CIRCULAR

ISSUANCE OF VIETNAM’S VALUATION STANDARD ON THE COLLECTION AND ANALYSIS OF INFORMATION ON SUBJECT ASSETS

Pursuant to the Price Law dated June 19, 2023;

Pursuant to Decree No. 14/2023/ND-CP dated April 20, 2023 of the Government on functions, tasks, powers and organizational structure of the Ministry of Finance;

At the request of the Director of the Price Management Department;

The Minister of Finance issues a Circular on promulgation of Vietnam’s Valuation Standard on collection and analysis of information on subject assets.

Article 1. Issuance of Vietnam’s Valuation Standard on the collection and analysis of information on subject assets.

Article 2. Implementation

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2. Relevant organizations and individuals shall implement Vietnam’s Valuation Standards issued together with this Circular.

3. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance for consideration./.

PP. MINISTER
DEPUTY MINISTER




Le Tan Can

ISSUANCE OF VIETNAM’S VALUATION STANDARD ON THE COLLECTION AND ANALYSIS OF INFORMATION ON SUBJECT ASSETS

(Issued together with Circular No. 30/2024/TT-BTC dated May 16, 2024 of the Minister of Finance)

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This Vietnam’s Valuation Standard prescribes and guides on the collection and analysis of information on subject assets when conducting valuation in accordance with the price laws.

Article 2. Regulated entities

1. Valuers, valuation firms that provide valuation services in accordance with the price laws.

2. Organizations and individuals that perform state valuation in accordance with the price laws.

3. Organizations or individuals requesting valuations, third parties that use valuation reports under valuation contracts (if any).

Article 3. Interpretation of terms

1. “valuation professional” refers to a valuer or an individual conducting state valuation activities in accordance with the price laws.

2. “information collector” refers to a valuation professional, an individual assisting a valuation professional, or a member assisting a valuation council in collecting information.

3. “collection of information on subject asset” is the process of searching for, selecting, and gathering information on the subject asset for the purpose of valuing the asset.

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Article 4. Information collection

1. Information to be collected about the subject asset shall include information on legal and economic-technical characteristics, market information, and other information related to the subject asset.

In the case where the subject asset is a property right or off-plan property, it is necessary to collect information on the establishment of ownership and formation of such asset, on land use planning and construction planning (if any) of competent authorities in accordance with relevant laws.

2. Collection of information on the subject asset is a mandatory requirement when conducting valuation of the asset.  The collection of information must be objective, true to reality, systematic, consistent with the subject asset, valuation purpose, valuation basis, and consistent with the valuation approaches and methods in the Vietnam’s Valuation Standards promulgated by the Ministry of Finance.

3. The valuation professional shall be responsible for organizing the collection of information and must reflect the results of information collection in the valuation documentation in accordance with regulations.

In the case where the information collector is not the valuation professional, the valuation professional shall be responsible for assigning and instructing the information collector to collect information in accordance with regulations.

4. The information collector shall be responsible for the objectivity and honesty of the information and data collected by him/her. The valuation professional shall be responsible for reviewing, evaluating, analyzing, and using the collected information to conduct valuation of the asset in accordance with regulations.

5. Information on the subject asset shall be collected on the valuation date.  Information collected after the valuation date shall only be used for reference purposes to analyze and assess price fluctuations of the subject asset (if necessary).

6. In case of unresolvable limitations in information collection due to objective and force majeure reasons that may affect valuation activities and the estimation of the subject asset's value, the information collector shall report to the valuation professional so that the valuation professional can clearly reflect this content in the valuation report and valuation certificate or valuation result notice.

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Article 5. Information sources

1. Sources of information to be collected about the subject asset include:

a) Information provided by the organization or individual requesting the valuation, reflecting the legal characteristics (such as ownership rights, usage rights, exploitation rights, management rights, and other rights related to the asset), economic-technical characteristics (including the process of use, operation, exploitation, repair, and upgrading of the asset), and other information related to the subject asset (if any).  The organization or individual requesting the valuation shall be responsible for the accuracy and honesty of this information;

b) Information from the results of the current condition survey of the subject asset;

c) Information from experts, inspection organizations, design and construction consulting organizations, and other organizations and individuals with knowledge and experience in understanding the subject asset (if any);

d) Information from the results of surveys, collecting market information and market participants of the subject asset;

dd) Information from national price databases, information from competent regulatory agencies (if any);

e) Other sources of information (if any).

2. The sources of information collected must be clearly stated in the valuation documentation along with the reasons and assessment of the suitability of this information source for the valuation requirements of the asset.

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1. Methods of collecting information about the subject asset:

a) Request the organization or individual requesting the valuation to provide complete and timely records and documents related to the subject asset, including documents on the process of use, operation, and exploitation of the asset, documents on the repair and upgrade of the asset (if any). The organization or individual requesting the valuation shall confirm in writing the contents of the information provided by them;

b) Survey the current condition of the subject asset:

The information collector shall directly conduct a survey and record in full the characteristics and current condition of the asset, the information and factors that significantly affect the value of the asset; take pictures of the asset and the images to illustrate the current condition of the asset; and prepare a survey report on the current condition of the asset. The survey report on the current condition of the subject asset must be signed by the information collector and the organization or individual requesting the valuation.

