No regulations on auction of future assets

Delegate Lo Thi Luyen, Deputy Head of the National Assembly Delegation of Dien Bien province, spoke at the group discussion session on November 8.

Participating in giving opinions, the National Assembly deputies of Dien Bien province agreed with the necessity of promulgating the Law amending and supplementing a number of articles of the Law on Property Auction to promote administrative reform, judicial reform, perfecting mechanisms, policies, laws, preventing corruption and negativity in property auction activities to institutionalize the Party's guidelines, policies and the State's laws, contributing to ensuring the unity, synchronization, feasibility and effectiveness of the legal system.

Delegate Ta Thi Yen assessed that the draft Law dossier had been carefully and fully prepared by the drafting agency, in accordance with the procedures of the Law on promulgation of legal documents. However, some provisions on auction procedures in the draft Law have contents that are not really suitable to the arising reality, especially for some special assets, or the mechanism for canceling auction results in some specific cases.

The Draft Law has amended and supplemented a number of provisions on the order and procedures for auctioning specific assets including land use rights to implement investment projects, mineral exploitation rights, radio frequency use rights, etc. However, there are no clear regulations on auctioning assets formed in the future such as real estate projects such as apartments, houses, etc. for which the buyer has deposited or paid a part of the asset value according to the contract, or auctioning intellectual property rights, inventions, patents, solutions, software, technology, etc.

Delegate Ta Thi Yen, Deputy Head of the Delegation Affairs Committee, National Assembly Delegate of Dien Bien province, spoke at the group discussion session on November 8.

According to delegate Ta Thi Yen, in recent times, in asset auctions, there has been a phenomenon of manipulating starting prices, bidding very high and then abandoning deposits, causing the effect of creating a virtual price level to gain profits, creating a virtual land fever... The Draft Law has amended and supplemented the provisions on canceling auction results in the direction of: clearly defining the subjects, the basis for canceling auction results to ensure feasibility, in accordance with the provisions of the law on civil affairs, the legal consequences when canceling auction results to protect the interests of the State, the rights and legitimate interests of individuals and organizations and clearly defining the responsibilities of those who commit violations leading to the cancellation of auction results. However, in reality, when the behavior of the subjects in the course of the auctions has shown abnormality, or is too unreasonable, there is no provision on what to do, or postpone, or stop the auction to analyze and evaluate the situation?

Regarding illegal acts in property auctions, delegate Lo Thi Luyen said that in practice, these acts are very sophisticated and difficult to detect, such as "collusion, price suppression", "blue team, red team", or the situation of paying unusually high prices to win the auction and then abandoning the deposit, such as land auctions in Ho Chi Minh City or car license plate auctions... The delegate suggested that there should be specific regulations to limit these acts.

Regarding the responsibilities of agencies and organizations in asset auction activities, delegate Ta Thi Yen supported the addition of a number of regulations on the rights and obligations of people with assets to be auctioned, responsibilities in management, operation, and instructions for using the National Asset Auction Portal... These are very new regulations, in the direction of publicity, transparency, and enhancing the accountability of relevant agencies and individuals in the auction organization process. The delegate suggested that it is necessary to stipulate in more detail the capacity of the apparatus, professional capacity, expertise, and responsibilities of the staff involved in handling and auctioning public assets and assets of state-owned enterprises in similar cases to ensure that the auction is public and transparent, minimizing negative impacts on social life.

In addition, delegate Ta Thi Yen said that the Draft Law needs to analyze and clarify the existing problems and difficulties related to the inconsistency and lack of synchronization between the provisions of the law on land, investment, auction and tax management, finance, and corporate credit. Especially regarding the conditions for registration to participate in auctions, the financial capacity of auction participants, and the deadline for paying the winning bid; because if we only amend and supplement the provisions of the Law on Property Auction, it will not be enough to prevent acts of market manipulation and speculation, especially in the real estate sector, so we need a more comprehensive solution for policies on credit, land, enterprises, and property auctions to resolve the above problems.

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