Decree No. 05/2005/NĐ-CP on Auctioning Assets

DECREE

On Auctioning Assets

___________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Civil Code dated October 28, 1995;

Based on the Administrative Violation Handling Ordinance dated July 2, 2002;

Pursuant to the Civil Enforcement Law dated January 14, 2004;

At the proposal of the Minister of Justice,

DECREE:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of application

This Decree stipulates principles, procedures for auctioning assets, persons conducting auctions, and state management over auction activities.

Article 2. Definitions

In this Decree, the following terms are understood as follows:

1. Auctioning assets is a form of selling assets publicly with at least two participants bidding according to the principles and procedures prescribed in this Decree.

2. Auctioned assets include movable and immovable property and rights to assets that are permitted to be traded under the law.

3. The person having assets for auction is the owner of the asset or a person authorized by the owner to sell the asset, or an individual or organization entitled to sell another's asset under the law.

4. Participants in the auction are individuals or organizations permitted to participate in the auction to purchase auctioned assets according to this Decree and other relevant laws.

Participants in the auction may authorize another person in writing to represent them in participating in the auction.

5. The buyer of the auctioned asset is the highest bidder who offers at least the starting price and is deemed to have accepted the contract for purchasing the asset.

Article 3. Principles of Auctioning Assets

Auctioning assets shall be conducted based on the principles of transparency, continuity, honesty, equality, and protection of the legitimate rights and interests of all parties involved.

Article 4. Protection of the Legitimate Rights and Interests of the Buyer of Auctioned Assets

The legitimate rights and interests of the buyer of auctioned assets are protected by law. State agencies within their respective duties and authorities are responsible for ensuring the implementation of the rights and legitimate interests of the buyer of auctioned assets.

In cases where a third party disputes ownership or usage rights over auctioned assets, such assets still belong to the buyer of auctioned assets unless a court decides otherwise.

Chapter II

AUCTIONED ASSETS AND PROCEDURES FOR AUCTIONING ASSETS

Article 5. Types of Auctioned Assets

1. Assets for enforcement of judgments as prescribed by laws on enforcement of judgments.

2. Assets as evidence or means of administrative violations confiscated and transferred to the state treasury as prescribed by laws on handling administrative violations.

3. Assets as security as prescribed by laws on secured transactions.

4. Assets owned by individuals or organizations requesting to auction assets.

5. Goods held by sea, air, or land transporters stored in Vietnam.

6. State-owned assets required to be auctioned as prescribed by laws on state asset management.

Article 6. Selection of Auction Conductors

The person having assets for auction has the right to select an auction conductor as prescribed in this Decree to authorize the auction of assets, except when the law provides otherwise.

Article 7. Power of Attorney Contract for Auctioning Assets

1. The auction of assets shall be carried out according to the power of attorney contract for auctioning assets, except when the law provides otherwise.

2. The power of attorney contract for auctioning assets must be made in writing and contain the following main contents:

a. Name, address of the person having assets for auction; name, address of the auction conductor.

b. Time and place of auctioning assets.

c. Listing and description of assets for auction.

d. Starting price of assets for auction.

đ. Time, place, and method of transferring assets for auction.

e. Payment of proceeds from the sale of assets in case of successful auction.

g. Actual and reasonable costs for auctioning assets.

h. Rights and obligations of the parties.

i. Liability for breach of contract.

k. Other agreements.

Article 8. Signing the Power of Attorney Contract for Auctioning Assets

1. The power of attorney contract for auctioning assets is signed between the auction conductor and the person having assets for auction or their representative.

2. In the case of auctioning certain types of assets below, the signing of the power of attorney contract for auctioning assets is determined as follows:

a. For assets as land use rights, the power of attorney contract for auctioning assets is signed between the person having land use rights or their representative and the auction conductor.

b. For jointly owned assets, the power of attorney contract for auctioning assets is signed between the joint owners or their representatives and the auction conductor, except when the parties agree otherwise.

c. For proportionally owned assets, the power of attorney contract for auctioning assets is signed between the owner of the portion of the asset for auction or their representative and the auction conductor.

d. For pledged, mortgaged, or guaranteed assets, the power of attorney contract for auctioning assets is signed between the person authorized to handle the asset according to the pledge, mortgage, or guarantee agreement or as prescribed by law and the auction conductor.

