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DECREE[1]

ELABORATION OF SOME ARTICLES OF THE LAW ON PRICES REGARDING VALUATION

The Government's Decree No. 89/2013/ND-CP dated August 06, 2013 on elaboration of some Articles of the Law on Prices regarding valuation, which has been effective since September 25, 2013, is amended by:

1. The Government's Decree No. 151/2018/ND-CP dated November 07, 2018 on amendments to some Decrees on business conditions under the management of the Ministry of Finance, which has been effective since November 07, 2018;

2. The Government's Decree No. 12/2021/ND-CP dated February 24, 2021 on amendments to the Government's Decree No. 89/2013/ND-CP dated August 06, 2013 on elaboration of some Articles of the Law on Prices regarding valuation, which has been effective since May 01, 2021.

Pursuant to the Law on Government Organization dated December 25, 2021;

Pursuant to the Law on Prices dated June 20, 2012;

Pursuant to the Law on Enterprises dated November 29, 2005;

At the request of the Minister of Finance;

The Government hereby promulgates a Decree on elaboration of some Articles of the Law on Prices regarding valuation,[2]

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree elaborates some Articles of the Law on Prices regarding on valuation, including: contents of and power to perform state management of valuation; Vietnamese valuation standards; standards to be satisfied by valuators and valuator’s cards; valuation professional organization; prices for valuation services; procedures for issuance and revocation of certificate of eligibility to provide valuation services; suspension of valuation services; methods for provision and scope of valuation services provided by foreign valuation organizations in Vietnam; procedures for valuation by the State.

Article 2. Regulated entities

This Decree applies to valuators; valuation enterprises; competent regulatory body and officials assigned to carry out valuation; appointing agencies or organizations and individuals who are appointed by such agencies or organizations to join the valuation council; agencies, organizations and individuals that have assets subject to valuation or make requests for valuation; valuation professional organizations; valuation authorities and other agencies, organizations and individuals related to valuation.

Article 3. Definitions

For the purposes of this Decree, the terms below shall be construed as follows:

1. “valuation enterprise” means an enterprise that is established and operate in accordance with the Law on Enterprises and granted the certificate of eligibility to provide valuation services by the Ministry of Finance as prescribed by law.

2. “valuation customer” means an organization or individual hiring a valuation enterprise to provide valuation services under a valuation contract or written request for valuation.

3. “valuation professional organization” means a social-professional organizations established in accordance with law on the basis of the voluntary participation by valuators, valuation enterprises, and other organizations and individuals related to valuation.

4. “Vietnamese valuation standard” mean provisions on professional knowledge and professional ethics in valuation practicing which are used as the standards in serve of asset valuation, inspection and assessment of results and quality of valuation activities in Vietnam.

Article 4. Contents of state management of valuation

1. Formulating and providing directions for implementation of strategies and plans for valuation profession development in Vietnam.

2. Promulgating and organizing implementation of legislative documents on valuation and Vietnamese valuation standards.

3. Valuating state-owned assets as prescribed in this Decree and relevant legislative documents.

4. Prescribing regulations on reporting, collection and consolidation of information in order to build database serving provision of information and state management of valuation.

5. Managing training and professional training in valuation; managing and organizing exams, issuing and revoking valuator’s cards; managing, issuing and revoking certificates of eligibility to provide valuation services.

6. Inspecting and handling complaints and denunciations and impose penalties for violations against regulations on valuation.

7. Organizing and managing scientific research and international cooperation in valuation.

Article 5. Power to perform state management of valuation

1. The Government shall unify state management of valuation activities.

2. The Ministry of Finance responsible to the Government for state management of valuation have the following tasks and powers:

a) Formulate and submit to the Government strategic decisions and plans for valuation profession development in Vietnam;

b) Formulate and submit to the Government for promulgation of or promulgate within its power legislative documents on valuation and Vietnamese valuation standards;

c) Organize implementation of valuation profession development strategies and plans, legislative documents on valuation and Vietnamese valuation standards;

d) Prescribe conditions for taking exams, organization of exams and conditions for issuance of valuator’s cards; manage, issue and revoke valuator’s cards;

dd) Prescribe training and issue certificates of training in valuation; provide professional training in valuation to practicing valuators;

e) Prescribe organization and management of scientific research, training and professional training in valuation for officials;

g) Prescribe forms, issuance and revocation of certificate of eligibility to provide valuation services; prescribe registration and management of valuation practicing; publish lists of practicing valuators and lists of valuation enterprises nationwide;

h) Prescribe purchase of professional liability insurance for valuation activities or payment of contributions to fund for provisions against professional risks by valuation enterprises;

i) Perform state management of valuation by valuation enterprises and valuation professional organizations as prescribed by law;

k) Carry out international cooperation in valuation;

l) Inspect and handle complaints and denunciations and impose penalties for violations against regulations on valuation;

m) Review and assess valuation activities; prescribe control of quality of valuation activities and compliance with the State’s regulations on valuation;

n) Perform valuation or take responsibility for organizing valuation of state-owned assets at the request of the Government or the Prime Minister;

o) Prescribe regulations on reporting, collection and consolidation of information in order to build database serving provision of information and state management of valuation.

