Decree No. 17/2010/NĐ-CP on Auctioning Assets

DECREE

On Auctioning Assets

__________

THE GOVERNMENT

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

Pursuant to the Civil Code dated June 14, 2005;

Based on the Land Law dated November 26, 2003;

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

Pursuant to the Civil Enforcement Law on November 14, 2008;

BASED ON THE ADMINISTRATIVE VIOLATION HANDLING ORDINANCE dated July 2, 2002; THE AMENDMENT AND SUPPLEMENT TO THE ADMINISTRATIVE VIOLATION HANDLING ORDINANCE dated April 2, 2008;

Considering the proposal of the Minister of Justice,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. THIS DECREE REGULATES THE PRINCIPLES, PROCEDURES, AND PROCEDURAL REQUIREMENTS FOR AUCTIONING ASSETS; AUCTIONEERS; ORGANIZATIONS CONDUCTING ASSET AUCTIONS AND STATE MANAGEMENT OVER AUCTION ACTIVITIES;

2. THIS DECREE APPLIES TO THE AUCTION OF THE FOLLOWING TYPES OF ASSETS:

a) ASSETS FOR ENFORCEMENT PURSUANT TO THE LEGISLATION ON ENFORCEMENT;

b) ASSETS THAT ARE EVIDENCE OR MEANS OF VIOLATING ADMINISTRATIVE LAWS BEING CONFISCATED AND FUNDED INTO THE NATIONAL TREASURY ACCORDING TO THE LEGISLATION ON HANDLING VIOLATIONS;

c) COLLATERAL ASSETS IN CASES WHERE THE LAW ON SECURED TRANSACTIONS REQUIRES AUCTIONING;

d) STATE ASSETS TO BE DISPOSED THROUGH AUCTION ACCORDING TO THE LEGISLATION ON MANAGING AND USING STATE ASSETS; RIGHTS TO USE LAND IN CASES WHERE THE STATE ALLOWS THE SALE OF LAND WITH PAYMENT OF THE LAND USE FEE OR LEASE OF LAND BY DECISION OF THE AUTHORIZED STATE AGENCY;

e) OTHER ASSETS REQUIRED TO BE AUCTIONED ACCORDING TO THE LEGISLATION;

3. IN CASES WHERE INDIVIDUALS OR ORGANIZATIONS CHOOSE PROFESSIONAL AUCTION ORGANIZATIONS AS PROVIDED FOR IN ARTICLE 14 OF THIS DECREE TO SELL THEIR OWN ASSETS, THE PRINCIPLES, PROCEDURES, AND PROCEDURAL REQUIREMENTS FOR AUCTIONING ASSETS AS SET OUT IN THIS DECREE SHALL APPLY;

4. THE SALE OF STATE ASSETS ABROAD AND SPECIAL ASSETS AT MILITARY UNITS SHALL NOT APPLY THE PROVISIONS OF THIS DECREE BUT SHALL COMPLY WITH THE LEGISLATION RELATING TO SUCH ASSETS;

Article 2. Interpretation of Terms

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

1. AUCTIONING ASSETS IS THE PUBLIC SALE OF ASSETS THROUGH AN OPEN BIDDING PROCESS WITH AT LEAST TWO PARTICIPANTS, FOLLOWING THE PRINCIPLES AND PROCEDURES SET OUT IN THIS DECREE. THE OPEN BIDDING PROCESS INVOLVES BIDDING FROM LOW TO HIGH UNTIL THE HIGHEST BID IS REACHED;

2. Auctioneer IS AN AUCTIONEER WHO HAS BEEN ISSUED A LICENSE TO PRACTICE AUCTIONS AS PROVIDED FOR IN THIS DECREE;

3. THE AUCTION PURCHASER IS THE PERSON WHO MAKES THE HIGHEST BID ABOVE THE RESERVE PRICE; IF NO ONE BIDS HIGHER THAN THE RESERVE PRICE, THE ASSET WILL BE SOLD AT THE RESERVE PRICE;

4. AUCTIONABLE ASSETS ARE MOVABLE AND IMMOVABLE PROPERTY, SECURITIES, AND OTHER PROPERTY RIGHTS PERMITTED TO BE TRADED UNDER THE LEGISLATION;

5. BID STEP IS THE DIFFERENCE BETWEEN THE CURRENT BID AND THE PREVIOUS BID. THE BID STEP IS DETERMINED BY THE AUCTION ORGANIZATION SUITABLE FOR EACH AUCTION;

6. THE OWNER OF AUCTIONABLE ASSETS IS THE OWNER OF THE ASSET, THE PERSON AUTHORIZED BY THE OWNER TO SELL THE ASSET, THE PERSON RESPONSIBLE FOR TRANSFERRING THE ASSET FOR AUCTION, OR ANY INDIVIDUAL OR ORGANIZATION ENTITLED TO SELL ANOTHER PERSON'S ASSET UNDER THE LEGISLATION;

7. PARTICIPANTS IN ASSET AUCTIONS ARE INDIVIDUALS OR REPRESENTATIVES OF ORGANIZATIONS QUALIFIED TO PARTICIPATE IN AUCTIONS TO PURCHASE AUCTIONABLE ASSETS AS PROVIDED FOR IN THIS DECREE AND OTHER RELATED LEGISLATION;

ARTICLE 3. PRINCIPLES OF AUCTIONING ASSETS

1. AUCTIONING ASSETS MUST BE CONDUCTED IN A TRANSPARENT, CONTINUOUS, OBJECTIVE, FAIR, AND EQUAL MANNER, PROTECTING THE LEGAL RIGHTS AND INTERESTS OF ALL PARTIES INVOLVED;

2. EVERY AUCTION MUST BE CONDUCTED BY AN AUCTIONEER IN ACCORDANCE WITH THE AUCTIONING PROCEDURES SET OUT IN THIS DECREE, EXCEPT IN THE CASES PROVIDED FOR IN ARTICLE 20 OF THIS DECREE AND WHERE THE LAW OR ORDINANCE PROVIDES OTHERWISE.