đ. For state-owned assets, the power of attorney contract for auctioning assets is signed between the competent state agency as prescribed by law and the auction conductor.

e. For assets for enforcement of judgments, the power of attorney contract for auctioning assets is signed between the enforcement agency and the auction conductor.

3. When signing the power of attorney contract for auctioning assets, the person having assets for auction is responsible for providing the auction conductor with a legal certificate or other evidence proving ownership or the right to sell the asset as prescribed by law and bearing responsibility for such evidence.

The auction conductor is responsible for verifying the information provided by the person having assets for auction to ensure the legality of the auction of assets.

Article 9. Determination of the Starting Price of Auctioned Assets

1. The starting price of auctioned assets is determined before signing the power of attorney contract for auctioning assets or transferring assets for auction, except when the parties agree otherwise or the law provides otherwise.

2. The determination of the starting price of auctioned assets is carried out as follows:

a. For state-owned assets up for auction, the starting price is determined by the financial authority or the State Valuation Council according to the guidelines of the Ministry of Finance.

b. For assets subject to auction that are not state-owned assets, the starting price shall be determined by the owner of the auctioned asset or authorized to the auctioneer or a third party to determine.

In the case where the owner of the auctioned asset authorizes the auctioneer to determine the starting price, the auctioneer must notify the authorizing party about the starting price before publicly announcing the auction.

Article 10. Appraisal of auctioned assets

1. Auctioned assets shall be appraised when required or as prescribed by law.

2. In cases where the appraisal is requested, the person requesting the appraisal must pay for the appraisal costs unless otherwise agreed upon by the parties involved.

In cases where the appraisal is conducted as prescribed by law, the owner of the auctioned asset must bear the appraisal costs, except as otherwise provided by law.

Article 11. Unilateral termination of the agency contract for auctioning assets

The owner of the auctioned asset or the auctioneer may unilaterally terminate the agency contract for auctioning assets according to the Civil Code prior to the public announcement of the auction, except as otherwise provided by law.

Article 12. Public notice and announcement of asset auction

1. The auctioneer must post the auction notice at the auction site, display location, headquarters of the auctioneer, and the location of immovable property up to seven days for movable property and thirty days for immovable property before the auction date.

If the owner of the auctioned asset requests, the posting period may be shortened according to the agreement of the parties.

2. For movable assets with a starting price of ten million dong or more and immovable property, simultaneously with the posting, the auctioneer must publicly announce at least twice, each announcement separated by three days on central or local mass media regarding the auction. The public announcement period shall be carried out as stipulated in Clause 1 of this Article.

Public announcement on mass media shall also be made for movable assets with a starting price below ten million dong if the owner of the auctioned asset requests.

3. Public notice and announcement of the auction of assets used for enforcement of civil judgments shall be carried out in accordance with the law on civil enforcement.

4. Public notice and announcement of the auction of assets shall include the following main contents:

a. Name and address of the auctioneer;

b. Time and place of the auction;

c. List of assets, quantity, and quality of the auctioned assets;

d. Starting price of assets for auction.

d. Location and deadline for displaying the auctioned assets;

e. Location and deadline for reviewing the asset auction file;

g. Location and deadline for registering to purchase the auctioned assets;

h. Other necessary information related to the auctioned assets, including information requested by the owner of the auctioned asset to be publicly announced.

Article 13. Persons not eligible to participate in the auction

1. Persons without capacity for civil conduct, persons who have lost or are restricted in their capacity for civil conduct according to the Civil Code, or persons who at the time of the auction cannot perceive or control their actions.

2. Persons working in the Auction Service Center, auction enterprises, or the Auction Committee where the auction takes place; persons directly appraising or valuing the assets; parents, spouses, or children of those persons.

3. The owner of the auctioned asset.

4. Persons not entitled to purchase the auctioned asset according to the law.

Article 14. Registration to purchase auctioned assets

1. Persons wishing to participate in the auction of immovable or movable property with a starting price of ten million dong or more must register to purchase within the time limit announced by the auctioneer.

