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THE GOVERNMENT OF VIETNAM |
SOCIALIST REPUBLIC OF VIETNAM |
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No. 172/2024/ND-CP |
Hanoi, December 27, 2024 |
ELABORATION OF LAW ON PROPERTY AUCTION NO. 01/2016/QH14 AMENDED BY LAW NO. 37/2024/QH15
Pursuant to the Law on Government Organization dated June 19, 2015; Law on amendments to the Law on Government Organization and the Law on Organization of Local Governments dated November 22, 2019;
Pursuant to the Law on Property Auction dated November 17, 2016; Law on amendments to the Law on Property Auction dated June 27, 2024;
At the request of the Minister of Justice;
The Government promulgates Decree on elaboration of Law on Property Auction No. 01/2016/QH14 amended by Law No. 37/2024/QH15.
This Decree elaborates the Law on Property Auction No. 01/2016/QH14 amended by Law No. 37/2024/QH15, including:
1. Revocation of certificates of operation registration of property auction enterprises at the request of competent authorities specified in clause 19 Article 1 of the Law on amendments to the Law on Property Auction.
2. Requirements and conditions regarding the national property auction portal and requirements, conditions, assessment, approval of online auction websites; responsibilities of authorities, organizations and individuals for development, management, operation and use of the national property auction portal and online auction websites; online auction procedures in accordance with regulations in clause 28 Article 1 of the Law on amendments to the Law on Property Auction.
3. Offer of bids, acceptance of prices and methods for offering bids and accepting prices in auctions of rights to use radio frequencies according to regulations in clause 38 Article 1 of the Law on amendments to the Law on Property Auction.
4. Imposition of penalties upon winners of auctions of LURs over land plots allocated or leased for execution of investment projects or mining rights in accordance with clause 41 Article 1 of the Law on amendments to the Law on Property Auction.
1. This Decree applies to property auction practicing organizations, property auction councils, wholly state-owned organizations that are established by the State Bank of Vietnam to settle bad debts of credit institutions, state authorities in charge of property auction, auctioneers, auctioned property sellers, bidders, auction winners, and relevant individuals and organizations.
2. Traders and organizations that are not property auction practicing organizations establishing online auction websites as prescribed in the law on electronic commerce shall not be governed by this Decree.
REVOCATION OF CERTIFICATES OF OPERATION REGISTRATION OF PROPERTY AUCTION ENTERPRISES AT THE REQUEST OF COMPETENT AUTHORITIES
Article 3. Procedures for revocation of certificates of operation registration of property auction enterprises at the request of competent authorities
1. In case a provincial Department of Justice where a property auction enterprise is registered receives a written request from a competent authority for revocation of its certificate of operation registration:
a) Within 03 working days from the date of receipt of the written request from the competent authority, the provincial Department of Justice shall give a written notification requesting a legal representative of the property auction enterprise to provide explanation in person at the head office of the provincial Department of Justice;
b) After 10 working days from the end of the time limit specified in the notification, if the legal representative fails to appear and provide explanation as requested, the provincial Department of Justice shall issue a decision to revoke its certificate of operation registration, except for cases of force majeure events or objective hindrances.
2. In case the legal representative of the property auction enterprise appears and provides explanation as requested, the provincial Department of Justice where the property auction enterprise is registered shall assume responsibility to cooperate with state authorities, relevant units and organizations to consider such explanation and determine whether the enterprise’s certificate of operation registration has to be revoked within 10 working days from the date of receipt of the explanation and take further actions as follows:
a) The provincial Department of Justice does not revoke the enterprise’s certificate of operation registration and shall notify in writing the property auction enterprise and the competent authority that has requested the revocation within 03 working days from the date on which it is determined that the enterprise is not subject to revocation of its certificate or the competent authority grants a written request for non-revocation of the enterprise’s certificate of operation registration;
b) The provincial Department of Justice revokes the enterprise’s certificate of operation registration within 03 working days from the date on which the explanation is rejected and it is determined that the enterprise is subject to revocation of its certificate.
Article 4. Responsibility of competent authority that has requested revocation of property auction enterprise’s certificate of operation registration
1. Be responsible for the accuracy of information requesting revocation of the property auction enterprise’s certificate of operation registration
2. Cooperate with the provincial Department of Justice where the property auction enterprise is registered in considering explanation and determining whether the enterprise’s certificate of operation registration has to be revoked.