3. Ministries, ministerial agencies and Governmental agencies have the following tasks and powers:

a) Perform state management of valuation within their jurisdiction;

b) Assign the tasks of and organize the valuation of state-owned assets specified in Clause 2 Article 31 and Article 44 of the Law on Prices under management of Ministries, ministerial agencies and Governmental agencies in accordance with regulations on delegation of authority to manage and use state-owned assets; regulations on delegation of authority to manage state budget, and relevant regulations of law;

c) Inspect and handle complaints and denunciations and impose penalties for violations against regulations on valuation within the scope of their management.

4. People’s Committees of provinces and central-affiliated cities have the following tasks and powers:

a) Perform state management of valuation activities under their management;

b) Assign the tasks of and organize the valuation of state-owned assets specified in Clause 2 Article 31 and Article 44 of the Law on Prices under their management in accordance with regulations on management and use of state; regulations on of state budget and relevant regulations of law;

c) Inspect and handle complaints and denunciations and impose penalties for violations against regulations on valuation within the scope of their management.

Article 6. Vietnamese valuation standards

1. Vietnamese valuation standards are those providing guidance on code of ethics for valuation practicing; economic principles that govern valuation activities; market value and non-market value serving as basis for asset valuation; classification of assets; asset valuation procedures; valuation reports, asset valuation records and certificates; valuation approaches and methods.

2. The Ministry of Finance shall issue and provide guidelines for implementing Vietnamese valuation standards for application thereof to valuation within the territory of Vietnam.

Article 7. Standards to be satisfied by valuators

A valuator must:

1. Have active legal capacity.

2. Possess ethics quality, integrity, honesty, objectivity.

3. Obtain a bachelor’s degree or postgraduate degree in pricing, valuation and disciplines including economics, economics - technology, technology or laws related to valuation conferred by a lawful Vietnamese or foreign training institution.

4. Have worked in training major for at least 36 (thirty six) months from the date of obtainment of the bachelor’s degree in the discipline prescribed in Clause 3 of this Article.

5. Possess a certificate of professional training in valuation issued by the authority or organization licensed to provide training in valuation as prescribed by the Ministry of Finance, except the following cases:

a) A person obtaining a bachelor’s degree or postgraduate degree in pricing or valuation conferred by a domestic or foreign training institution;

b) A person obtaining a bachelor’s degree or postgraduate degree in economics, economics - technology, technology or laws related to valuation and an advanced diploma Level 5 of VQF in valuation.

6. Possess a valuator’s card issued by the Ministry of Finance.

Article 7a. Obligation of practicing valuators to sign a valuation report and valuation certificate[3]

1. A practicing valuator, except for the valuator who is the legal representative of an enterprise, must sign at least 10 valuation certificates and valuation reports in the year in which such valuator is informed that he or she will practice.

2. If, by 15 December of the practicing year, the practicing valuator who has practiced for 06 months or more in such year has signed less than 10 valuation certificates and valuation reports, he or she is not permitted to register to practice in the following year.

Article 8. Valuator’s cards

1. A Vietnamese citizen who is eligible to take an exam as prescribed by the Ministry of Finance and meets the requirements of the exam organized by the Ministry of Finance shall be issued with a valuator’s card by the Ministry of Finance.

2. A person who possesses the certificate of valuation issued by a foreign country and recognized by the Ministry of Finance, fully satisfies the criteria specified in Clauses 1 and 2 Article 7 of this Decree and passes the exam in Vietnamese in Vietnamese laws related to valuation as prescribed by the Ministry of Finance shall be issued with a valuator’s card by the Ministry of Finance.

Article 8a. Requirements to be satisfied by the legal representative, director or general director of a valuation enterprise[4]

The legal representative, Director or General Director of a valuation enterprise shall satisfy the following requirements:

1. He/She is a valuator who has registered to practice at the enterprise as prescribed in Point c Clause 1 or Point c Clause 2 or Point c Clause 3 or Point c Clause 4 or Point c Clause 5 Article 39 of the Law on Prices.

2. He/She has acted as a valuator for at least 03 years (36 months) before becoming the legal representative, Director or General Director of the valuation enterprise.

3. He/She has not been the legal representative, Director or General Director of a valuation enterprise whose certificate of eligibility to provide valuation services has been revoked for a period of 01 year (12 months) by the time of submitting the application for issuance or re-issuance of the certificate of eligibility to provide valuation services.

Article 9. Valuation professional organizations

1. A valuation professional organization is established and operates in accordance with regulations of law on association and valuation.

2. Every valuation professional organization is entitled to organize training courses, issue the certificate of professional training in valuation and perform the tasks related to valuation as follows:

a) Study and update international valuation standards and recommend the Ministry of Finance to consider issuing or amending Vietnamese valuation standards to make them suitable for actual situations in Vietnam and international practices;

b) Cooperate with the Ministry of Finance to organize exams for issuance of valuator’s cards;

c) Cooperate with the Ministry of Finance in inspecting and assessing quality of valuation activities and compliance with the state’s regulations on valuation by valuation enterprises which are members;

d) Provide information to the Ministry of Finance about activities of members to serve state management of valuation;

dd) Organize the dissemination of information about valuation activities; cooperate with the Ministry of Finance in disseminating management mechanisms and policies of the state in the area of valuation;

e) Participate in international cooperation in valuation in accordance with regulations of law on association.

3. The Ministry of Finance shall elaborate regulations on reporting of performance of the tasks in Clause 2 of this Article by valuation professional organizations.

