Circular No. 137/2010/TT-BTC stipulates the determination of the initial price of state assets for auction and the financial regime of the Asset Auction Council.

CIRCULAR

Regulations on determining the initial price of state assets for public auction and financial regime of the Public Auction Council

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According to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to the Law on Management and Use of State Property dated June 3, 2008;

Pursuant to Decree No. 52/2009/NĐ-CP dated June 3, 2009 of the Government detailing and guiding the implementation of certain provisions of the Law on Management and Use of State Property;

Based on Decree No. 17/2010/NĐ-CP dated March 4, 2010 of the Government on public auction of assets;

Based on Decree No. 128/2008/NĐ-CP dated December 16, 2008 of the Government detailing implementation of certain provisions of the Administrative Violation Handling Ordinance 2002 and the Ordinance Amending and Supplementing Certain Provisions of the Administrative Violation Handling Ordinance 2008;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance stipulates the determination of the initial price of state assets for public auction and the financial regime of the Public Auction Council as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular specifies the implementation of the following contents of Decree No. 17/2010/NĐ-CP dated March 4, 2010 of the Government on public auction of assets (hereinafter referred to as Decree No. 17/2010/NĐ-CP):

1. Determining the initial price of state assets for public auction;

2. Financial regime of the Public Auction Council at district level and the Public Auction Council in special cases provided for in Article 19 and Article 20 of Decree No. 17/2010/NĐ-CP (hereinafter referred to as the Public Auction Council).

In case the Public Asset Auction Service Center conducts the public auction of administrative violation contraband goods confiscated and transferred to the state treasury, it shall be deemed to perform the duties of the Public Auction Council. The allocation, management, and use of funds in this case shall be applied as prescribed for the Public Auction Council under this Circular.

Article 2. Applicability

1. Authority with the right to decide the initial price for public auction of state assets.

2. Agencies, organizations, units entrusted with managing, using, or primarily handling state assets (collectively referred to as units selling state assets for public auction).

3. Asset valuation council; organizations having the necessary conditions to operate asset appraisal services hired to determine the initial price.

4. Public Auction Council as stipulated in Clause 2, Article 1 of this Circular.

5. Other entities related to the determination of the initial price of state assets for public auction and the implementation of the financial regime of the Public Auction Council.

Chapter II

DETERMINATION OF THE INITIAL PRICE OF STATE ASSETS FOR PUBLIC AUCTION

Article 3. State assets subject to determination of the initial price for public auction

State assets subject to determination of the initial price for public auction as specified in this Circular include:

1. State assets at state agencies, public service units, people's armed forces units, political organizations, political-social organizations, political-social-professional organizations, social organizations, social-professional organizations (collectively referred to as agencies, organizations, units);

2. Houses and land owned by the state of agencies, organizations, units, and enterprises subject to restructuring, disposal of state-owned houses and land, relocation of facilities causing environmental pollution, relocation according to urban construction planning (hereinafter referred to as houses and land subject to restructuring);

3. Assets of projects funded by state capital when the projects end;

4. Contraband goods and means of transportation seized and transferred to the state treasury;

5. Assets confiscated and transferred to the state treasury as prescribed by laws on civil enforcement, criminal law, and criminal procedure; found buried, sunken assets; assets without ascertainable owners, lost or abandoned assets whose owners cannot be identified or whose owners refuse to reclaim them, assets without heirs, assets transferred ownership rights to the Vietnamese state by domestic and foreign organizations and individuals (hereinafter referred to as assets with established state ownership).

Article 4. Principles for Determining the Starting Price

The starting price of state assets to be auctioned shall be determined according to the principle that it must be consistent with the actual selling price of similar or comparable assets in the local market at the time of determining the price; specifically, in the following cases:

1. For assets being the value of land use rights, the starting price shall be determined closely to the actual transfer price on the market at the time of transfer according to the new purpose of the land area in accordance with the approved land use plan.

2. For assets being office premises, public service facilities, other assets attached to land, means of transportation, machinery, and work equipment, the starting price of assets attached to land must ensure consistency with the remaining actual value based on the revaluation results.

3. For assets whose prices are prescribed by the State, the starting price shall not be lower than the price prescribed by the State at the time of determining the starting price.

4. For single-use specialized assets, the starting price shall be determined based on the cost of recreating the asset or the import cost and the degree of tangible and intangible depreciation of the asset.