Article 4. Protection of the rights and legitimate interests of buyers of auctioned assets

1. The rights and legitimate interests of buyers of auctioned assets shall be protected by law. State agencies within their respective duties and powers shall have the responsibility to ensure the implementation of the rights and legitimate interests of buyers of auctioned assets.

2. In cases where a third party disputes ownership or usage rights over auctioned assets, the determination of ownership and usage rights over such assets shall be carried out in accordance with civil law regulations.

3. In cases where there is a decision by a competent state agency to amend part or revoke entirely decisions related to auctioned assets due to violations of the law prior to the auctioning of the assets, but the procedures and processes for auctioning those assets fully comply with legal provisions, then such assets still belong to the ownership and usage rights of buyers of auctioned assets.

Organizations and individuals who cause damage through fault must compensate according to the law.

Chapter II

AUCTIONEER

Article 5. Auctioneer Qualifications

Vietnamese citizens residing permanently in Vietnam who meet the following criteria may become auctioneers:

1. Possess good moral character;

2. Have graduated from a university in law or economics;

3. Have completed an auction profession training course.

Article 6. Auction Profession Training

1. Individuals holding a bachelor's degree in law or economics may register to participate in an auction profession training course at a professional training institution.

2. The duration of the auction profession training course is three months. The training content includes legal knowledge, professional ethics, skills in conducting auctions, and practical training at a professional auction organization. Individuals completing the auction profession training program will be issued an Auction Profession Training Certificate by the training institution.

3. The Ministry of Justice shall stipulate the framework curriculum for the auction profession training course and the training institutions.

Article 7. Individuals Exempted from Auction Profession Training or Reduced Training Duration

1. The following individuals are exempted from auction profession training:

a) Professors, associate professors, doctoral graduates in law; professors, associate professors, doctoral graduates in economics; lawyers, notaries;

b) Formerly senior judicial examiners in the judiciary, chief inspectors in the prosecution service; chief inspectors; senior judicial examiners in enforcement; chief specialists; chief researchers, chief lecturers in the field of law or economics;

c) Formerly high-level judicial examiners in the judiciary, high-level inspectors in the prosecution service; high-level inspectors; high-level judicial examiners in enforcement; high-level specialists, high-level researchers in the field of law or economics;

d) Formerly judges, prosecutors, investigators, auctioneers, notaries, enforcement officers.

2. Individuals holding a bachelor's degree in law are eligible for reduced training time for legal knowledge.

The Ministry of Justice shall specify the details regarding reduced training time for the auction profession.

Article 8. Issuance of Auction Practice Certificate

1. The application dossier for issuance of an Auction Practice Certificate shall include the following documents:

a) Application form for issuance of an Auction Practice Certificate;

b) Curriculum vitae with attached photograph and confirmation by a competent authority;

c) Criminal record clearance form;

d) Copy of the bachelor's degree in law or economics;

đ) Copy of the Auction Profession Training Certificate or proof if exempted from auction profession training as stipulated in Article 7 of this Decree;

e) Two photographs measuring 3cm x 4cm.

2. The applicant for issuance of an Auction Practice Certificate shall submit one set of the application dossier to the Ministry of Justice and pay the fee for issuance of the Auction Practice Certificate as prescribed. Within fifteen working days from the date of receipt of a complete application dossier, the Ministry of Justice shall issue the Auction Practice Certificate to the applicant; in case of refusal, a written notification of reasons shall be provided to the applicant.

3. The Auction Practice Certificate serves as the basis for conducting asset auction activities.

Article 9. Cases where a Professional Auction Certificate shall not be issued

1. Persons who are civil servants, public officials; officers, professional military personnel, defense industry workers in agencies and units under the People's Army; officers, non-commissioned officers in specialized positions, technical officers, non-commissioned officers in technical positions in agencies and units under the People's Public Security, except for cases where civil servants, public officials are proposed to be issued a Professional Auction Certificate to work at Asset Auction Service Centers.

2. Persons who have lost or are restricted in their capacity for civil acts.

3. Persons who are being pursued for criminal responsibility, persons who have been convicted but have not yet had their criminal record expunged.

4. Persons who are subject to other administrative measures, persons who have been subject to other administrative measures but have not yet completed the period during which they are considered not to have been subject to such measures according to the law on handling administrative violations.

Article 10. Reissuing a Professional Auction Certificate

1. A person who has already been issued a Professional Auction Certificate, if the Certificate is lost or damaged and cannot be used, may be considered for reissuance of the Professional Auction Certificate.

2. The application dossier for reissuing a Professional Auction Certificate includes the following documents:

a) Application form for reissuing a Professional Auction Certificate;

b) The old Certificate that is damaged.

In case the Professional Auction Certificate is lost, confirmation from the competent authority must be provided.

3. Procedures and time limits for reissuing a Professional Auction Certificate are carried out in accordance with Clause 2 of Article 8 of this Decree.

