Results

In cases where the auction results are annulled as stipulated in Clauses 2, 3, 4, and 5 of Article 72 of this Law, the parties shall restore the initial status, return the received assets to each other, and if physical return is not possible, they must return in cash. The party at fault causing damage must compensate according to the law.

Article 74. Resolution of Disputes

In cases of disputes among the parties in the service auction contract or the purchase and sale contract of auctioned property, the parties may negotiate, mediate, or request the competent authority to resolve the dispute according to the law.

Article 75. Complaints and Lawsuits Regarding Asset Auctions by the Auction Council

1. Participants in the auction, the successful bidder, and those with related rights and obligations have the right to lodge complaints against decisions or actions of the Auction Council or its members if they believe such decisions or actions infringe upon their lawful rights and interests.

2. The authority responsible for establishing the Auction Council has the duty to resolve complaints within thirty days from the date of receipt of the complaint.

3. If the time limit specified in Clause 2 of this Article expires without resolution of the complaint or if the complainant disagrees with the decision resolving the complaint made by the authority responsible for establishing the Auction Council, then the participants in the auction, the successful bidder, and those with related rights and obligations have the right to file a lawsuit with the court according to the law.

Article 76. Reporting on Auction Activities

1. Citizens have the right to report to competent authorities, organizations, or individuals about violations of auction activities regulations as prescribed by law.

2. The handling of reports in auction activities shall be carried out in accordance with the provisions of the law on reporting.

Chapter VII

STATE MANAGEMENT OF AUCTIONS

Article 77. Responsibilities of the Government in State Management of Auctions

1. The Government exercises unified state management over auctions.

2. The Ministry of Justice is responsible before the Government for implementing state management of auctions and has the following tasks and powers:

a) Submitting to competent state agencies for issuance or issuing within its authority normative legal documents on organization and operation of auctions, policies, and strategies for developing the auction profession;

b) Issuing or entrusting auction associations to issue Code of Professional Ethics for Auctioneers;

c) Issuing, managing, and guiding the use of forms in the field of auctions, Auction Asset Tracking Books, and Auction Registration Books;

d) Specifying the framework program of auction training courses, training institutions, probationary period, and examination of probationary results for auction practice;

đ) Issuing, revoking, and reissuing Auction Practice Certificates;

e) Building and managing specialized electronic information websites on auctions; guiding and organizing public announcements on specialized electronic information websites on auctions;

g) Inspecting, auditing, and handling violations related to the organization and operation of auction organizations; auction activities of organizations wholly owned by the State established by the Government to handle non-performing loans of credit institutions; the organization and operation of auction associations according to its authority;

h) Summarizing and reporting on the organization and operation of auctions;

i) International cooperation in the field of auctions;

k) Performing other tasks and powers as prescribed by this Law and other relevant laws.

Article 78. Responsibilities of Ministries and Equivalent Agencies

1. Within their respective tasks and powers, ministries and equivalent agencies are responsible for coordinating with the Ministry of Justice in state management of auctions.

2. Responsibilities of the Ministry of Finance:

a) Guiding financial systems in auction activities;

b) Prescribing the determination of initial prices of auction assets within their authority as prescribed by law;

c) Prescribing regulations on the collection, payment, management, and use of fees for professional qualification assessment of auction practitioners, conditions for registration of auction business operations, issuance of Auction Practice Certificates, and registration certificates for auction businesses;

d) Prescribing regulations on the collection, expenditure, management, and use of auction dossier sale proceeds and pre-sale deposits of participants that cannot be refunded according to the law;

Article 79. Responsibilities of Provincial People's Committees

1. Provincial People's Committees implement state management of auctions at the local level and have the following tasks and powers:

a) Organizing the implementation, dissemination, and popularization of laws on auctions, policies for developing the auction profession;

b) Organizing the registration of auction business operations and branch offices of auction businesses;

c) Deciding on the appointment and removal of Directors of Auction Service Centers;

d) Ensuring staffing, material infrastructure, and working conditions for Auction Service Centers in accordance with the law on public service units with revenue; supporting security and order assurance for auctions upon request from auction organizations;

đ) Examining and approving proposals for self-management mechanisms for Auction Service Centers, proposals to convert Auction Service Centers into businesses when it is not necessary to maintain them, and proposals to dissolve Auction Service Centers when they cannot be converted into businesses after obtaining the consensus of the Ministry of Justice;

e) Inspecting, auditing, and handling violations related to the organization and operation of auctions within the local area according to its authority;

g) Annually reporting to the Ministry of Justice on the organization and operation of auctions at the local level;

h) Other tasks and powers as prescribed by law.

2. Departments of Justice assist Provincial People's Committees in performing state management functions regarding auctions at the local level.

Chapter VIII

IMPLEMENTING PROVISIONS

Article 80. Transitional Provisions

1. The practice license for auction issued in accordance with the provisions of Decree No. 17/2010/NĐ-CP dated March 4, 2010 of the Government on the sale by auction of assets shall continue to be valid for use.

2. Within two years from the date this Law takes effect, enterprises established before the effective date of this Law that continue to operate auctions of assets must comply with the provisions of Clause 3, Article 23 of this Law and register their operations with the Department of Justice in accordance with the provisions of Article 25 of this Law. In cases where they fail to meet the requirements of Clause 3, Article 23 and do not register their operations as prescribed in Article 25 of this Law, such enterprises must cease their auction activities.

The Government shall provide detailed regulations on the registration of operations for enterprises engaged in asset auctions as stipulated in this clause.

3. In cases where the sale by auction of assets has been contracted prior to the effective date of this Law but the public notice and announcement have not yet been made, the procedures and methods for public notice and announcement and the organization of the auction shall be carried out in accordance with the provisions of this Law.

In cases where the sale by auction of assets is required by law to be conducted by the Auction Committee and such committee has been established but the public notice and announcement have not yet been made, the Auction Committee shall apply the procedures and methods for the auction and other relevant provisions of this Law to carry out the auction of assets.

4. The collection, payment, management, and use of auction fees, participation fees in auctions; financial systems in auction activities shall be implemented in accordance with the laws on auction service fees, participation fees in auctions, and financial systems in auction activities until July 1, 2017.

Article 81. Effective Date

1. This Law shall take effect from July 1, 2017, except for the provision in Clause 2 of this Article.

2. Clause 4 of Article 80 of this Law shall take effect from January 1, 2017.

This Law was passed by the National Assembly of the Socialist Republic of Vietnam, the 14th term, second session, on November 17, 2016.