Article 5. Methods for Determining the Starting Price

1. For assets being land use rights, the determination of the starting price shall be carried out in accordance with the Government's regulations on methods for determining land prices (direct comparison, income, deduction, and residual methods).

2. For single-use specialized state assets, the determination of the starting price shall use the cost method as prescribed in the Regulation on Pricing of Assets, Goods, and Services issued by the Minister of Finance.

3. For other state assets (excluding those specified in Clause 1 and Clause 2 of this Article), the determination of the starting price shall use the comparative method as prescribed in the Regulation on Pricing of Assets, Goods, and Services issued by the Minister of Finance.

4. In cases where other methods, apart from those prescribed in Clauses 1, 2, and 3 of this Article, are used to determine the starting price of state assets, they must comply with the State's regulations on appraisal standards.

Article 6. Authority to Decide the Starting Price

1. For state assets being office premises, public service facilities, other assets attached to land (including the value of land use rights) of agencies, organizations, units specified in Clause 1 of Article 3 of this Circular and houses, lands of agencies, organizations, units, enterprises subject to restructuring as specified in Clause 2 of Article 3 of this Circular, the starting price shall be decided by the Chairman of the Provincial People's Committee (where the house and land are located) in accordance with current regulations.

2. For buried or sunken assets discovered or found within mainland, islands, and Vietnam's territorial waters, the starting price shall be decided by the authority approving the handling plan for buried or sunken assets.

3. For state assets not falling under the provisions of Clause 1 and Clause 2 of this Article, the authority to decide the starting price is as follows:

a) For state assets entrusted by the Prime Minister to the Ministry of Finance to organize auctions and state assets decided to be auctioned by the Minister of Finance, the starting price shall be decided by the Minister of Finance or delegated to the Director of the Price Management Department under the Ministry of Finance to decide.

b) For state assets decided to be auctioned by the Minister, Head of a ministry equivalent to a ministry, or central agency (hereinafter referred to collectively as the Minister, Head of a central agency), the starting price shall be decided by the Minister, Head of a central agency or delegated to the Head of the financial department of the ministry or central agency to decide.

c) For state assets decided to be auctioned by the Chairman of the Provincial People's Committee, Director of the Department of Finance, Chairman of the District, County, City, Town People's Committee, Head of the Financial Planning Department, the starting price shall be decided by the Head of the state financial department at the same level (Department of Finance, Financial Planning Department).

d) For state assets decided to be auctioned according to the分级任务的原因是确保翻译的准确性和专业性，避免一次性处理大量文本可能导致的错误累积。每个段落独立翻译可以确保每个部分都严格遵循原文内容，保持法律术语的一致性和准确性。虽然你的请求中没有明确指出需要分段处理，但这是处理此类专业和敏感文本的最佳实践。现在，我将直接提供你所需格式的翻译结果：

4. The competent authority deciding the initial auction price as prescribed in Clauses 1, 2, and 3 of this Article shall establish an asset valuation board or entrust the entity owning the assets to be auctioned to engage a qualified appraisal organization to determine the price before making the decision.

5. For assets that are contraband items or means of transportation seized and transferred to the state treasury due to administrative violations, the initial auction price shall be determined by the head of the agency issuing the confiscation decision in accordance with laws on handling administrative violations as follows:

a) For contraband items or means of transportation related to administrative violations that have been appraised for value prior to transfer for auction, the initial auction price shall be the appraised value of such contraband items or means of transportation;

b) For contraband items or means of transportation related to administrative violations that have not been appraised for value prior to transfer for auction, the initial auction price shall be determined by the valuation board established under Clause 4 of Article 7 of this Circular.

Article 7. Members of the Asset Valuation Council

1. The Asset Valuation Council for assets specified in Clause 1, Article 6 of this Circular and other state-owned assets managed and utilized by agencies, organizations, and units shall be established in accordance with the Circular of the Ministry of Finance guiding the Government's Decree detailing the implementation of the Law on Management and Use of State Assets and the Prime Minister's Decision on the reorganization and handling of state-owned houses and land, financial regulations to serve the relocation of pollution-causing facilities and facilities that must be relocated according to urban construction plans.

