Decree 172/2024/ND-CP detailing the Law 01/2016/QH14 on Property Auction

DECREE

Detailing a number of articles of the Law No. 01/2016/QH14 on Property Auction, which has a number of articles amended and supplemented under the Law No. 37/2024/QH15

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Pursuant to the Law on Organization of the Government dated June 19, 2015; Law on Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Property Auction dated November 17, 2016; Law Amending and Supplementing a Number of Articles of Law on Property Auction dated June 27, 2024;

At the request of the Minister of Justice;

The Government promulgates the Decree detailing a number of articles of the Law No. 01/2016/QH14 on Property Auction, which has a number of articles amended and supplemented under the Law No. 37/2024/QH15.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree details a number of articles of the Law No. 01/2016/QH14 on Property Auction, which was amended and supplemented by the Law No. 37/2024/QH15, including:

1. Revocation of operation registration certificates of property auction businesses at the request of competent agencies as defined in Clause 19 Article 1 of Law Amending and Supplementing a Number of Articles of Law on Property Auction.

2. Requirements and conditions for the National Property Auction Portal and requirements and conditions for, and appraisal and approval of, online auction websites; and responsibilities of agencies, organizations and individuals in the establishment, management, operation and use of the National Property Auction Portal and online auction websites; procedures for online auctions as defined in Clause 28 Article 1 of Law Amending and Supplementing a Number of Articles of Law on Property Auction.

3. Offering bids and accepting set prices, and selection of methods of offering bids and accepting set prices in auction of the rights to use radio frequencies as defined in Clause 38 Article 1 of Law Amending and Supplementing a Number of Articles of Law on Property Auction.

4. Handling of violations committed by winning bidders of land use rights in case of land allocation or land lease for implementation of investment projects or winning bidders of the mining rights as defined in Clause 41 Article 1 of Law Amending and Supplementing a Number of Articles of Law on Property Auction.

Article 2. Subjects of application

1. This Decree applies to property auction practicing organizations, property auction councils, and the organization with 100% charter capital owned by the State which is established by the State Bank of Vietnam to deal with non-performing loans of credit institutions, the state management agency in charge of property auction, auctioneers, auctioned property sellers, bidders, winning bidders, relevant individuals and organizations.

2. Traders and organizations other than property auction practicing organizations shall establish an online auction website in accordance with law regulations on e-commerce are not subjects of application of this Decree.

Chapter II

REVOCATION OF OPERATION REGISTRATION CERTIFICATES OF PROPERTY AUCTION BUSINESSES AT THE REQUEST OF COMPETENT AGENCIES

Article 3. Revocation of operation registration certificates of property auction businesses at the request of competent agencies

1. In case the Department of Justice of the province or centrally-run city where a property auction business has made its operation registration receives a competent agency’s written request for revocation of operation registration certificate of property auction business, the following regulations shall apply:

a) Within 03 working days from the date of receiving the document issued by a competent agency, the provincial-level Department of Justice shall issue a written notice requesting the at-law representative of the property auction business to appear at the provincial-level Department of Justice’s headquarters to provide an explanation;

b) After 10 working days from the date on which the time limit stated in the provincial-level Department of Justice’s notice expires, if the requested individual fails to appear to provide an explanation, the provincial-level Department of Justice shall issue a decision on revocation of the enterprise’s operation registration certificate, except for cases where a force majeure event or an objective obstacle prevents the requested individual from providing an explanation.

2. In case the at-law representative of the property auction business appears to provide an explanation, the Department of Justice of the province or city where the business has made its operation registration shall, within 10 working days from the date of receiving the explanation, coordinate with relevant state management agencies, units, and organizations in reviewing the explanation and determining whether the property auction business is subject to revocation of operation registration certificate as follows:

a) The provincial-level Department of Justice shall not revoke the operation registration certificate of the property auction business and shall, within 3 working days from the date on which it is determined that the property auction business is not subject to request for revocation of operation registration certificate or a competent agency issues a written request for non-revocation of the operation registration certificate of the business, send written notice to the property auction business and the competent state agency that has requested such revocation.

b) The provincial-level Department of Justice shall revoke the operation registration certificate of the property auction business within 3 working days from the date on which it rejects the explanation and determines that the property auction business is subject to revocation of the business’ operation registration certificate.

Article 4. Responsibilities of agencies competent to request the revocation of operation registration certificates of property auction businesses

1. To take the responsibility for the accuracy of the information in the request for revocation of operation registration certificates of property auction businesses.

2. To coordinate with Departments of Justice of the provinces or centrally-run cities where the property auction businesses have made their operation registration in the course of reviewing the explanations provided and determining whether the property auction businesses are subject to revocation of operation registration certificates.