NATIONAL PROPERTY AUCTION PORTAL AND ONLINE AUCTION WEBSITES
Article 5. Requirements and conditions regarding national property auction portal or online auction websites
1. Requirements regarding the national property auction portal or an online auction website
a) Information on the national property auction portal or the online auction website shall be public and transparent and the access to information is not restricted;
b) The time displayed in the national property auction portal/online auction website shall be real time and Greenwich Mean Time (GMT) in online auction;
c) The national property auction portal or the website shall operate in a stable and continuous manner and ensure information system security;
d) Safety and security of information on bidders and login accounts shall be ensured;
dd) Requirements for technical infrastructure and information technology standards shall be met to connect, integrate and share data through data integration and sharing platforms.
e) Requirements for technical infrastructure, facilities and human resources necessary for operation of the property auction portal or the website shall be satisfied.
2. Conditions regarding the national property auction portal or an online auction website
a) It shall reach level 3 according to regulations of law on assurance about information system security according to each level.
b) It shall ensure that each individual or organization may only register an account to participate in the auction and offer bid;
c) The bidding process and bids offered shall be displayed with the bidders’ codes.
d) The date of application for participation in auction, the log in time, the opening time, ending time shall be publicly displayed;
dd) Bids offered, bids placed by the bidders with their codes, the highest bid shall be displayed publicly and truthfully; it is possible to record and extract all information about the auction or the auction session;
e) The starting price of the auctioned property, the highest bid placed in respect to ascending price auction and the starting price or decreased price in respect to descending price auction shall be displayed continuously throughout the auction so that the bidders can conduct inspection;
g) It is ensured that the bidder cannot submit application for participation in the auction after the deadline for submission of the application; and offer bid after the end of the auction.
Article 6. Assessment and approval of online auction websites
1. A property auction practicing organization or a wholly state-owned organization that is established by the State Bank of Vietnam to settle bad debts of credit institutions shall send, in person or by post, a written request for approval of its online auction website, enclosed with a Project on development of its online auction website to the Department of Justice of province or central-affiliated city where its head office is located. The Project on development of the online auction website shall clearly state requirements and conditions regarding online auction websites specified in Article 5 of this Decree.
2. The Director of the provincial Department of Justice shall decide to establish a Council in charge of assessing the online auction website (hereinafter referred to as “Assessment Council”) and issue regulations on the Assessment Council’s operation; the Assessment Council is composed of a representative of the provincial Department of Justice who acts as Chairperson, representatives of relevant authorities and organizations, and qualified experts in the fields of auction and information technology. Relevant authorities and organizations shall be responsible for appointing persons to act as members of the Assessment Council at the request of the provincial Department of Justice.
3. The Assessment Council shall assess if the conditions specified in clause 2 Article 5 of this Decree are satisfied; feasibility and effectiveness of the Project when the online auction website is put into operation in order to make sure that the requirements specified in clause 1 Article 5 of this Decree are met.
4. Within 90 days from the date of receipt of the valid Project specified in clause 1 of this Article, the Director of the provincial Department of Justice shall consider approving the online auction website; in case of refusal, a written notification stating reasons shall be given.
5. The provincial Department of Justice shall post a list of property auction practicing organizations that have their online auction websites approved on its web portal and send the list to the Ministry of Justice to post it on the national property auction portal
Article 7. Suspension of online auctions
1. On an annual basis or in unexpected cases, the Ministry of Justice, a Department of Justice of province or central-affiliated city where a property auction practicing organization or wholly state-owned organization that is established by the State Bank of Vietnam to settle bad debts of credit institutions is headquartered shall inspect management and operation of an online auction website established by the organization (hereinafter referred to as “online auction website owner”).
2. If the online auction website fails to meet the requirements and conditions specified in Article 5 of this Decree, the Ministry of Justice, the provincial Department of Justice shall send a written request to the online auction website owner for upgradation of the online auction system. The written request made by the Ministry of Justice in accordance with this clause shall be simultaneously sent to the Department of Justice of province or central-affiliated city where the online auction website owner is headquartered. The online auction website owner shall be responsible for upgrading the online auction system within 90 days from the date of receipt of the written request.
During the upgradation of the online auction system, the online auction website owner must not use the online auction website to organize online auctions.
3. After the deadline specified in clause 2 of this Article, if the online auction website fails to meet the requirements and conditions specified in clause 5 of this Decree, the provincial Department of Justice shall consider suspending online auctions on the online auction website approved by the Director of the provincial Department of Justice according to regulations in the Government’s Decree No. 62/2017/ND-CP dated May 16, 2017.