2. Persons who have registered to purchase the auctioned asset must deposit a prepayment amount agreed upon by the auctioneer and the owner of the auctioned asset, but not exceeding 5% of the starting price.

3. If the person who has deposited the prepayment successfully purchases the auctioned asset, the prepayment will be deducted from the purchase price; if not purchased, the prepayment will be refunded immediately after the auction ends, except as otherwise provided by law.

4. If the person who has registered to purchase the auctioned asset has deposited a prepayment but does not participate in the auction without a valid reason, the prepayment will belong to the auctioneer, except as otherwise agreed upon by the parties.

Article 15. Display and viewing of auctioned assets

1. For immovable assets subject to auction, participants in the auction may view the asset directly from the time of posting and public announcement until two days before the auction date.

2. For movable assets subject to auction, at least two days before the auction date, the auctioneer must provide conditions for participants in the auction to view the auctioned asset. On the asset or sample, the name of the owner of the auctioned asset and information about the asset must be clearly marked.

Article 16. Location of the auction of assets

The auction of assets can be organized at the headquarters of the auctioneer, at the location of the asset, or at another agreed-upon location by the auctioneer and the owner of the auctioned asset.

Article 17. Conducting the auction of assets

1. The auctioneer may choose one of the following forms to conduct the auction of assets:

a. Oral bidding;

b. Bidding by ballot;

c. Online bidding through the Internet;

d. Other forms agreed upon by the owner of the auctioned asset and the auctioneer.

2. The procedure for conducting the auction of assets shall be carried out as follows:

a. At the beginning of the auction sale, the auctioneer introduces himself and his assistants; announces the rules of the auction sale; publishes the list of registered buyers for the auctioned assets and calls them out; introduces each asset to be auctioned; reiterates the starting price; specifies the increment amount for each bid; answers questions from participants in the auction sale.

b. The auctioneer requests participants in the auction sale to bid. After each bid from a participant in the auction sale, the auctioneer publicly announces the bid price to all participants in the auction sale.

c. The auctioneer announces the buyer of the auctioned asset. If the highest bid announced is lower than the starting price, the auction sale is deemed unsuccessful.

3. The proceedings of the auction sale must be recorded in the auction sale record. The auction sale record must bear the signatures of the auctioneer, the recorder, and a representative of the auction sale participants.

4. The results of the auction sale are recorded in the Auction Sale Registration Book. In case the auction sale is successful, the auctioneer prepares the auction sale document.

5. Based on the provisions of this Decree and the specific characteristics of each form of asset auction, the Ministry of Justice shall coordinate with relevant ministries to provide detailed guidance on procedures applicable to each form of asset auction.

Article 18. Auction sale document

1. The auction sale document serves as confirmation of the purchase and sale of assets and is the legal basis for transferring ownership or usage rights of the auctioned assets.

2. The auction sale document contains the following main contents:

a. Name and address of the auctioneer;

b. Name and surname of the auctioneer;

c. Name and address of the owner of the auctioned asset;

d. Name and address of the buyer of the auctioned asset;

đ. Time and place of the auction sale;

e. Auctioned asset;

g. Starting price of the auctioned asset;

h. Selling price of the asset;

i. Payment deadline, method, and location for purchasing the auctioned asset;

k. Delivery deadline and location for the auctioned asset to the buyer;

l. Liability for breach of obligations by the parties.

3. The auction sale document must bear the signature of the auctioneer responsible for the auction sale and that of the buyer of the auctioned asset. For the auction sale document of immovable property, it must also be certified by the notary office where the immovable property is located.

4. The auction sale document is kept by the seller of the auctioned asset, sent to the buyer of the auctioned asset, the owner of the auctioned asset, and the competent state agency registering ownership or usage rights of the asset, one copy to each. In case the auctioned asset is immovable property, the auction sale document is also sent to the tax authority.

Article 19. Auctioning assets in special cases

1. In case the registration period for participating in the auction has expired and only one person registers to buy the auctioned asset and bids at least the starting price, the asset will be sold to that person if the owner of the auctioned asset agrees.