Article 10. Cases in which valuation enterprises are not permitted to carry out valuation

1. Carry out valuation against Vietnamese valuation standards.

2. Purchase and sell assets classified as state secrets in accordance with regulations of law on list of state secrets.

3. There are valuators participating in valuation, persons responsible for management and administration, members of the Control Board of the valuation enterprises that are members or founding shareholders or buy shares from or contribute capital to organizations that are valuation customers.

4. There are valuators participating in valuation, persons responsible for management and administration, members of the Control Board of the valuation enterprises whose parents, spouses, children and biological siblings:

a) are members or founding shareholders or buy shares or contribute capital to organizations that are valuation customers;

b) are persons responsible for leading and management, being chief accountant, members of the Control Board, supervisors of organizations which are valuation customers.

5. Persons responsible for management, members of the Control Board, and supervisors that are affiliated to units subject to valuation and concurrently persons who buy shares from or contribute capital to valuation enterprises.

6. Valuation enterprise and valuation customer have the following relationships:

a) The same individual, enterprise or organization establishes or participates in the establishment of both the valuation enterprise and the valuation customer; or the valuation enterprise and the valuation customer belong to the same group, corporation or conglomerate;

b) They have a relationship involving management, control or capital contribution in any shape or form between the two parties;

c) They are under direct or indirect management, control or capital contribution in any shape or form of another party;

d) They enter into a business cooperation agreement on the basis of a contract.

7. [5] The valuation enterprise is currently subject to suspension or temporary suspension of its valuation activities. During the period of time over which the enterprise fails to satisfy one of the conditions applicable to the types of enterprise specified in Clauses 1 through 5 Article 39 of the Law on Prices but is not subject to suspension of its valuation activities, the enterprise is not permitted to sign any valuation service contract.

Article 11. Prices for valuation services

1. [6] The prices for valuation services shall be set under the agreement between the valuation enterprise and its customer according to Clauses 2 and 3 of this Article on the principle of ensuring that the actual reasonable production and business costs are offset and profit is earned in line with the market prices, and shall be specified in the valuation contract; in the case where the bidding for valuation services is governed by the Law on Bidding, regulations of law on biding shall be complied with.

2. Bases for determining prices for valuation services:

a) Content, volume and nature of work and time for carrying out valuation;

b) Actual reasonable business costs corresponding to the service quality including: salaries, cost incurred in the course of survey, collection, analysis and processing of information; financial cost, cost of sales, administrative expenses and other costs prescribed by law;

c) Costs of buying professional liability insurance or contributions to fund for provisions against professional risks;

d) Tentative profit (if any) for ensuring that prices for valuation services are suitable for prices for similar valuation services on the market;

dd) Financial obligations prescribed by law.

3. According to Clause 2 of this Article, every valuation enterprise shall publish its own schedule of prices for valuation services as prescribed in Clause 6 Article 4 and Clause 5 Article 12 of the Law on Prices in the form of an all-inclusive price which is a percentage (%) of value of the asset or value of the project to be valuated and another form decided by the enterprise in conformity with regulations of law.

Article 12. Overseas valuation service providers

1. A valuation enterprise is entitled to have its valuation service provider located overseas in accordance with regulations of law on investment of Vietnam and laws of the home country.

2. Within 30 (thirty) working days from the date on which the valuation service provider is located or shut down overseas, the valuation enterprise shall send a written notice thereof enclosed with relevant documents to the Ministry of Finance for management and supervision.

Article 12a. Resolution of disputes over valuation results between valuation enterprises and their customers[7]

If a dispute over the valuation results between a valuation enterprise and its customer arises, the dispute shall be resolved adopting the following methods:

1. Negotiation and conciliation on the basis of the commitments specified in the valuation contract.

2. Commercial arbitration.

3. Institution of a lawsuit at a Court as prescribed by law.

Article 12b. Connection to the national price database[8]

1. The Ministry of Finance shall build, manage and operate a national price database and enable valuation enterprises to connect the database built by them to the national price database.

2. Valuation enterprises shall connect the database built by them to the national price database.

Chapter II

SPECIFIC PROVISIONS

Section 1. PROCEDURES FOR ISSUING CERTIFICATES OF ELIGIBILITY TO PROVIDE VALUATION SERVICES

Article 13. Issuance and re-issuance of certificate of eligibility to provide valuation services

1. An established that is eligible to provide valuation services as prescribed in Article 39 of the Law on Prices may be issued with the certificate of eligibility to provide valuation services by the Ministry of Finance.

2. The valuation enterprise may be re-issued with the certificate of eligibility to provide valuation services by the Ministry of Finance if:

a) There is a change of the information specified in the certificate of eligibility to provide valuation services; or

b) The certificate of eligibility to provide valuation services is lost, torn, burnt or damaged due to a natural disaster, conflict or another force majeure event.

Article 14. Applications for issuance and re-issuance of the certificate of eligibility to provide valuation services

1. An application for issuance of the certificate of eligibility to provide valuation services consists of:

a) [9]An application form for issuance or re-issuance of the certificate of eligibility to provide valuation services, which is made using the Form promulgated by the Ministry of Finance;

b) A certified true copy of the business registration certificate or enterprise registration certificate of the enterprise;

c) A registration from valuation practicing of the valuators applying for valuation practicing at enterprise, which is certified by the enterprise; certificate of professional training in valuation for practicing valuator (if any);

d) Copies of the employment contracts or Annexes to the employment contracts (if any) of the practicing valuators at enterprise;

dd) [10]A list of capital contributions from members which is certified by the enterprise in the case where the Enterprise Registration Certificate does not include  a list of capital contributing members or a list of shareholders;

e) [11]A receipt for payment of the fee for assessment of the application for issuance of the certificate of eligibility to provide valuation services;

g) A certified true copy of the document on appointment of the enterprise’s legal representative, power of attorney in the area of valuation (if any).

