THE MINISTRY OF JUSTICE

Circular No. 18/2014/TT-BTP dated September 8, 2014 of the Ministry of Justice guiding the asset auctions as prescribed in Decree No. 53/2013/ND-CP on establishment, organization and operation of Vietnam Asset Management Company
Pursuant to Decree No. 53/2013/ND-CP dated May 18, 2013 of the Government on establishment, organization and operation of Vietnam Asset Management Company;
Pursuant to Decree No. 17/2010/ND-CP dated March 4, 2010 of the Government on asset auctions;
Pursuant to Decree No. 22/2013/ND-CP dated March 13, 2013 of the Government on the functions, tasks, entitlements and organizational structure of the Ministry of Justice;
At the request of Director of Bureau of Judicial affairs support, Ministry of Justice;
The Minister of Justice issues the Circular providing guidance on asset auctions as prescribed in Decree No.53/2013/ND-CP dated May 18, 2013 of the Government on establishment, organization and operation of the Vietnam Asset Management Company (hereinafter referred to as VAMC),
Chapter I
GENERAL PROVISIONS
Article 1. Scope of adjustment

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This Circular provides guidance on procedures for putting up assets for auction, where assets are bad debts and collateral against bad debts which are purchased by VAMC from Vietnamese credit institutions as prescribed in Decree No. 53/2013/ND-CP (hereinafter referred to as auctioned assets).
Article 2. Subjects of applications
1. VAMC;
2. Professional auctioneering organizations;
3. Other relevant entities.
Article 3. Holding the auction
1. VAMC shall decide the methods for auctioning the assets that are purchased by VAMC as prescribed in Decree No. 53/2013/ND-CP
2. Asset auctions shall be held by VAMC under law on asset auctions and regulations prescribed in this Circular.
Chapter II
PROCEDURES FOR AUCTION

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Article 4. The reserve price of the auctioned assets
1. The reserve price of the auctioned assets shall be determined before VAMC signs a contract to hire a professional auctioneering organization to hold the auction or before VAMC holds the auction itself. VAMC shall decide and take responsibility for the reserve price of the auctioned assets.
2. The reserve prices of auctioned assets being bad debts shall be determined as follows:
a) In case VAMC purchased bad debts from a credit institution at market value, they shall hire an appraisal company to assess the bad debts or assess the bad debts themselves in order to determine the reserve price.
b) In case VAMC purchased bad debts from a credit institution at book value with special bonds, they shall negotiate an agreement with such credit institution on the reserve price.
3. In case VAMC puts up the collateral against the bad debts for auction, it shall negotiate an agreement with the owner of such collateral on the reserve price of the auctioned assets; in case VAMC puts up the land use right (hereinafter referred to as land) for auction, they shall negotiate an agreement with the pledgor on the reserve price.

 

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