Rectify price appraisal enterprises

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Many shortcomings

According to the Price Management Department, the inspected enterprises have complied with the regulations on the management of price appraisal activities and Vietnam’s appraisal standards. Enterprises that were inspected in the previous years also have a better sense of compliance with the law on price assessment, and previous shortcomings have been solved, but it is necessary to remove shortcomings further to improve the quality of price assessment activities.

During the inspection, some enterprises breached regulations on valuation. As a result, they have all been made a record of administrative violations and fined.

However, the Price Management Department also pointed out some enterprises’ shortcomings and inadequacies, which must be rectified soon. The main reason for these shortcomings is that they have not completely complied with legal provisions on price appraisal, especially updating new regulations. However, all appraisers have received invitation letters to attend training courses of new knowledge and some have not performed well in the control and internal inspection of price assessment activities at their units.

In addition, some appraisers still lack experience in the valuation and a deep understanding of the appraised assets and the market of the appraised assets, so they do not give appropriate conclusions about the value of the appraised assets.

For example, some valuation dossiers provide inadequate content for determining the basis of the appraisal value, give a rough analysis of general information on the asset market, and have not clearly demonstrated the verification of collected information.

Rectifying enterprises

Facing the above situations, the Ministry of Finance requests the general directors and directors of the valuation enterprises to clearly identify the above shortcomings and inadequacies to draw lessons and strictly make timely adjustments.

Specifically, they must regularly update relevant legal documents and the system of Vietnamese valuation standards in the price appraisal process.

Enterprises are required to strictly comply with the provisions of the law, first of all, the system of Vietnamese valuation standards. The appraisal process must be fully and seriously implemented, especially the survey, information collection and analysis, and make full report on the actual situation of the appraised assets and information survey form.

The collected information must have a clear source, ensure objectivity and truthfulness, and be verified to ensure the reliability and quality of information before applying valuation methods to estimate the value of appraised assets; fully implement the steps applicable in each valuation method selected by the appraiser.

The enterprises must also issue a report on valuation results and a certificate of valuation with full content as prescribed in Vietnam’s valuation standards. In addition, the enterprises keep a complete dossier according to the provisions of the price appraisal standard No. 06 issued together with the Circular No. 28/2015/TT-BTC of the Ministry of Finance: requiring enterprises to conduct a review of all archived price appraisal dossiers following regulations, submitting missing documents, rectifying record-keeping activities, in compliance with regulations of price appraisal standards.

Tighten practicing conditions of enterprises operating price appraisal

The Ministry of Finance also requires enterprises to issue regulations on internal control; regularly organize the evaluation of business valuation activities, promptly detect and correct errors in the valuation process; urge and check appraisers to attend training courses of new knowledge as prescribed; promptly report to the Ministry of Finance (the Price Management Department) on changes in information about the price appraisal enterprise and the appraiser following regulations.