2. When selling assets according to the provision of Clause 1 of this Article, the auctioneer responsible for the auction sale must prepare a record of the sale of the auctioned asset, record the result in the Auction Sale Registration Book, and prepare the auction sale document.

Article 20. Withdrawing a bid

1. During the auction sale, if the highest bidder withdraws their bid before the auctioneer announces the buyer of the auctioned asset, the auction sale continues and starts from the next highest bid.

2. The bidder who withdraws their bid loses the right to continue bidding and is not entitled to a refund of the deposit. The deposit of the bidder who withdraws their bid belongs to the owner of the auctioned asset.

Article 21. Refusing to purchase auctioned assets.

1. In case the auctioneer has announced the buyer of the auctioned asset but that person refuses to buy, the asset will be sold to the next highest bidder if the bid is at least the starting price. The deposit of the person refusing to buy, as stipulated in Clause 1 of this Article, belongs to the owner of the auctioned asset.

2. In case the next highest bidder does not agree to buy or the bid is lower than the starting price, the auction sale is deemed unsuccessful. The deposit of the person refusing to buy, as stipulated in Clause 1 of this Article, belongs to the owner of the auctioned asset.

Article 22. Returning auctioned assets in case the auction sale is unsuccessful

In case the auction sale is unsuccessful, the seller of the auctioned asset returns the asset entrusted for safekeeping or management to the owner of the auctioned asset within the latest three days from the date of the unsuccessful auction sale, except in cases where the parties have agreed otherwise or the law provides differently.

Article 23. Payment of money for the sale of assets in case the auction sale is successful

The payment of money for the sale of assets in case the auction sale is successful is agreed upon between the seller of the auctioned asset and the owner of the auctioned asset in the power of attorney for the auction sale, except in cases where the law provides differently.

Article 24. Payment deadline, method, and location for purchasing the auctioned asset, delivery of the asset after the auction sale

1. The payment deadline, method, and location for purchasing the auctioned asset are agreed upon between the seller of the auctioned asset and the buyer of the auctioned asset in the auction sale document.

2. The delivery deadline and location for the auctioned asset are agreed upon between the seller of the auctioned asset and the buyer of the auctioned asset in the auction sale document.

The delivery of the auctioned asset, which is an enforcement asset, to the buyer of the auctioned asset is carried out in accordance with the law on civil enforcement.

Article 25. Repurchasing auctioned assets

1. The owner of the auctioned asset may repurchase the auctioned asset only if the buyer of the auctioned asset agrees.

2. The repurchase of auctioned assets shall be carried out in accordance with the provisions of the Civil Code regarding contracts for the sale and purchase of assets.

Article 26. Auction costs for assets

1. In the case where the auction of assets is successful, the person owning the auctioned assets shall pay to the asset auctioneer the following auction costs:

a. Auction fees, which are implemented in accordance with the laws on fees and charges;

b. Actual and reasonable costs for the auction of assets, as agreed between the owner of the auctioned assets and the asset auctioneer.

2. In the case where the auction of assets is unsuccessful, the owner of the auctioned assets shall pay to the asset auctioneer the costs specified in point b, Clause 1 of this Article, except in cases where the parties have agreed otherwise or where the law provides differently.

Article 27. Service fee for procedures to transfer ownership rights, usage rights, and determine the initial price of auctioned assets (hereinafter referred to collectively as service fee)

1. Organizations and individuals who request and are provided services for procedures to transfer ownership rights, usage rights, and determine the initial price of auctioned assets by the asset auctioneer must pay the service fee to the asset auctioneer.

2. The level of the service fee is determined through negotiation based on necessary and reasonable costs and market prices in the locality.

Article 28. Management and use of auction costs, service fees, and other revenues

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

2. The Ministry of Finance shall provide guidance on the financial income and expenditure system of the Auction Council.

Article 29. Documents for issuing certificates of ownership and usage rights for auctioned assets

The documents for issuing certificates of ownership and usage rights for auctioned assets include the auction document and the following types of papers, depending on the type of asset:

1. For assets owned by individuals or organizations: certificates of ownership and usage rights for assets or other valid documents as prescribed by law.