Chapter III

THE NATIONAL PROPERTY AUCTION PORTAL AND ONLINE AUCTION WEBSITES

Article 5. Requirements and conditions for the National Property Auction Portal and online auction websites

1. Requirements

a) Publicity, transparency, provision of unrestricted access to information;

b) The time displayed on the National Property Auction Portal and online auction websites must be real-time and shall conform to the international (GMT) standard for online auctions;

c) Operate in a stable and continuous manner and ensure the security of the information system;

d) Ensure the safety and confidentiality of information relating to bidders and their access accounts.

dd) Satisfy the technical infrastructure and information technology standards required for the connection, integration, and sharing of data through a data integration and sharing platform;

e) Satisfy the requirements regarding technical infrastructure, facilities, and the necessary personnel to ensure the operation of the National Property Auction Portal and online auction websites.

2. Conditions

a) Operate at level 3 in accordance with the law on securing information system according to security levels;

b) Ensure that each individual or organization may register only one account of participation in auction and bid;

c) Ensure that the participation in offering of bids and display of the offered bids are carried out using each bidder’s unique identification number;

d) Publicly display the time of registration to participate in the auction, the time of access to account used for participation in the auction session, and the start and end times of the auction session;

dd) Publicly and accurately display all bids placed, offered bids by bidders (under their unique identification numbers), and the highest bid; record and enable the retrieval of all information pertaining to the auction and the auction session;

e) Display continuously the reserve price of the property subject to auction, the highest paid price for the ascending-price auction and the price equal to the reserve price or the lowest decreased price for the descending-price auction in the course of the auction session for the bidders to follow;

g) Make sure that bidders cannot submit their auction dossiers after the end of submission of dossiers or offer the bid after the end of the auction.

Article 6. Appraisal and approval of online auction websites

1. A property auction practicing organization or the organization with 100% charter capital owned by the State which is established by the State Bank of Vietnam to deal with non-performing loans of credit institutions shall directly or by post send a written request for approval of an online auction website, together with a scheme for building an online auction website, to the Department of Justice of the province or centrally-run city where the property auction practicing organization or the organization with 100% charter capital owned by the State which is established by the State Bank of Vietnam to deal with non-performing loans of credit institutions is headquartered. The scheme for building an online auction website must describe the requirements and conditions of the online auction website specified in Article 5 of this Decree.

2. The Director of provincial-level Department of Justice shall decide to establish a Council appraising online auction websites and promulgate the operation regulations of the Council; members of the Council include the provincial-level Department of Justice’s representative acting as Chairperson of the Council, representatives of relevant agencies and organizations, qualified and experienced experts in the fields of property auction and information technology. Relevant agencies and organizations shall be responsible for appointing their personal to participate in the Council at the request of the provincial-level Department of Justice.

3. The Council shall be responsible for appraising the conditions specified in Clause 2, Article 5 of this Decree; the feasibility and effectiveness of the scheme when putting it into operation must ensure the requirements specified in Clause 1, Article 5 of this Decree.

4. Within 90 days from the date of receipt of a valid scheme as prescribed in Clause 1 of this Article, the Director of the provincial-level Department of Justice shall review and approve such online auction website; in case of refusal, a written notice must be issued, clearly stating the reasons.

5. The provincial-level Department of Justice shall post a list of property auction practicing organizations with their approved online auction websites on the provincial-level Department of Justice's portal and send it to the Ministry of Justice for posting it on the National Property Auction Portal.

Article 7. Stop of implementation of online auctions

1. On an annual basis or in ad hoc cases, the Ministry of Justice, the Department of Justice of the province or centrally-run city where a property auction practicing organization or the organization with 100% charter capital owned by the State which is established by the State Bank of Vietnam to deal with non-performing loans of credit institutions is headquartered shall inspect the management and operation of the online auction website built by such property auction organization or such organization with 100% charter capital owned by the State which is established by the State Bank of Vietnam to deal with non-performing loans of credit institutions (hereinafter referred to as the organization operating the online auction website).

2. In case the online auction website does not meet the requirements and conditions specified in Article 5 of this Decree, the Ministry of Justice and the Department of Justice of the province or centrally-run city shall issue a document requesting the organization operating the online auction website to upgrade its online auction system. The document of the Ministry of Justice specified in this Clause shall be simultaneously sent to the Department of Justice of the province or centrally-run city where the organization operating the online auction website is headquartered. The organization operating the online auction website shall be responsible for upgrading the online auction system within 90 days from the date of receipt of the request.

During the time of upgrading the online auction system, the organization operating the online auction website is not allowed to use such online auction website to organize online auctions.

3. After the time limit specified in Clause 2 of this Article, if the online auction website does not meet the requirements and conditions specified in Article 5 of this Decree, the Director of the Department of Justice of the province or centrally-run city shall consider the stop of implementation of online auctions for the online auction website approved by the Director of the provincial-level Department of Justice in accordance with Decree No. 62/2017/ND-CP dated May 16, 2017 of the Government detailing a number of articles and measures to implement the Law on Property Auction and this Decree.

