Penalties must be increased for acts showing signs of sabotaging land auctions.

According to experts, publicizing the identities of those who bid unusually high and then gave up halfway through the auction or those who won the auction but then withdrew their deposits will help stop bad behavior and deter violations. However, in addition to publicizing the identities, there should be more severe sanctions.

From an economic perspective, Dr. Nguyen Tri Hieu agrees that "naming and shaming" without accompanying punishment will not be very effective. According to him, many people still live in a way that is willing to commit wrongdoings for immediate benefits. Therefore, Dr. Nguyen Tri Hieu emphasizes the need for intervention from state agencies to strictly handle acts that cause disruption in the real estate market.

Many opinions say that it is necessary to publicize the identities and severely punish those who bid high and then give up when participating in land auctions. (Illustration photo: Minh Duc).

Lawyer Mai Thao - Deputy Director of TAT Law Firm also said that publicizing the identity of those who deposit when winning land auctions or shouting "fake" prices during auctions can increase transparency and warn those who intend to participate in non-serious auctions. However, he emphasized that this is currently only at the level of deterrence.

Lawyer Thao cited: Current regulations also have sanctions for those who abandon their deposits, including a ban from participating in auctions from 6 months to 5 years, a fine of 7-10 million VND, but in reality, the situation of "paying high prices, abandoning deposits" still occurs as in the past. Because this penalty is considered too light and not enough of a deterrent.

With the possibility of being "named and shamed", those who want to "circumvent" the law can completely ask or hire others to participate in the auction in their own name, thereby continuing the actions of creating a "real estate bubble".

Accordingly, lawyer Thao proposed to increase the deposit level to 20 - 30% of the auctioned asset value and request compensation for damages from 30 - 50% of the asset value, to compensate for the losses of related parties.

Mr. Nguyen The Diep, Vice President of Hanoi Real Estate Club, also affirmed that the behavior of paying high prices and then giving up is a sign of speculation and price inflation. Although public information is an effective measure, stronger measures are needed to prevent it.

" If there are no stronger measures to publicize information, the problem may not be solved. Before each land auction, the financial capacity of the auction participants must be considered and the source of money must be proven if the auction is won. In addition, tax tools must be considered to prevent the situation of abandoning land auction deposits ," Mr. Diep shared.

According to lawyer Dang Van Cuong, Hanoi Bar Association, publicizing the identities of these people is necessary to implement preventive measures and is the basis for applying measures to restrict the right to participate in property auctions.

However, according to Mr. Cuong, in order to strictly control and help the real estate market operate healthily according to market rules, it is necessary to perfect policies and laws. In particular, it is necessary to legalize the concept of "manipulating the real estate market" to have regulations on management as well as sanctions for this behavior.

Currently, Vietnam's criminal law has a crime of stock market manipulation, and many organizations and individuals have been prosecuted for this behavior. However, there are no regulations on handling the behavior of gold market manipulation and real estate market manipulation.

" Perhaps this is also the reason why many people are willing to commit violations without fear of sanctions. Therefore, it is necessary to improve legal policies by introducing new concepts and specific regulations to manage this market, avoiding situations where some interest groups manipulate and profit, distorting the capital market and real estate market, " Mr. Cuong emphasized.

On November 29, the Soc Son District Land Fund Development Center coordinated with Thanh Xuan Joint Auction Center to auction 58 land plots in Dong Lai village, Quang Tien commune, Soc Son district.
When the 5th round came, someone wrote down a land bid of more than 30 billion VND/m2, an unprecedentedly high price. Many other plots of land were also bid at very high prices, around 60 - 101 million VND/m2. However, in the 6th round - the final round, they asked not to bid any more. This person even wrote in a very large letter on the bid sheet the content: "I'm so scared! Please withdraw".
In the end, only 22/58 plots were successfully bid, with prices ranging from 32 to 50 million VND/m2. All those who "shouted" high prices in round 5 asked to stop bidding in round 6.
With the above developments, this auction is believed to have signs of being "sabotaged" by a group of customers.
Previously, on September 16, the Thanh Oai District Land Fund Development Center confirmed that there was a situation of abandoned land auction deposits at the August 10 session. Accordingly, there were up to 55 land lots abandoned deposits out of 68 lots that won the auction, including the lot with the winning price of 100.5 million VND/m2. Of the 13 lots with full payment, the highest price was just over 55 million VND/m2.

Chau Anh

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