Vietnam Asset Management Company (VAMC) would be free to sell collateral assets valued at under VND 10 billion (USD 475,000), while those of a higher value must be sold by professional auctioneers.
This is guided in a draft circular guiding the sale of collateral assets by VAMC prepared by the Ministry of Justice.
According to the draft, in case of selling collaterals worth under VND 10 billion, VAMC would have to form an auction council composed of representatives from its functional units. However, the representation of an auctioneer is not required.
For collaterals valued at over VND 10 billion, the company would hire a professional auction agency. To ensure transparency and efficiency, the draft requires VAMC to disclose information on hiring of professional auction agencies on at least two consecutive issues of a newspaper of localities where exist the collaterals, the Bidding newspaper, the State Bank of Vietnam’s e-portal and its website.
However, according to a VAMC representative, if the regulation comes into effect, it will cause many difficulties as most of collaterals purchased by VAMC valued at more than VND 10 billion while there is no legal basis or criteria for selecting a professional auction agency to handle the collaterals.
By the end of 2013, VAMC already purchased debts valued at over VND 36.2 trillion at the price of approximately VND 31.5 trillion.-
