Decree No. 89/2013/ND-CP of August 6, 2013, detailing a number of articles of the Price Law regarding valuation

THE GOVERNMENT

Decree No. 89/2013/ND-CP of August 6, 2013, detailing a number of articles of the Price Law regarding valuation

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 20, 2012 Price Law;

Pursuant to the November 29, 2005 Enterprise Law;

At the proposal of the Minister of Finance,

The Government promulgates the Decree detailing a number of articles of the Price Law regarding valuation.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree details a number of articles of the Price Law regarding valuation, covering contents and competence of state management of valuation; Vietnam valuation standards; criteria of valuers and valuer cards; professional valuation associations; valuation service rates; order and procedures for grant and revocation of certificates of eligibility for provision of valuation services; suspension of valuation services; forms and scope of valuation services provided by foreign valuation organizations in Vietnam; and order and procedures for public valuation.

Article 2. Subjects of application

This Decree applies to valuers; valuation enterprises; state agencies competent and cadres and civil servants assigned to conduct valuation; agencies and organizations assigning persons to participate in valuation councils and those assigned persons; agencies, organizations and persons having assets to be valued or requesting valuation; professional valuation associations; state management agencies of valuation and other agencies, organizations and persons involved in valuation.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Valuation enterprise means an enterprise established and operating under the Enterprise Law which is granted by the Ministry of Finance a certificate of eligibility for provision of valuation services in accordance with law.

2. Client means an organization or a person that hires a valuation enterprise to provide valuation services under a valuation contract or a written request or proposal for valuation.

3. Professional valuation association means a socio-professional organization lawfully established on the basis of voluntary participation by valuers, valuation enterprises and other organizations and individuals involved in valuation.

4. Vietnam valuation standards mean regulations on professional qualifications, skills and ethics for valuation practice which are used as the standards for asset valuation activities and inspection and evaluation of results and quality of valuation activities in Vietnam.

Article 4. State management of valuation

1. Formulating and directing the implementation of strategies and plans development of the valuation profession in Vietnam.

2. Promulgating, and organizing the implementation of, legal documents on valuation and Vietnam valuation standards.

3. Valuating state property in accordance with this Decree and relevant legal documents.

4. Providing the reporting and collection and summarization of information for the formation of a database serving the provision of information on, and state management of valuation.

5. Managing professional training and retraining in valuation; managing and organizing exams, granting and revoking valuer cards; managing, granting and revoking certificates of eligibility for provision of valuation services.

6. Conducting inspection and examination, settling complaints and denunciations, and handling violations of the law on valuation.

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

Article 5. Competence of state management of valuation

1. The Government performs the uniform state management of valuation activities.

2. The Finance Ministry is answerable to the Government for performing the state management of valuation, having the following tasks and powers:

a/ To elaborate and submit to the Government for decision strategies and plans on development of the valuation profession in Vietnam;

b/ To elaborate and propose the Government to promulgate or promulgate according to its competence legal documents on valuation and Vietnam valuation standards;

c/ To organize the implementation of strategies and plans on development of the valuation profession, legal documents on valuation and Vietnam valuation standards;

d/ To provide exam sitting conditions, organization of exams and conditions for obtaining valuer cards; to manage, grant and revoke valuer cards;

dd/ To provide professional teaming in valuation and grant of training certificates; to train in valuation knowledge for practicing valuers;

e/ To provide the organization and management of scientific research training and retraining in valuation for cad and civil servants;

g/ To provide the form of, and grant and revoke, certificates of eligibility for provision of valuation services; to provide the registration and management of profession valuation practice; to publicize the lists of valuers and valuation enterprises nationwide;

h/ To provide the purchase of professional liability insurance for valuation activities or the setting up of professional risk provision funds for valuation enterprises;

i/ To perform valuation state management of valuation enterprises and professional valuation associations in accordance with law;

k/ To carry out international cooperation in valuation;

1/ To inspect, examine and settle valuation- related complaints and denunciations, and handle violations of the law on valuation; development of the valuation profession in Vietnam.

2. Promulgating, and organizing the implementation of, legal documents on valuation and Vietnam valuation standards.

3. Valuating state property in accordance with this Decree and relevant legal documents.

4. Providing the reporting and collection and summarization of information for the formation of a database serving the provision of information on, and state management of valuation.