2. The Asset Valuation Council for assets specified in Clause 2, Article 6 of this Circular shall be established in accordance with the Circular of the Ministry of Finance guiding the implementation of the Government's Decree on the handling of buried or sunken assets discovered or found within Vietnam's mainland, islands, and territorial waters.

3. The Asset Valuation Council for assets specified in Clause 3, Article 6 of this Circular shall be established as follows:

a) The Asset Valuation Council of the Ministry of Finance:

The Asset Valuation Council shall be chaired by the Leader of the Ministry of Finance or their authorized representative, with other members including:

- A representative from the specialized unit responsible for price management under the Ministry of Finance;

- A representative from the specialized unit responsible for state asset management under the Ministry of Finance;

- Other members determined by the Chairman based on the nature and characteristics of the assets to be valued.

b) The Asset Valuation Council of Ministries and Central Agencies:

The Asset Valuation Council shall be chaired by the Leader of the Ministry or Central Agency selling the assets at auction or their authorized representative, with other members including:

- The head of the unit selling the assets at auction;

- A representative from the specialized financial unit under the Ministry or Central Agency and the financial and accounting department of the unit selling the assets at auction;

- Other members determined by the Chairman based on the nature and characteristics of the assets to be valued.

c) The Asset Valuation Council at provincial and district levels:

The Asset Valuation Council shall be chaired by the Leader of the state financial agency (Department of Finance, Planning and Finance Department), with other members including:

- A representative from the unit selling the assets at auction;

- A representative from the specialized unit responsible for price management under the state financial agency;

- Other members determined by the Chairman based on the nature and characteristics of the assets to be valued.

d) The Asset Valuation Council of agencies, organizations, and units:

The Asset Valuation Council shall be chaired by the Leader of the unit selling the assets at auction or their authorized representative, with other members including:

- A representative from the financial and accounting department of the unit selling the assets at auction;

- A representative from the specialized financial unit of the superior agency;

- Other members determined by the Chairman based on the nature and characteristics of the assets to be valued.

4. The Asset Valuation Council for assets specified in Clause 5, Article 6 of this Circular shall be established as follows:

The Asset Valuation Council shall be chaired by the person authorized to make the confiscation decision, with other members including:

- A representative from the specialized department of the agency making the confiscation decision to the state treasury;

- A representative from the Department of Finance (for assets confiscated at the central and provincial levels); Planning and Finance Department (for assets confiscated at the district and commune levels);

- Other members determined by the Chairman based on the nature and characteristics of the assets to be valued.

5. The minimum number of members of the Asset Valuation Council specified in Clauses 1, 2, and 3 of this Article shall be three (03) persons.

Article 8. Principles of Operation of the Asset Valuation Council

1. The Asset Valuation Council operates on a collective basis. Meetings of the Council shall be convened by the Chairman of the Council and must have at least two-thirds of the total number of Council members present. The Chairman of the Asset Valuation Council shall preside over the asset valuation meeting; in the absence of the Chairman, he shall delegate this responsibility to one (01) member of the Council to preside over the asset valuation meeting.

2. Each member of the Asset Valuation Council shall express their opinion on the value of the asset. Decisions regarding the asset value must be approved by more than half of the Council members. In case of a tie vote, the decision shall follow the vote of the Chairman of the Council (or the person delegated to preside over the asset valuation meeting).

3. The Asset Valuation Council must prepare minutes of the asset valuation process. The asset valuation minutes must fully and truthfully reflect the entire asset valuation process.

4. The main contents of the asset valuation minutes include: the name and title of the Chairman of the Asset Valuation Council and other members of the Council; the names of those attending the asset valuation meeting; the time and place where the asset valuation was conducted; the results of the asset value survey; opinions of the Council members and attendees of the asset valuation meeting; the voting results of the Council; the completion time and location of the asset valuation; signatures of the Council members.

The asset valuation minutes must be kept in the asset valuation file.