2. An application for re-issuance of the certificate of eligibility to provide valuation services consists of:

a) [12]An application form for issuance or re-issuance of the certificate of eligibility to provide valuation services, which is made using the Form promulgated by the Ministry of Finance;

b) An original of the issued certificate of eligibility to provide valuation services. If the certificate of eligibility to provide valuation services is lost or damaged, it is required to obtain confirmation from the People’s Committee or police authority of the commune or ward where the certificate is lost or damaged;

c) [13]A receipt for payment of the fee for assessment of the application for issuance of the certificate of eligibility to provide valuation services;

d) A certified true copy of the document on appointment of the enterprise’s legal representative, power of attorney in the area of valuation (if any).

Article 15. Deadline for issuance or re-issuance of the Certificate of eligibility to provide valuation services[14]

1. Within 15 (fifteen) working days from the receipt of 01 (one) complete set of the application prepared by the enterprise according to Clause 1 or 2 Article 14 of this Decree, the Ministry of Finance shall issue or re-issue the Certificate of eligibility to provide valuation services to the valuation enterprise.

2. In case of refusal to issue or re-issue the Certificate of eligibility to provide valuation services, the Ministry of Finance shall give a written response specifying reasons therefor to the enterprise registering to provide valuation services within 05 (five) working days from the receipt of the application.

Article 16. Charges for issuance and re-issuance of certificate of eligibility to provide valuation services

1. Enterprises shall pay charges upon submitting applications for issuance or re-issuance of the certificate of eligibility to provide valuation services.

2. The Minister of Finance shall prescribe charges for issuance and re-issuance of certificate of eligibility to provide valuation services, and collection, transfer, management and use thereof.

Article 17. Changes to be notified to the Ministry of Finance

1. During its valuation, the valuation enterprise shall notify the Ministry of Finance in writing of one of the following changes:

a) The changes result in failure to satisfy any of the conditions for issuance of the certificate of eligibility to provide valuation services specified in Article 39 of the Law on Prices;

b) The changes result in re-issuance of the certificate of eligibility to provide valuation services as specified in Clause 2 Article 13 of this Decree;

c) List of valuators applying for valuation practicing at enterprise, including: name, date of birth, place of origin, position, number and date of issue of the valuator’s card;

d) The enterprise undergoes full division, partial division, merger, consolidation or ownership conversion;

dd) [15]The enterprise is dissolved, goes bankrupt or suspended from business in accordance with regulations of law on enterprises and law on bankruptcy; terminates its valuation services of its own free will; changes its shareholders or capital contributing members that are practicing valuators at the enterprise;

e) The enterprise has its business registration certificate or enterprise registration certificate revoked.

g) There is a practicing valuator at the enterprise who has been banned from practicing valuation under an effective judgment or decision of a Court; who has faced a criminal prosecution; who has been convicted of an economic crime or a title-related crimes arising from financial, price or valuation activities to the extent of serving administrative sanctions in the form of education at the commune, ward or township; who has been convicted of a serious or more serious economic crime; who has committed a violation against financial laws to the extent of having to serve administrative sanctions.

2. Within 15 (fifteen) working days from the date on which one of the changes specified in Clause 1 of this Article is made, the enterprise shall notify the Ministry of Finance in writing thereof for supervision, consolidation of information and review of satisfaction of business conditions by the enterprise in service of state management of the valuation enterprise.

Article 18. Members being organizations of valuation multi-member limited liability companies and joint-stock companies

1. [17]The total stake of the shareholder that is an organization or of the contributing member that is an organization must not exceed 35% of charter capital of the valuation joint-stock company or valuation multi-member limited liability company.

2. A representative of the member being the organization specified in Clause 1 of this Article must be a valuator and apply for valuation practicing at the valuation enterprise to which the organization contributes capital; must not participate in contributing capital to such valuation enterprise as an individual and must not be a representative of the organization contributing capital for establishment of another valuation enterprise.

Section 2. SUSPENSION OF VALUATION SERVICES AND REVOCATION OF CERTIFICATES OF ELIGIBILITY TO PROVIDE VALUATION SERVICES

Article 19. Suspension of valuation services

1. A valuation enterprise shall have its valuation services suspended as prescribed in Clause 1 Article 40 of the Law on Prices in one of the following cases:

a) It has failed to meet any of the conditions corresponding to the type of enterprise specified in Clauses 1 through 5 Article 39 of the Law on Prices for 03 (three) consecutive months.

b) It commits serious violations of technical or professional standards or valuation standards, including:

- Non-compliance with Vietnamese valuation standards.

- Disclosing information about valuation documents, valuation customers and valuated assets, except where the customers so agree or otherwise permitted by the law.

- Committing an act of collaborating with the owner of asset to be valuated, valuation customer or person concerned upon carrying out valuation for the purpose of falsifying the valuation result.

- Falsifying documents about the valuated asset or information about the valuated asset resulting in the valuation result given by the valuation enterprise being 10% (if the asset is immovable property, equipment or transport vehicle) or 15% (if the asset is material or goods) higher or lower than the final valuation result given by the competent authority in the case where both the valuation enterprise and the competent authority have the power to adopt the same valuation method.

