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25 Oct 2022
The starting price of the auto license plate auction to serve the needs of organizations, businesses and individuals will be VND 40 million. The license plate up for auction is white background plate with black letters and numbers.
Initial piloting of white background car license plate auction
On the morning of October 21, under the authorization of the Prime Minister, presenting a report on the draft resolution on granting the right to choose to use car number plates through auction, Minister of Public Security To Lam said that the auction of number plates both meet the needs of individuals and organizations, create fairness between subjects in need, and increase revenue for the State budget.
Accordingly, the draft Resolution is developed with several separate regulations to apply to the pilot auction of license plates for 3 years. The number plate put up for pilot application in the auction is the license plate of automobiles serving the needs of organizations, businesses, and individuals (white background number plate, black letters, and numbers). These must be unregistered plates, located in the database of the vehicle registration and management system of the Ministry of Public Security.
According to the draft resolution, the auction winner is entitled to register the winning number plate attached to the car under his/her ownership, may retain the winning number plate when transferring, giving, or inheritance. When transferring, gifting, or inheriting a vehicle associated with the winning number plate at the auction, the winner may transfer, donate, or inherit the license plate according to the vehicle.
For the transferee, the person who is gifted or inherits the winning number plate at the auction according to the vehicle, will not be allowed to keep the winning number plate to register for another vehicle; may not transfer, give or inherit the winning number plate.
The starting price of a number plate put up for auction is 40 million VND, applied in Hanoi and Ho Chi Minh City. In the remaining localities, the starting price is 20 million VND.
According to Minister To Lam, determining the starting price of a car license plate for auction is extremely complicated because the number plate is a specific public property, the value of which is high or low depends on the market and the level of rarity according to the preferences of the auction participants.
Therefore, the starting price is only the initial price, in the auction process, the competition among auction participants will determine the winning price of that number plate. “The market will decide the value of the number plate through auctions and the true value of the number plate is the winning price, not the starting price,” the Minister of Public Security affirmed.
This draft also stipulates a reservation amount equal to the starting price of a number plate put up for auction.
Regarding the use of revenue from auctions, after receiving opinions from the National Assembly Standing Committee, Minister To Lam said that the draft has been revised in the direction of “The proceeds from the auction of number plates will be paid in full into the central budget”, instead of dividing the revenue according to the rate of 70% paid to the central budget, 30% allocated to the local budget as before.
Suggested starting price for auction is 40 million
Verification of the Government’s report on the auction of license plates, Chairman of the National Assembly’s National Defense and Security Committee Le Tan Toi agreed to pilot the auction of license plates nationwide. This is both to meet the needs of people in all localities; At the same time, it is also to effectively exploit the public property, which is the warehouse of car registration numbers, to generate revenue for the State budget from auctions.
“If a local resident can only participate in auctions in that locality, the number of people participating in the auction will be limited, not meeting the actual needs of the people, and not fully exploiting the revenue for our own”, according to the explanation of the examining agency.
According to the Chairman of the National Defense and Security Committee, the Committee also agreed to limit the pilot auction to only white background and black lettering car license plates in the unregistered number plate inventory, not to pilot auctions for yellow background, black lettering plates.
The verification agency explained that with the type of vehicle operating in the transport business, the need for a beautiful number plate is very little. As for motorbikes, if the pilot is expanded, the need will be very huge, leading to a lack of concentration, affecting the pilot implementation.
As for the starting price, the National Defense – Security Committee has a different view from the plan proposed by the Government. This agency thinks that setting different starting prices between zone 1 (Hanoi, Ho Chi Minh City) and zone 2 (remaining localities) does not make sense when auction participants are nationwide.
Therefore, the verifying agency proposes to apply uniformly a nationwide starting price of VND 40 million.
Although many opinions suggest adding auction forms. In the immediate future, in the pilot phase, the National Defense – Security Committee has agreed to pilot only the online auction form with the auction method being bid up.
Agreeing with regulations on the rights and obligations of auction winners, the National Defense – Security Committee said that the number plate of the winning vehicle was both a personal property and a tool for State management. Therefore, it is necessary to limit some property rights of auction winners for reasons of State management of security and order.
This also aims to limit speculation in license plates and avoid complicating the handling of pilot consequences for license plates issued through auctions if this policy is not continued after the end of the pilot auction period.
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