Decree No. 62/2017/ND-CP detailing a number of articles and implementing mechanisms of the Law on Auctioning Assets

DECREE

Regulations on detailing certain provisions and measures for implementing the Auction Law

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Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Auction Law dated November 17, 2016;

At the proposal of the Minister of Justice;

The Government issues a Decree to detail certain provisions and measures for implementing the Auction Law,

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree details certain provisions and measures for implementing the Auction Law regarding the issuance and revocation of Auctioneer Cards; online auction formats; registration of activities for auction companies established before the Auction Law comes into effect.

Article 2. Applicability

1. This Decree applies to auction organizations, auctioneers, owners of auctioned assets, Asset Auction Councils, State-owned enterprises with 100% state capital established by the Government to handle non-performing loans of credit institutions, State management agencies for auctions, and related individuals and organizations.

2. Merchants and organizations that are not auction organizations establishing online auction information websites in accordance with laws on e-commerce are not subject to this Decree.

Chapter II

ISSUANCE AND REVOCATION OF AUCTIONEER CARDS, REGISTRATION OF ACTIVITIES FOR AUCTION COMPANIES ESTABLISHED

PRIOR TO THE EFFECTIVE DATE OF THE AUCTION LAW

ISSUANCE AND REVOCATION OF AUCTIONEER CARDS

Section 1

ARTICLE 3. Procedures for Issuing Auctioneer Cards

1. Auction organizations, State-owned enterprises with 100% state capital established by the Government to handle non-performing loans of credit institutions shall directly submit, send through postal services, or use other appropriate methods one set of application documents for issuing Auctioneer Cards for their auctioneers to the Department of Justice at the location where the organization has its headquarters. The application includes:

a) Application for Issuing an Auctioneer Card;

b) A certified copy or a copy with the original for verification of the Auction Practice Certificate of the proposed Auctioneer;

c) One color photograph measuring 2 cm x 3 cm (taken no more than six months prior to the date of submission).

2. Within five working days from the date of receiving complete and valid application documents as stipulated in Clause 1 of this Article, the Department of Justice shall issue the Auctioneer Card; if rejected, the reason must be notified in writing.

Within three working days from the date of issuing the Auctioneer Card, the Department of Justice shall publish a list of auctioneers on its electronic portal and simultaneously send it to the Ministry of Justice.

3. The Auctioneer Card is only valid when the auctioneer practices within the organization that applied for the Card. An auctioneer can only conduct an auction after being issued the Card by the Department of Justice. During the auction, the auctioneer must wear the Card. Individuals holding an Auctioneer Card may not concurrently practice as notaries or judicial scriveners.

4. The blank Auctioneer Card is issued by the Ministry of Justice.

ARTICLE 4. Procedures for Reissuing Auctioneer Cards

1. In cases where an auctioneer loses their Auctioneer Card or the Card is damaged and cannot be used, the auction organization, State-owned enterprises with 100% state capital established by the Government to handle non-performing loans of credit institutions shall submit one set of application documents for reissuing the Auctioneer Card according to the method prescribed in Clause 1 of Article 3 of this Decree. The application includes:

a) Application for Reissuing an Auctioneer Card;

b) One color photograph measuring 2 cm x 3 cm (taken no more than six months prior to the date of submission).

2. Within three working days from the date of receiving the application, the Department of Justice shall reissue the Auctioneer Card; if rejected, the reason must be notified in writing.

Within three working days from the date of receipt of the request form, the Department of Justice shall reissue the Auctioneer Card; in case of refusal, it must notify the reasons in writing.

Article 5. Procedure for Revoking the Auctioneer Card

Within three working days from the date of receiving the decision of the Minister of Justice regarding the revocation of the Professional Practice Certificate, the Department of Justice that issued the Auctioneer Card shall decide to revoke the Auctioneer Card of the person whose Professional Practice Certificate has been revoked. The decision to revoke the Auctioneer Card shall be sent to the person whose card is being revoked, the organization where the person practices, the Ministry of Justice, and published on the Department of Justice's electronic portal.

The Auctioneer Card ceases to have validity from the moment the Minister of Justice revokes the Professional Practice Certificate.