2. The Ministry of Finance shall issue decisions to suspend valuation services.

3. The period of suspension of valuation services does not exceed 60 (sixty) days from the effective date of the suspension decision. During the said period, the enterprise shall notify the Ministry of Finance in writing of its remedial actions enclosed with documentary evidence and a request for resumption of its valuation services.

According to the written notification sent by the enterprise, the Ministry of Finance shall consider sending the enterprise a written permission for resumption of valuation services according to the certificate of eligibility to provide valuation services corresponding to the type of enterprise as prescribed in Clauses 1 through 5 Article 39 of the Law on Prices or revoking the certificate of eligibility to provide valuation services as prescribed in Article 20 of this Decree.

4. During the suspension period, the valuation enterprise shall assume responsibility for the valuation contracts signed with its customers and employment contracts signed with its valuators and employees, and other legal obligations as prescribed, unless otherwise agreed upon by the parties.

5. The Ministry of Finance shall publish the list of valuation enterprises whose valuation services are suspended and list of valuation enterprises eligible to resume their valuation services on its website.

Article 20. Revocation of certificates of eligibility to provide valuation services

1. A valuation enterprise shall have its certificate of eligibility to provide valuation services revoked as prescribed in Clause 2 Article 40 of the Law on Prices.

2. The Ministry of Finance shall issue decisions to revoke certificates of eligibility to provide valuation services; publish list of valuation enterprises whose certificates of eligibility to provide valuation services are revoked; remove an enterprise from the list of valuation enterprises eligible to carry out valuation activities published on its website.

3. The valuation enterprise whose certificate of eligibility to provide valuation services revoked must terminate its valuation services from the effective date of the revocation decision.

Section 3. METHODS FOR PROVISION AND SCOPE OF VALUATION SERVICES PROVIDED BY FOREIGN VALUATION ORGANIZATIONS IN VIETNAM

Article 21. Methods for provision of valuation services by foreign valuation organizations in Vietnam

1. A foreign valuation enterprise which is established and provides lawful valuation services in the home country is entitled to contribute capital together with a Vietnamese valuation enterprise to establish a multi-member limited liability company or joint-stock company to provide valuation services in Vietnam. The ratio of capital contributions of the foreign valuation enterprise and representative of the foreign valuation enterprise participating in capital contribution is specified in Article 18 of this Decree.

2. Conditions for establishment, operation and applications for issuance and re-issuance of certificates of eligibility to provide valuation services of valuation enterprises to which foreign valuation enterprises contribute capital are specified in regulations of law on enterprises, Clauses 2 and 5 Articles 39 and 43 of the Law on Enterprises and regulations of this Decree.

Article 22. Cases in which valuation enterprises to which foreign valuation enterprises contribute capital are not permitted to carry out valuation

1. Cases specified in Article 10 of this Decree.

2. Assets intended for national defense and security purposes in accordance with regulations of law.

Section 4. PROCEDURES FOR VALUATION BY THE STATE

Article 23. Request for asset valuation

1. A competent regulatory body shall carry out asset valuation as requested or through a written request (hereinafter referred to as “request”) of a competent regulatory body or authority, organization or unit assigned to purchase, sell, liquidate, lease out or lease state-owned assets in the cases specified in Clause 2 Article 31 and Article 44 of the Law on Prices. To be specific:

a) Purchase, sell, liquidate or lease out state-owned assets or lease assets to serve activities of the regulatory body in accordance with regulations of law on management and use of state-owned assets;

b) Fail to hire a valuation enterprise to valuate state-owned assets if the authority, organization or unit assigned to purchase, sell, liquidate, lease out or lease state-owned assets has made information publicly available 15 (fifteen) days after the date of issuing an invitation to provide valuation services but there is no valuation enterprise, except for the case of bidding which shall comply with regulations of law on bidding;

c) Purchase and sell assets classified as state secrets in accordance with regulations of law on list of state secrets;

d) Purchase and sell high value state-owned assets for which, after having hired a valuation enterprise, the authority or person competent to grant approval finds it necessary to obtain opinions about the valuation from the competent regulatory body under the decentralized authority to valuate state-owned assets prescribed in Point n Clause 2, Point b Clause 3 and Point b Clause 4 Article 5 of this Decree.

2. A written request for asset valuation shall contain the following contents:

a) Name of the authority requesting valuation;

b) Contents of the valuation request;

c) Information about the asset to be valuated enclosed with relevant documents; certificate of assessment of economic - technical status, quality of the asset to be valuated; certificate and report on valuation result (if any) and other relevant documents.

3. If deemed necessary to obtain opinions about the valuation from the competent regulatory body as prescribed in Point d Clause 1 of this Article, the written request must contain the reasons for obtainment of the opinions.

Article 24. Receipt of request for asset valuation

1. The written request for valuation shall be submitted to the regulatory body competent to carry out asset valuation under the decentralized authority specified in Clauses 2, 3 and 4 Article 5 of this Decree.

2. The authority competent to carry out asset valuation shall carry out asset valuation at the request of the authority submitting the written request for valuation; where necessary, establish a valuation council as prescribed in Article 45 of the Law on Prices, Article 28 of this Decree and relevant laws.

