According to the Department of Justice, the unit in charge of drafting the draft, the amendment and supplementation of regulations on auctions of land use rights aims to improve effectiveness and efficiency, ensuring unified State management of land use rights auction activities to allocate land with land use fees, or lease land in the province.

At the same time, through this move, Nghe An province aims to improve professionalism in asset auction activities; overcome shortcomings and limitations in the local situation and especially the conformity with current legal documents.

The revised and supplemented contents focus on regulations on conditions for auctioning land use rights; selection and signing of land use rights auction service contracts; deposit, handling of deposit and security deposit; deadline for payment of land rent and land use fees; and at the same time, a number of regulations on principles for auctioning land use rights are abolished.

Previously, to implement the Law on Property Auction 2016, on May 17, 2017, Nghe An Provincial People's Committee issued Decision No. 2051/QD-UBND approving the Plan to implement the Law on Property Auction in the province.

Nghe An Provincial People's Committee issued Decision No. 12/2018/QD-UBND dated February 3, 2018 and Decision No. 7/2021/QD-UBND dated April 23, 2021 amending and supplementing a number of articles of Decision No. 12/2018/QD-UBND regulating the auction of land use rights to allocate land with land use fees, or lease land in Nghe An province.

The above plans and regulations have contributed to improving the quality of land use rights auctions in the province, ensuring publicity, objectivity, transparency, protecting the legitimate rights and interests of the State, auction participants, auction winners, property auction organizations, auctioneers, increasing auction efficiency, security, political stability and increasing state budget revenue.

Up to now, in Nghe An province, there are 22 property auction organizations, with 51 auctioneers, including 1 Property Auction Service Center, a public service unit under the Department of Justice with 7 auctioneers, 21 property auction enterprises with 44 auctioneers.

However, according to the Nghe An Department of Justice, in the process of implementing Decision No. 12/2018/QD-UBND and Decision No. 07/2021/QD-UBND, there are still some limitations and inadequacies.

Specifically, the implementation of selecting auction organizations to conduct land use rights auctions in some places is not strict; besides, the number of auction organizations is increasing, but the quality is uneven, there are many small-scale organizations, the capacity does not meet the requirements when auctioning large and complex assets.

The provision of deposit is also considered to be no longer suitable with current practice and regulations. At the same time, the efficiency of some auctions is not high, not following the prescribed auction procedures, there is still collusion, price suppression, the difference between the starting price and the winning price is not high.

The above limitations and shortcomings stem from a number of reasons such as: Some district-level People's Committees have not paid attention to directing or have not closely directed the selection of property auction organizations, leading to the selection of organizations that do not ensure prestige and capacity to conduct the auction; auction supervision is mainly focused on the auction itself, and the auction organization process has not been closely monitored from the time of signing the service contract until the end of the auction, sometimes only as a formality.

Some property auction organizations are taking the auction procedures lightly; issuing some documents during the land use rights auction process that are not in accordance with legal regulations; the real estate market has been "frozen" recently, so land use rights auctions are also affected.

Some relevant legal documents of higher levels have just been amended, supplemented, and newly issued, so some regulations in Decision No. 12/2018/QD-UBND and Decision No. 07/2021/QD-UBND are no longer suitable.

In order to overcome the shortcomings, shortcomings and limitations in the practice of land use rights auctions in the locality, in accordance with the Law on Property Auction 2016, decrees, circulars guiding its implementation and Directive No. 40/CT-TTg dated November 2, 2020 of the Prime Minister on strengthening state management of property auctions, the issuance of a Decision amending and supplementing a number of articles of the Regulations issued together with Decision No. 12/2018/QD-UBND and Decision No. 7/2021/QD-UBND, according to the Nghe An Department of Justice, is very necessary.

Currently, the draft Decision amending and supplementing a number of articles of the Regulations on auctioning land use rights to allocate land with land use fees or lease land in Nghe An province issued together with Decision No. 12/2018/QD-UBND dated March 2, 2018; Decision No. 7/2021/QD-UBND dated April 23, 2021 of Nghe An Provincial People's Committee is being consulted.