Nghe An National Assembly Delegation actively discussed the draft Law on Property Auction

(Baonghean.vn) - Continuing the program of the 2nd Session, on the morning of October 24, the National Assembly Deputies worked in the hall, discussing the draft Law on Asset Auction. One of the contents that many National Assembly Deputies gave their opinions on at the discussion session was the auction of bad debts and collateral assets of bad debts. The majority of opinions of the National Assembly Delegation of Nghe An province agreed with option 1 that the Government submitted and was shown in the draft, because such regulations will create a clear enough legal corridor to contribute to handling bad debts and collateral assets more quickly and effectively, soon making the credit system and the economy healthier.

Panorama of the working session in the hall. Photo by Anh Tuan

Since there are still different opinions on this issue, the National Assembly Standing Committee proposed 2 options to seek opinions from the delegates. Option 1: Clause 9, Article 4 of the Law on Corporate Income Tax used the phrase "organization in which the State owns 100% of the charter capital established by the Government to handle bad debts of Vietnamese credit institutions" to use for VAMC. Therefore, this phrase was accepted and supplemented in Section 3 including 2 articles on auctioning bad debts and collateral of bad debts in Chapter IV. At the same time, it was supplemented in a number of articles and provisions of general provisions in the law such as Clause 2, Article 2 on applicable subjects, Point o, Clause 1, Article 3 on auctioned assets...

Option 2 is not to regulate the auction of bad debts and collateral of bad debts as well as the rights and obligations related to the auction of bad debts and collateral of bad debts in this draft law to ensure the market mechanism and auction principles as prescribed in the draft law. After that, the Government will be requested to amend Decree No. 53/2013/ND-CP in the spirit of this law to avoid legal consequences in terms of finance after debt settlement and ensure the universality of the law.

Delegation of National Assembly Deputies of Nghe An province. Photo by Anh Tuan

Regarding this issue, the majority of the National Assembly deputies of Nghe An province agreed with option 1 that the Government submitted and was presented in the draft. Many deputies said that such a regulation would create a clear enough legal corridor to contribute to handling bad debts and collateral assets more quickly and effectively, and soon make the credit system and the economy healthier.

However, some delegates suggested that it is necessary to clearly stipulate the form of practice of auctioneers at organizations in which the State owns 100% of the charter capital and is established by the Government to handle bad credit debt in Vietnam, and to be allowed to auction bad debt and collateral of bad debt...

Delegate Tran Van Mao said that the regulation that VAMC is allowed to auction bad debts with collateral is reasonable because the handling has been slow in the past, while this is an important resource that can be promoted for economic development. This regulation is also necessary because the current handling of bad debts is regulated by sub-law documents, so the stability is not high and is not market-oriented.

From another perspective, delegate Nguyen Thanh Hien also said: The auction of bad debts and secured assets is only stipulated in principle in the draft Law and assigned to the Government to provide detailed regulations. However, to ensure the objectivity of the issue, the auction must not be conducted by the Asset Management Company of Vietnamese credit institutions but must be conducted independently.

Assessing this draft law as a breakthrough, to prevent collusion or "blue and red teams" which is a current painful situation in the process of managing asset auctions. However, to ensure objectivity and safety, delegate Hoang Thi Thu Trang suggested that in addition to the auctioneer, an auction session should have the active participation of many other subjects such as secretaries, specialists, etc.

Delegate Hoang Thi Thu Trang speaks. Photo: Anh Tuan

"This could be a group of people with a very high potential for violations, but the draft law has not mentioned it. Therefore, it is necessary to add regulations on standards, conditions, and prohibited behaviors," delegate Hoang Thi Thu Trang suggested.

Analysis of auction activities often arises in places with developed economic conditions, so the auction location should be regulated at auction service centers so that many organizations and individuals can participate. Other opinions of the Delegation suggest that Article 36 should be revised to be that the asset auction is held at an auction center or other location according to the agreement between the asset owner and the asset auction organization, except in cases where the law provides otherwise...

In the afternoon, National Assembly deputies worked in the hall on a number of contents with different opinions in the draft Law on Belief and Religion.

Diep Anh