The Vietnam Auction Partnership Company announced the auction authorized by Veam Motor Factory, under the Vietnam Engine and Agricultural Machinery Corporation (VEAM - JSC).

The total starting price, set at VND430.6 billion, is a sharp reduction compared to previous auction rounds. The auction invitation documents show these are unsold vehicles produced and distributed by Veam Motor Factory, currently stored in Thanh Hoa province.

Though the vehicles are classified as inventory, Veam emphasizes that the quality and specifications of the vehicles are equivalent to standard models, with a warranty period of 12 months or 30,000 kilometers, whichever comes first, from the date of delivery to the winning bidder.

This time, the 2,071 vehicles will be divided into 755 individual lots.

The starting price for each lot is listed in the detailed asset information sheet. Notably, the starting prices for VT158 trucks and 15-seat passenger vans do not include luxury tax.

All the costs related to transport, relocation and other factors will be borne by the auction winners.

For auctioned vehicles that are missing truck beds or batteries, the winning bidders must install these parts according to the manufacturer's standards and technical specifications.

The vehicles will be delivered in multiple batches as scheduled by Veam, but within the timeline stated in the asset sale contract. Winning bidders must pay 100 percent of the value corresponding to each delivery in VND.

Previously, as reported by VietNamNet, thousands of brand-new Veam vehicles had been sitting idle for years, exposed to the elements. Surrounded by overgrown weeds, these vehicles have been repeatedly offered at auction without finding buyers.

Back in 2000, Veam planned to invest VND350 billion in building a car assembly plant in Thanh Hoa. However, the plan was changed later and Veam bought an old factory from Samsung (South Korea) instead.

According to a report submitted by VEAM to its board of directors and supervisory board on May 7, 2019, as of the end of 2018, VEAM had invested nearly VND2,000 billion into the project, with accumulated losses reaching VND343 billion.

As of December 31, 2018, the total inventory had reached 2,950 vehicles. Among these, 2,355 vehicles were produced in 2017 or earlier with Euro 2 emissions standards, and 219 vehicles dated back to 2015 or earlier.

Veam poured thousands of billions into car production, but according to its own reports, most of the vehicles produced years ago are still in storage and remain unsold.

In total, 2,622 Veam-branded vehicles are still in inventory, with a total cost value of over VND966 billion. Of those, 2,221 vehicles produced before 2017 account for VND878 billion. 

Le Duong