5. Managing professional training and retraining in valuation; managing and organizing exams, granting and revoking valuer cards; managing, granting and revoking certificates of eligibility for provision of valuation services.

6. Conducting inspection and examination, settling complaints and denunciations, and handling violations of the law on valuation.

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

Article 5. Competence of state management of valuation

1. The Government performs the uniform state management of valuation activities.

2. The Finance Ministry is answerable to the Government for performing the state management of valuation, having the following tasks and powers:

a/ To elaborate and submit to the Government for decision strategies and plans on development of the valuation profession in Vietnam;

b/ To elaborate and propose the Government

to promulgate or promulgate according to its competence legal documents on valuation and Vietnam valuation standards;

c/ To organize the implementation of strategies and plans on development of the valuation profession, legal documents on valuation and Vietnam valuation standards;

d/ To provide exam sitting conditions, organization of exams and conditions for obtaining valuer cards; to manage, grant and revoke valuer cards;

dd/ To provide professional training in valuation and grant of training certificates; to train in valuation knowledge for practicing valuers;        

e/ To provide the organization and management of scientific research training and retraining in valuation for cadres and civil servants;

g/ To provide the form of, and grant and revoke, certificates of eligibility for provision of valuation services; to provide the registration and management of professional valuation practice; to publicize the lists of valuers and valuation enterprises nationwide;

h/ To provide the purchase of professional liability insurance for valuation activities or the setting up of professional risk provision funds for valuation enterprises;

i/ To perform valuation state management of valuation enterprises and professional valuation associations in accordance with law;

k/ To carry out international cooperation in valuation;

1/ To inspect, examine and settle valuation- related complaints and denunciations, and handle violations of the law on valuation;

m/ To review and assess valuation activities; to provide the quality control of valuation activities and observance of state regulations on valuation;

n/ To conduct or organize the valuation of state property at the request of the Government or the Prime Minister;

o/ To-provide the reporting and collection and summarization of information for the formation of a database serving the provision of information on and state management of valuation.

3. Ministries, ministerial-level agencies and government-attached agencies have the following tasks and powers:

a/ To perform the state management of valuation activities within the ambit of their tasks and powers;

b/ To assign and organize the valuation of state property provided in Clause 2 of Article 31, and Article 44 of the Price Law under their management according to regulations on the decentralization of management and use of state property and decentralization of state budget management and relevant laws;

c/ To inspect, examine and settle complaints and denunciations and handle violations related to valuation under their management.

4. Provincial-level People’s Committees have the following tasks and powers:

a/ To perform the state management of valuation activities under their management;

b/ To assign and organize the valuation of state property provided in Clause 2 of Article 31, and Article 44 of the Price Law under their management according to regulations on the decentralization of management and use of state property and decentralization of state budget management and relevant laws;

c/To inspect, examine and settle complaints and denunciations and handle violations of the law on valuation under their management.

Article 6. Vietnam valuation standards

1. The system of Vietnam valuation standards includes standards guiding ethical rules for professional practice of asset valuation; economic principles governing asset valuation activities; market and non-market values as a basis for asset valuation; classification of assets; asset valuation process; valuation result reporting, dossiers and certificates of asset valuation; valuation approaches and methods.

2. The Ministry of Finance shall promulgate and guide the implementation of Vietnam valuation standards applicable to valuation activities in the territory of Vietnam.

Article 7. Criteria of valuer

1. Having civil act capacity.

2. Possessing ethical qualities and being righteous, honest and impartial.

3. Holding a tertiary or post-graduate diploma in pricing or valuation or economics, techno-economics, technique or law related to valuation operations granted by a lawful Vietnamese or foreign training institution.

4. Having actually worked in the trained discipline for 36 (thirty-six) months or more after receiving the tertiary diploma in a discipline specified in Clause 3 of this Article.

5. Having a certificate of professional valuation training granted by an agency or organization licensed for professional valuation training according to the Ministry of Finance’s regulations, except the following cases:

a/ Holders of domestic or foreign tertiary or post-graduate diplomas in pricing or valuation;

b/ Persons holding a tertiary or post-graduate diploma in economics, techno-economics, technique or law related to valuation operations and a collegial diploma in valuation.