Article 8. Responsibilities of the Ministry of Justice, national property auction portal operator and online auction website owners
1. Responsibility of the Ministry of Justice:
a) Preside over development and promulgation of a Project on development of the national property auction portal having online auction function.
b) Manage and provide guidance on use of the national property auction portal; maintain and upgrade the online auction system to make sure that it meets the requirements and conditions specified in Article 5 of this Decree;
c) Store information serving state management and performance of other tasks as per law;
d) Perform other property auction-related tasks assigned by the Government, the Prime Minister.
2. Responsibility of an online auction website owner for development, management and operation of its online auction website:
a) Develop, manage and operate its online auction website; ensure that data on developments in each auction session are directly connected and shared with the national property auction portal; assume responsibility for techniques with regard to online auctions conducted on its online auction website;
b) Formulate documentation for proposal of information system security level according to regulations in Article 5 of this Decree;
c) Keep information on bidders and login accounts confidential unless otherwise prescribed by law;
d) Compensate for damage caused by its faults during the operation of its online auction website according to law regulations;
dd) Issue, provide guidance on and publish, on its online auction website, methods of registering accounts, using accounts, offering bids, conducting auctions, the date of application for participation in auction, the log in time, opening time and ending time, bid offer sessions, bid increments and online auction results on the online auction system;
e) Maintain and upgrade the online auction system to ensure that it meets requirements and conditions specified in Article 5 of this Decree.
3. Responsibility of the national property auction portal operator:
a) Ensure information security and cybersecurity, and keep database of the national property auction portal confidential; prevent illegal access; manage information security and cybersecurity risks, provide a mechanism to record information and track source of information in chronological order and by operation on the national property auction portal confidential;
b) Develop the online auction function, meeting the requirements and conditions specified in Article 5 of this Decree.
c) Only use property auction information and other information on the national property auction portal to serve purposes within its functions and tasks;
d) Provide guidance for sellers, property auction practicing organizations and bidders so that they conduct online auctions, apply for registration and post information on the national online auction portal;
dd) Publicly announce requirements for information technology infrastructure applicable to users when they participate in online auctions on the national online auction portal;
e) Take other responsibilities according to regulations of the Law on Property Auction, the Law on amendments to the Law on Property Auction, this Decree and relevant laws.
4. The wholly state-owned organization that is established by the State Bank of Vietnam to settle bad debts of credit institutions shall only use its online auction website to conduct online auctions of property that is bad debt or collateral for such bad debt as per law.
Article 9. Responsibilities of property auction practicing organizations, property auction councils, wholly state-owned organizations that are established by the State Bank of Vietnam to settle bad debts of credit institutions for use of online auction websites
1. Equip information technology infrastructure to meet requirements for organization of online auctions.
2. Manage and keep information about bidders, accounts and passwords issued confidential, unless otherwise prescribed by law. In case their accounts are lost or they detect that their accounts are being illegally used, they shall immediately notify online auction website operators.
3. Be responsible to the law for the accuracy and truthfulness of information registered and posted on online auction websites when logging in with their accounts; online auction results provided.
4. Suspend organization of online auctions and online auctions, and promptly give notification to property sellers to decide time for reorganization of auctions in case of any technical defects of the online auction system that prevent such auctions from beginning or bidders from offering bids; notify sellers to cancel online auction results in case of any technical defects of the online auction system that cause cases where bidders cannot offer their bids, or bidders offer valid bids but the system does not record these bids or record the exact time of offering their bids.
5. Comply with the Law on Property Auction, the Law on amendments to the Law on Property Auction and other regulations of relevant laws.
Article 10. Responsibilities of bidders participating in the national property auction portal or online auction websites
1. Prepare their own devices to participate in auctions; assume their responsibilities in case their network systems have problems that prevent them from participating in auctions or offering bids.
2. Manage and keep their accounts and passwords issued confidential. If these accounts and passwords are lost or they detect that their accounts are being illegally used, they shall immediately notify property auction practicing organizations, property auction councils, wholly state-owned organizations that are established by the State Bank of Vietnam to settle bad debts of credit institutions that have issued accounts and passwords.
3. Be responsible to the law for the accuracy and truthfulness of information registered and posted when logging in with their own accounts.
4. Comply with the Law on Property Auction, the Law on amendments to the Law on Property Auction, other regulations of relevant laws and Rules of auctions.
