Prevent market manipulation
Discussing in groups about the draft Law amending and supplementing a number of articles of the Law on Property Auction, delegate Ta Thi Yen ( Dien Bien ) proposed to analyze and clarify the existing problems, difficulties, and lack of consistency between the provisions of the law on land, investment, auction and tax management, finance, and corporate credit, especially the conditions for registering to participate in auctions, the financial capacity of auction participants, and the deadline for paying the winning bid.
“If we only amend and supplement the provisions of the Auction Law, it will not be enough to prevent market manipulation and speculation, especially in the real estate sector. Therefore, we need a more comprehensive solution to policies on credit, land, enterprises and property auctions to resolve current problems,” delegate Ta Thi Yen suggested.
According to the delegate, in recent times, in asset auctions, there has been a phenomenon of manipulating starting prices, bidding very high and then abandoning deposits to create a virtual price level effect to gain profits, creating a virtual land fever... The Law Project has amended and supplemented the provisions on canceling auction results in the direction of clearly defining the subjects and grounds for canceling auction results to ensure feasibility, compliance with the provisions of the law on civil matters, and legal consequences when canceling auction results to protect the interests of the State, the rights and legitimate interests of individuals and organizations, and clearly defining the responsibilities of those who commit violations leading to the cancellation of auction results.
“However, in the actual course of auctions, when the behavior of the subjects is abnormal, the draft law needs to stipulate the postponement or cessation of the auction,” delegate Ta Thi Yen suggested.
National Assembly delegate of Ba Ria - Vung Tau province Nguyen Thi Yen speaks. Photo: Doan Tan/VNA
Sharing the same view, delegate Nguyen Thi Yen (Ba Ria - Vung Tau) proposed to consider and supplement regulations on handling violations against organizations and individuals who win the auction but abandon their deposits.
Delegate Nguyen Thi Yen said that recently there have been many cases of winning auctions but abandoning deposits and not paying to receive the auctioned assets, especially for assets with very high post-auction value such as license plates or real estate. “Meanwhile, the provisions of the Law on Property Auction do not have sanctions when bidders abandon deposits, only stipulate that those who have won the auction but do not pay will lose their deposits,” emphasized delegate Nguyen Thi Yen.
To remedy this situation, delegate Nguyen Thi Yen suggested that the drafting agency consider adding a regulation that assets managed by the State, when auctioned, cannot be deposited. "It is necessary to supplement and adjust sanctions for this deposit-abandoning behavior; there should be measures to impose fines many times higher than the deposit to avoid successful auctions and then deposit abandonment," delegate Nguyen Thi Yen said.
Speaking at the group, delegate Nguyen Van Canh (Binh Dinh) said that in the draft Law amending and supplementing a number of articles of the Law on Property Auction, the starting price is quite low, for example, the starting price for auctioning a phone number is only 262,000 VND.
In reality, some assets have low starting prices but the winning prices are several thousand times higher, delegate Nguyen Van Canh proposed to adjust the prices more flexibly, adding a percentage price, in addition to the maximum, minimum, and fixed prices as in the draft law.
“For example, when auctioning a phone number, the starting price is 262,000 VND, but when the auction reaches 1 million VND, the next price should be 5% of that 1 million. When it reaches 100 million VND, the next price is 5% of 100 million VND. Thus, the auction price will be appropriate. Similarly, many car license plates are auctioned for up to billions of VND, but the next person only needs to pay 5 million VND more to win, which is very unreasonable. When it reaches 1 billion, the next price needs to be about 50 million higher,” delegate Nguyen Van Canh gave an example.
Commenting on the regulation on canceling auction results, delegate Nguyen Van Canh said that if the auctioneer can prove that there was a force majeure factor that led to the cancellation of the auction, such as loss of property, flood, or accident, it can be accepted and not be handled. However, if it cannot be proven, that person should be banned from auctioning the property for a certain period of time.
In case the auction winner does not accept, delegate Nguyen Van Canh proposed that the second highest bidder should be allowed to receive the property to avoid having to re-auction, wasting time and effort.
Expanding the practice of industrial mobilization even in peacetime
Giving comments in the group on the draft Law on National Defense Industry, Security and Industrial Mobilization, delegate Nguyen Thi Yen (Ba Ria - Vung Tau) agreed that the National Assembly should consider and give opinions on this draft Law to create favorable legal conditions and improve the effectiveness of national defense industry activities to meet the requirements and tasks of protecting the Fatherland in the new situation.
Regarding the compatibility of the law with the current legal system, delegate Nguyen Thi Yen proposed a comprehensive review of the contents of the draft Law related to other laws such as the Enterprise Law (regulations related to production and business activities of enterprises; regulations and financial mechanisms of organizations participating in industrial mobilization); Intellectual Property Law (in cases where the State can requisition, purchase intellectual property products, transfer patents, technical innovation solutions for the defense and security industry and industrial mobilization)...
Agreeing with the necessity of promulgating the Law on National Defense Industry, Security and Industrial Mobilization with political, legal and practical bases as presented by the Government, delegate Duong Khac Mai (Dak Nong) said that the draft Law has introduced the concept of "weapons complex" but the Law on Management and Use of Weapons, Explosives and Support Tools does not have this concept but only the concept of "combined means manufactured and produced". Therefore, delegate Duong Khac Mai suggested that the Drafting Committee review and adjust to ensure general consistency in the legal system.
To develop the defense and security industry in a dual-use, modern direction, delegate Duong Khac Mai suggested that it is necessary to consider expanding the practice of industrial mobilization in peacetime to mobilize maximum forces inside and outside the army to build and gradually perfect the production, repair, improvement, modernization, and increase the shelf life of weapons and technical equipment.
According to VNA/Tin Tuc Newspaper
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