Article 8. Responsibilities of the Ministry of Justice, the organization operating the National Property Auction Portal, and organizations operating an online auction website

1. Responsibilities of the Ministry of Justice:

a) To assume the prime responsibility for formulating and promulgating the Scheme for establishing the National Property Auction Portal, which includes a function of online auction;

b) To manage and provide guidance on the use of the National Property Auction Portal; conduct maintenance and upgrade of the online auction system to ensure compliance with the requirements and conditions defined in Article 5 of this Decree;

c) To archive information for state management purposes and other tasks as prescribed by law;

d) To perform other tasks on property auction assigned by the Government or the Prime Minister.

2. Responsibilities of organizations operating online auction websites in building, managing, and operating such online auction websites:

a) To develop, manage, and operate their own online auction website; ensure connectivity and sharing of real-time data of the auction session proceedings with the National Property Auction Portal; and take technical responsibility for any online auction conducted on their own online auction website;

b) To prepare a proposal dossier on the security level of the information system as specified in Article 5 of this Decree;

c) To keep confidentiality of information about bidders, access accounts unless otherwise provided by law;

d) To compensate for damage caused by errors caused by the organizations during the operation of their online auction websites in accordance with the law;

dd) To issue, guide and publish on their online auction websites method of registration for accounts, use of accounts, method of offering of bids, auction method, bid increment, time of registration to participate in the auction, time to access accounts used for participation in the auction session, time to start and end the offering of bids, the session of bid offering and announce the auction results on the online auction systems;

e) To maintain and upgrade the online auction system to ensure that it meets the conditions specified in Article 5 of this Decree.

3. Responsibilities of the organization operating the National Property Auction Portal:

a) To ensure information security, cyber security, confidentiality for the National Property Auction Portal’s database; to prevent unauthorized and illegal access; to administer information security and cyber security risks, to develop a mechanism for time-based and action-based recording and tracking of information on the National Property Auction Portal;

b) To establish the online auction system that meets the conditions specified in Article 5 of this Decree;

c) To only use property auction information and other information on the National Property Auction Portal for purposes within the functions and duties of the organization operating the National Property Auction Portal.

d) To provide the services of guiding auctioned property sellers, property auction practicing organizations, bidders to implement online auctions, and registration and posting of information on the National Property Auction Portal;

dd) To publicly announce the conditions on information technology infrastructure of users upon participation in online auction on the National Property Auction Portal;

e) To fulfill other responsibilities as specified in the Law on Property Auction, the Law Amending and Supplementing a Number of Articles of Law on Property Auction, this Decree and other relevant law regulations.

4. The organization with 100% charter capital owned by the State which is established by the State Bank of Vietnam to deal with non-performing loans of credit institutions may only use its online auction website to organize auctions in the form of online auction for properties being non-performing loans and collateral of non-performing loans in accordance with law regulations.

Article 9. Responsibilities of property auction practicing organizations, property auction councils, and the organization with 100% charter capital owned by the State which is established by the State Bank of Vietnam to deal with non-performing loans of credit institutions upon use of online auction websites

1. To equip information technology infrastructure to meet requirements for organization of online auction.

2. To manage and keep confidentiality of information about bidders, granted access accounts and passwords, unless otherwise provided by law. If detecting that their accounts are lost or are being used illegally, they must immediately notify the agencies or organizations operating the online auction websites.

3. To take responsibility before law for the accuracy and truthfulness of the information that they have registered and posted on the online auction websites when logging in to their access accounts; online auction results of online auctions conducted by themselves.

4. To stop the organization of auctions in the form of online auction, stop online auctions and immediately notify the auctioned property sellers to decide the time to reconduct the auctions in case technical errors arising in the online auction system cause the auctions to fail to start or the bidders to fail to offer bids; notify the auctioned property sellers to cancel the online auction in the event that due to a technical error of the online auction system, bidders cannot offer bids, valid offered bids are not recorded by the system or the time of offering of bids is misrecorded.

5. To comply with the Law on Property Auction, Law Amending and Supplementing a Number of Articles of Law on Property Auction, other relevant law regulations.

Article 10. Responsibilities of bidders upon participation in the National Property Auction Portal, online auction websites

1. To ensure their equipment when participating in the auctions; take responsibility in case their network system has problems resulting in their failure to participate in auctions and offering of bids.

2. To manage and keep confidentiality of the granted access accounts and passwords. If detecting that their accounts are lost or are being used illegally, they must immediately notify property auction practicing organizations, property auction councils, or the organization with 100% charter capital owned by the State which is established by the State Bank of Vietnam to deal with non-performing loans of credit institutions that have granted the accounts and passwords.

3. To take responsibility before law for the accuracy and truthfulness of the information that they have registered and posted when logging in to their access accounts.

4. To comply with the Law on Property Auction, Law Amending and Supplementing a Number of Articles of Law on Property Auction, other relevant law regulations and Rules of the auction.