6. Having a valuer card granted by the Ministry of Finance.

Article 8. Valuer cards

1. Vietnamese citizens who fully satisfy exam sitting conditions provided by the Ministry of Finance and pass the exam for grant of valuer cards held by the Ministry of Finance may be granted a valuer card by the Ministry of Finance.

2. Persons who possess a foreign valuation practice certificate recognized by the Vietnamese Ministry of Finance, fully meet the criteria specified in Clauses 1 and 2, Article 7 of this Decree, and pass the Vietnamese-language exam on Vietnam law related to valuation operations provided by the Ministry of Finance may be granted a valuer card by the Ministry of Finance.

Article 9. Professional valuation associations

1. Professional valuation associations shall be established and operate in accordance with the law on associations and the law on valuation.

2. A professional valuation association may provide valuation training and grant training certificates, and perform the following valuation-related tasks:

a/ To study and update international valuation standards in order to propose the Ministry of Finance to consider and promulgate or revise Vietnam valuation standards in conformity with the practical situation in Vietnam and international practice;

b/ To coordinate with the Ministry of Finance in organizing exams for grant of valuer cards;

c/ To coordinate with the Ministry of Finance in examining and assessing the quality of valuation activities and observance of state regulations on valuation by its member valuation enterprises;

d/ To provide the Ministry of Finance with information on its members’ activities to serve the state management of valuation;

dd/ To organize public information on valuation activities; to coordinate with the Ministry of Finance in providing public information on mechanisms and policies on state administration of valuation;

e/ To participate in international cooperation in valuation in accordance with law on associations.

3. The Ministry of Finance shall specify the regime of reporting on performance of the tasks specified in Clause 2 of this Article by professional valuation associations.

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

1. Conducting valuation not according to Vietnam valuation standards.

2. Purchasing and selling assets being state secrets as prescribed by the law on list of state secrets.

3. Their valuers conducting valuation or managerial and executive persons or control board members being members, founding shareholders or buyers of shares or capital contributors of institutional clients.

4. Their valuers conducting valuation or managerial and executive persons or control board members having parents, spouses, children blood siblings being:

a/ Members, founding shareholders or buyers of shares or capital contributors of institutional clients;

b/ Managerial or executive persons or chief accountants or control board members or controllers of institutional clients.

5. Managerial or executive persons, control board members or controllers of units receiving valuation concurrently being share buyers or capital contributors of valuation enterprise

6. Valuation enterprises and clients having the following relations:

a/ Having the same founding person or enterpriser organization or the same person, enterpriser organization participating in the founding; or operating in the same group, corporation or parent company and subsidiary company;

b/ Having the administration, control or capital contribution relation in all forms;

c/ Directly or indirectly submitting to the administration, control or capital contribution in all forms by another party;

d/ Having business cooperation contracts.

7. Valuation enterprises currently subject to termination or suspension of valuation operations.

Article 11. Valuation service charges

1. The valuation service charge is agreed between the valuation enterprise and the client in accordance with Clauses 2, 3 and 4 of this Article and stated in the valuation contract. Cases of bidding for valuation services comply with the bidding law regarding consultancy bid packages.

2. Bases for determining the valuation services charge:

a/ Content, volume, characteristics and time of the valuation job;

b/ Reasonable actual business expenses corresponding to service quality, including wage expenses and expenses for survey, collection, analysis and processing of information; financial, sale, corporate management and other expenses as prescribed by law;

c/ Expenses for buying professional liability insurance or setting up professional risk provision funds;

d/ Expected profits (if any) to assure the valuation service charge matching the market price for similar valuation services;

dd/ Financial obligations as prescribed by law.

3. Pursuant to Clause 2 of this Article, valuation enterprises shall set and post up their valuation service charges in accordance with Clause 6, Article 4 and Clause 5, Article 12 of the Price Law in the form of package services according to the percentage (%) of the value of assets or projects to be valued or in other forms decided by the enterprises in accordance with law.

Article 12. Overseas valuation service businesses

1. Valuation enterprises may establish valuation service businesses overseas in accordance with the investment law of Vietnam and laws of host countries.

2. Within 30 (thirty) working days after establishing or terminating the operation of its overseas valuation service business, a valuation enterprise shall send a notice enclosed with relevant documents to the Ministry of Finance for management and supervision.

