THE MINISTRY OF FINANCE
-------
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
----------
No: 51/2006/TT-BTC
Hanoi, June 12, 2006
 
CIRCULAR
GUIDING A NUMBER OF CONTENTS OF THE REGULATION ON AUCTION OF STATE COMPANIES
Pursuant to the Prime Minister's Decision No. 330/2005/QD-TTg of December 13, 2005, promulgating the Regulation on auction of state companies, the Finance Ministry hereby guides a number of contents of this Regulation as follows:
Part I
GENERAL PROVISIONS
1. Implementation principles
a/ The auction of state companies shall comply with the Prime Minister's Decision No. 330/2005/QD-TTg of December 13, 2005, and the provisions of this Circular, ensuring equality, publicity and transparency.
b/ To be-auctioned state companies are those which had their financial problems solved according to the State's current regulations.
c/ Parties involved in auctions shall be responsible before law for their observance of the State's regulations and auction sessions' rules.
2. Subjects and conditions of application
State companies (hereinafter referred to as companies for short) which fully meet the conditions specified in Article 5 of the Regulation on auction of state companies, promulgated together with the Prime Minister's Decision No. 330/2005/QD-TTg of December 13, 2005 (hereinafter referred to as the Regulation on auction of companies for short), and are put up for auction under competent agencies' decisions.
3. Conditions for investors to participate in an auction
Investors participating in the auction of companies are defined in Article 3 of the Regulation on auction of companies. If wishing to participate in an auction, foreign investors, including Vietnamese having foreign citizenship, must open their accounts at banks or payment service-providing organizations operating within the Vietnamese territory and observe Vietnamese law; all activities related to their participation in auctions of state companies must be carried out via these accounts.
Organizations and individuals that participate in the valuation of enterprises and auction consultancy organizations shall not be allowed to participate in auctions.
4. Handling of financial matters
The handling of financial matters of to be-auctioned companies shall comply with the provisions of the Finance Ministry's Circular No. 109/2005/TT-BTC of December 8, 2005, guiding a number of financial matters in the assignment, sale, business contracting and lease of state companies, Circular No. 126/2004/TT-BTC of December 24, 2004, guiding the implementation of the Government's Decree No. 187/2004/ND-CP of November 16, 2004, on transformation of state companies into joint-stock companies (hereinafter referred to as Circular No. 126/2004/TT-BTC for short).
5. Forms enclosed with the Circular
Forms enclosed with this Circular (not printed herein) are for reference; depending on the characteristics of to be-auctioned companies and the actual situation of ownership transformation in this form, company sale steering committees and consultancy organizations may apply them in a suitable and flexible manner, provided that all necessary contents of the forms are ensured.
Click Download to see full text