Article 11. Procedures for organizing online auctions
1. Each bidder shall purchase a set of auction documents and register a login account on the national property auction portal or an online auction website.
The bidder shall use their login account to receive instructions about methods of purchasing documents, submitting their application for participation in an online auction, paying Earnest Money Deposit (EMD), participating in the auction, and offering bid and other necessary information when participating in the online auction on the national property auction portal or online auction website.
2. The bidder that legally submits their application for participation in the auction and pays EMD is entitled to use their own login account to participate in the auction according to Rules of the auction.
A person eligible to participate in the auction shall be responsible for confirming his/her attendance by logging into his/her account that has been issued within the period specified in Rules of the auction. The person eligible to participate in the auction shall offer bid with his/her code.
In case the person eligible to participate in the auction does not log into his/her account to confirm his/her attendance within the period specified in Rules of the auction, he/she will be deemed not to participate in the auction according to point a, clause 6 Article 39 of the Law on Property Auction, except for any force majeure event.
3. The period of offering bids shall be agreed between the property auction practicing organization and the auctioned property seller. It must be at least 15 minutes. If the highest bidder withdraws their bid within 01 minute before the end of the auction session, the session will be extended for 03 more minutes after the end of the auction session.
4. The property auction practicing organization, the property auction council, the wholly state-owned organization that is established by the State Bank of Vietnam to settle bad debts of credit institutions shall assign their members to run the auction session on the national property auction portal or online auction website. At the end of the auction session, the auction winner shall be identified as follows:
a) In case of ascending price auction, the auction winner is a person that offers the highest bid recorded by the online auction system;
b) In case of descending price auction, the auction winner is the first person that accepts the starting price or decreased price recorded by the online auction system;
The auction winner’s code and the hammer price specified in points and b clause 4 of this Article shall be published on the national property auction portal or online auction website after the end of the auction session.
5. Results of the online auction shall be publicly posted on the national property auction portal or online auction website and sent to each bidder’s email registered with the property auction practicing organization, the property auction council, the wholly state-owned organization that is established by the State Bank of Vietnam to settle bad debts of credit institutions after the auction winner’s code and the hammer price are published on the national property auction portal or online auction website.
Article 12. Notification of online auction results
1. The property auction practicing organization, the property auction council, the wholly state-owned organization that is established by the State Bank of Vietnam to settle bad debts of credit institutions shall send a notification of the auction result to the auction winner after the end of the auction.
2. The notification shall clearly state information about the auctioned property, the opening time and ending time for offer of bids, the time at which the online auction system records the auction winner’s code, the starting price of the auctioned property and the hammer price.
Article 13. Online auction records
An online auction record shall be made at the end of the auction session and the record shall specify the time of beginning the auction session, the time of beginning and ending offer of bids, the number of bidders, the hammer price and the auction winner. Diary of the auction session recorded by the online auction system shall be extracted and certified by the national property auction portal operator or the property auction practicing organization operating the online auction website, and enclosed with the auction record.
Digital signature included in the online auction record shall comply with regulations of the law on e-transactions. The online auction record shall be extracted from the national property auction portal or the online auction website according to Form promulgated by the Minister of Justice.
OFFERING BIDS OR ACCEPTING PRICES IN AUCTIONS OF RIGHTS TO USE RADIO FREQUENCIES
Section 1. ADOPTING METHODS OF OFFERING BIDS OR ACCEPTING PRICES
Article 14. Adopting methods of offering bids or accepting prices
1. Regulations on offering bids in clause 2 Article 42 of the Law on Property Auction amended by clause 26 Article 1 of the Law on amendments to the Law on Property Auction shall apply in case of auction of a frequency band block.
2. Regulations on offering bids or accepting prices in Section 2 of this Chapter shall apply in case of auction of one or multiple frequency bands, each of which has two or more blocks with equal and continuous width.
3. Regulations on offering bids in Section 3 of this Chapter shall apply to cases other than those specified in clause 1 and clause 2 of this Article.
Section 2. OFFERING BIDS OR ACCEPTING PRICES ACCORDING TO TWO STAGES
Article 15. Methods of offering bids or accepting prices
1. Regulations on offering bids or accepting prices according to two stages in point b clause 1 Article 59 of the Law on Property Auction amended by clause 38 Article 1 of the Law on amendments to the Law on Property Auction shall simultaneously apply to all frequency band blocks.