Chapter IV

ORDER AND PROCEDURES FOR ONLINE AUCTION

Article 11. Order of organization of auctions in the form of online auction

1. Bidders purchase dossiers of invitation for participation in auction and register for an access account on the National Property Auction Portal or an online auction website.

Bidders use their access account to receive instructions on purchase of dossiers, submission of online auction dossiers, making of an advance payment, participation in the auction, offering of bids and other necessary contents when participating in the online auction on the National Property Auction Portal or the online auction website.

2. Bidders that have submitted their auction dossiers and made an advance payment validly may use their access accounts to participate in the auction session according to the Rules of the auction.

Persons eligible for participation in the auction shall be responsible for accessing their granted accounts to take the roll call for the participation of the auction within the time specified in the Rules of the auction. Persons eligible for participation in the auction shall offer the bids under their unique identification number.

Persons who are eligible to participate in the auction but do not access their granted accounts for taking the roll call according to the time specified in the Rules of the auction shall be considered not to participate in the auction session as specified at Point a Clause 6 Article 39 of Law on Property Auction, except for force majeure events.

3. The auction’s time of offering bids shall be agreed upon by the property auction practicing organization with the auctioned property seller but must be at least 15 minutes. In case the person who has offered the highest bid withdraws the offered bid within 01 minute before the end of the auction session, the time of offering bids shall be extended for 03 minutes after the end of the auction session.

4. The property auction practicing organization shall assign an auctioneer, the property auction council or the organization with 100% charter capital owned by the State which is established by the State Bank of Vietnam to deal with non-performing loans of credit institutions shall assign a member to conduct the auction session on the National Property Auction Portal or the online auction website. At the end of the auction, the winning bidder shall be determined as follows:

a) In case of ascending-price auction, the winning bidder shall be the bidder offering the highest bid recorded by the online auction system;

b) In case of descending-price auction, the winning bidder shall be the first bidder accepting the reserve price or the decreased price recorded by the online auction system.

The winning bidder's identification number and the auction winning price specified at Point a and Point b, Clause 4 of this Article shall be announced on the National Property Auction Portal or the online auction website immediately after the auction session ends.

5. The results of the online auction shall be published on the National Property Auction Portal or the online auction website and sent to the bidders’ email addresses registered with the property auction practicing organization, property auction council, or the organization with 100% charter capital owned by the State which is established by the State Bank of Vietnam to deal with non-performing loans of credit institutions after the winning bidder’s identification number and the auction winning price are announced on the National Property Auction Portal or the online auction website.

Article 12. Notification of online auction results

1. Property auction practicing organizations, property auction councils, and the organization with 100% charter capital owned by the State which is established by the State Bank of Vietnam to deal with non-performing loans of credit institutions shall notify on the auction results to the winning bidders right after the auctions end.

2. The notice must clearly state the information about the auctioned property, the time to start and end the offering of bids, the time the online auction system records the winning bid identification number, the reserve price of the auctioned property, and the winning bid.

Article 13. Minutes on online auctions

A minutes on the online auction must be prepared at the end of the auction session and must record the time to start the auction session, the time to start the offering of bids and end the offering of bids, the number of bidders, the winning bid price, and the winning bidder. The auction log recorded by the online auction system must be extracted, confirmed by the organization operating the National Property Auction Portal or the property auction practicing organization operating the online auction website, and must be attached to the minutes on auction.

The use of digital signatures in the minutes on the online auction must comply with the law on electronic transactions. The minutes of the online auction shall be extracted from the National Property Auction Portal or the online auction website, using the form promulgated by the Minister of Justice.

Chapter V

OFFERING BIDS AND ACCEPTING SET PRICES IN AUCTION OF THE RIGHTS TO USE RADIO FREQUENCIES

Section 1

SELECTION OF METHODS OF OFFERING BIDS AND ACCEPTING SET PRICES

Article 14. Selection of methods of offering bids and accepting set prices

1. The act of offering bids as prescribed in Clause 2, Article 42 of the Law on Property Auction, which was amended and supplemented by Clause 26, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Property Auction, shall be applied upon auction of a frequency band block.

2. The offering bids and accepting set prices under Section 2 of this Chapter shall be applied upon auction of one or several frequency bands, in which a frequency band has two continuous frequency band blocks or more with an equal width.

3. The offering bids as prescribed in Section 3 of this Chapter shall apply to cases not prescribed in Clauses 1 and 2 of this Article.

Section 2

OFFERING BIDS AND ACCEPTING SET PRICES ACCORDING IN TWO STAGES

Article 15. Methods of offering bids and accepting set prices

1. The act of offering bids and accepting set prices according in two stages as prescribed at Point b, Clause 1, Article 59 of the Law on Property Auction, which was amended and supplemented by Clause 38, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Property Auction, shall be carried out simultaneously for all frequency band blocks.

2. The stage of determining the quantity of winning frequency band blocks includes the rounds of accepting set prices defined in Article 16 of this Decree and the auction round defined in Article 17 of this Decree.