Article 11. Revocation of a Professional Auction Certificate

1. A person who has been issued a Professional Auction Certificate will have their Certificate revoked in the following cases:

a) Belongs to one of the cases stipulated in Article 9 of this Decree;

b) Does not work regularly at an asset auction organization; no longer operates in the field of asset auctions;

c) Does not conduct any auction sale within one year, except for justifiable reasons;

d) Has their right to use the Professional Auction Certificate permanently revoked according to the law on handling administrative violations;

đ) Violates prohibited actions stipulated in Article 13 of this Decree.

2. The Minister of Justice has the authority to revoke a Professional Auction Certificate and stipulates the procedures for revoking a Professional Auction Certificate.

Article 12. Rights and Obligations of Auctioneers

1. Work regularly at a professional asset auction organization.

2. Directly manage asset auction sales, bear legal responsibility before the law and the asset auction organization regarding the implementation of asset auctions.

3. Adhere to the principles of asset auction sales stipulated in Article 3 of this Decree.

4. Disqualify participants in the auction who violate the auction sale regulations.

5. Be impartial and unbiased in implementing asset auction sales.

6. Compensate for losses caused by their own fault to the asset auction organization according to the law.

7. Other rights and obligations as prescribed by law.

Article 13. Prohibited Actions for Auctioneers

1. Renting, lending, or allowing other organizations or individuals to use their Professional Auction Certificate to carry out auction activities.

2. Accepting any amount of money or benefits from the owner of the auctioned assets outside the agreed auction fees and costs in the contract, or taking advantage of their status as an auctioneer to obtain other benefits from individuals or organizations.

3. Taking advantage of their responsibilities and powers to collude with organizations or individuals for personal gain.

Chapter III

ASSET AUCTION ORGANIZATIONS

Article 14. Professional auction organizations

1. Property auction service centers.

2. Property auction enterprises, multi-sector enterprises engaging in property auction services (hereinafter referred to collectively as property auction enterprises).

Article 15. Property auction service centers

1. Property auction service centers (hereinafter referred to as Centers) shall be established by the Chairman of the People's Committee of provinces and centrally-administered cities. Each province and centrally-administered city may establish only one Center.

2. The Center is a self-financing public institution with its own headquarters, legal personality, seal, and separate bank account. The Director of the Center must be an auctioneer.

Article 16. Property auction enterprises

1. Property auction enterprises shall be established and operate in accordance with the laws on enterprises and this Decree.

2. In addition to the conditions for establishment and operation of each type of enterprise as prescribed by the laws on enterprises, enterprises engaged in property auction services must meet the following conditions:

a) The legal representative of the property auction enterprise must be an auctioneer;

b) Have headquarters, material facilities, and other necessary equipment to ensure the conduct of property auctions.

3. Within seven working days from the date of issuance of the Business Registration Certificate, the enterprise has the responsibility to notify in writing about business registration to the Department of Justice of the province or centrally-administered city where the enterprise's main office is located.

Article 17. Rights of professional auction organizations

1. Requesting the person with the property to be auctioned to provide complete and accurate information and relevant documents related to the property to be auctioned.

2. Requesting the buyer of the property to be auctioned to pay the purchase price of the property to be auctioned and fulfill other obligations determined in the property purchase contract.

3. Requesting the person with the property to be auctioned to pay auction fees and expenses and fulfill other obligations determined in the property auction contract.

Article 18. Obligations of professional auction organizations

1. Conducting the auction of property according to the principles, procedures, and formalities stipulated in this Decree and being responsible for the results of the auction of property.

2. Issuing internal regulations on property auctions that comply with this Decree and related legal documents.

3. Delivering the auctioned property under custody or management to the buyer of the property to be auctioned; requesting the person with the property to be auctioned to deliver the property to the buyer of the property to be auctioned if the person with the property to be auctioned is directly managing the property.

4. Providing all relevant documents related to the property to be auctioned to the buyer of the property to be auctioned.

5. Complying with labor, tax, finance, and statistics laws.

6. Maintaining a record of auctioned properties and a registration book for auctioned properties.

7. Compensating for damages caused by the fault of auctioneers and other employees of their organization while conducting property auctions.

8. Fulfilling other obligations as stipulated in the property auction contract and the property purchase contract.

9. Issuing Auctioneer Cards for auctioneers for use during work in accordance with the contents recorded in the Professional Practice Certificate.

10. Registering lists of auctioneers, changes, and additions to the list of auctioneers with the Department of Justice of the province or centrally-administered city where the property auction organization's main office is located.

11. Reporting to the Department of Justice on the organization and activities of their organization every six months, annually, or at any time upon request.

Article 19. Auction Council at the District Level

1. The Auction Council at the district level shall be established by the Chairman of the People's Committee of the district, town, city under province (hereinafter referred to collectively as the People's Committee at the district level) to auction assets that are evidence of administrative violations confiscated according to the laws on handling administrative violations.

2. The Auction Council at the district level shall consist of representatives from the authority with the power to confiscate assets, the finance department, the judicial department at the district level, and representatives from related agencies.

Article 20. Auction Council in Special Cases

1. The Auction Council in special cases shall be established to auction state assets, land use rights with high value and complexity, or in cases where a professional auction organization cannot be hired to conduct the auction.

2. The Auction Council in special cases shall include representatives from the authority with the power to decide on asset auctions, financial authorities, judicial authorities at the same level, and representatives from related agencies and organizations.