2. The stage of determination of number of frequency band blocks sold at the auction includes price acceptance rounds specified in Article 16 of this Decree and bidding rounds specified in Article 17 of this Decree.
3. The stage of determination of the locations of frequency band blocks sold at the auction includes one bidding round that takes place after the end of the stage of determination of number of frequency band blocks allocated to the auction winner.
4. Initial auction:
a) Do not continue to organize the auction in case one of the auctioned frequency bands has total number of frequency band blocks to be purchased specified at the application for participation in auction that is lower than or equal to the number of the auctioned blocks of such frequency band;
b) Do not continue to organize the auction session in case at the first price acceptance round, one of the auctioned frequency bands has total number of frequency band blocks to be purchased that is lower than or equal to the number of the auctioned blocks of such frequency band;
5. The re-auction of frequency band blocks that have not yet been auctioned according to regulations in clause 4 of this Article or frequency band blocks unsold at the auction shall comply with regulations in Articles 16, 17, 18, 19 and 20 of this Decree.
The Minister of Information and Communications shall specify its decision on whether to apply regulations in point a, point b clause 4 of this Article or not in an auction organization plan when organizing an auction according to regulations in this clause.
Article 16. Price acceptance rounds of the stage of determination of number of frequency band blocks allocated to the auction winner
1. Price of a frequency band block of a frequency band at price acceptance rounds (hereinafter referred to as “accepted price”) shall be determined as follows:
a) In the first price acceptance round, the accepted price shall be equal to the starting price of the frequency band block of the frequency band specified in Rules of the auction;
b) From the second price acceptance round onwards:
In case of auction of one frequency band, the accepted price shall be equal to the previously accepted price plus one bid increment.
In case of auction of at least two frequency bands, if a frequency band has total number of frequency band blocks to be purchased in the previous price acceptance round that exceeds the number of the auctioned frequency band blocks, the accepted price of such frequency band shall be equal to the previously accepted price plus one bid increment; if a frequency band has total number of frequency band blocks to be purchased in the previous price acceptance round that is lower than or equal to the number of the auctioned frequency band blocks, the accepted price of such frequency band shall be equal to the previously accepted price.
2. In each price acceptance round, the bidder shall register the number of frequency band blocks to be purchased according to the accepted price as follows:
a) In case of auction of a frequency band:
In the first price acceptance round, the number of frequency band blocks to be purchased shall be equal to that specified in the application for participation in the auction.
From the second price acceptance round onwards, the number of frequency band blocks to be purchased shall not exceed that in the previous price acceptance round.
b) In case of auction of at least two frequency bands:
In the first price acceptance round, the number of frequency band blocks to be purchased of each frequency band shall be equal to that specified in the application for participation in the auction of such frequency band.
From the second price acceptance round onwards, the bidder is entitled to change the number of frequency band blocks to be purchased of each frequency band but this number shall not exceed the number of frequency band blocks to be purchased specified in the application for participation in the auction of such frequency band and total score of all frequency band blocks to be purchased in a round shall not be higher than total score of all frequency band blocks to be purchased in the previous round.
Scores of frequency band blocks specified in this point shall be determined according to one or some factors regarding frequency band width, the starting price, and the similarity in propagation characteristics of frequency bands indicated in the auction organization plan as decided by the Minister of Information and Communications.
3. At the end of each price acceptance round, the auctioneer shall publish total number of frequency band blocks to be purchased of each frequency band and notify each bidder of total score of all frequency band blocks to be purchased in the round in which the bidder participates.
4. The last price acceptance round is the round in which total number of frequency band blocks to be purchased of each frequency band is lower than or equal to the number of auctioned frequency band blocks of such frequency band.
5. The number of frequency band blocks of each frequency band of the bidder, sold at the auction is the number of frequency band blocks to be purchased in the last price acceptance round.
Article 17. Bidding round of the stage of determination of number of frequency band blocks allocated to the auction winner
1. The bidding round specified in this Article shall only take place when in the last price acceptance round, total number of frequency band blocks to be purchased of one of the frequency bands is lower than the number of the auctioned frequency band blocks of such frequency band.
2. The number of the auctioned frequency band blocks of each frequency band in the bidding round specified in this Article is the number of remaining frequency band blocks after the last price acceptance round.
3. Only bidders participating in the price acceptance round preceding the last price acceptance round are entitled to offer bids and register one or multiple plans to purchase frequency band blocks specified in clause 4 of this Article.