3. The stage of determining the locations of winning frequency band blocks consists of an auction round conducted after the end of the phase of determining the quantity of winning frequency band blocks.

4. At the first auction:

a) Do not continue to organize the auction in case one of the auctioned frequency bands has a total number of frequency band blocks registered to purchase in the auction dossier that is fewer than or equal to the number of auctioned frequency band blocks of that frequency band;

b) Do not continue to organize the auction session in case one of the auctioned frequency bands has a total number of frequency band blocks registered to purchase that is fewer than or equal to the number of auctioned frequency band blocks of that frequency band in the first price acceptance round.

5. At the re-auction of frequency bands that have not been auctioned as prescribed in Clause 4 of this Article or frequency bands of which the auction is failed, the re-auction shall be conducted in accordance with Articles 16, 17, 18, 19 and 20 of this Decree.

The Minister of Information and Communications shall decide the application of Point a and Point b, Clause 4 of this Article in the auction organization plan when organizing the auction as prescribed in this Clause.

Article 16. Price acceptance rounds of the stage of determining the quantity of winning frequency band blocks

1. The price of a frequency band block of a frequency band at price acceptance rounds (hereinafter referred to as the price of price acceptance round) shall be determined as follows:

a) In the first price acceptance round, the price of the price acceptance round shall be equal to the reserve price of a frequency band block of a frequency band specified in the Rule of the auction;

b) From the second price acceptance round onwards:

In case of auctioning a frequency band, the price of the price acceptance round shall be equal to the price of the immediately preceding price acceptance round plus one bid increment.

In case of auction of two or more frequency bands: For a frequency band with a total number of blocks registered to purchase in the immediately preceding price acceptance round greater than the number of frequency band blocks auctioned, the price of the price acceptance round of that frequency band shall be equal to the price of the immediately preceding price acceptance round plus one bid increment; for a frequency band with a total number of blocks registered to purchase in the immediately preceding price acceptance round fewer than or equal to the number of frequency band blocks auctioned, the price of the price acceptance round of that frequency band shall be equal to the price of the immediately preceding price acceptance round.

2. At each price acceptance round, bidders shall register the number of frequency band blocks they want to purchase according to the price of the price acceptance round as follows:

a) In case of auction of a single frequency band:

At the first price acceptance round, the quantity of frequency band blocks registered for purchase must be equal to the one stated in the auction dossier.

At the second price acceptance round onwards, the quantity of frequency band blocks registered for purchase must not be greater than the one in the immediately preceding price acceptance round.

b) In case of auction of two or more frequency bands:

At the first price acceptance round, the quantity of frequency band blocks registered for purchase for each band must be equal to the one stated in the auction dossier for such band.

At the second price acceptance round onwards, the bidders shall be entitled to change the quantity of frequency band blocks registered for purchase in each frequency band but such quantity must not be greater than the one stated in the auction dossier for such band and the total scores of all frequency band blocks registered for purchase in the round must not be greater than the total score of all frequency band blocks registered for purchase in the immediately preceding round.

The scores of frequency band blocks defined at this Point shall be determined according to one or several factors related to the width of frequency band block, the reserve price, and the similarity in transmission characteristics of the frequency bands as decided by the Minister of Information and Communications in the auction organization plan.

3. At the end of each price acceptance round, the auctioneer announces the total number of frequency band blocks registered for purchase in each band and informs bidders of their total scores of all frequency band blocks registered for purchase in that round.

4. The final price acceptance round means the round in which the total number of frequency band blocks registered for purchase in a frequency band is fewer than or equal to the quantity of auctioned frequency band blocks of that band.

5. The quantity of winning frequency band blocks of bidders for each frequency band is the quantity of frequency band blocks registered for purchase at the final price acceptance round.

Article 17. The auction round of the stage of determining the quantity of winning frequency band blocks

1. The auction round defined in this Article shall only be carried out in case the total number of frequency band blocks registered to purchase of one of the bands is fewer than the number of auctioned frequency band block of that band at the final price acceptance round.

2. The number of auctioned frequency band blocks for each frequency band at the auction round specified in this Article is the number of frequency band blocks remaining after the final price acceptance round.

3. Only participants in the price acceptance round immediately preceding the final price acceptance round may participate in offering of bids and register for one or more plans to purchase frequency band block specified in Clause 4 of this Article.

4. In a plan to purchase frequency band block, it is required to determine the number of frequency band blocks registered to purchase in each frequency band and the corresponding payment price in accordance with the following regulations:

a) In case of auction of a single frequency band:

The price offered for a frequency band block must be greater than or equal to the price of the final price acceptance round.

The number of frequency band blocks registered to purchase shall not be greater than the number of frequency band blocks specified in Clause 2 of this Article.