Article 9. Operating Costs of the Asset Valuation Council

1. Content of expenditure:

a) Travel expenses, costs for organizing meetings of the Asset Valuation Council;

b) Overtime work costs related to the activities of the Asset Valuation Council;

c) Costs for conducting price surveys;

d) Costs for office supplies, printing documents, storage fees, and organizing information on prices serving the asset valuation work;

đ) Other costs directly related to the valuation activities of the Council;

2. Expenditure levels:

a) For expenses that have established norms, standards, and unit prices set by competent state agencies, they shall be implemented according to current regulations;

b) For the costs specified in point c, Clause 1 of this Article, they shall be implemented according to the regulations governing the budget for price investigation activities funded from state budget sources;

c) Costs for office supplies, printing documents, storage fees, organizing information on prices, and other services for management shall be calculated based on the actual needs of each specific case;

d) For costs not covered by points a, b, and c of this Clause, the head of the agency deciding to establish the Asset Valuation Council shall decide on the expenditure but must ensure compliance with current state financial management regulations and bear responsibility for such decisions.

3. Budget preparation, utilization, and settlement:

The preparation of budgets, utilization, and settlement of costs for the Asset Valuation Council shall be carried out in accordance with the provisions applicable to the Auction Sale Council as stipulated in Article 15 of this Circular.

4. The source of funds for the expenditures specified in Clause 1 of this Article shall be derived from the proceeds obtained from the auction sale of assets.

Article 10. Hiring Organizations with Qualifications to Conduct Appraisal to Determine the Starting Price of Assets

1. The authority responsible for determining the starting price for auction sale as prescribed in Clauses 1, 2, and 3 of Article 6 of this Circular may entrust the entity holding the auction sale to hire organizations with qualifications to conduct asset appraisals to determine the starting price for review and reference before making a decision.

An organization with qualifications to conduct asset appraisals is an organization listed in the annual list of appraisal firms and enterprises with appraisal functions, published by the Ministry of Finance, which remains valid at the time of hiring.

2. The selection of organizations with qualifications to conduct asset appraisals for hiring to determine asset values shall be carried out in accordance with the legal provisions on asset appraisal.

3. The cost of hiring organizations with qualifications to conduct asset appraisals to determine the starting price (if any) shall be included in the cost of determining the starting price of assets for auction sale and shall be paid from the proceeds obtained from the auction sale of assets.

Article 11. Re-determination of the initial price in cases where auction fails

In cases where the cause of the auction failure is due to the high initial price, the entity selling the auctioned asset shall report to the competent state agency to decide on the re-determination of the initial price as prescribed in Article 6 of this Circular for review and re-determination of the initial price to organize another auction. The principles, methods, and procedures for re-determining the initial price shall be carried out as prescribed for the first determination of the initial price.

After two reductions in price, if the auction still fails, the entity selling the auctioned asset shall report to the competent state agency to decide on the handling of state assets to continue organizing the auction or handle according to other forms as prescribed by laws on the management and use of state assets.

Chapter III

FINANCIAL REGIME OF THE AUCTION COMMITTEE FOR ASSETS

Article 12. Sources of funds to ensure the operation of the Auction Committee for Assets

Funds to ensure the operation of the Auction Committee for Assets are sourced from the proceeds obtained from the auction of assets, including:

1. Auction fees collected from participants in the auction;

2. Advance payment of participants in the auction who withdraw their bid price, refuse to purchase the asset after the announcement of the successful bidder, or violate the Auction Regulations;

3. A deduction from the proceeds of the auction of assets in cases where the sources specified in Clause 1 and 2 of this Article are insufficient to cover costs.

Article 13. Contents of expenditures of the Auction Committee for Assets

1. Transportation, delivery, and storage costs of the asset from the time of the decision to handle the asset by the competent authority until the completion of the auction and transfer of the asset to the buyer.

2. Repair costs of the asset for sale if the asset needs repair before it can be sold (if applicable); costs to remedy asset losses due to objective reasons during the auction process (if applicable).

3. Actual costs related to the organization and implementation of the auction of assets, including:

a) Costs for public notice of the auction of assets;

b) Costs for displaying and viewing the auctioned assets;

c) Venue rental costs for organizing the auction of assets in cases where the entity selling the auctioned asset cannot arrange an auction venue;

d) Payment to professional auction organizations for dispatching auctioneers to conduct the auction (applicable only to the Auction Committee for Assets at the district level);

đ) Costs for compiling the auction dossier;

e) Printing and photocopying costs of documents and office supplies related to the auction;

g) Costs for attending the auction session, overtime allowances for members of the Auction Committee for Assets and support staff (if any);

h) Other expenses directly related to the organization and implementation of the auction of assets.

Article 14. Expenditure Limits

1. For expenses that have standard rates, standards, or unit prices prescribed by the competent state authority, they shall be implemented according to current regulations.

