Regulations of law on price appraisal

Appraisal is a field that is not new to many countries around the world, including Vietnam. Currently, the valuation market in Vietnam is growing very diverse and rich, typical for this issue is the birth of a series of valuation companies across the country. However, valuation activities are not easy to implement. As related to the financial sector, valuation is subject to many provisions of the law in the standards, conditions and modes of implementation. Want to do well or understand this field, need to understand the provisions of the law on valuation.

History of price appraisal

According to the long-established accepted definitions, "Appraisal is an estimate of the monetary value of an object or an asset". In the legal and financial history, there are many valuation studies used as the theoretical basis for the enactment of valuation regulations. In it, according to Professor W. Seabrooke - Portsmouth University Institute, UK: “Valuation is an estimate of the value of specific property rights in monetary form for a purpose that is determined. ".

In Vietnam, before the 2012 Law on Prices was issued, there were also documents regulating valuation issues. That is the content stipulated in the Ordinance No. 40/2002 / PL-UBTVQH10 of 2002 of Standing Committee of the 10th National Assembly of Vietnam. According to the provisions of this ordinance, price appraisal is specified as follows: “Valuation means the evaluation or re-evaluation of the value of assets in conformity with the market at a given place and time. according to Vietnamese standards or international practices ”.

Documents regulating price appraisal

With the introduction of the 2012 Law on Prices, the regulations on valuation have become much stricter and clearer. Accordingly, in the Law on Prices, the definition of valuation is as follows: “Valuation means that agencies and organizations with the function of price appraisal determine the monetary value of assets according to the provisions of the Code. civil in accordance with the market price at a certain time and place, serving a certain purpose according to the price appraisal criteria ”.

Basically, the new provision in the Law on Prices is more clear about the capacity of units and organizations with appraisal functions, not just general provisions as before. On the other hand, the provisions of the 2012 Law also add that the purpose of the price appraisal must be based on the valuation criteria to be considered legal. The introduction of the 2012 Law on Prices, and then a series of other documents adjusting the price appraisal such as: Decree No. 177/2013 / ND-CP dated November 14, 2013 of the Government detailing and guide the implementation of a number of articles of the Law on Prices. ; The Government's Decree No. 89/2013 / ND-CP of August 6, 2013, detailing a number of articles of the Law on Price Appraisal.

Accompanied by a series of other documents from the Ministry of Instruction and application such as: Circular No. 38/2014 / TT-BTC dated March 28, 2014 guiding a number of articles of Decree No. 89/2013 / ND -CP dated 06/08/2013 of the Government detailing the implementation of a number of articles of the Law on price appraisal; Circular No. 06/2014 / TT-BTC of the Ministry of Finance dated January 7, 2014, issuing standards for appraisal of prices No. 13 .; Decision No. 24/2005 / QD-BTC dated 18 April 2005 of the Ministry of Finance promulgating 03 standards of appraisal of prices in Vietnam (phase 1); Decision No. 77/2005 / QD-BTC dated November 1, 2005 of the Ministry of Finance on promulgating 03 standards of appraisal of prices in Vietnam (phase 2); Decision No. 129/2008 / QD-BTC dated December 31, 2008 of the Ministry of Finance on promulgating 06 standards of appraisal of Vietnamese prices (phase 3). Basically, it is possible to evaluate the legal framework for price appraisal in Vietnam is quite complete.