The number of frequency band blocks registered to purchase plus the number of frequency band blocks registered to purchase in the final price acceptance round shall not be greater than the number of frequency band blocks registered to purchase in the price acceptance round immediately preceding the final price acceptance round.

b) In case of auction of two or more frequency bands:

The price offered for a frequency band block for each frequency band must be greater than or equal to the price of the final price acceptance round corresponding to such frequency band.

The number of frequency band blocks registered to purchase in each frequency band must not be greater than the number of frequency band blocks specified in Clause 2 of this Article.

The number of frequency band blocks registered to purchase in each frequency band plus the number of frequency band blocks registered to purchase in the final price acceptance round of such band shall not be greater than the number of frequency band blocks registered to purchase in the auction dossier for such frequency band.

The total score of the frequency band blocks registered to purchase plus the total score of the frequency band blocks registered to purchase at the final price acceptance round shall not be greater than the total score of the price acceptance round immediately preceding the final price acceptance round.

5. The auctioneer determines the frequency band block combinations registered for purchase from the plans to purchase frequency band blocks of the bidders. The combination with the largest total number of frequency band blocks registered for purchase and the total number of frequency band blocks registered for purchase in each frequency band not greater than the number of frequency band blocks specified in Clause 2 of this Article is the winning frequency band block combination of all bidders.

In case there are two or more combinations with the same largest total number of frequency band blocks registered for purchase, the combination with the highest total bid amount is the winning frequency band block combination of all bidders.

In case there are two or more combinations with the same largest total number of frequency band blocks registered for purchase, and the same highest total bid amount, the auctioneer shall organize a draw to determine the winning frequency band block combination of all bidders.

6. The number of winning frequency band blocks at each frequency band of the bidder is the number of frequency band blocks registered for purchase in the winning frequency band block combination of all bidders specified in Clause 5 of this Article.

Article 18. Determination of the quantity of winning frequency band blocks of the stage of determining the quantity of winning frequency band blocks

The number of winning frequency band blocks at each frequency band is the total number of frequency band blocks specified in Clause 5, Article 16 of this Decree and the number of frequency band blocks specified in Clause 6, Article 17 of this Decree.

Article 19. The auction round of the stage of determining the locations of winning frequency band blocks

1. The locations of the remaining frequency band blocks (if any) after the stage of determining the quantity of winning frequency band blocks shall be decided by the Minister of Information and Communications in the auction organization plan.

2. In case there are two or more winning bidders for that frequency band, the auction round is conducted for each frequency band as follows:

a) The auctioneer determines the combinations of the winning frequency band block positions of all winning bidders based on the number of auctioned frequency band blocks at the stage of determining the number of winning frequency band blocks according to the principle that the frequency band blocks of each winning bidder are consecutive;

b) The bidders shall offer the bids for their auctioned frequency band block positions according to each combination. The offered bid is greater than or equal to 0 (zero) Vietnamese Dong. In case a bidder does not offer a bid, it is considered that the offered bid is 0 (zero) Vietnamese Dong;

c) The auctioneer determines the total amount of money that all bidders pay for offering of the bids for each combination;

d) The combination with the largest total bid amount is the winning frequency band block location combination of all winning bidders.

In case two or more combinations tie for the largest total bid amount, the auctioneer organizes a draw to determine the winning frequency band block location combination of all winning bidders.

Article 20. Determination of the winning bid price

The winning bid price of each winning bidder at each frequency band shall be determined according to the following formula:

T = A x M + B x N + P

In which:

T is the winning bid price;

A is the number of winning frequency band blocks in the auction as prescribed in Clause 5, Article 16 of this Decree;

M is the price of the final price acceptance round;

B is the number of winning frequency band blocks in the auction as prescribed in Clause 6, Article 17 of this Decree. B is 0 (zero) in case the total number of frequency band blocks registered for purchase at the final price acceptance round is equal to the number of auctioned frequency band blocks of that frequency band;

N is the price offered for a frequency band block by the bidder in the combination of winning frequency band blocks of all bidders specified in Clause 5, Article 17 of this Decree;

P is the price offered by the bidder in the combination of winning frequency band block positions of all winning bidders specified at Point d, Clause 2, Article 19 of this Decree.

Section 3

OFFERING OF BIDS BY QUANTITY OF FREQUENCY BAND BLOCKS REGISTERED FOR PURCHASE

Article 21. Bid offering method

1. The act of offering bids by quantity of frequency band blocks registered for purchase as prescribed at Point c, Clause 1, Article 59 of the Law on Property Auction, which was amended and supplemented by Clause 38, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Property Auction, shall be carried out simultaneously in many rounds for all frequency band blocks.

2. At the first auction:

a) Do not continue to organize the auction in case the total number of frequency band blocks registered to purchase in the auction dossier is fewer than or equal to the number of auctioned frequency band blocks;

b) Do not continue to organize the auction session in case the total number of frequency band blocks registered to purchase is fewer than or equal to the number of auctioned frequency band blocks in the first price auction round.