3. In case of refusal to carry out valuation due to the fact that it is beyond the power to perform state management of valuation specified in Article 5 of this Decree; information or documents prescribed in Point b Clause 1 Article 26 and Point c Clause 1 Article 29 of this Decree are insufficient; in the cases where the participation in valuation is not permitted specified in Article 31 of this Decree, the authority competent to carry out asset valuation shall give a written response specifying the reason.

Article 25. Procedures for asset valuation

1. A competent regulatory body shall carry out valuation as follows:

a) Have an overview of the asset to be valuated;

b) Prepare a valuation plan;

c) Conduct a physical survey and collection information concerning the asset to be valuated;

d) Analyze information;

dd) Determine the value of the asset to be valuated according to regulations on calculation of prices of goods and services and Vietnamese valuation standards issued by the Ministry of Finance; principles, bases and methods for determining prices according to regulations of law related to the asset to be valuated;

e) Prepare a valuation report and written response containing valuation results and submit them to the head of the authority competent to carry out valuation for approval; then send the written response to the authority requesting valuation.

2. Depending on the asset to be valuated, some steps in the valuation procedure specified in Clause 1 of this Article may be skipped.

3. The authority requesting valuation shall provide information and documents concerning the asset to be valuated; cooperate in carrying out a physical survey of the asset to be valuated if necessary.

Article 26. Rights and obligations of heads and officials of regulatory bodies upon valuation of state-owned assets

1. Heads and officials of regulatory bodies have the following rights:

a) Carry out valuation within their power specified in Article 5 of this Decree or as assigned by authorities requested to carry out valuation;

b) Request authorities requesting valuation or authorities, organizations and units having assets to be valuated or other organizations and individuals concerned to provide information and documents necessary for asset valuation;

c) Heads of regulatory bodies are entitled to hire organizations licensed to assess economic - technical status and quality of assets; use valuation services to collect more information in service of valuation by regulatory bodies. Costs incurred in connection with using valuation services are specified in Article 32 of this Decree;

d) Refuse to carry out valuation if information or documents prescribed in Point b Clause 1 of this Article are insufficient;

dd) Enjoy benefits in accordance with regulations of law on valuation and other relevant regulations of law.

2. Heads and officials of regulatory bodies have the following obligations:

a) Follow the valuation procedure specified in Article 25 of this Decree;

b) Ensure the independence in terms of technical and professional issues; honesty and objectivity during the asset valuation;

c) Maintain confidentiality of information as prescribed by law.

3. Apart from the rights and obligations specified in Clauses 1 and 2 of this Article, heads and officials of regulatory bodies shall, upon valuation of state-owned assets, have the rights and obligations prescribed by regulations of law on officials.

Article 27. Preparation and retention of asset valuation dossiers

1. An asset valuation dossier prepared by the authority competent to carry out valuation or valuation council is composed of the following documents:

a) A written request for asset valuation; decision to establish valuation council in the case of establishment of a valuation council;

b) A valuation report and written response containing valuation result; asset valuation record and asset valuation conclusion in the case of establishment of a valuation council;

c) Other documents relating to asset valuation.

2. The authority competent to carry out asset valuation or authority presiding over establishment of the valuation council shall preserve and retain the valuation dossier in accordance with regulations of law on archives. The maximum retention period is 10 (ten) years from the end of the valuation unless otherwise prescribed by law.

3. [18] The authority competent to valuate assets or authority presiding over establishment of a valuation council shall send a copy of the valuation report or valuation conclusion via official dispatches, by fax or via the electronic reporting system to the Ministry of Finance in order for the latter to build database serving provision of information and state management of valuation, except for the case where the assets are on the list of State secret assets.

Article 28. Valuation council

1. Composition of a valuation council

a) The valuation council of the Ministry of Finance is established within the power to perform state management specified in Point n Clause 2 Article 5 of this Decree and chaired by a leader from the Ministry of Finance or authorized person. Other members include:

- Representative of the unit in charge of price management affiliated to the Ministry of Finance;

- Representative of the unit in charge of state-owned asset management affiliated to the Ministry of Finance;

- Other members decided by the Council's Chair according to the nature and characteristics of the assets to be valuated.

If the valuation council is established within the power to perform state management specified in Point b Clause 3 Article 5 of this Decree, members of such valuation council are specified in Point b Clause 1 of this Article.

b) The valuation council of a Ministry, ministerial agency, Governmental agency or another central agency (hereinafter referred to as “the Ministry or central agency”) Ministry of Finance is chaired by a leader of the Ministry or central agency having the asset to be valuated or an authorized person. Other members include:

- Head of the unit having the asset to be valuated;

- Representative of the unit in charge of price management or financial management affiliated to the Ministry or central agency and representative of the department in charge of prices, finance or accounting of the unit having the asset to be valuated;

- Other members decided by the authority competent to decide to establish the council according to the nature and characteristics of the asset to be valuated.

c) The provincial or district-level valuation council is chaired by a leader or authorized person of a state finance authority (Department of Finance, Department of Finance and Planning). Other members include:

- Representative of the unit having the asset to be valuated;

- Representative of the unit in charge of price management or financial management of the state finance authority;

- Other members decided by the authority competent to decide to establish the council according to the nature and characteristics of the asset to be valuated.

d) The valuation council of an authority, organization or unit (hereinafter referred to as “the unit”) assigned to purchase, sell, manage and use assets is chaired by a leader of the unit having the asset to be valuated or an authorized person. Other members include:

- Representative of the department in charge of prices, finance or accounting of the unit assigned to purchase, sell, manage and use assets;

- Representative of the unit in charge of prices or finance of the superior authority;

- Other members decided by the authority competent to decide to establish the council according to the nature and characteristics of the asset to be valuated.

