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DECREE No. 17/2010/ND-CP: Government raises the bar for professional auctioneers

From July 1, all social entities will be allowed to provide auction services after getting licenses to set up an auctioning company or service center licensed which can operate as professional auctioneers, provided these auctioneers are staffed with higher qualified personnel who must possess a law or an economics degree and have been trained in auctioning profession.

These auctioning staff may personally deal with acts of collusion among auction participants or violation of auction rules.

As provided in Government Decree No. 17/2010/ND-CP of March 4, on auction of assets, which supersedes Decree No. 05/2005/ND-CP, subject to compulsory public auction are assets involved in judgment enforcement, confiscated things which were previously used in administrative violations, security assets, state assets, land use rights in case of land allocation with land use levy or lease by the State. These assets will be auctioned by asset-auctioning councils set up at the district or central level.

Individuals and institutions may themselves decide to put their assets for auction by professional auctioneers.

Under the new regulation, the maximum deposit payable by auction participants is raised to 15% of auctioned asset (against current 5% under Decree No. 05).

An auction winner that refuses to purchase an auctioned asset will not be refunded the deposit which will later be paid to the party whose asset is auctioned. Such asset will only be sold to the second highest bid-maker provided the total of that bid and the deposit is equal to the highest bid.-

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