Amendment of the Law on Price to prevent and handle violations in valuation activities

On the morning of July 15, the Price Management Department (Ministry of Finance) in collaboration with the German International Organization (GIZ) held a workshop to collect opinions on the draft Law on Price (amended) on price appraisal. The seminar aimed to collect opinions on the draft law on valuation, contributing to the consolidation and development of valuation activities in general and professional valuation services in particular in a modern and integrated market economy.

Continue to improve the legal system on valuation

Speaking at the opening of the seminar, Mr. Nguyen Anh Tuan - Director of the Price Management Department said,  The Law on Price was passed at the 3rd session of the 13th National Assembly, and took effect from January 1, 2013. The Law on Prices and its guiding documents have created an important legal basis for the management and administration of prices according to the market mechanism and socialist orientation and have achieved many important results, contributing to the stability of the market. macroeconomics and sustainable growth.


The conference

After nearly 9 years of implementation, up to now, the socio-economic context has changed, the economic and civil legal system has been improved more and more, and has also had certain impacts on the management. price and appraisal price. Following the direction of the Prime Minister, the Ministry of Finance has submitted to the Government a dossier to amend the Price Law with 9 groups of policies, of which 3 groups are related to price appraisal.

The workshop will collect opinions on such contents as: authority and responsibility, state valuation activities, the role of professional associations; price appraiser card; conditions for granting the Certificate of business registration of price appraisal services; Managing business activities of appraisal services...

According to the Department of Price Management, up to now, the system of legal documents on price appraisal has basically been fully and synchronously promulgated. The Ministry of Finance has promulgated the Vietnam Valuation Standards System, which includes 13 regulatory standards and complete professional guidelines for valuation services, including specific regulations on approaches to valuation. and valuation methods for assets such as real estate, machinery and equipment, enterprises (enterprises), intangible assets, etc.

This workshop aims to improve the state management of business valuation services, in the coming time, continue to perfect the system of legal documents on valuation fully and synchronously; studying and amending the Law on Price on valuation, guiding documents to perfect regulations in order to prevent and handle violations in valuation activities.

In addition, it will review and complete the system of standards for appraisal of prices, ensuring that it is suitable to Vietnam's conditions and international standards of appraisal; strengthen the activities of management, inspection, supervision and assessment of the quality of valuation activities of the valuation enterprises; strictly and promptly handle the price appraiser and the valuation enterprise. In addition, it will continue to consolidate and perfect the construction of the National Database of Prices as a reference base when conducting price appraisal.

Strengthening management for appraisal work

Statistics show that newly granted appraisal enterprises have increased rapidly, especially in 2016, 48 enterprises increased, 50 enterprises increased in 2018 and 51 enterprises increased in 2020. However, since the new granting regulations took effect under Decree No. 12/2021/ND-CP from May 1, 2021, the number of enterprises conducting new price appraisal has decreased significantly. The remaining 8 months of 2021 have 8 enterprises, the first 6 months of 2022 only 3 new enterprises.

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Mr. Nguyen Anh Tuan - Director of Price Management Department spoke at the seminar

As of the end of June 2022, there are 431 enterprises that have been granted Certificate codes, of which only more than 300 enterprises are eligible and are operating in the business of appraisal services. The application of new regulations in Decree No. 12/2021/ND-CP has tightened state management over valuation activities, aiming to improve quality in the context of business conditions for valuation services. is considered to be too open, leading to the number of valuation enterprises growing rapidly, exceeding the career development orientation in the period of 2013 - 2020.

Besides the successes in the state management of business valuation services in the past period, there have been shortcomings, such as: management efficiency is not as expected; forming many small enterprises with a minimum number of appraisers. In addition, there have been negative phenomena and unfair competition by lowering prices and service quality, etc., leading to the inability to ensure the legitimate interests of related parties, causing frustration in the public sector. public opinion and society…

The Ministry of Finance has strengthened the strict management of valuation enterprises. By the end of June 2022, the Ministry of Finance has revoked the Certificate of eligibility for business in valuation services of 123 enterprises; suspended the business of valuation services for 68 enterprises due to ineligibility to operate under the Law on Prices.

Currently, the Ministry of Finance is also implementing the project "Building the National Database on Prices Phase 2"; The scope of phase 2 of the project will connect with ministries/sectors, as well as deploy to all 63 localities and about 250 valuation enterprises...

At the seminar, many delegates said that in the coming time, our country's market economy will continue to develop strongly with an increasingly large scale, economic transactions are increasingly diversified with different requirements. on sustainable, transparent and healthy economic development... That poses great opportunities and challenges for the development of the appraisal service industry in the coming time. The valuation profession needs to be further consolidated and make great progress to be able to meet the socio-economic development in the new situation with the general requirement that businesses need to have a large scale. , greater valuation capacity; price appraisers are required to have better professional qualifications and depth, with higher professionalism; at the same time, state management in this field is stricter.

Therefore, it is necessary to continue to perfect the system of legal documents in the field of valuation in a complete and synchronous manner; studying and amending the Law on Pricing on valuation, as well as guiding documents…

At the workshop, many opinions agreed with the additional new regulations on appraisal of prices in the draft revised Price Law.

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Mr. Nguyen Tien Thoa, Chairman of Vietnam Appraisal Association speaking at the workshop

Also at the seminar, Mr. Nguyen Tien Thoa, Chairman of the Vietnam Valuation Association said that it is necessary to remove regulations on charter capital of valuation enterprises; Disclosure of information about the customer's appraisal file and the appraised property, unless otherwise permitted or authorized by the customer; Regulations stipulate that the participants of the Price Appraisal Card exam must be people working at the price appraisal enterprises, instead of all subjects who want to take the exam and are eligible to take the exam; Regulations prohibiting working at the same time for two or more valuation enterprises; instead of banning the practice of valuation for two or more valuation enterprises.

At the same time, Mr. Thoa proposed to supplement regulations on standards of price appraisers; about lessors, lenders, renters, and borrowers of price appraiser's cards who are not allowed to register to practice valuation; Regulations on the appraiser must take the main responsibility for the results of the appraisal of prices are issued in the Certificate and Report on the results of the appraisal of prices; Mechanism for settling disputes over valuation results when there is a big difference between valuation enterprises participating in the valuation of an asset with similar specifications and conditions; All regulations on price collusion and appraisal must add the phrase "for profit" (Clause 3, Article 4) or collusion or collusion is to have a partner they "collaborate with each other". I cannot collude with myself; It is not recommended to hard stipulate “Having a price appraiser card on property valuation and business valuation” but it should be regulated in an open direction depending on the business field of valuation services of the enterprise, i.e. is “Having a price appraiser card for property valuation and/or business valuation; It is necessary to clarify and supplement regulations on Signing of Valuation Certificates and Reporting of valuation results not in the right field of business....

Concluding the seminar, Mr. Nguyen Anh Tuan - Director of the Price Management Department said that the comments and exchanges at the seminar will be recorded for research and institutionalization into the Law, contributing to strengthening and developing activities. valuation in general and professional and in-depth valuation services in particular.