The Ministry of Justice has just issued the Circular No. 18/2014/TT-BTP dated September 08, 2014 guiding the asset auctions as prescribed in Decree No. 53/2013/ND-CP on establishment, organization and operation of Vietnam Asset Management Company (hereinafter referred to as VAMC).
Accordingly, 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 VAMC holds the auction itself. VAMC shall decide and take responsibility for the reserve price of the auctioned assets.
For the auctioned assets being bad debts, 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. 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.
VAMC shall announce the selection of auctioneering organizations within five (05) working days on the web portal of the State bank of Vietnam and the web portal of VAMC in order for professional auctioneering organizations to apply. VAMC shall issue, conduct and take responsibility for considering and deciding process for selection of professional auctioneering organizations to hold the auction. The professional auctioneering organizations shall be considered according to criteria such as: competence, experience, prestige, operating duration, the number of auctioneers, the quantity of successful auction contracts, auction plan, scale and facilities.
This Circular takes effect on November 10, 2014.