3. At the re-auction of frequency bands that have not been auctioned as prescribed in Clause 2 of this Article or frequency bands of which the auction is failed, the re-auction shall be conducted in accordance with Articles 22, 23 and 24 of this Decree.

The Minister of Information and Communications shall decide the application or non-application of Point a and Point b, Clause 2 of this Article in the auction organization plan upon organization of the auction as prescribed in this Clause.

Article 22. Auction rounds

1. The reserve price of auction rounds for each frequency band block:

a) The reserve price of the first auction round is the reserve price of each frequency band block as specified in the Rules of the auction;

b) The reserve price of the auction round from the second auction round onwards is the highest offered bid in the immediately preceding auction round.

In the case where there is no bidder in the immediately preceding auction round but there has been at least one bidder in the previous auction rounds and has not switched to offer bids for another frequency band block, the reserve price of the auction round is the highest bid among the bids of those who have not switched to offer bids for another frequency band block; in the case where all of these person switch to offer bids for another frequency band block, the reserve price of the auction round is the reserve price specified in the Rules of the auction.

2. Bidders are entitled to bid for any frequency band block according to the following regulations:

a) In the first auction round, the number of frequency band blocks for which the bidders offer the bids must be equal to the number of frequency band blocks registered to purchase in their auction dossiers;

b) The bid offered for each frequency band block shall be equal to the reserve price of that frequency band block plus an integer multiplied by bid increments (the integer starts from 0 (zero) for the first auction round and starts from 1 (one) from the second auction round onwards) and must be at least one bid increment higher than the highest price offered by the bidder himself for that frequency band block;

c) From the second auction round onwards, the total score of the frequency band blocks at the end of the auction round of the bidders shall be determined in accordance with Clause 2, Article 24 of this Decree shall not be greater than the total score of the frequency band blocks at that auction round of the bidders determined under Clause 3, Article 24 of this Decree.

3. At the end of each auction round, the auctioneer announces the highest offered bid for each frequency band block, notifies each bidder of the total scores of frequency band blocks of that bidder in the next auction round, and the frequency band blocks for which that bidder is the person who has offered the highest bid (if any).

4. The auction session finishes when no one offers a bid. The person who has offered the highest bid in the round immediately preceding the last round shall be the winning bidder.

Article 23. Determination of the person offering the highest bid for each frequency band block

The determination of the person offering the highest bid for each frequency band block at the auction round shall be carried out as follows:

1. In case there are bidders, the bidder offering the highest bid among the bidders is determined to be the person offering the highest bid. In case there are two or more bidders who have offered the same highest bid, the auctioneer will organize a draw to determine the person offering the highest bid.

2. In case no one offer a bid and the person offering the highest bid in the immediately preceding auction round does not offer the bid for another frequency band block, such person shall continue to be determined as the person offering the highest bid.

3. In case no one offer a bid and the person offering the highest bid in the immediately preceding auction round offers a bid for another frequency band block, the person offering the highest bid among those who offer a bid for such frequency band block in the previous auction rounds without offering the bid for another frequency band block is the person offering the highest bid; in case there are two or more persons who offer the same highest bid, the auctioneer shall organize a draw to determine the person offering the highest bid.

Article 24. Frequency band block scores

1. The score of a frequency band block shall be determined according to one or several factors related to the width of frequency band block, the reserve price, and the similarity in transmission characteristics of the frequency bands as decided by the Minister of Information and Communications in the auction organization plan.

2. The total score of the frequency band blocks at the end of the auction round of a bidder is determined as follows:

Q_n = A + B

In which:

n is the order of the auction round;

Qn is the total score of the frequency band blocks at the end of the n^th auction round of the bidder;

A is the total score of the frequency band blocks for which the bidder offers the highest bid in the n-1^th auction round but does not switch to offer the bids for other frequency band blocks in the n^th auction round; A = 0 in the first auction round;

B is the total score of the frequency band blocks for which the bidder offers the bid in the n^th auction round, excluding the frequency band blocks for which the bidder offers the highest bid in the n-1^th auction round and continues to offer the bid for such frequency band blocks in the n^th auction round.

3. From the second auction round onwards, the total score of the frequency band blocks at the auction round of a bidder shall be determined as follows:

P_n = Q_n-1 + C

In which:

n is the order of the auction round;

P_n is the total score of the frequency band blocks at the n^th auction round of the bidder;

Q_n-1 is the total score of the frequency band blocks at the end of the n-1^thauction round of the bidder determined in accordance with Clause 2 of this Article;

C is the total score of the frequency band blocks for which the bidder is determined to be the person offering the highest bid at the n-1^th auction round in accordance with Clause 3, Article 23 of this Decree; C is equal to 0 (zero) in the first and second auction rounds.