Section 2

REGISTRATION FOR ACTIVITY OF AUCTION COMPANIES

ASSETS ESTABLISHED BEFORE THE EFFECTIVE DATE OF THE AUCTION LAW

EFFECTIVE DATE OF ENFORCEMENT

Article 6. Registration for activity of auction companies established before the effective date of enforcement of the Auction Law, transferring all business activities of the company

1. In the case where an auction company established before the effective date of enforcement of the Auction Law transfers all its business activities to become an auction company in accordance with Article 23 of the Auction Law, it shall directly submit, send through postal service, or other appropriate means one set of registration documents to the Department of Justice at the location of the company's headquarters. The documents include those specified in points a, b, and c of Clause 1, Article 25 of the Auction Law.

2. An auction company registered by the Department of Justice shall inherit all legitimate rights, interests, and obligations in auction activities of the auction company established before the effective date of enforcement of the Auction Law.

3. An auction company registered by the Department of Justice shall publish the content of its registration activities in accordance with Article 28 of the Auction Law. The Department of Justice shall provide information about the content of the registration activities of the auction company in accordance with Article 27 of the Auction Law.

Article 7. Registration for activity of auction companies established before the effective date of enforcement of the Auction Law continuing to engage in auction activities and other businesses

1. In the case where an auction company established before the effective date of enforcement of the Auction Law continues to engage in auction activities and other businesses in accordance with laws on enterprises, it shall establish a new auction company in accordance with Article 25 of the Auction Law.

2. The newly established auction company in accordance with the Auction Law shall inherit all legitimate rights, interests, and obligations in auction activities of the auction company established before the effective date of enforcement of the Auction Law.

3. After the new auction company is granted a Business Registration Certificate by the Department of Justice, the auction company established before the effective date of enforcement of the Auction Law must cease its auction activities and may not use the term "auction" in its name.

4. An auction company registered by the Department of Justice shall publish the content of its registration activities in accordance with Article 28 of the Auction Law. The Department of Justice shall provide information about the content of the registration activities of the auction company in accordance with Article 27 of the Auction Law.

Chapter III

ONLINE AUCTION FORMS

Article 8. Principles of Online Auctions

1. Compliance with legal provisions on asset auctions.

2. Ensuring the security of access accounts, information about auction participants, and other information as prescribed by law.

3. Guaranteeing objectivity, transparency, safety, and cybersecurity.

4. Protecting the rights and legitimate interests of asset owners, auction participants, and related individuals and organizations.

Article 9. Conducting Auctions through Online Auction Methods

1. In cases where auctions are conducted through online auction methods, the asset auction organization, the Asset Auction Council, and the organization established by the Government to hold 100% of the charter capital for handling bad debts of credit institutions shall follow the procedures and formalities for asset auctions stipulated in Chapters III and IV of the Auction Law and Chapter III of this Decree.

2. The asset auction organization uses its own online auction information website or enters into a contract with another asset auction organization that has an online auction information website to conduct auctions through online auction methods.

In cases where the auction is conducted by the Asset Auction Council or where the organization holding 100% of the charter capital established by the Government to handle bad debts of credit institutions conducts the auction itself, the Asset Auction Council and the organization holding 100% of the charter capital established by the Government to handle bad debts of credit institutions shall enter into a contract with an asset auction organization that has an online auction information website to conduct the auction.

The auctioneer assigned by the asset auction organization and the member assigned by the Asset Auction Council and the organization holding 100% of the charter capital established by the Government to handle bad debts of credit institutions are responsible for organizing and implementing the online auction.

3. In addition to publicly announcing the auction of assets as prescribed in Article 57 of the Auction Law, the asset auction organization conducting the auction through online methods shall post public announcements regarding the auction on the online auction information system according to agreements with the asset owner, the Asset Auction Council, and the organization holding 100% of the charter capital established by the Government to handle bad debts of credit institutions.

4. The cost of hiring an asset auction organization with an online auction information website to conduct the auction through online auction methods is included in the auction costs specified in Clause 2 of Article 66 of the Auction Law.

The online auction information website is established and operated in accordance with laws on information and communication, and laws on electronic commerce.

Article 10. Procedures for Conducting Auctions through Online Auction Methods

1. The asset auction organization posts the Auction Regulations on the online auction information website.

2. When registering to participate in the auction, the participant is issued an access account; they are guided on how to use the account, how to bid, and other necessary contents on the online auction information website to carry out the online auction.