2. For state-owned assets sold at auction: in addition to the ownership and usage right certificates for assets, if selling such assets requires the consent or permission of the competent state agency, then a consent or permission document from that agency must also be included.

3. For assets for enforcement: copies of court judgments and decisions, enforcement decisions, and asset seizure decisions from enforcement agencies, along with ownership and usage right certificates for assets, if available.

4. For assets confiscated and transferred to the state treasury: decisions on confiscation of assets by the competent state agency.

5. For assets establishing state ownership: decisions or documents from the People's Committee with authority or competent state agencies.

6. For collateral assets: in addition to ownership and usage right certificates for assets or other valid documents as prescribed by law, there must also be attached collateral contracts, credit contracts, asset processing minutes, or asset seizure minutes, if available.

Article 30. Issuance of certificates of ownership and usage rights for auctioned assets

1. For assets sold at auction, the competent state agency has the responsibility to issue certificates of ownership and usage rights for assets to the buyer of the auctioned assets.

2. The deadline for issuing certificates of ownership and usage rights for auctioned assets is thirty days from the date of receiving complete documents as stipulated in Article 29 of this Decree, except in cases where the law provides otherwise.

Article 31. Liability for the value and quality of auctioned assets

The asset auctioneer shall not be liable for the value and quality of auctioned assets, except in cases where they fail to fully and accurately inform participants in the auction about relevant information concerning the value and quality of the auctioned assets.

Article 32. Annulment of auction results

1. The auction results shall be annulled in the following cases:

a) By agreement among the owner of the auctioned assets, the buyer of the auctioned assets, and the asset auctioneer, except in cases where the law provides otherwise;

b. The power of attorney for auctioning assets, and the auction document are declared void or annulled according to the Civil Code;

c. There is a decision by the competent state agency to amend part or revoke all related decisions concerning auctioned assets due to violations of the law.

2. In the event that the auction results are annulled, the parties shall restore the original status, return the received assets to each other; if physical return is not possible, then compensation must be made in cash. The party at fault causing damage must compensate.

3. The Ministry of Justice shall provide detailed guidance on the annulment of auction results as stipulated in Clause 1 of this Article.

Article 33. Re-auction organization

In the case where the auction of assets is unsuccessful, the re-auction organization shall be carried out in accordance with the law or by agreement between the owner of the auctioned assets and the asset auctioneer.

The re-auction process shall be conducted according to the procedures for the first auction of assets.

Chapter III

THE AUCTIONEER

Article 34. The auctioneer

1. An auction enterprise.

2. An auction service center.

3. An auction council.

Article 35. Auction enterprise

An enterprise may conduct auction service business when it meets the following conditions:

1. It has registered for auction service business;

2. It has at least one auctioneer;

3. It has facilities to ensure the implementation of asset auctions.

Article 36. Auction service center

1. Asset auctions mainly take place through business organizations. In necessary cases, in each province directly under the central government, one Auction Service Center (hereinafter referred to as the Center) shall be established.

The Center shall be established and directly managed by the Department with state management functions over auction activities in the locality, as decided by the Chairman of the People's Committee of the province or centrally governed city.

2. The Center is a service unit with revenue, having its own office, legal personality, seal, and separate bank account. The Center has a Director, accountant, cashier, warehouse keeper, and at least one auctioneer. The Director of the Center must be an auctioneer.

3. The Center’s tasks include selling assets through auctions to enforce judgments, assets that are evidence of administrative violations confiscated and transferred to the state treasury according to the provisions of the law.

In addition to the tasks specified in this clause, the Center may enter into contracts with organizations or individuals requesting to sell other types of assets through auctions.

Article 37. Auction Asset Council.

1. The Auction Asset Council shall be established by the Head of the competent state management agency with authority to organize the sale of state assets valued under ten million dong through auctions.

2. In cases where the asset is an antique, cultural-historical value asset, or an asset of extraordinary value that must be sold through the Auction Asset Council or foreign auction organizations, the establishment of the Auction Asset Council or hiring of foreign auction organizations shall be carried out according to the Prime Minister's decision.