Chapter II

 SPECIFIC PROVISIONS

Section 1

ORDER AND PROCEDURES FOR GRANT OF CERTIFICATES OF ELIGIBILITY FOR PROVISION OF VALUATION SERVICES

Article 13. Grant and re-grant of certificates of eligibility for provision of valuation services

1. Enterprises that fully satisfy the conditions for valuation services business specified in Article 39 of the Price Law may be considered by the Ministry of Finance for grant of certificates of eligibility for provision of valuation services.

2. Valuation enterprises may be considered by the Ministry of Finance for re-grant of certificates of eligibility for provision of valuation services in the following cases:

a/ There is a change in the contents of the certificate of eligibility for provision of valuation services;

b/ The certificate of eligibility for provision of valuation services is lost, torn, burnt or damaged because of disaster, enemy sabotage or another force majeure event.

Article 14. Dossiers of request for grant or re-grant of certificates of eligibility provision of valuation services

1. A dossier of request for certificate of eligibility for provision of valuation services comprises:

a/ An application for a certificate of eligibility for provision of valuation services, made according to the form provided by the Ministry of Finance;

b/A certified copy of the business registration certificate or corporate registration of the enterprise;

c/Valuation practice registration certificates of valuers registering to practice valuation at the enterprise certified by the enterprise; professional valuation training certificates for practicing valuers (if any);

d/ Copies of labor contracts or label contract annexes (if any) of valuers practicing at the enterprise;

dd/ Documents proving capital contribution levels of institutional members, for limited liability companies with two or more members and joint stock companies under Article 18 of this Decree; and capital contribution levels of foreign valuation organizations in the enterprise (if any) under Clause 1, Article 21 of this Decree;

e/ Fee receipt under regulations;

g/ A certified copy of the written appointment of the at-law representative of the enterprise and power of attorney for valuation (if any).

2. A dossier of request for re-grant of a certificate of eligibility for provision of valuation services comprises:

a/An application for re-grant of a certificate of eligibility for provision of valuation services, made according to the form provided by the Ministry of Finance;

b/ The original certificate of eligibility for provision of valuation services. If this certificate is lost or damaged, written certification by the commune-level People’s Committee or police office of the locality where the certificate is lost or damaged is required;

c/ Fee receipt under regulations;

d/A certified copy of the written appointment of the lawful representative of the enterprise and power of attorney for valuation (if any).

Article 15. Time limit for grant and re-grant of certificates of eligibility for provision of valuation of services

1. Within 15 (fifteen) working days after receiving 1 (one) complete dossier made by the enterprise under Clause 1, Article 14 of this Decree, the Ministry of Finance shall grant a certificate of eligibility for provision of valuation services to the valuation enterprise.

2. Within 10 (ten) working days after receiving 1 (one) complete dossier made by the enterprise under Clause 2, Article 14 of this Decree, the Ministry of Finance shall re-grant a certificate of eligibility for provision of valuation services to the valuation enterprise.

3. In case of refusing to grant or re-grant of a certificate of eligibility for provision of valuation services, within 5 (five) working days after receiving the dossier, the Ministry of Finance shall issue a written reply clearly stating the reason to the enterprise registering valuation services business.

Article 16. Fees for grant and re-grant of certificates of eligibility for provision of valuation services

1. Enterprises shall pay a fee when submitting dossiers of request for grant or re-grant of certificates of eligibility for provision of valuation services.

2. The Minister of Finance shall provide fee levels and the collection, remittance, management and use of the fees for grant and re-grant of certificates of eligibility for provision of valuation services.

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

1. In the course of operation, a valuation enterprise shall notify the Ministry of Finance in writing of the following changes:

a/ Changes leading to its failure to meet one of the conditions for grant of a certificate of eligibility for provision of valuation services specified in Article 39 of the Price Law;

b/ The changes subject to re-grant of a certificate of eligibility for provision of valuation services specified in Clause 2, Article 13 of this Decree;

c/ Changes in the list of valuers registering to practice at the enterprise, including name, year of birth, native place, position, and number and date of valuer card;

d/ Division, split-up, merger, consolidation or transformation of ownership of the enterprise;

dd/ Dissolution, bankruptcy, suspension or termination of valuation services business of the enterprise;

e/ Revocation of the business registration certificate or corporate registration certificate of the enterprise.