Article 21. Rights and Obligations of the Auction Council

1. The Auction Council as stipulated in Articles 19 and 20 of this Decree shall have the following rights and obligations:

a) Rights as prescribed in Article 17; obligations as prescribed in Clauses 1, 2, 3, 4, 6, and Clause 8 of Article 18 of this Decree;

b) To enter into contracts with professional auction organizations for them to appoint auctioneers to manage the auction of assets by the Council, except for the Auction Council in special cases as stipulated in Article 20 of this Decree;

c) To fulfill financial and statistical obligations as prescribed by law.

2. Every six months and annually, the People's Committee at the district level shall report to the Department of Justice about the organization and activities of the Auction Council established by itself.

The Auction Council in special cases shall report in writing to the agency that decided to establish the Auction Council, and simultaneously send the results of each auction to the Department of Justice where the Council was established.

3. The agency that decides to establish the Auction Council shall be responsible for resolving complaints after the Council is dissolved and compensating for damages caused by the fault of the auctioneer or members of the Council while conducting the auction of assets.

The auctioneer and members of the Council must compensate for damages caused by their own fault to the agency that decided to establish the Auction Council according to the provisions of the law.

Chapter IV

PROCEDURES FOR AUCTIONING ASSETS

Article 22. Selection of Auction Organization

The person with assets to be auctioned has the right to choose a professional auction organization and the form of auction as prescribed in this Decree to auction the assets, except where otherwise provided by law.

Article 23. Determination of the Starting Price of Auctioned Assets

1. The starting price of auctioned assets shall be determined before signing the auction contract or transferring the assets for auction, except where otherwise provided by law.

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

a) For assets to be auctioned to enforce civil judgments, the starting price shall be determined according to the provisions of the law on enforcement of civil judgments;

b) For assets to be auctioned as evidence of administrative violations, the starting price shall be determined according to the provisions of the law on handling administrative violations; in cases where the asset value cannot be determined according to the provisions of the law on handling administrative violations, a council shall be formed to determine the asset value;

c) For assets to be auctioned as evidence and exhibits decided by competent state authorities, the starting price shall be determined according to the provisions of criminal law, criminal procedure law, and other relevant laws;

d) For state assets to be auctioned, the starting price shall be determined according to the provisions of the law on management and use of state assets;

đ) For land use rights to be auctioned to transfer land with payment of land use fees or tax, the starting price shall be determined according to the provisions of the law on land;

e) For assets owned by individuals or organizations requesting auction, the starting price shall be determined by the individual or organization themselves or authorized to another individual or organization to determine.

Article 24. Appraisal of Auctioned Assets

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

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

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 25. Sale Contract for Auctioned Assets

1. The sale contract for auctioned assets shall be concluded between the auction organization and the owner of the auctioned assets or their representative.

For assets that are evidence or means of administrative violations, the Asset Auction Service Center or the District Auction Committee shall organize the auction based on the confiscation decision and the asset transfer record without having to conclude a sale contract for auctioned assets.

2. The sale contract for auctioned assets must be documented in writing and include the following main contents:

a) Name, address of the owner of the auctioned assets; name, address of the auction organization;

b) Listing and description of the auctioned assets;

c) Starting price of the auctioned assets;

d) Time and location of the auction;

đ) Time and location, method of transferring the assets for auction;

e) Time and location, method of payment for the auctioned assets in case of successful auction;

g) Fees and costs of the auctioned assets in case of successful auction and costs of the auctioned assets in case of unsuccessful auction;

h) Rights and obligations of the parties;

i) Liability for breach of contract;

k) Other contents agreed upon by the parties.

Article 26. Signing the Sale Contract for Auctioned Assets

1. In cases of auctioning certain types of assets listed below, the signing of the sale contract for auctioned assets shall be as follows:

a) Assets for enforcement of judgments, the sale contract for auctioned assets shall be signed between the authorized enforcement officer handling such assets and the professional auction organization.

b) State-owned assets, the sale contract for auctioned assets shall be signed between the state agency authorized to sell state-owned assets according to the law and the auction organization;

c) Jointly owned consolidated assets, the sale contract for auctioned assets shall be signed between the joint owners or their representatives and the professional auction organization, except in cases where the parties have other agreements;

d) Partially jointly owned assets, the sale contract for auctioned assets shall be signed between the owner of the part of the auctioned assets or their representative and the professional auction organization;

đ) Collateralized, pledged, or guaranteed assets, the sale contract for auctioned assets shall be signed between the party authorized to dispose of such assets according to the collateral, pledge, or guarantee agreement or as provided by law and the professional auction organization;

e) Evidence or exhibits in litigation proceedings, the sale contract for auctioned assets shall be signed between the head of the authorized agency handling such assets and the professional auction organization;

g) Assets owned by individuals or organizations, the sale contract for auctioned assets shall be signed between the individual or organization owning the assets or their authorized representative and the professional auction organization.

2. When signing the sale contract for auctioned assets, the owner of the auctioned assets shall be responsible for providing the auction organization with a legal certificate or other evidence proving ownership or the right to sell the assets as stipulated by law and shall bear legal responsibility for such evidence.

3. The auction organization shall be responsible for verifying the accuracy of the information about the origin of the assets, ownership, and usage rights provided by the owner of the auctioned assets.

Article 27. Unilateral Termination of Auction Sale Contract

1. The person with auctioned property or the professional auction organization has the right to unilaterally terminate the auction sale contract according to the provisions of the Civil Code before the professional auction organization publicly announces the auction sale of the property, except where otherwise provided by law.