3. The participant uses their own account and performs bidding according to the bidding method, starting time, ending time, and bid increment announced.

4 At the end of the auction, the auctioneer assigned by the asset auction organization and the member assigned by the Asset Auction Council and the organization holding 100% of the charter capital established by the Government to handle bad debts of credit institutions are responsible for organizing and implementing the online auction and determine the successful bidder as follows:

a) In cases where bidding is conducted through upward bidding, the successful bidder is the person with the highest bid recorded by the online auction information system at the end of the bidding period.

b) In cases where bidding is conducted through downward bidding, the successful bidder is the first person to accept the initial price or reduced price recorded by the online auction information system.

5. The auctioneer assigned by the asset auction organization and the member assigned by the Asset Auction Council and the organization holding 100% of the charter capital established by the Government to handle bad debts of credit institutions are responsible for organizing and implementing the online auction based on the results of determining the successful bidder as stipulated in Clause 4 of this Article and announce the successful bidder on the online auction system immediately after the auction ends.

6. The results of the online auction are publicly posted on the online auction system and sent to the email address registered by the participant with the asset auction organization, the Asset Auction Council, and the organization holding 100% of the charter capital established by the Government to handle bad debts of credit institutions immediately after the announcement of the successful bidder on the online auction system.

Article 11. Notification of Auction Results

1. The auction organization, the Auction Council, and the organization established by the Government to handle non-performing loans of credit institutions with 100% state-owned capital shall notify the auction results to the successful bidder immediately after the online auction results are available.

2. The notification must clearly record information about the auctioned asset, the start and end times for bidding, and the time when the online auction system records the winning bid price.

Article 12. Minutes of Online Auction

The minutes of the online auction must record the start time of the auction, the end time of the auction, the number of participants, the winning bid price, and the successful bidder. The course of events during the auction recorded by the online auction system must be extracted and confirmed by the auction organization operating the online auction information website and attached to the auction minutes.

The auction minutes must be prepared at the end of the bidding process and signed by the auctioneer, members assigned by the Auction Council, the organization established by the Government to handle non-performing loans of credit institutions with 100% state-owned capital to organize and implement the online auction, the person recording the minutes, and the owner of the auctioned asset. In cases where the auction is conducted by the Auction Council, the auction minutes must also bear the signature of the Chairman of the Council.

The auction minutes are sent to the successful bidder for their signature. The use of digital signatures in the auction minutes is carried out in accordance with the provisions of the Law on Electronic Transactions.

Article 13. Conditions for Implementing Online Auction Form

1. The auction organization must establish an electronic information website to conduct auctions in the form of online auctions in accordance with the Auction Law and must meet the following conditions:

a) Having technical infrastructure to conduct online auctions;

b) Having a team of staff to manage the technical system of the online auction information website;

c) Having technical solutions to ensure safe operation of the technical system of the online auction information website.

2. The technical infrastructure for conducting online auctions must have the following minimum functions:

a) Ensuring account access security and data integrity, participation in bidding, prices already bid, and information about bidders;

b) Recording and storing all bid prices during the auction, withdrawal of previously placed bids, and other necessary information during the online auction process;

c) Publicly displaying the bid prices of participants truthfully; extracting the bidding history from the online auction system;

d) Displaying the highest bid price recorded by the online auction system every 30 seconds so that bidders can view it.

Article 14. Appraisal of Conditions for Implementing Online Auction Form

1. The auction organization sends a proposal to implement the online auction form to the Department of Justice where the auction organization has its headquarters. The proposal includes the contents stipulated in Article 13 of this Decree.

2. The Director of the Department of Justice decides to establish an Appraisal Council for the Conditions of Implementing the Online Auction Form and promulgates the operational regulations of the Council; the Council consists of representatives from the Department of Justice as the Chairman, representatives from related agencies and organizations, and experts with qualifications and experience in the field of auctions and information technology.

3. The Appraisal Council for the Conditions of Implementing the Online Auction Form examines and appraises the following contents:

a) Legal basis and necessity for implementing the online auction form;

b) Technical infrastructure, physical facilities, and human resources to operate the online auction information website;

c) Security and confidentiality of the online auction system;

d) Display, recording, storage, and extraction capabilities of the online auction system;

e) Technical solutions to ensure the operation of the technical infrastructure;

f) Feasibility and effectiveness of implementing the online auction system in practice.