2. Within 15 (fifteen) working days after the occurrence of a change specified in Clause 1 of this Article, a valuation enterprise shall send a notice to the Ministry of Finance for information monitoring and summarization and review of business conditions of the enterprise serving the state management of valuation enterprises.

Article 18. Institutional members of limited liability valuation companies with two or more members and joint-stock valuation companies

1. The institutional member of a limited liability valuation company with two or more members may contribute at most 35% of the charter capital of that company. The institutional founding shareholder of a joint-stock valuation company may contribute at most 35% of the charter capital of that company. In case there are many organizations contributing capital to a limited liability valuation company with two or more members or a joint-stock valuation company, their total contributed capital must not exceed 35% of the charter capital of that company.

2. The representative of the institutional member provided in Clause 1 of this Article must be a valuer and register practice at the valuation enterprise to which the institutional member contributes capital and concurrently must neither contribute capital to that valuation enterprise as an individual nor represent another organization contributing capital to another valuation enterprise.

Section 2

SUSPENSION OF VALUATIO SERVICES, REVOCATION OF CERTIFICATES OF ELIGIBILITY FOR PROVISION OF VALUATION SERVICES

Article 19. Suspension of valuation services and revocation of certificates of eligibility for valuation service provision

1. A valuation enterprise is suspended from providing valuation services under Clause 1, Article 40 of the Price Law when:

a/ It fails to satisfy any of the conditions corresponding to its form of enterprise specified in Clause 1, 2, 3,4 or 5, Article 39 of the Price Law for 3 (three) consecutive months;

b/ It makes a serious professional error or seriously violates valuation standards,

including:

- Failing to comply with Vietnam valuation standards;

- Disclosing information on dossiers, clients and assets to be valued unless otherwise agreed by clients or permitted by law;

- Colluding with asset owners, related persons when conducting order to distort valuation results;

- Making untruthful valuation dossiers or untruthful information relating to assets to be valued, resulting in the value of assets valued by the valuation enterprise 10%, for assets being real estate, equipment or means of transport, or 15%, for assets being material supplies or goods, lower or higher than the final value valued by a competent state management agency in case the valuation enterprise and state management agency apply the same valuation method.

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

3. The time of suspending valuation services does not exceed 60 (sixty) days after the effective date of a suspension decision. During the suspension time, the enterprise shall send to the Ministry of Finance a report on handling and remediation of its violations together with supporting documents and concurrently request resumption of its valuation services.

Based on the enterprise’s report, the Ministry of Finance shall consider and send a notice allowing the enterprise to resume its valuation operations according to its certificate of eligibility for provision of valuation services corresponding to the form of enterprise provided in Clause 1, 2, 3, 4 or 5, Article 39 of the Price Law or revoke its certificate of eligibility for provision of valuation services under Article 20 of this Decree.

4. During the time of valuation service suspension, the valuation enterprise shall take responsibility for valuation contracts signed with clients, labor contracts signed with valuers and other employees, and other legal obligations, under regulations, unless otherwise agreed by parties.

5. The Ministry of Finance shall publish on its website the list of valuation enterprises suspended from valuation services and the list of valuation enterprises eligible for resumption of valuation operations after their suspension.

Article 20. Revocation of certificates of eligibility for provision of valuation services

1. Valuation enterprises may have their certificates of eligibility for provision of valuation services revoked under Clause 2, Article 40 of the Price Law.

2. The Ministry of Finance shall issue decisions on revocation of certificates of eligibility for provision of valuation services; publish on its website the list of valuation enterprises having their certificates of eligibility for provision of valuation services revoked and remove these enterprises from the list of enterprises eligible for valuation operations.

3. Valuation enterprises having their certificates of eligibility for provision of valuation services revoked shall terminate their valuation services from the effective date of the revocation decision.

Section 3

FORM AND SCOPE OF PROVIDING VALUATION SERVICESS BY FOREIGN VALUATION ORGANIZATIONS IN VIETNAM

Article 21. Forms of providing valuation services by foreign valuation organizations in Vietnam

1. Foreign valuation organizations established and providing valuation services lawfully in their countries may contribute capital together with Vietnamese valuation enterprises to establish limited liability companies with two or more members or joint-stock companies to provide valuation services in Vietnam. The percentage of capital contribution by foreign valuation organizations and their representatives complies with Article 18 of this Decree.

