Nghe An: Piloting land auctions by indirect secret ballot - brokers run out of land to do business

Dien Chau is a hot spot in land auctions due to the situation of “land brokers” colluding, lowering prices, causing disorder, anger among the people and budget losses. Therefore, Dien Chau district was chosen by the province as a point in changing the form of auction from direct to indirect.

At the auction of 26 residential land lots in Dien An in early May, there was no longer any jostling or aggressive land brokers threatening and pressuring buyers like at the auction at the end of last year. There was also no longer any scene of the district police force working hard to protect the area. All auction participants sat in the hall in an orderly and serious manner with a relaxed mindset. During one session, 14/26 land lots were successfully auctioned.

Building infrastructure for land subdivision in Dien Phuc commune. Photo: Mai Giang

After receiving the ballot, I can go home and fill in the information about the bid price and lot number. Then, put it in an envelope, sign over the seal to “seal” it and put it in the ballot box on time. Thus, the information about which lot to buy and how much to pay will only be known when the ballot is opened at the price announcement session. I find the process very good, more stable, more trustworthy, and land auction participants feel comfortable.

Mr. Nguyen Van Sau in Hamlet 3, Dien An Commune, Dien Chau

Similarly, the indirect auction of 10 residential land lots in Dien Phuc commune went smoothly. In particular, customer information was kept confidential until the bidding was opened. Along with that, the budget revenue increased by more than 3 billion VND compared to previous auctions.

Ms. Vu Thi Bich Thuy in Dien Phuc commune was excited to have won the auction of a plot of land and shared: The auction by secret ballot indirectly helps the auction participants keep their information confidential. If there is a real need to buy, the bidder will research and pay a price close to the market price. Thus, those who do not have a real need to buy will not dare to pay high because if they win the auction, they will "hold" the land and sell it at a price not much different from the market price, which will result in a loss, so they do not dare to do as before. This new form of auction also ensures security, order and fairness among the auction participants.

People wait for the announcement of results in a land auction.Dien An commune. Photo: Mai Giang

Direct auctions as before, a lot of people bid directly at the hall until there are no more bidders, while indirect auctions, customers bid by secret ballot in the box and are closely monitored. After opening the announcement, whoever bids higher will win the auction, if the price is equal, if there is demand, then bid directly at the hall.

Starting from March, Dien Chau has organized indirect auctions in 5 communes: Dien An, Dien Phuc, Dien Xuan, Dien Tan, Dien Loi with 51 plots of land sold. All auctions were conducted safely and smoothly, creating trust among the people. According to the District Land Auction Council, the amount of money collected for the budget increased by at least 20% compared to before.

After many discussions and instructions from the province, taking Dien Chau as a model for indirect auction, we also went to Ha Tinh to see this model, studied it very carefully, proposed some regulations to suit the actual situation and through the auction process, this auction method is better than before. And the province is replicating this model of Dien Chau.

Mr. Chu Duy Phong - Head of Finance and Planning Department of Dien Chau district

Thus, the auction by indirect secret ballot has eliminated the previous situation of "ignorance" and "land brokers". And this is considered the most superior method up to now. This shows the interest in solving the pressing problems of Dien Chau, creating trust and fairness in land auctions in the district.