Government Regulation Offers Discounts and Support for State-Owned Enterprise Buyers in Vietnam

The Vietnamese government has recently introduced a new regulation for the auction of State-owned enterprises (SOEs). The regulation, signed by the Prime Minister, outlines specific conditions and incentives for buyers, aiming to promote transparency and efficiency in the auction process. As of the regulation's implementation, any buyer who pays the contract value within 10 days of signing the effective purchase contract will receive a 10% discount on the contract value.

Key Takeaways:

• Buyers who settle payment within 10 days of the effective purchase contract will receive a 10% discount on the contract value.
• State-owned enterprises must be financially clean prior to being auctioned and will receive financial support to settle any labor issues.
• Investors must register and deposit 10% of the asking price, with a minimum of VND50 million (US$3,300), and no later than five days before the auction date.
• The auction organizer is obligated to protect the confidentiality of bidding prices.
• Buyers must sign the purchasing contract within two days, and payment cannot exceed six months.
• The buyer can pay the asking price using instalments, with the first payment being at least 70% of the contract value.
• The Steering Committee for SOEs Auctioning can lower the asking price or change the form of sale if the bidder is unavailable.
• Investors who quit the auction process during the registration period can receive a refund of their deposit.

Statistics:

• 10% discount on the contract value for buyers who settle payment within 10 days of the effective purchase contract.
• Maximum payment period: six months.
• Minimum deposit required: VND50 million (US$3,300).
• Registration and deposit deadline: no later than five days before the auction date.
• Duration of the purchasing contract: two days.

Sources:

• Asia Pulse
• VNA (VietNamNet) 22-12-1542
• Regulation on the auction of SOEs, signed by the Prime Minister