4. The number of frequency band blocks to be purchased of each frequency band and their corresponding prices shall be determined in each plan to purchase frequency band blocks as follows:
a) In case of auction of a frequency band:
The bid for a frequency band block shall be higher than or equal to the last accepted price.
The number of frequency band blocks to be purchased shall not exceed the number of frequency band blocks specified in clause 2 of this Article.
The number of frequency band blocks to be purchased plus the number of frequency band blocks to be purchased in the last price acceptance round shall not exceed the number of frequency band blocks to be purchased in the price acceptance round preceding the last price acceptance round.
b) In case of auction of at least two frequency bands:
The bid for a frequency band block of each frequency band shall be higher than or equal to the last accepted price corresponding to such frequency band.
The number of frequency band blocks to be purchased of each frequency band shall not exceed the number of frequency band blocks specified in clause 2 of this Article.
The number of frequency band blocks to be purchased of each frequency band plus the number of frequency band blocks to be purchased in the last price acceptance round shall not exceed the number of frequency band blocks to be purchased specified in the application for participation in the auction of such frequency band.
Total score of frequency band blocks to be purchased plus total score of frequency band blocks to be purchased in the last price acceptance round shall not be higher than total score of frequency band blocks in the price acceptance round preceding the last price acceptance round.
5. Auctioneers shall determine combinations of frequency band blocks to be purchased, specified in the bidders’ plans to purchase frequency band blocks. The bidder that bids for a combination that has the highest number of frequency band blocks will be the auction winner, provided the total number of frequency band blocks of each frequency band to be purchased does not exceed the number of frequency band blocks specified in clause 2 of this Article.
In case there is a tie between two or more combinations with the highest number of frequency band blocks, the bidder that offers the highest bid will be the auction winner.
In case two or more bidders offer the same and highest number and bid, a lot draw will determine the auction winner.
6. The number of frequency band blocks of each frequency band sold at the auction is the number of frequency band blocks to be purchased of the combination of frequency band blocks sold at the auction of all bidders specified in clause 5 of this Article.
Article 18. Determination of number of frequency band blocks sold at the auction in the stage of determination of number of frequency band blocks sold at the auction
The number of frequency band blocks of each frequency band sold at the auction is total number of frequency band blocks specified in clause 5 Article 16 of this Decree and the number of frequency band blocks specified in clause 6 Article 17 of this Decree.
Article 19. Bidding round of the stage of determination of the locations of frequency band blocks allocated to the auction winner
1. Locations of the remaining frequency band blocks (if any) after the stage of determination of number of frequency band blocks sold at the auction shall be decided by the Minister of Information and Communications and specified in the auction organization plan.
2. The bidding round shall be conducted for each frequency band when there are two or more auction winners of such frequency band. To be specific:
a) The auctioneer shall determine combinations of frequency band blocks of all winners on the basis of the number of frequency band blocks sold at the auction in the stage of determination of number of frequency band blocks sold at the auction and arrange them in a manner that the frequency band blocks of each winner are grouped together;
b) The bidders shall offer bids for their combinations. The bid shall be at least 0 VND. If no bid is offered, it will be considered that the bid is 0 VND;
c) The auctioneer shall determine total bid offered by all bidders for each combination;
d) The bidder that offers the highest bid will be the auction winner.
In case two or more bidders offer the same and highest number and bid, a lot draw will determine the auction winner.
Article 20. Determination of winning bid
The winning bid for each frequency band, paid by the auction winner shall be determined by the following formula:
T = A x M + B x N + P
Where:
T: the winning bid;
A: the number of frequency band blocks, sold at the auction in accordance with in clause 5 Article 16 of this Decree;
M: the last accepted price;
B: the number of frequency band blocks, sold at the auction in accordance with in clause 6 Article 17 of this Decree. B= 0 in case total number of frequency band blocks to be purchased in the last price acceptance round is equal to the number of the auctioned frequency band blocks of the frequency band;
N: bid offered by the bidder for a frequency band block included in the combination of frequency band blocks, sold at the auction of all bidders specified in clause 5 Article 17 of this Decree;
P: bid offered by the winner for the combination specified in point d clause 2 Article 19 of this Decree.
Section 3. OFFERING BIDS ON THE BASIS OF THE NUMBER OF FREQUENCY BAND BLOCKS TO BE PURCHASED
Article 21. Method of offering bids
1. Bids shall be simultaneously offered on the basis of the number of frequency band blocks to be purchased specified in point c clause 1 Article 59 of the Law on Property Auction amended by clause 38 Article 1 of the Law on amendments to the Law on Property Auction in multiple rounds for all frequency band blocks.
