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Vietnam’s valuation standard system to be improved

Summary

The Ministry of Finance has answered voters of the National Assembly Delegation of Binh Phuoc province after the first extraordinary meeting of the XV National Assembly on questions related to Vietnam’s valuation standard.

Updated on : 03-04-2022

 

The Ministry of Finance has been improving Vietnam’s valuation standard system

Specifically, voters of Binh Phuoc province said the provisions in Section 6, Part II of the Valuation Standard 8 issued together with Circular 126/2015/TT-BTC dated August 20, 2015 of the Ministry of Finance shows many shortcomings.

The actual implementation revealed some problems related to adjustment ratio, level and order for comparative factors (profitability, legal status, infrastructure, natural features: location, shape of excess land, direction, landscape, environment; interior and exterior design, land use rate, regulations on building height, capacity, productivity, consumption coefficient of raw materials, fuel) due to unclear regulations. Binh Phuoc’s voters requested the Ministry of Finance to issue more specific regulations on adjustment rates, levels and orders.

Responding to this request, the Ministry of Finance said Section 6, Part II, Valuation Standard 08 – Approach from the market attached with Circular 126/2015/TT-BTC dated August 20, 2015 of the Ministry of Finance specifies how to determine the indicative prices of a comparative asset, accordingly the indicative prices of comparative assets are determined on the basis of the price level of comparative assets after adjustment due to differences in comparative factors.

The analysis and comparison will draw out the similarities and differences, the advantages and disadvantages of the appraised assets with the comparative assets. The analysis and comparison are performed for quantitative comparability factors (which can be quantified into money) before qualitative comparative factors (which cannot be quantified into money)

Based on the above provisions, the Ministry of Finance said in Valuation 8 there are specific regulations on adjustment ratio, level and order as well as instructions on how to determine, calculate and implement these regulations.

The Ministry of Finance takes note of the voters' opinions to study and continue to improve Vietnam’s Valuation Standard System.

The Ministry of Finance also said the voters' requests are related to the price appraisal standard, but mention the parameters of the land plot. Therefore, the Ministry of Finance noted that the application of Vietnam’s Valuation Standard System is in accordance with the provisions of the Law on Price Appraisal.

The land valuation shall comply with the Land Law, Decree 44/2014/ND-CP dated May 15, 2014 of the Government on land prices and Circular 36/2014/TT-BTNMT dated June 30, 2014 of the Ministry of Natural Resources and Environment detailing land valuation methods; building and adjusting land price list; specific land valuation and land price determination consultancy.

Therefore, the Ministry of Finance said if voters have questions related to the land valuation method in accordance with the law on land, they should request the Ministry of Natural Resources and Environment to guide them according to their assigned functions and tasks.