2. The party terminating the contract unilaterally must notify the other party in writing and must pay for any actual expenses incurred (if any).

Article 28. Public Notice of Auction Sale of Property

1. The auction organization must post the notice of the auction sale of movable property at the auction location, display location, and the headquarters of the auction organization not later than seven days prior to conducting the auction, except where otherwise provided by law.

For immovable property, the auction organization must post the notice of the auction sale at the auction location, the location of the immovable property being auctioned, and the People's Committee of the commune, ward, or town where the immovable property is located not later than thirty days before the auction date, except where otherwise provided by law.

For property owned by individuals or organizations, the posting period for the auction notice may be shortened upon agreement of the parties.

2. For movable property with a starting price of thirty million dong or more and immovable property, along with the posting, the auction organization must also publicly announce at least twice, each announcement three days apart, on central or local mass media about the auction sale of the property. The public announcement period shall be carried out according to the provisions of Clause 1 of this Article.

Public announcement through mass media shall also be implemented for movable property with a starting price below thirty million dong if the person with the auctioned property requests it.

3. Public notices regarding the auction sale of property include the following main contents:

a) Name and address of the auction organization;

b) Time and location of the auction sale;

c) List of property, quantity, and quality of the auctioned property;

d) Starting price of the auctioned property;

đ) Location and deadline for displaying the auctioned property;

e) Location and deadline for reviewing the auctioned property file;

g) Location and deadline for registering to purchase the auctioned property;

h) Other necessary information related to the auctioned property, including information requested by the person with the auctioned property to be publicly announced.

Article 29. Registration to Participate in Auction

1. Participants in the auction must pay the participation fee and deposit money. The participation fee is implemented according to the laws on fees and charges.

The deposit amount is agreed upon by the auction organization and the person with the auctioned property but is at least 1% and not more than 15% of the starting price of the auctioned property. The deposit amount is paid to the auction organization.

2. Participants in the auction may authorize another person in writing to participate in the auction on their behalf.

3. In the case where a participant in the auction who has paid the deposit successfully purchases the auctioned property, the deposit amount will be deducted from the purchase price; if the property is not purchased, then the deposit amount will be refunded to the participant in the auction after the auction ends, except where otherwise provided by law.

4. In the case where a participant in the auction who has paid the deposit does not participate in the auction without force majeure circumstances, the deposit amount belongs to the auction organization, except where the parties have agreed otherwise.

Article 30. Persons Not Eligible to Participate in Auctions of Assets

1. Persons without civil capacity, persons who have lost or been restricted in their civil capacity, or persons who at the time of the auction cannot perceive or control their actions.

2. Employees of the organization conducting the asset auction, the location where the auction takes place, the father, mother, wife, husband, son, daughter, brother, sister, or half-sibling of such person; persons directly appraising or valuing the assets, the father, mother, wife, husband, son, daughter, brother, sister, or half-sibling of such person.

3. Persons authorized by the owner to sell the asset; persons making decisions to confiscate assets as evidence of administrative violations; persons with authority to decide on the sale of state assets; persons signing contracts to lease organizations to conduct auctions of state assets; individuals or organizations entitled to sell other people's assets under the law.

4. Persons not eligible to purchase auctioned assets according to the law, including:

a) Persons not permitted to participate in purchasing assets for enforcement of judgments under the law on civil enforcement proceedings;

b) Persons not meeting the conditions to participate in purchasing certain types of assets as stipulated by the law governing those types of assets.

5. Persons not eligible to transfer land use rights; persons not included in cases where the State grants land with payment for land use rights or leases land according to the law on land.

Article 31. Displaying and Viewing Auctioned Assets

1. For immovable property subject to auction, participants in the auction may view the asset directly from the time it is publicly listed and announced until two days before the auction date.

2. For movable property subject to auction, at least two days prior to the auction date, the auctioneer must provide conditions for participants to view the auctioned asset. The asset or sample thereof must clearly indicate the name of the owner of the auctioned asset and information about the asset.

Article 32. Location of Auction

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

Article 33. Forms of Auction

The auction organization may choose one of the following forms of auction to conduct the auction of assets:

1. Oral bidding;

2. Bidding by ballot;

3. Other forms agreed upon by the owner of the auctioned asset and the auction organization.

Article 34. Procedure for Conducting the Auction of Assets

1. The auction of assets must be conducted continuously in the following sequence:

a) At the start of the auction, the auctioneer introduces themselves and their assistants; announces the rules of the auction; publishes the list of registered buyers and calls roll to confirm the participants in the auction; introduces each auctioned asset; reiterates the starting price; announces the bid increment and maximum interval between bids (if applicable); answers questions from participants;

b) The auctioneer requests participants to bid. After each participant bids, the auctioneer publicly announces the bid price to all participants;

c) If after three times the auctioneer repeats the highest bid and there is no higher bid, the auctioneer declares the buyer of the auctioned asset. Once the auctioneer makes this declaration, the buyer is considered to have accepted the contract for the purchase of the auctioned asset.

In the case where the highest bid announced is lower than the starting price, the auction of the asset is deemed unsuccessful.

In the case of bidding by ballot, if two or more participants make the highest bid, the auctioneer conducts further bidding among these participants to select the buyer of the auctioned asset. If there is no higher bid, the auctioneer conducts a draw to select the buyer of the auctioned asset.

2. The proceedings of the auction of assets must be recorded in the auction record. The auction record must bear the signature of the auctioneer conducting the auction, the recorder, one participant, and one observer (if any).