2. The valuation council must have at least one member who has undergone professional training in valuation in accordance with regulations of the Ministry of Finance or obtained an advanced diploma Level 5 of VQF, bachelor’s degree or postgraduate degree in pricing or valuation.

3. Where necessary, the Chair of the valuation council shall decide to establish a team assisting the valuation council.

4. The valuation council shall work on the principle of collectives. A valuation meeting shall be only held if it is attended by at least 2/3 of members of the asset valuation council. If the asset valuation council has only 03 members, the meeting must be fully attended by the 03 members. The Chair of the valuation council shall chair the valuation meeting. Before starting the meeting, the absent members must send the Chair of the valuation council a document clearly stating the reason for their absence and independent opinion about issues concerning price of the asset to be valuated.

The valuation council shall give a conclusion on price of the asset by a majority of the council's members present at the meeting. In case of an equality of votes, the council’s Chair shall cast the deciding vote. The valuation council’s members have the right to have their opinions recorded if they do not agree with the conclusion on asset price given by the council; such recorded opinions shall be included in the minutes of asset valuation meeting.

5. The asset valuation council prescribed in Clause 1 of this Article is dissolved after completing its tasks specified in the council establishment decision. The issues that arise after the dissolution of the valuation council shall be addressed by the authority competent to establish the council.

Article 29. Rights and obligations of valuation council

1. Valuation councils has the following rights:

a) request authorities requesting valuation or authorities, organizations and units having assets to be valuated or other organizations and individuals concerned to provide information and documents necessary for asset valuation;

c) hire organizations licensed to assess economic - technical status and quality of assets; use valuation services to collect more information in service of valuation by the valuation councils. Costs incurred in connection with serving valuation by regulatory bodies are specified in Article 32 of this Decree;

c) Refuse to carry out asset valuation if information or documents prescribed in Point a Clause 1 of this Article are insufficient;

d) Other rights prescribed by law.

2. Valuation councils have the following obligations:

a) Follow the valuation procedure specified in Article 25 of this Decree;

b) Ensure the independence in terms of technical and professional issues; honesty and objectivity during the asset valuation, and take responsibility for asset valuation results;

c) Maintain confidentiality of information as prescribed by law;

d) Other obligations prescribed by law.

3. Every valuation council is entitled to use the seal of the authority deciding to establish the asset valuation council.

Article 30. Rights and obligations of members of valuation councils

1. Members of a valuation council have the following rights:

a) Access relevant information and documents in service of asset valuation;

b) Give their own judgments and assessments during the valuation;

c) Vote to determine prices of assets; if there is a different opinion, reserve the right to have their opinion recorded and include such recorded opinions in the minutes of valuation meeting;

d) Enjoy benefits in accordance with regulations of law on valuation and other relevant regulations of law;

dd) Other rights prescribed by law.

2. Members of a valuation council have the following rights:

a) Follow the valuation procedure specified in Article 25 of this Decree;

b) Ensure the independence in terms of technical and professional issues; honesty and objectivity during the asset valuation, and take legal responsibility for their judgements and assessments specified in Points b and c Clause 1 of this Article;

c) Maintain confidentiality of information as prescribed by law;

d) Other obligations prescribed by law.

Article 31. Cases in which participation in valuation is not permitted

1. Persons who have obligations and rights related to assets to be valuated or have valuated such assets before the valuation council is established.

2. Parents, spouses, children, biological siblings are valuators, persons responsible for management and members of the Control Boards of the valuation enterprises who have valuated the assets before the valuation council is established.

3. Persons under penalty of caution or facing any other stricter penalty or under administrative probation; incapacitated persons or persons with limited legal capacity.

Article 32. Costs of state-owned asset valuation

1. The costs incurred to facilitate state-owned asset valuation shall be covered by the state funding of the authority assigned to carry out valuation or authority competent to establish the valuation council in the case of establishment of a valuation council. The Ministry of Finance shall elaborate on the costs incurred to state-owned asset valuation.

2. In the case of carrying out valuation upon purchasing, selling or liquidating state-owned assets, the costs incurred to facilitate the valuation shall comply with regulations of law on management and use of state-owned assets, law on bidding and other relevant laws.

Chapter III

IMPLEMENTATION[19]

Article 33. Transitional clauses

1. Within 02 (two) years from the effective date of this Decree, any enterprise which is practicing valuation according to the notification of the Ministry of Finance before the effective date of this Decree must satisfy the conditions prescribed by the Law on Prices and the regulations set out in this Decree and submit an application in order to be granted the certificate of eligibility to provide valuation services by the Ministry of Finance.

2. Within 02 (two) years from the effective date of this Decree, a valuation council must be established in accordance with the conditions specified in Clause 2 Article 28 of this Decree.

Article 34. Effect

1. This Decree comes into force from September 25, 2013.

2. The Government’s Decree No. 101/2005/ND-CP dated August 03, 2005; regulations on valuation specified in Articles 14 through 19 of the Government's Decree No. 170/2003/ND-CP dated December 25, 2003; transitional clauses specified in Clause 3 Article 24 of the Government’s Decree No. 153/2007/ND-CP dated October 15, 2007 are repealed.