2. Conditions for establishment and operation and dossiers of request for grant and re-grant of certificates of eligibility for provision of valuation services of valuation enterprises having capital contributed by foreign valuation organizations comply with the enterprise law, Clauses 2 and 5, Article 39, and Article 43 of the Price Law and this Decree.

Article 22. Cases in which valuation enterprises with capital contributed by foreign valuation organizations are not permitted to conduct valuation

1. The cases specified in Article 10 of this Decree.

2.  Security and national defense property as prescribed by law.

Section 4

PUBLIC VALUATION ORDER AND PROCEDURES

Article 23. Request for asset valuation

1. Competent state agencies shall value assets at the written request or proposal (below referred to as request) of competent state agencies or agencies, organizations or units assigned to purchase, sell, liquidate, lease or rent state property in the cases specified in Clause 2, Article 31, and Article 44 of the Price Law, specifically as follows:

a/ Purchase, sale, liquidation or lease of state property or rent of property for the operation of state agencies as prescribed by the law on management and use of state property;

b/ Failure to hire valuation enterprises to value state property, in case agencies, organizations or units assigned to purchase, sell, liquidate, lease or rent state property (fifteen) days after inviting the provision of valuation services but no valuation enterprise is interested, except cases of bidding which comply with the bidding law;

c/ Purchase or sale of property being state secrets as prescribed by the law on the list of state secrets;

d/ Purchase or sale of state property of great value in which after valuation enterprises are hired, agencies or persons competent to approve find it necessary to consult competent state agencies according to the competence to decentralize the valuation of state property under 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 must contain the following principal contents:

a/ Name of the requesting agency;

b/ Contents of valuation request;

c/ Information on the asset to be valued together with related documents: certificate of verification of the techno-economic state and quality of the asset; certificate and report on valuation result (if any) and other related documents.

3. In case valuation opinions of a competent state management agency provided at Point d, Clause 1 of this Article are needed, the written request must clearly state tie reason for requesting valuation opinions.

Article 24. Receipt of asset valuation request

1.  Written requests for asset valuation must be sent to state agencies competent to value assets as decentralized under Clauses 2, 3 and 4, Article 5 of this Decree.

2. Competent asset valuation agencies shall organize asset valuation as requested in writing by agencies. When necessary, valuation councils may be established under Article 45 of the Price Law, Article 28 of this Decree and relevant laws.

3. In case of refusing valuation due to irrelevant state management competence for valuation under Article 5 of this Decree; insufficient information and documents as required under Point b, Clause 1, Article 26, and Point c, Clause 1, Article 29 of this Decree; S3 cases not permitted to conduct valuation under Article 31 of this Decree, competent asset valuation agencies shall issue a written reply clearly stating the reason.

Article 25. Asset valuation order

1. A competent state agency shall value an asset according to the following order:

a/ General identification of the asset;

b/ Elaboration of a valuation plan;

c/ Field survey and collection of information relating to the asset;

d/ Analysis of information;

dd/ Pricing of the asset based on the Regulation on pricing of goods and services, Vietnam valuation standards promulgated by the Ministry of Finance; and pricing principles, grounds and methods as prescribed by relevant laws concerning the asset;

e/ Making of a valuation result report and a written reply on the valuation result for submission to the head of the competent valuation agency for approval; sending of that reply to the valuation-requesting agency.

2. Depending on the asset to be valued, a number of the steps specified in Clause 1 of this Article may be skipped.

3. The valuation-requesting agency shall provide information and documents relating to the asset to be valued; and coordinate the field survey on the asset, if necessary.

Article 26. Rights and obligations of heads and civil servants of state agencies in valuation of state property

1. Heads and civil servants of state agencies have the rights:

a/ To conduct valuation according to the competence provided in Article 5 of this Decree or as assigned by agencies or organizations that are requested to conduct valuation;

b/ To request valuation-requesting agencies or agencies, organizations or units having assets to be valued or related organizations or persons to provide information and documents necessary for asset valuation;

c/ For heads of state agencies, to hire licensed organizations to verify the techno- economic state and quality of assets; to hire asset valuation in order to have more information for their agencies’ valuation. Funds for such hiring comply with Article 32 of this Decree;

d/ To refuse asset valuation in case of lacking information and documents as required under Point b, Clause 1 of this Article;

dd/ To enjoy regimes and policies in accordance with the law on valuation and relevant laws.