3. The results of the auction of assets are recorded in the Register of Asset Auctions. In the event of a successful auction, the auctioneer conducting the auction prepares the sales contract for the auctioned asset.

4. Depending on specific circumstances of the auction or at the request of the owner of the auctioned asset, the auction organization invites relevant organizations or individuals to attend the auction.

Article 35. Sale Contract for Auctioned Assets

1. The sale contract for auctioned assets confirms the sale of auctioned assets and serves as the legal basis for transferring ownership or usage rights of auctioned assets.

2. The sale contract for auctioned assets includes the following main contents:

a) Name and address of the auction organization;

b) Name and surname of the auctioneer conducting the asset auction;

c) Name and address of the person with the auctioned asset;

d) Name, address, and national identity card number of the buyer of the auctioned asset;

đ) Time and place of the asset auction;

e) Auctioned asset;

g) Starting price of the auctioned asset;

h) Selling price of the asset;

i) Payment period, method, and location for purchasing the auctioned asset;

k) Delivery period and location of the auctioned asset to the buyer of the auctioned asset in accordance with the asset auction sale contract, unless otherwise agreed by the parties involved;

l) Liability arising from the breach of obligations by the parties.

3. The sale contract for auctioned assets is concluded between the organization conducting the asset auction and the buyer of the auctioned asset. For assets where the law requires the sale contract to be notarized or registered, the sale contract for auctioned assets must comply with such requirements.

4. The sale contract for auctioned assets shall be established in at least four copies, of which the organization conducting the asset auction retains one copy and sends one copy each to the buyer of the auctioned asset, the person with the auctioned asset, and the competent state authority registering ownership or usage rights of the asset. In the case of immovable property, one copy of the sale contract for auctioned assets shall also be sent to the tax authority.

Article 36. Rights and Obligations of the Buyer of Auctioned Assets

1. The rights and obligations of the buyer of auctioned assets are determined from the moment the auctioneer announces that the person has purchased the auctioned asset.

2. The buyer of auctioned assets has the following rights and obligations:

a) To fully pay the purchase price of the asset to the organization conducting the asset auction;

b) To receive the purchased asset and fulfill all rights and obligations as defined in the sale contract for auctioned assets;

c) To be issued a certificate of ownership or usage rights of the auctioned asset by the competent authority.

d) Other rights and obligations as prescribed by law.

Article 37. Auctioning Assets When Only One Person Participates in the Auction

1. Auctioning assets when only one person participates in the auction does not apply to assets specified in point d, Clause 2, Article 1 of this Decree.

2. If, after the registration deadline for participating in the asset auction, only one person registers to buy the auctioned asset or if multiple people register but only one person participates in the auction and offers a price equal to or higher than the starting price, the asset will be sold to that person if the owner of the auctioned asset agrees. Such sale can only proceed after completing public posting, announcement, display of the asset, and there being no complaints regarding the procedures and processes until the decision to sell the asset is made.

3. When selling assets according to Clause 2 of this Article, the auctioneer is responsible for recording the sale of the asset in a record, entering the result into the Register of Auctioned Asset Sales, and establishing the sale contract for auctioned assets.

The record of the asset sale must reflect the process of selling the asset when only one person participates in the auction, the agreement of the asset owner, and signatures of the auctioneer, the recorder, the asset owner, and the buyer of the asset.

Article 38. Withdrawal of Bid Price

1. At the auction sale of assets, if the highest bidder withdraws their bid price before the auctioneer announces the buyer of the asset, the auction continues and starts from the next highest bid. If there is no subsequent bidder, the auction shall be deemed unsuccessful.

2. The person who withdraws their bid price loses the right to participate in further bidding and will not be refunded the deposit amount. The deposit of the person who withdraws their bid price belongs to the organization conducting the auction.

Article 39. Refusal to Purchase Auctioned Assets

1. At the auction, if the auctioneer announces the buyer of the auctioned asset and the buyer refuses to purchase it, the asset will be sold to the next highest bidder if the next highest bid plus the deposit is at least equal to the refused bid price.

In the case of an auction conducted by ballot, if two or more persons refuse to purchase the asset and have made the next highest bid, the asset will be sold to one of these bidders after the auctioneer draws lots to select the buyer of the auctioned asset, provided that the next highest bid plus the deposit is at least equal to the refused bid price.

If the next highest bid plus the deposit is less than the refused bid price, the auction shall be deemed unsuccessful.

2. If the next highest bidder does not agree to purchase the asset, the auction shall be deemed unsuccessful.

3. The deposit of the person refusing to purchase the asset as stipulated in Clause 1 of this Article belongs to the owner of the auctioned asset.

Article 40. Return of Auctioned Asset in Case of Unsuccessful Auction

In the event of an unsuccessful auction of assets, the organization conducting the auction shall return the asset to the owner of the auctioned asset within the latest three working days from the date of the unsuccessful auction, except where the parties have agreed otherwise or where the law provides differently.

Article 41. Time Limit, Method, and Location for Payment of Purchase Price and Delivery of Auctioned Asset

1. The time limit, method, and location for payment of the purchase price of the auctioned asset shall be agreed upon between the organization conducting the auction and the buyer of the auctioned asset in the asset purchase contract, except where the law provides otherwise.

2. The time limit and location for delivery of the auctioned asset shall be agreed upon between the organization conducting the auction and the buyer of the auctioned asset in the asset purchase contract, except where the law provides otherwise.