Article 38. Obligations of the auction seller

1. Organize the auction sale of assets in accordance with the principles and procedures stipulated in this Decree.

2. Publicly announce all necessary information related to the auctioned assets in a complete and accurate manner.

3. Safeguard auctioned assets when entrusted with their custody or management by the owner of the assets.

4. Display, allow viewing, and provide reference materials for auctioned assets.

5. Transfer auctioned assets entrusted with custody or management to the buyer; request the owner of the auctioned assets to transfer the asset to the buyer if the owner is directly managing the asset.

6. Provide all relevant documents concerning the auctioned assets to the buyer.

7. Pay the owner of the auctioned assets the proceeds from the sale of the asset after deducting auction expenses as prescribed in Article 26 of this Decree.

8. Implement accounting and financial regulations as prescribed by law.

9. Compensate for damages in case of fault due to violation of obligations.

10. Annually report to the People's Committee of the province or centrally governed city where the Center or business entity is headquartered and the Ministry of Justice on the organization and operation of the Center and business entity.

Article 39. Rights of the auction seller

1. Request the owner of the auctioned assets to provide full and accurate information and documents related to the auctioned assets.

2. Require the buyer of the auctioned assets to make payment for the purchase of the auctioned assets.

3. Require the owner of the auctioned assets to pay auction expenses as prescribed in Article 26 of this Decree.

Article 40. Auction Manager

1. The auction manager is an auctioneer.

2. In cases of special asset auctions, the auction seller may appoint or hire non-auctioneers who have knowledge about the asset to manage the auction.

Article 41. Auctioneer

1. An auctioneer is a person meeting the conditions stipulated in Clause 2 of this Article, who is issued an Auctioneer Card to conduct auction sales in accordance with this Decree.

2. A Vietnamese citizen residing in Vietnam who meets the following conditions shall be issued an Auctioneer Card:

a. Possess a bachelor's degree and have worked in the field of study for two years or more;

b. Have good moral character;

c. Not be a person deprived of or restricted in civil capacity, currently being pursued for criminal responsibility, or previously convicted without having had the criminal record expunged, or currently under administrative surveillance.

Article 42. Procedures for Issuing the Auctioneer Card

1. Individuals wishing to obtain an Auctioneer Card must submit an application for the Auctioneer Card. The application includes the following documents:

a. Application for the Auctioneer Card;

b. Curriculum vitae;

c. Criminal background check form;

d. Copy of bachelor's degree certificate; ..

đ. Certificate confirming work experience as stipulated in point a, Clause 2, Article 41 of this Decree.

2. The application for the Auctioneer Card shall be submitted by the Center or business entity conducting the auction to the Ministry of Justice. Within fifteen days from the date of receipt of a valid application, the Ministry of Justice shall issue the Auctioneer Card to the applicant; in case of rejection, it must notify the reason in writing to the Center or business entity that submitted the application.

Article 43. Rights and Obligations of Auctioneers

1. Directly implement and be responsible for organizing the auction sale of assets.

2. Manage the auction sale or supervise non-auctioneers managing the auction sale as stipulated in Clause 2, Article 40 of this Decree.

3. Sign and affix the stamp on auction sale documents.

Chapter IV

STATE MANAGEMENT OF AUCTION SALES

Article 44. Tasks and Authorities of the Ministry of Justice

The Ministry of Justice is the agency assisting the Government in exercising unified state management over the organization and operation of auction sales nationwide, with the following tasks and authorities:

1. Drafting and submitting to competent state agencies for promulgation, or promulgating within its authority, normative legal documents on the organization and operation of auction sales; guiding the implementation of such normative legal documents.

2. Issuing, managing, and guiding the use of forms and documents in the field of auction sales within its authority. Register of auction sales.

