Increase budget revenue from auction activities

After 3 years of implementing Decree No. 17/2010/ND-CP dated March 4, 2010 of the Government on asset auction, Ho Chi Minh City has successfully auctioned and increased budget revenue by nearly 5,000 billion VND.

Smuggled ivory evidence confiscated by Ho Chi Minh City Customs. Photo: TH

Over 3,000 successful auctions

According to Ho Chi Minh City, after 3 years of implementing property auction activities in Ho Chi Minh City, certain results have been achieved, creating a favorable environment for more diverse and abundant goods trading activities; property auctions in general and land use rights auctions in particular have significantly increased State budget revenue, contributing positively to the city's socio-economic development. The socialization of property auction activities has been promoted.

As of June 30, 2013, in Ho Chi Minh City, there were 70 auctioneers working at 29 professional property auction organizations. The auctioneers all had bachelor's degrees or higher in various majors, of which the number of auctioneers with legal expertise accounted for 51.43%.

Regarding professional auction organizations, the District-level Property Auction Council, Ho Chi Minh City has 29 professional auction organizations and 24 District-level Property Auction Councils.

The above organizations have organized 3,111 successful auctions with a total starting asset value of over VND 4,751 billion and a total sold asset value of over VND 4,981 billion, the increase rate between the selling price and the starting price is 4.85%.

Through the organization and operation data, it is shown that enterprises specializing in asset auctions operate more effectively, with more attention to investing in facilities and human resources. Asset auction activities of multi-industry enterprises with asset auction services are only a supplementary field to the business activities of the enterprise, so the asset auction activities of this type of enterprise are still small-scale and unprofessional.

Limitations

In addition to the achieved results, according to the Ho Chi Minh City People's Committee, after 3 years of implementation, some provisions of Decree No. 17/2010/ND-CP have revealed some limitations and inadequacies, which are no longer suitable for the practice of asset auctions, such as: asset auction activities of asset auction enterprises are still small-scale and unprofessional because asset auction enterprises have not paid due attention to investing in facilities and human resources for this activity, so they have not created a highly reputable brand in asset auction activities.

In addition, there are no regulations on the social-professional organization of auctioneers, so the effective management principle of combining state management with the self-management regime of social-professional organizations has not been implemented. Some regulations have not created convenience in state management such as: granting Auction Practice Certificates, registering auctioneer lists, granting auctioneer cards, etc.

Some regulations are still lacking, such as: the regime for storing property auction records; regulations on purchasing professional liability insurance for property auction activities or setting up a professional risk reserve fund for property auction enterprises; regulations on capital contribution by members who are organizations of limited liability companies with two or more members, property auction joint stock companies; forms of providing property auction services by foreign property auction organizations in Vietnam.

In addition, Decree No. 17/2010/ND-CP does not have an effective mechanism to ensure the rights of buyers of auctioned assets, especially assets subject to enforcement of judgments and secured assets. In reality, the delivery of auctioned assets as assets subject to enforcement of judgments to the successful buyers of auctioned assets is often delayed and prolonged, affecting the legitimate rights and interests of the successful buyers of the assets, as well as the reputation of professional asset auction organizations.

Currently, Ho Chi Minh City is building an Enterprise Management Information System (Post-audit Information System), and at the same time, building regulations on management, provision and sharing of information in this System to improve the effectiveness of state management of enterprises after establishment registration, including enterprises auctioning assets./.

According to haiquanonline