3. The valuator’s card issued according to previous regulations of law on valuation shall remain legally effective from the effective date of the Law on Prices and this Decree.

Article 35. Responsibility for implementation

The Minister of Finance shall provide guidelines for the implementation of this Decree; the Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairmen/Chairwomen of People’s Committees of provinces and central-affiliated cities are responsible for the implementation of this Decree./.

[1] This document is consolidated from the 03 following Decrees:

- The Government's Decree No. 89/2013/ND-CP dated August 06, 2013 on elaboration of some Articles of the Law on Prices regarding valuation, which has been effective since September 25, 2013;

- The Government's Decree No. 151/2018/ND-CP dated November 07, 2018 on amendments to some Decrees on business conditions under the management of the Ministry of Finance, which has been effective since November 07, 2018 (hereinafter referred to as “the Decree No. 151/2018/ND-CP”);

- The Government's Decree No. 12/2021/ND-CP dated February 24, 2021 on amendments to the Government's Decree No. 89/2013/ND-CP dated August 06, 2013 on elaboration of some Articles of the Law on Prices regarding valuation, which has been effective since May 01, 2021 (hereinafter referred to as “the Decree No. 12/2021/ND-CP”).

This consolidated document does not replace the 03 Decrees mentioned above.

[2] - The Decree No. 151/2018/ND-CP is promulgated pursuant to:

 “The Law on Government Organization dated June 19, 2015;

The Law on Securities dated June 29, 2006 and Law on amendments to some Articles of the Law on Securities dated November 24, 2010;

The Law on Insurance Business dated December 09, 2000 and Law on amendments to some Articles of the Law on Insurance Business dated November 24, 2010;

The Law on Independent Audit dated March 29, 2011;

The Law on Prices dated June 20, 2012;

The Law on Accounting dated November 20, 2015;

The Law on Investment dated November 26, 2014;

The Law on amendments to Article 6 and Appendix 4 on the list of conditional business lines stipulated in the Law on Investment dated November 22, 2016;

The Law on Enterprises dated November 26, 2014;

At the request of the Minister of Finance;

The Government hereby promulgates a Decree on amendments to some Decrees on business conditions under the management of the Ministry of Finance.”

- The Decree No. 12/2021/ND-CP is promulgated pursuant to:

 “The Law on Government Organization dated June 19, 2015; Law on Amendments to some Articles of the Law on Government Organization and Law on Local Government Organization dated November 22, 2019;

The Law on Prices dated June 20, 2012;

The Law on Investment dated November 26, 2014;

At the request of the Minister of Finance;

The Government hereby promulgates a Decree on amendments to the Government's Decree No. 89/2013/ND-CP dated August 06, 2013 on elaboration of some Articles of the Law on Prices regarding valuation.”

[3] This Article is added by Clause 1 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[4] This Article is added by Clause 2 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[5] This Clause is amended by Clause 3 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[6] This Clause is amended by Clause 4 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[7] This Article is added by Clause 5 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[8] This Article is added by Clause 6 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[9] This Point is amended by Clause 7 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[10] This Point is amended by Clause 7 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[11] This Point is amended by Clause 7 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[12] This Point is amended by Clause 7 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[13] This Point is amended by Clause 7 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[14] This Article is amended by Clause 8 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[15] This Point is amended by Clause 9 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[16] This Point is amended by Clause 9 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[17] This Clause is amended by Article 12 of the Decree No. 151/2018/ND-CP , which has been effective since November 07, 2018.

[18] This Point is amended by Clause 10 Article 1 of the Decree No. 12/2021/ND-CP , which has been effective since May 01, 2021.

[19] - Article 15 of the Decree No.151/2018/ND-CP, which has been effective since November 07, 2018, stipulates that:

 “Article 15. Effect and transitional clauses

1. This Decree comes into force from the date on which it is signed.

2. Organizations and individuals that have submitted applications for the certificates of eligibility for business in the fields of accounting, auditing, valuation, lottery, prize-rewarding electronic games for foreigners, casino, betting, credit rating services and voluntary retirement fund management services; establishment licenses and licenses to operate in the fields of insurance business and securities trading; certificate of registration of representative office of the foreign securities-trading organization; for approval for margin trading or day trading by securities companies; for approval for provision of audit services for public interest entities by auditing firms before the effective date of this Decree but have not yet been granted the certificate/license or approval are entitled to apply business conditions mentioned in this Decree.

3. Ministers, heads of ministerial agencies, heads of Governmental agencies and Presidents of People’s Committees of provinces and central-affiliated cities shall provide guidelines and implement this Decree./.”

- Articles 2 and 3 of the Decree No. 12/2021/ND-CP , which has been effective since November 07, 2018, stipulate that:

 “Article 2. Grandfather clauses

1. Any valuation enterprise submitting a complete application for issuance of the certificate of eligibility to provide valuation services before the effective date of this Decree may be considered to be issued with the certificate of eligibility to provide valuation services under the Government’s Decree No. 89/2013/ND-CP .

2. By December 31, 2021, any valuation enterprise issued with the certificate of eligibility to provide valuation services under the Government’s Decree No. 89/2013/ND-CP shall satisfy the conditions applicable to the legal representative, Director or General Director set out in Article 1 of this Decree.

Article 3. Implementation clause

1. This Decree comes into force from May 01, 2021.

2. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairmen/Chairwomen of People’s Committees of provinces and central-affiliated cities are responsible for the implementation of this Decree./.”