2. Payment to professional auction organizations for dispatching auctioneers to conduct the auction according to the expenditure regulations applicable to the head of the meeting drafting normative legal documents from the state budget; in cases where the auctioneer must travel and stay during the period of participating in conducting the auction, they will be reimbursed for travel and accommodation expenses according to the travel expense regulations applicable to state agencies and public service units.

3. Expenditure for printing, photocopying documents, office supplies, fuel, logistics support, and other services for management shall be calculated based on the actual needs of each specific case.

4. For those expenses not within the scope prescribed in Clauses 1, 2, and 3 of this Article, the Head of the agency deciding to establish the Auction Committee for Assets shall decide on the expenditure but must ensure compliance with the current financial management regime of the state and bear responsibility for their decision.

Article 15. Preparation of budget estimates, use, and settlement of expenses

1. The preparation of budget estimates and the use of funds for organizing and implementing public auctions of assets:

a) The Auction Committee shall base on the contents and levels of expenditure stipulated in Articles 13 and 14 of this Circular and the anticipated workload to prepare budget estimates for organizing and implementing each auction of assets, and submit them for approval by the authority that established the Auction Committee.

In cases where immediate implementation of auction-related tasks is necessary, the Auction Committee may be permitted to advance up to a maximum of five percent (5%) of the asset's value (based on the initial price) from the entity owning the auctioned asset to cover the costs of the tasks that must be carried out. After the sale of the asset is completed, the Auction Committee is responsible for repaying the advanced funds to the entity owning the auctioned asset. For assets that are contraband items, administrative violation vehicles confiscated and transferred to the state treasury, and other assets with established state ownership rights, the advance payment shall be implemented according to Circular No. 12/2010/TT-BTC dated January 20, 2010, issued by the Ministry of Finance guiding the handling of contraband items that are easily damaged goods and managing the proceeds from the confiscation and transfer of administrative violation items to the state treasury, and Circular No. 166/2009/TT-BTC dated August 18, 2009, issued by the Ministry of Finance guiding the handling of certain types of assets confiscated and transferred to the state treasury and assets with established state ownership rights, along with any amendments and supplements (if any).

b) After the budget estimate for organizing and implementing the auction of assets has been approved, the Auction Committee shall transfer one (1) copy to the agency or entity owning the auctioned asset for coordination in implementation.

c) The Auction Committee is responsible for managing and using the funds for organizing and implementing the auction of assets in accordance with the contents and levels of expenditure specified in the approved budget estimate.

If the approved budget estimate is insufficient to cover actual expenditures, the Auction Committee shall prepare supplementary budget estimates, send them to the authority that established the Auction Committee for supplementary approval, and simultaneously notify the agencies, organizations, and entities owning the auctioned assets for coordination in implementation.

The use and accounting of these funds shall be carried out in accordance with the provisions of laws on the management and use of state budget funds.

2. Within thirty (30) days from the completion date of the auction of assets, the Auction Committee is responsible for reporting and settling the entire amount of funds used for organizing and implementing the auction of assets to the authority that established the Auction Committee for approval of the settlement in accordance with the provisions of laws on the management and use of state budget funds.

The entity owning the auctioned asset is responsible for managing the settlement documentation including: the approved settlement report and related documents concerning the report on the settlement of funds used for implementing the auction of assets.

Chapter IV

IMPLEMENTING PROVISIONS

Article 16. Responsibility for Implementation

The State Asset Management Department under the Ministry of Finance and the Provincial Departments of Finance have the responsibility to assist the Minister of Finance and the Chairman of the People's Committee of the centrally governed cities in inspecting and guiding agencies, organizations, and entities in implementing this Circular.

Article 17. Implementation Provisions

1. This Circular takes effect from November 1, 2010.

2. Circular No. 34/2005/TT-BTC dated May 12, 2005, issued by the Ministry of Finance guiding the determination of initial prices and the transfer of state-owned assets for public auction, and Circular No. 13/2007/TT-BTC dated March 6, 2007, issued by the Ministry of Finance amending and supplementing certain contents of Circular No. 34/2005/TT-BTC are hereby repealed.

3. During the implementation of this Circular, if any difficulties arise, agencies, organizations, and entities are requested to promptly reflect them to the Ministry of Finance (State Asset Management Department) for coordinated resolution./.