3. Inspecting and auditing the organization and operation of auction sales within its authority.

4. Summarizing and annually reporting to the Prime Minister on the organization and operation of auction sales.

5. International Cooperation in the Field of Auction Sales.

6. Performing other tasks and authorities assigned by the Government.

Article 45. Tasks and Authorities of the Ministry of Finance

1. Guiding financial systems in auction sales operations.

2. Guiding and inspecting the transfer of state assets for auction sales.

3. Guidelines for determining the initial price of assets to be auctioned that are state-owned assets.

4. General guidance on the level of collection, management, and use of auction fees from budget revenues according to the provisions of laws on fees and charges.

Article 46. Duties and powers of the People's Committee of provinces and centrally governed cities

The People's Committee of provinces and centrally governed cities manages auction activities of assets within their localities and has the following duties and powers:

1. Deciding on the establishment of the Center; appointing and dismissing the Director of the Center.

2. Ensuring staffing, material infrastructure, and working equipment for the Center.

3. Specifying the specific level of auction fees at the local level based on the decision of the Provincial People's Council or the Central City People's Council.

4. Inspecting and auditing the organization and operation of asset auctions within their jurisdiction according to their authority.

Chapter V

REWARD, VIOLATION HANDLING, COMPLAINTS, REPORTING AND DISPUTE RESOLUTION

Article 47. Awards

Individuals and organizations with outstanding achievements in the field of asset auctions shall be rewarded according to the provisions of the law.

Article 48. Handling violations by participants in asset auctions

1. Participants in asset auctions who engage in disruptive behavior, obstructing the auction process, or colluding to depress the auction price of assets shall be disqualified from participating in the auction and their advance payment shall be refunded.

2. The auctioneer has the right to disqualify participants from the auction if they commit the acts specified in Clause 1 of this Article. The advance payment of the disqualified participant belongs to the seller of the auctioned asset.

The disqualification of participants from the auction must be recorded in the auction record.

Article 49. Handling violations by sellers of auctioned assets and auctioneers

1. Sellers of auctioned assets who violate the provisions of this Decree and other relevant laws shall be subject to administrative penalties or other forms of handling according to the law depending on the nature and severity of the violation; if damage is caused, compensation must be provided according to the law.

2. Auctioneers who violate the provisions of this Decree shall be subject to administrative penalties and have their Auctioneer Card revoked depending on the nature and severity of the violation; if damage is caused, compensation must be provided according to the law.

Article 50. Petitioning and Reporting

1. Individuals and organizations have the right to file complaints against administrative decisions and actions of administrative state agencies and persons with authority in such agencies when there is evidence that these decisions and actions violate the provisions of this Decree and infringe upon their legitimate rights and interests.

Complaint resolution shall be carried out in accordance with the law on complaints and denunciations.

2. Individuals have the right to report to competent state agencies about violations of the provisions of this Decree.

Resolution of reports shall comply with the law on complaints and denunciations.

Article 51. Dispute Resolution

Disputes arising from the implementation of contracts for the sale of auctioned assets and auction documents shall be resolved in accordance with the provisions of civil litigation law.

Chapter VI

IMPLEMENTING PROVISIONS

Article 52. Investment projects related to the provisions at Amendment 1:2025 QCVN 07:2023/BXD issued accompanying this Circular that have been approved before this Circular takes effect shall continue to be implemented according to the regulations at the time of approval; the investment decision maker has the right to choose to apply Amendment 1:2025 QCVN 07:2023/BXD issued accompanying this Circular.

1. Service centers for asset auctions and businesses engaged in asset auctions established according to the Asset Auction Regulations issued together with Decree No. 86/CP dated December 19, 1996 of the Government shall continue to operate under the provisions of this Decree.

2. Within sixty days from the date this Decree takes effect, each service center for asset auctions and business engaged in asset auctions operating according to the Asset Auction Regulations issued together with Decree No. 86/CP dated December 19, 1996 of the Government must have at least one auctioneer as stipulated in this Decree.

Article 53. Effectiveness

This Decree shall take effect fifteen days after its publication in the Official Gazette and shall replace Decree No. 86/CP dated December 19, 1996 of the Government issuing the Asset Auction Regulations.

Article 54. Responsibility for Implementation

1. The Ministry of Justice shall coordinate with the Ministry of Finance and related ministries to guide the implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees shall be responsible for implementing this Decree.