2. Initial auction:
a) Do not continue to organize the auction in case total number of frequency band blocks to be purchased specified in the application for participation in the auction is lower than or equal to the number of the auctioned frequency band blocks;
b) Do not continue to organize the auction session in case in the first bidding round, total number of frequency band blocks to be purchased is lower than or equal to the number of the auctioned frequency band blocks.
3. The re-auction of frequency band blocks that have not yet been auctioned according to regulations in clause 2 of this Article or frequency band blocks unsold at the auction shall comply with regulations in Articles 22, 23 and 24 of this Decree.
The Minister of Information and Communications shall specify its decision on whether to apply regulations in point a, point b clause 2 of this Article or not in an auction organization plan when organizing an auction according to regulations in this clause.
1. Starting price of each frequency band block in bidding rounds:
a) Starting price in the first bidding round is the starting price of each frequency band block specified in Rules of the auction;
b) From the second bidding round onwards, the starting price is the highest bid offered in the previous bidding round.
In case, in the previous bidding round, no bid for the frequency band block is offered but it was bid for by at least one bidder in any bidding round before the previous bidding round that has not bid for another frequency block, the starting price will be the highest bid among the bids offered by bidders that have not bid for other frequency blocks; if all of them decide to bid for other frequency blocks, the starting price will be that specified in Rules of the auction.
2. Each bidder is entitled to offer bid for any frequency band block according to the following regulations:
a) In the first bidding round, the number of frequency band blocks for which bids are offered by the bidders shall be equal to the number of frequency band blocks to be purchased specified in the application for participation in the auction;
b) The bid offered for each frequency band block shall be equal to the starting price of the frequency band block plus the number of bid increments (an integer starting from 0 for the first bidding round and 1 for the subsequent bidding rounds) and at least one bid increment higher than the highest bid offered by the same bidder for the same frequency block;
c) From the second bidding round onwards, at the end of the bidding round, total score of frequency band blocks of bidders, determined according to clause 2 Article 24 of this Decree shall not be higher than total score of frequency band blocks of such bidders, determined according to clause 3 Article 24 of this Decree.
3. At the end of the bidding round, the auctioneer shall publicly announce the highest bid for each frequency band block, and notify each bidder of their total score of frequency band blocks in the next bidding round and frequency band blocks for which the highest bids are offered by the bidder (if any).
4. The auction session will end when no bidder offers a bid. The highest bidder in the round preceding the last bidding round will be the auction winner.
Article 23. Identification of the highest bidder for each frequency band block
The highest bidder for each frequency band block in the bidding round shall be identified as follows:
1. The bidder offering the highest bid among the bidders is identified as the highest bidder. In case two or more bidders offer the same and highest bid, a lot draw will determine the highest bidder.
2. In case no bidder offers bid and the highest bidder at the previous bidding round does not offer bid for another frequency band block, such highest bidder will continue to be identified as the highest bidder.
3. In case no bidder offers bid and the highest bidder at the previous bidding round offers bid for another frequency band block, the bidder that offers the highest bid among the bidders offering bids for the same frequency band block in the previous bidding rounds and does not offer bid for another frequency band block will be the highest bidder; in case two or more bidders offer the same and highest bid, a lot draw will determine the highest bidder.
Article 24. Scores of frequency band blocks
1. Scores of frequency band blocks shall be determined according to one or some factors regarding frequency band width, the starting price, and the similarity in propagation characteristics of frequency bands indicated in the auction organization plan as decided by the Minister of Information and Communications.
2. At the end of the bidding round, total score of frequency band blocks of the bidder shall be determined as follows:
Qn = A + B
Where:
n: ordinal number of the bidding round;
Qn: total score of frequency band blocks at the end of the nth bidding round of the bidder;
A: total score of frequency band blocks for which the highest bids are offered by the bidder during the (n-1)th bidding round in case the bidder does not offer bids for other frequency band blocks during the nth bidding round; in the first bidding round, A=0;
B: total score of frequency band blocks for which the bids are offered by the bidder in the nth bidding round, excluding frequency band blocks for which the highest bids are offered by the bidder during the (n-1)th bidding round and continue to be bid for during the nth bidding round.