For subject assets that are businesses, intangible assets, financial assets, services, and off-the-plan assets: The information collector shall conduct a survey of the current condition of those assets and asset components that can be physically inspected in actuality.

A current condition survey of the asset is not required in the following circumstances if the information collector provides a comprehensive explanation as to why the asset cannot be surveyed:

- The subject asset is new machinery, equipment, or tools or a service for which the list of assets proposed for valuation or the label or attached documents of the valuation request fully specify the economic and technical characteristics of the asset; and there are assets identical to the subject asset that are being traded or sold in the market;

- The subject asset is lost, missing, or completely destroyed;

- The subject asset cannot be directly accessed due to objective or force majeure reasons, and the information collector must clearly state the potential impact on valuation activities (if any).  The valuation professional shall clearly outline the potential impact on the valuation of the subject asset (if any) in the valuation report and valuation certificate or valuation result notice;

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d) Based on the characteristics of the subject asset, the valuation approach and method expected to be selected by the valuation professional as issued by the Ministry of Finance, the survey to collect market information and market participants of the asset on the valuation date is carried out in one of the following ways:

- Interviews in one of the following forms: face-to-face, by telephone, or by email with individuals and organizations that have information about the ownership, use, and transfer of the asset, such as:  owners; users, operators, exploiters, maintainers, repairers of the asset; customers; suppliers; manufacturers; consumers.   The interview process and results must be recorded in a survey form and stored in accordance with the provisions of this Circular;

- Collect information on customs declarations or contracts, invoices, bills, purchase documents, quotes, catalogs, documents, reports of importers, manufacturers, suppliers, investors, and other related entities;

- newspapers, magazines, publications, articles, assessments of scientific research organizations, industry associations, experts, domestic and international rating and evaluation organizations; on the internet; electronic portals; radio; television;

dd) Collect information through national price databases, information from documents of competent regulatory agencies, including price levels regulated by competent regulatory agencies; specialized unit prices and norms related to the subject asset; economic - social, environmental, planning data and other contents that affect the value of the subject asset as published or regulated by competent regulatory agencies (if any);

e) Use other methods of information collection as prescribed.

2. The information collector shall archive the evidence of his/her information collection in accordance with this Standard and the Vietnam’s Valuation Standards.

a) In cases where the information collection process uses questionnaires, surveys, collection forms, or evaluation forms, these forms must be stored with the full name and signature of the information collector; in cases where the collected information relates to the legal and economic-technical characteristics of the subject asset, it must clearly state the full name and signature of the party requesting the valuation;

b) In cases where the consulting opinions of experts, organizations, and individuals providing consulting services are used, the consulting documents must be stored with the signature of the expert or the signature and seal of the consulting organization and the consulting service contract (if any);

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Article 7. Review and evaluation of collected information

1. Based on the collected information, the valuation professional shall review and use reliable and relevant information and data for information analysis and application of valuation approaches and methods.

2. For information from the records and documents of the subject asset provided by the organization or individual requesting the valuation, in case there is a difference between this information and the results of the current condition survey of the asset or in case it is found that the documents and records are incomplete or inaccurate and further clarification of the information content is required for the valuation, the valuation professional shall promptly discuss with the organization or individual requesting the valuation to request additional information or clarification.

The process of exchanging information to supplement documents and records or to clarify information content must ensure objectivity and compliance with relevant legal regulations, and any act of influencing valuation activities and the value of the subject asset is strictly prohibited.

3. For other information, it is necessary to carefully review, consider, and evaluate the use of this information based on an analysis and assessment of the reliability and relevance of the information source, the information provider, the information content, the time of collection, and the method of information collection for the subject asset.

Article 8. Information analysis

1. The content of information analysis must be reflected in the valuation report. In the process of information analysis, assumptions and special assumptions may be made; the content of assumptions and special assumptions shall be made in accordance with the Vietnam’s Valuation Standard on the bases of valuation.

2. The collected information shall be analyzed according to the following groups of content:

a) Analysis of basic information about the organization or individual requesting the valuation; purpose of valuation; valuation date; legal basis for valuation; basis of valuation value;

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c) Analysis of information on the market of the subject asset;

d) Analysis of the best and most efficient use of the asset (only applies to real estate assets).

The best and most efficient use of the asset is the use of the asset that complies with legal regulations, physical and technical conditions, and generates the highest economic efficiency.

The best and most efficient use of the asset may be to continue using the asset for its current purpose or for an alternative purpose; therefore, it is necessary to analyze and present arguments to support the possibility of using the asset in accordance with legal, socio-economic, and financial factors to determine the best and most efficient use of the asset.

dd) Analyze information on other relevant content./.

Thông tư 31/2024/TT-BTC Chuẩn mực thẩm định giá Việt Nam về Thu thập và phân tích thông tin về tài sản thẩm định giá do Bộ trưởng Bộ Tài chính ban hành