Article 15. Approval of auction organizations meeting conditions to conduct online auctions

1. Within ninety days from the date of receipt of the project implementing the online auction form of the auction organization, the Director of the Department of Justice shall examine and approve the auction organization meeting the conditions to implement the online auction form.

2. The list of auction organizations with electronic information websites meeting the conditions to implement the online auction form shall be published on the Department of Justice's electronic portal and sent to the Ministry of Justice for publication on the specialized electronic information website on auctions.

Article 16. Responsibilities of auction organizations operating electronic information websites for online auctions

Auction organizations operating electronic information websites for online auctions shall have the following responsibilities:

1. Operating the electronic information website for online auctions; being responsible for the results of online auctions conducted by themselves;

2. Building technical infrastructure systems and operating the electronic information website for online auctions in accordance with the Auction Law, this Decree, and related laws;

3. Stopping the online auction and immediately notifying the person owning the asset to decide on the time to re-auction in case the online auction system of the auction organization causes technical errors preventing the auction from starting; canceling the online auction in case the online auction system of the auction organization causes technical errors preventing bidders from continuing to bid after the auction starts, and notifying the person owning the asset to decide on the time to re-auction;

4. Securing information about bidders and access accounts except where otherwise provided by law;

5. Compensating for damages caused by their own fault during the operation of the electronic information website in accordance with the provisions of the law;

6. Issuing, guiding, and publishing on the online auction information website the procedures for registering accounts, using accounts, bidding methods, auction formats, start and end times of the auction, bid increments, and announcing auction results on the online auction system.

Chapter IV

IMPLEMENTING PROVISIONS

Article 17. Transitional Provisions

1. Auction training programs that have not been completed at the time the Auction Law comes into effect shall continue to be implemented in accordance with the provisions of Government Decree No. 17/2010/NĐ-CP dated March 4, 2010, on the sale of assets through public auctions.

2. Auction training certificates issued in accordance with the provisions of Government Decree No. 17/2010/NĐ-CP dated March 4, 2010, on the sale of assets through public auctions shall be recognized as equivalent to a certificate of completion of auction vocational training under the Auction Law.

Within one year from the date the Auction Law comes into effect, persons holding auction training certificates issued in accordance with the provisions of Government Decree No. 17/2010/NĐ-CP dated March 4, 2010, on the sale of assets through public auctions who apply for issuance of auction practice certificates shall not need to undergo a probationary period for auction practice and examination of the results of such probationary period as stipulated in Article 13 of the Auction Law.

3. In cases where the auction of assets has already signed a public auction sales contract before the Auction Law comes into effect, and has completed public notice but has not yet organized the auction, the auction shall be conducted in accordance with the provisions of Government Decree No. 17/2010/NĐ-CP dated March 4, 2010, on the sale of assets through public auctions.

4. Within one year from the date the Auction Law comes into effect, auction organizations may request the Department of Justice where they are headquartered to issue auctioneer cards in accordance with this Decree for auctioneers who have been issued auctioneer cards in accordance with the provisions of Government Decree No. 17/2010/NĐ-CP dated March 4, 2010, on the sale of assets through public auctions.

The auctioneer card issued by the auction organization becomes invalid from the date the auctioneer is issued an auctioneer card in accordance with this Decree by the Department of Justice.

5. During the period when the specialized electronic information website on auctions has not been established, auction organizations, auction councils, and organizations wholly owned by the State established by the Government to handle non-performing loans of credit institutions shall publish public notices in accordance with Clause 1, Article 57 of the Auction Law in central or provincial newspapers or television stations where the auctioned assets are located.

6. Within one year from the date the Auction Law comes into effect, the Department of Justice shall submit to the Chairman of the People's Committee of provinces and centrally-administered cities a decision to rename property sale service centers established before July 1, 2017, as property auction service centers.

Until renaming, property sale service centers shall conduct auction activities in accordance with the Auction Law.

Article 18. Effective Date

This Decree takes effect from July 1, 2017, and replaces Government Decree No. 17/2010/NĐ-CP dated March 4, 2010, on the sale of assets through public auctions.

Article 19. Responsibility for Implementation

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