Article 42. Repurchase of Auctioned Asset

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 the auctioned asset shall be carried out in accordance with the provisions of the Civil Code on the sale and purchase contract.

Article 43. Fees and Costs of Auctioning Assets

1. In the event of a successful auction of assets, unless otherwise provided by law, the owner of the auctioned asset shall pay the organization conducting the auction the following fees and costs:

a) Auction fees as prescribed by law on fees and charges;

b) Actual and reasonable costs for the auction of the asset as agreed between the owner of the auctioned asset and the organization conducting the auction.

2. In the event of an unsuccessful auction of assets, the owner of the auctioned asset shall pay the organization conducting the auction the actual and reasonable costs as stipulated in Point b of Clause 1 of this Article, except where the parties have agreed otherwise or where the law provides differently.

3. For enforcement assets, in the event of an unsuccessful auction, the enforcement agency shall be responsible for paying the auction costs to the organization conducting the auction.

4. For assets that are evidence or means of administrative violations, in the event of an unsuccessful auction, the financial authority shall be responsible for paying the auction costs to the Auction Service Center and the District Auction Committee as prescribed by law.

Article 44. Costs of services for transferring ownership and usage rights and other related services of auctioned assets (hereinafter referred to collectively as service costs)

1. Organizations and individuals who request and are provided with services for transferring ownership and usage rights of assets and other related services of auctioned assets by the organization conducting the asset auction must pay the service costs to the organization conducting the asset auction.

2. The level of service costs shall be agreed upon by the parties based on reasonable necessary costs and market prices.

Article 45. Management and use of fees, costs of auctioning assets, service costs, and other revenues

1. The management and use of fees, costs of auctioning assets, service costs, and other revenues of the Asset Auction Service Center shall be carried out in accordance with the provisions of the law on fees and charges and financial regulations applicable to revenue-generating public institutions.

2. The management and use of fees, costs of auctioning assets, service costs, and other revenues of the enterprise conducting the asset auction shall be carried out in accordance with the provisions of the law on fees and charges and the financial regulations of enterprises.

3. The management and use of costs of auctioning assets by the asset auction committee specified in this Decree shall be implemented according to the guidance of the Ministry of Finance.

Article 46. Issuance of certificates of ownership and usage rights for auctioned assets

1. The competent state agency shall be responsible for issuing certificates of ownership and usage rights for the buyer of the auctioned asset.

2. The time limit for issuing certificates of ownership and usage rights for auctioned assets shall be carried out in accordance with the provisions of the law applicable to that type of asset.

3. Based on the document confirming the auction results, the competent authority shall issue certificates of land use rights, ownership of houses, and other assets attached to the land for the buyer of the auctioned asset in accordance with the provisions of the law on land.

Article 47. Responsibility for the value and quality of auctioned assets

The organization conducting the asset auction shall not be liable for the value and quality of the auctioned assets, except in cases where it fails to fully and accurately inform the participants in the auction of the necessary information related to the value and quality of the auctioned assets as stipulated in the asset auction sales contract.

Article 48. Annulment of auction results

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

a) By agreement between the owner of the auctioned asset, the buyer of the auctioned asset, and the organization conducting the asset auction, except where the law provides otherwise; for enforcement assets, there must also be an agreement from the person subject to enforcement;

b) The asset auction sales contract and the purchase contract for the auctioned asset are declared void or annulled according to the provisions of civil law;

c) The auction results are annulled according to the decision of the competent authority imposing administrative penalties under the law on administrative violations and as stipulated in Clause 3, Article 56 of this Decree.

2. In cases where the auction results are annulled as provided for in this Article, the parties shall restore the initial status, return the received assets to each other; if physical return is not possible, then monetary compensation must be made. The party causing damage due to fault shall compensate according to the law.

Article 49. Re-auctioning Organization

1. In cases where the auction of assets does not succeed, the disposal of auctioned assets shall be carried out in accordance with the provisions of law or by agreement between the owner of the auctioned assets and the organization conducting the auction.

For assets that are evidence or means of administrative violations, if the auction fails even after two price reductions, the organization conducting the auction shall return the assets to the competent authority that issued the decision to confiscate for liquidation according to the provisions of the law on handling administrative violations. Each reduction shall not exceed 10% of the initial price of the auctioned asset.

2. In cases of re-auctioning, the procedures and formalities for re-auctioning shall be conducted as for the first auction of the asset.

Chapter V

STATE MANAGEMENT OF AUCTION SALES

Article 50. Responsibilities of the Ministry of Justice

The Ministry of Justice is the agency assisting the Government in uniformly managing state administration over the organization and operation of asset auctions nationwide, with the following tasks and powers:

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

2. Issuing, managing, and guiding, within its competence, the use of model documents and papers in the field of asset auctions, Auction Asset Tracking Books, Asset Auction Registration Books; issuing model Auctioneer Cards.

3. Prescribing the framework program of auction training courses, training institutions.

4. Issuing, revoking, and reissuing Auction Practice Certificates.

5. Inspecting and auditing the organization and operation of asset auctions within its competence.

6. Compiling and annually reporting to the Prime Minister on the organization and operation of asset auctions.

7. International cooperation in the field of asset auctions.

8. Performing other tasks and powers assigned by the Government.

9. Perform other tasks and exercise other powers as prescribed by law.

Article 51. Responsibilities of the Ministry of Finance

1. Guiding financial systems in auction sales operations.

2. Guiding the determination of the initial price of state-owned assets and assets that are evidence or means of administrative violations for auction.