3. From the second bidding round onwards, total score of frequency band blocks at the bidding round of the bidder shall be determined as follows:
Pn = Qn-1 + C
Where:
n: ordinal number of the bidding round;
Pn: total score of frequency band blocks during the nth bidding round of the bidder;
Qn-1: total score of frequency band blocks at the end of the (n-1)th bidding round of the bidder, determined according to regulations in clause 2 of this Article;
C: total score of frequency band blocks for which the highest bids are offered by the bidder in the (n-1)th bidding round according to clause 3 Article 23 of this Decree; C=0 during the first and second bidding rounds.
HANDLING VIOLATION COMMITTED BY WINNER OF AN AUCTION OF LAND USE RIGHTS OVER A LAND PLOT ALLOCATED OR LEASED FOR EXECUTING AN INVESTMENT PROJECT OR MINING RIGHTS
1. The winner of an auction of LURs over a land plot allocated or leased for executing an investment project or mining rights that fails to fulfill the obligations to pay the winning bid resulting in invalidation of the decision to recognize auction result shall, depending on the nature and severity of the violation, be prohibited from participating in auctions of such property types as follows:
a) Be prohibited from participating in auctions for 02 years to 05 years in case the winner fails to pay the winning bid;
b) Be prohibited from participating in auctions for 06 months to 03 years in case the winner fails to fully pay the winning bid.
2. Within 10 days from the date of issuance of a decision on invalidation of the decision to recognize result of the auction of LURs over a land plot allocated or leased for executing an investment project or mining rights, an authority having power to issue a decision on prohibition from participating in auction shall consider issuing such decision regarding the auction winner of such property types in accordance with regulations in clause 1 of this Article.
3. The decision on prohibition from participating in auction shall contain the following contents:
a) Name the authority having power;
b) Name of the prohibited organization/individual;
c) Duration of prohibition;
d) Scope of prohibition;
dd) Effective date and expiry date.
4. Within 07 working days from the date of issuance of the decision on prohibition from participating in auction, the authority having power to issue a decision on prohibition from participating in auction shall be responsible for sending the decision to the violating entity and relevant authorities and organizations; at the same time it shall be sent to the Ministry of Justice of Vietnam and published on the national property auction portal.
5. If the organization/individual prohibited from participating in auction disagrees on the decision on prohibition from participating in auction, they are entitled to make complaints or file lawsuits in Court according to regulations of law.
Article 26. Limitation period for handling violation
Limitation period for handling violation committed by the winner specified in Article 25 of this Decree shall be 01 year from the date of issuance of the decision on invalidation of the decision to recognize result of the auction.
Article 27. Transition clauses
1. In case the property auction practicing organization has submitted a valid Project for online auction according to regulations of the Government’s Decree No. 62/2017/ND-CP dated May 16, 2017 on guidelines for Law on Property Auction before the effective date of this Decree, the provincial Department of Justice will continue to assess whether the conditions are satisfied and grant approval for organization of online auction in case the conditions are satisfied according to regulations of the Government’s Decree No. 62/2017/ND-CP dated May 16, 2017.
2. In case the property auction practicing organization has submitted a Project on development of its online auction website to the Ministry of Justice according to the Government’s Decree No. 47/2023/ND-CP dated July 03, 2023 before the effective date of this Decree but the Project has not yet been assessed and approved, the Ministry of Justice shall send the property auction practicing organization’s Project to the Department of Justice of province or central-affiliated city where the property auction practicing organization is headquartered to assess whether the conditions for the online auction website are satisfied according to the Government’s Decree No. 47/2023/ND-CP dated July 03, 2023 within 90 days from the date of receipt of the Project.
3. In case the property auction practicing organization has been granted approval for organization of online auction according to regulations of the Government’s Decree No. 62/2017/ND-CP dated May 16, 2017 or its online auction website has been approved according to the Government’s Decree No. 47/2023/ND-CP dated July 03, 2023, the online auction system shall be completely maintained and upgraded in order to meet the requirements and conditions specified in Article 5 of this Decree and the result shall be reported to the Ministry of Justice or the provincial Department of Justice that has granted approval before January 01, 2026.
1. This Decree takes effect from the date January 01, 2025.
2. This Decree replaces the Government’s Decree No. 62/2017/ND-CP dated May 16, 2017 and the Government’s Decree No. 47/2023/ND-CP.
Article 29. Responsibility for implementation
Ministers, Heads of ministerial authorities, Heads of Governmental authorities, Chairpersons of provincial People’s Committees shall be responsible for implementing this Decree.
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ON BEHALF OF THE GOVERNMENT Le Thanh Long |
