Tighten compliance with legal regulations on price appraisal

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Some violations

Right from the first months of the year, the Price Management Department (Ministry of Finance) issued a document reminding price appraisal businesses and appraisers to comply with legal regulations on price appraisal. According to the assessment of the Price Management Department, basically, businesses and appraisers have complied with the regulations on management of valuation activities and valuation standards but there are still some violations.

For example, the Ministry of Finance was not notified about changing the list of appraisers; failure to properly implement the valuation process; do not buy professional liability insurance, do not set up a professional risk reserve fund, issue a valuation certificate or a valuation report that does not have enough basic information according to the instructions in the valuation standards. Vietnam…

The Price Management Department said it has coordinated with relevant units to review the compliance with the law on price appraisal and management of business activities of price appraisal services and practice activities of price appraisal by appraisers.

According to the 6-month report of the Price Management Department, the Department has suspended 12 price appraisal businesses and revoked 17 certificates of eligibility to conduct business in price appraisal services. From July until now, the Ministry of Finance has also issued 3 decisions to revoke the certificates of eligibility for business valuation services for 3 businesses and issued many notices to adjust the content of practice registration, ending the valuation practice of appraisers at some businesses...

Need to be serious and proactive in practice

In the middle of this year, the Price Law 2023 was passed and will take effect from July 1, 2024, including a chapter regulating price appraisal activities. This is expected to help valuation activities have a full legal basis to operate as well as carry out state management.

To implement the Law promptly, synchronously and consistently, the Ministry of Finance has requested price appraisers, price appraisal businesses and organizations and individuals related to appraisal service business activities. Proactively research comprehensively the regulations in the 2023 Price Law.

In the last months of 2023, the Price Management Department said it will review documents for issuance and re-issuance of certificates of eligibility to conduct business in price appraisal services for price appraisal businesses; review and notify the list of price appraisers eligible to register to practice asset valuation in 2023. The unit will also carry out inspections on compliance with the law on valuation for businesses and surprise inspection as required.

Speaking more about this issue, Mr. Nguyen Tien Thoa, Chairman of the Vietnam Valuation Association (VVA), said that the Association is determined to continue building the Association to become an "extended arm" of the Ministry of Finance in managing operations of price appraisal. Therefore, the Association will work with state agencies to continue building and perfecting the legal environment for price appraisal; organize links, unite members, protect members' interests and support the professional activities of valuation businesses and price appraisers...

According to opinions from experts, to comply with the law, valuation businesses need to seriously control the quality of internal valuation of the business; regularly organize assessments of the quality of the enterprise's valuation activities, promptly detect and correct errors in the valuation process, and proactively regularly update legal documents and professional knowledge about valuation.