2. Heads and civil servants of state agencies have the obligations:

a/ To comply with the asset valuation order provided in Article 25 of this Decree;

b/ To guarantee independence in professional operations; and honesty and impartiality in the process of asset valuation;

c/ To keep information confidential in accordance with law.

3. In addition to the rights and obligations specified in Clauses 1 and 2 of this Article, when valuing state property, heads and civil servants of state agencies have the rights and obligations prescribed by the law on civil servants.

Article 27. Making and storage of asset valuation dossiers

1. An asset valuation dossier made by a competent asset valuation agency or valuation council comprises:

a/ Written request for asset valuation; decision on formation of the valuation council, in case of forming a valuation council;

b/ Report on the valuation result and written reply on the valuation result; record of asset valuation and conclusion on asset valuation, in case of forming a valuation council;

c/ Other documents related to the asset valuation.

2. Competent asset valuation agencies or agencies forming valuation councils shall preserve valuation dossiers in accordance with the law on archives. The time of storage is at least 10 (ten) years after completing valuation, unless otherwise provided by law.

Article 28. Valuation councils

1. Membership of a valuation council

a/ A valuation council of the Mi of Finance is formed according to the state management competence provided at Point n, Clause 2, Article 5 of this Decree and comprises the chairperson, who is a leader of the Ministry of Finance or an authorized person, and other members, including:

- Representative of the specialized price management unit of the Ministry of Finance;

- Representative of the specialized state property management unit of the Ministry of Finance;

- Other members as decided by the council chairperson, depending on the characteristics of the asset to be valued.

The membership of a valuation council formed by the Ministry of Financ0:according to the state management competency provided at Point b, Clause 3, Article 5 of this Decree complies with Point b, Clause 1of this Article.

b/ A valuation council of a ministry, ministerial-level agency, government- attached agency or another central agency (below referred to as ministry or central agency) comprises the chairperson, who is a leader of the ministry or central agency having the asset to be valued or an authorized person, and other members, including:

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

- Representatives of the specialized price management or finance management unit of the ministry or central agency and the price or finance-accounting section of the unit having the asset to be valued;

- Other members as decided by the agency competent to form the valuation council based on the characteristics of the asset to be valued.

c/ A provincial- or district-level valuation council comprises the chairperson who is a leader or an authorized person of the finance state agency (provincial-level Finance Department or district-level Finance and Planning Division) and other members, including:

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

- Representative of the specialized price management or finance management unit of the finance state agency;

- Other members as decided by the agency competent to form the valuation council based on the properties and characteristics of the asset to be valued.

d/ A valuation council of an agency or organization or a unit ((below referred to as unit) assigned to purchase, sell, manage or use the asset .comprises the chairperson, who is a leader of the unit having the asset to be valued or an authorized person, and other members, including:

- Representative of the specialized price or finance and accounting section of the unit assigned to purchase, sell, manage or use the asset;

- Representative of the specialized price or finance section of the superior agency;

- Other members as decided by the agency competent to form the valuation council based on the characteristics of the asset to be valued.

2. A valuation council must have at least one member who has been professionally trained in valuation in accordance with the Ministry of Finance’s regulations or possesses a collegial, tertiary or post-graduate diploma in pricing or valuation.

3. When necessary, the chairperson of a valuation council may form a group to assist the valuation council.

4. A valuation council works on a collegial basis. A valuation meeting may be held only when it is attended by at least two-thirds of the valuation council’s members. For a valuation council with 3 members, its meeting must be attended by all the members. The valuation council chairperson shall chair the valuation meeting. Before the valuation meeting, absent members shall send to the valuation council chairperson a document clearly stating the reason for their absence and their opinions on issues related to the price of the asset to be valued.

The valuation council concludes on the price of the asset based on the opinion of the majority voted and passed by council members present at the meeting. In case the votes are equal, the one with the council chairman’s vote is final. Valuation council members may reserve their opinions if they disagree with the valuation council’s conclusion on the asset price and their opinions will be written in the record of the asset valuation meeting.