Chapter VI

HANDLING OF VIOLATIONS COMMITTED BY WINNING BIDDERS OF LAND USE RIGHTS IN CASE OF LAND ALLOCATION OR LAND LEASE FOR IMPLEMENTATION OF INVESTMENT PROJECTS OR WINNING BIDDERS OF THE MINING RIGHTS

Article 25. Forms of handling of violations

1. The winning bidders of land use rights in case of land allocation, land lease for implementation of investment projects, winning bidders of the mining rights that breach the obligation to pay the winning bid price, leading to the cancellation of the decision on recognition of auction results, they shall, depending on the nature and severity of their violation, be prohibited from participating in the auction for that type of property as follows:

a) They are banned from participating in the auction from 02 years to 05 years in case of the winning bidders failing to pay the winning bid price;

b) They are banned from participating in the auction from 06 months to 03 years in case of the winning bidders failing to fully pay the winning bid price.

2. Within 10 days from the date of issuance of the decision on cancellation of the decision on recognition of auction results for the of land use rights in case of land allocation, land lease for implementation of investment projects, or for the mining rights, the agency competent to decide on prohibition of participation in the auction shall consider and issue a decision on prohibition of participation in the auction for the winning bidder for that type of property in accordance with Clause 1 of this Article.

3. The decision on prohibition of participation in the auction includes the following contents:

a) Name of the competent agency;

b) Name of the prohibited organization or individual;

c) Prohibition period;

d) Scope of prohibition;

dd) Effect: effective date and expiration date.

4. Within 07 working days from the date of issuance of the decision on prohibition of participation in the auction, the agency competent to decide on prohibition of participation in the auction shall be responsible for sending the decision to the organization or individual subject to handling and relevant agencies and organizations; at the same time, sending it to the Ministry of Justice and such decision must be posted on the National Property Auction Portal.

5. In case the organization or individual prohibited from participating in the auction does not agree with the decision on prohibition of participation in the auction, he/she/it has the right to complain or initiate a lawsuit in court in accordance with law regulations.

Article 26. Statute of limitations for for handling of violations

Statute of limitations for for handling of violations applicable to winning bidders defined in Article 25 of this Decree is 01 year from the date of issuance of the decision on cancellation of the decision recognizing the auction results.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 27. Transitional provisions

1. For property auction practicing organizations that have submitted their  valid schemes on implementation of online auction under the Government’s Decree No. 62/2017/ND-CP dated May 16, 2017, on detailing a number of articles of, and providing measures to implement, the Law on Property Auction before the effective date of this Decree, Departments of Justice of provinces and centrally-run cities shall continue to implement the appraisal of the conditions and approval of their eligibility for online auction in accordance with the Government’s Decree No. 62/2017/ND-CP dated May 16, 2017, on detailing a number of articles of, and providing measures to implement, the Law on Property Auction.

2. For property auction practicing organizations whose schemes on establishment of online auction website have been submitted to the Ministry of Justice under the Government’s Decree No. 47/2023/ND-CP dated July 03, 2023, on amending and supplementing the Government’s Decree No. 62/2017/ND-CP dated May 16, 2017, on detailing a number of articles of, and providing measures to implement, the Law on Property Auction before the effective date of this Decree, but have not been yet appraised and approved, the Ministry of Justice shall transfer their schemes to the Departments of Justice of provinces and centrally-run cities where the property auction practicing organizations are headquartered for appraisal of conditions for online auction websites in accordance with the Government’s Decree No. 47/2023/ND-CP dated July 03, 2023, on amending and supplementing the Government’s Decree No. 62/2017/ND-CP dated May 16, 2017, on detailing a number of articles of, and providing measures to implement, the Law on Property Auction and approval of schemes within 90 days from the date of receipt of the schemes.

3. Property auction practicing organizations whose eligibility for implementation of online auction has been approved under the Government’s Decree No. 62/2017/ND-CP dated May 16, 2017, on detailing a number of articles of, and providing measures to implement, the Law on Property Auction or have their online auction websites approved under the Government’s Decree No. 47/2023/ND-CP dated July 03, 2023, on amending and supplementing the Government’s Decree No. 62/2017/ND-CP dated May 16, 2017, on detailing a number of articles of, and providing measures to implement, the Law on Property Auction must complete the maintenance and upgrading of the online auction systems in accordance with the requirements and conditions defined in Article 5 of this Decree, and shall submit a report on the results to the Ministry of Justice and the Departments of Justice of provinces and centrally-run cities that have implemented the approval no later than January 1, 2026.

Article 28. Effect

1. This Decree takes effect on January 01, 2025.

2. This Decree replaces the Government’s Decree No. 62/2017/ND-CP dated May 16, 2017, on detailing a number of articles of, and providing measures to implement, the Law on Property Auction and the Government’s Decree No. 47/2023/ND-CP dated July 03, 2023, on amending and supplementing the Government’s Decree No. 62/2017/ND-CP dated May 16, 2017, on detailing a number of articles of, and providing measures to implement, the Law on Property Auction.

Article 29. Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of People’s Committees of provinces, centrally-run cities shall implement this Decree.