3. Providing general guidance on the level of collection, management, and use of fees for issuing Auction Practice Certificates and auction fees from the state budget according to the provisions of the law on fees and charges.

4. Performing other tasks and powers as prescribed by law.

Article 52. Responsibilities of Ministries, Agencies Equivalent to Ministries, and Government Agencies

Within their respective tasks and powers, Ministries, Agencies Equivalent to Ministries, and Government Agencies have the responsibility to coordinate with the Ministry of Justice in state management work related to asset auctions concerning types of assets under their management fields.

Article 53. Responsibilities of Provincial People's Committees and Municipal People's Committees under Central Government

1. Provincial People's Committees and Municipal People's Committees under Central Government implement state management over asset auction activities in their localities, with the following tasks and powers:

a) Deciding on the appointment and removal of the Director of the Asset Auction Service Center;

b) Ensuring staffing, material infrastructure, and working conditions for the Center in accordance with the provisions of the law on self-financing public service units;

c) Specifying the specific level of auction fees at the local level based on the resolution of the Provincial People's Council or Municipal People's Council under Central Government, consistent with the provisions of the law on fees and charges;

d) Inspecting, auditing, and handling violations regarding the organization and operation of asset auctions within their localities within their competence;

đ) Annually reporting to the Ministry of Justice on the organization and operation of asset auctions in their localities for compilation and reporting to the Prime Minister;

e) Other tasks and powers as prescribed by law.

2. Departments of Justice assist Provincial People's Committees and Municipal People's Committees under Central Government in performing state management functions over asset auction work in their localities, with the following tasks and powers:

a) Providing business guidance on asset auctions to auction organizations within their localities;

b) Developing proposals on the transition plan for converting the Asset Auction Service Center to a business model for provinces and cities with two or more asset auction businesses, submitting them for approval by the Provincial People's Committee or Municipal People's Committee under Central Government; organizing the implementation of the proposal after approval;

c) Inspecting, auditing, and handling violations regarding the organization and operation of asset auctions within their localities within their competence;

d) Reporting to the Provincial People's Committee or Municipal People's Committee under Central Government and the Ministry of Justice on the organization and operation of asset auctions in their localities on an annual basis and in exceptional circumstances;

đ) Other tasks and powers as decided by the Chairman of the Provincial People's Committee or Municipal People's Committee under Central Government or delegated by the Minister of Justice.

Article 54. Handling of Violations by Auction Organizations, Auctioneers, and Participants in Auctions

1. An auction organization that violates the provisions of this Decree shall be subject to administrative penalties; if damage is caused, it must compensate according to the law.

2. An auctioneer who violates the provisions of this Decree shall be disciplined, subject to administrative penalties, or criminally prosecuted depending on the nature and severity of the violation.

3. A participant in an auction who violates the provisions of this Decree shall be subject to administrative penalties or criminally prosecuted depending on the nature and severity of the violation; if damage is caused, they must compensate according to the law.

4. Administrative violations, forms, authorities, and procedures for handling administrative violations related to asset auctions shall be carried out in accordance with the laws on handling administrative violations in the field of justice and other relevant laws on handling administrative violations.

Chapter VI

IMPLEMENTING PROVISIONS

Article 55. Transitional Provisions

1. Auction service centers and asset auction enterprises established before the effective date of this Decree shall continue to operate in accordance with this Decree.

An enterprise that has registered to conduct auction services wishing to sell the types of assets specified in Clause 2 and Clause 3, Article 1 of this Decree must meet the conditions stipulated in Article 16 of this Decree.

2. Land development organizations established in accordance with the land management laws when organizing the sale of land use rights must sign a contract with the professional auction organizations specified in Article 14 of this Decree to carry out the sale of land use rights.

3. The auctioneer card issued in accordance with Decree No. 05/2005/NĐ-CP has the same legal effect as the Professional Practice Certificate for Auctioneers.

Article 56. Effective Date

1. This Decree takes effect from July 1, 2010, and replaces Decree No. 05/2005/NĐ-CP dated January 18, 2005, of the Government on Asset Auctions.

2. The provisions regarding the procedures and steps for asset auctions, and guidance on asset auctions in the following documents cease to be enforceable:

a) Point d, đ Clause 2, Article 44 of Decree No. 159/2007/NĐ-CP dated October 30, 2007, of the Government on Administrative Penalties in Forest Management, Forest Protection, and Timber Management;

b) Clause 4, Article 62 of Decree No. 181/2004/NĐ-CP dated October 29, 2004, of the Government on Implementing the Land Law;

c) Article 7, Article 8, Article 9, Article 10, Article 11, and the abolition of the provision on the Auction Committee in Clause 1, Article 12 of Decision No. 216/2005/QĐ-TTg dated August 31, 2005, of the Prime Minister on Auctioning Land Use Rights for Granting Land with Payment of Land Use Fees or Leasing Land.

3. Supplement the remedial measure "cancel the auction results" for the administrative violation "failure to publicly post or announce the auction of assets" as stipulated in Point a, Clause 1, Article 29 of Decree No. 60/2009/NĐ-CP on Administrative Penalties in the Field of Justice.

4. All other provisions related to asset auctions contrary to the provisions of this Decree are abolished.

Article 57. Responsibility for Implementation

1. The Ministry of Justice is responsible for leading and coordinating with relevant ministries and sectors to guide the implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of People's Committees of provinces and centrally administered cities are responsible for implementing this Decree./.