5. A valuation council provided in Clause 1 of this Article terminates operation after it completes the tasks specified in the decision on its formation. The agency competent to form the valuation council shall handle matters arising after the valuation council terminates operation.

Article 29. Powers and obligations of valuation councils

1. A valuation council has the powers:

a/ To request competent valuation agencies or agencies, organizations or units having assets to be valued or other related organizations or persons to provide information and documents necessary for the asset valuation;

b/ To hire licensed organizations to verify the techno-economic state and quality of assets; to hire asset valuation in order to have more information for its own valuation. Funds for such hiring comply with Article 32 of this Decree;

c/ To refuse asset valuation in case of lacking information and documents as required under Point a, Clause 1 of this Article;

d/ Other powers as prescribed by law.

2. A valuation council has the obligations:

a/ To comply with the asset valuation order provided in Article 25 of this Decree;

b/ To guarantee independence in professional operations; and honesty and impartiality in the process of asset valuation; to take responsibility for asset valuation results;

c/ To keep information confidential in accordance with law;

d/ Other obligations as prescribed by law.

3. A valuation council may use the seal of the agency forming the council.

Article 30. Powers and obligations of members of valuation councils

1. The members of a valuation council have the powers:

a/ To access information and documents related to the asset valuation;

b/ To give their opinions and evaluation in the valuation process;

c/ To vote for the pricing of assets; to have their opinions reserved and written in the record of the council meeting, if having different opinions;

d/ To enjoy regimes and policies in accordance with the law on valuation and other relevant laws;

dd/ Other powers as prescribed by law.

2. The members of a valuation council have the obligations:

a/ To comply with the asset valuation order provided in Article 25 of this Decree;

b/ To guarantee independence in professional operations; and honesty and impartiality in the process of asset valuation; to take responsibility for their opinions and evaluation provided at Points b and c, Clause 1 of this Article;

c/ To keep information confidential in accordance with law;  

d/ Other obligations as prescribed by law.

Article 31. Cases not permitted to participate in valuation

1. Persons having obligations and interests related to the asset to be valued or having valued that asset before the valuation council is formed.

2. Persons having parents, spouses, children or natural siblings who are valuers or managerial or executive persons or members of the control board of the valuation enterprise and have valued that asset before the valuation council is formed.

3. Persons currently serving a caution or severer discipline, persons currently under administrative probation; persons having no or limited civil act capacity.

Article 32. Funds for valuation of state property

1. Funds for public valuation come from state budget funds of agencies assigned to conduct valuation or agencies competent to form valuation councils, in case of forming valuation councils. The Ministry of Finance shall specify funds for valuation of state property.

2. Particularly funds for valuation for purchase, sale or liquidation of state property comply with the law on management and use of state property, the bidding law and relevant laws.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 33. Transitional provisions

1. Within 2 (two) years after the effective date of this Decree, enterprises currently operating in valuation according to the Ministry of Finance’s notice before the effective date of this Decree must satisfy the conditions provided in the Price Law and comply with this Decree and submit dossiers to the Ministry of Finance for grant of a certificate of eligibility for provision of valuation services.

2. Within 2 (two) years after the effective date of this Decree, the formation of valuation councils must satisfy the conditions provided in Clause 2, Article 28 of this Decree.

Article 34. Effect

1. This Decree takes effect on September Joint Circular No. 102/2013/TTLT-BTC- 25,2013.

2. To annul the Government’s Decree No. 101/2005/ND-CP of August 3, 2005, on valuation; to annul provisions on valuation provided in Articles 14, 15, 16, 17, 18 and 19 of the Government’s Decree No. 170/2003/ ND-CP of December 25, 2003, detailing a number of articles of the Price Ordinance; to annul transitional provisions on valuers in Clause 3, Article 24 of the Government’s Decree No. 153/2007/ND-CP of October 15, 2007, detailing and guiding the Law on Real Estate Business.

3. Valuer cards granted under previous provisions of the law on valuation remain legally valid from the effective dates of the Price Law and this Decree.

Article 35. Implementation responsibilities

The Minister of Finance shall guide the implementation of this Decree; ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government

Prime Minister

NGUYEN TAN DUNG