Vietnam land auctions face high-bid abandonment and failed sales

Vietnam is facing significant challenges in land auctions, characterized by both inflated bidding and failed sales. In Hanoi, officials have reported instances of extreme bidding behavior, such as in Soc Son, where individuals placed bids as high as 30 billion VND per square meter only to later abandon their deposits. In Thanh Oai, out of 68 auctioned plots in 2024, only 13 participants completed their financial obligations despite some plots reaching prices over 100 million VND per square meter.

Conversely, in Ha Tinh province, land auctions are struggling due to overpricing. In Toan Luu commune, 15 plots of land were re-offered for auction after two previous attempts failed to attract any bidders. To encourage participation, authorities have significantly reduced starting prices, with some plots seeing decreases of between 1 billion and 2.4 billion VND per plot. Local investors previously criticized the initial high valuations, noting they were inconsistent with current market realities.

In response to these issues, delegates are discussing amendments to the Law on Asset Auction. Proposals include creating simpler mechanisms for low-value assets to reduce administrative costs and implementing stronger sanctions to prevent the practice of high bidding followed by deposit abandonment.