07:46 | 23/07/2024

From July 1, 2024, how will the professional ethics rules for appraisal apply when appraising under the Vietnam Valuation Standards?

From July 1, 2024, what will the professional ethics rules for valuation when appraising according to the Vietnam Valuation Standards be like?

What are the professional ethics guidelines for appraisal when appraising from July 1, 2024, according to the Vietnamese Valuation Standards?

The professional ethics guidelines for appraisal when appraising from July 1, 2024, are based on Circular 30/2024/TT-BTC regarding the Vietnamese Valuation Standards on Professional Ethics for Appraisers, Scope of Appraisal Work, Valuation Basis, and Appraisal Dossiers, which were issued by the Minister of Finance to prescribe and guide professional ethics for appraisers as stipulated by the law on valuation.

Applicable entities:

(1) Appraisers, valuation enterprises engaged in providing valuation services according to the law on valuation.

(2) Organizations, individuals conducting state valuation activities as prescribed by the law on valuation.

The professional ethics guidelines for appraisers consist of 2 chapters and 8 articles. Specifically:

| Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

Article 2. Applicable entities

Chapter II

SPECIFIC PROVISIONS

Article 3. Professional Ethics Guidelines for Appraisers

Article 4. Integrity

Article 5. Independence, Objectivity

Article 6. Professional Competence and Due Care

Article 7. Confidentiality

Article 8. Professional Conduct || --- |

From July 1, 2024, what are the professional ethics guidelines for appraisers when appraising according to the Vietnamese Valuation Standards?

From July 1, 2024, what are the professional ethics guidelines for appraisers when appraising according to the Vietnamese Valuation Standards?

How should information be kept confidential when appraising?

Based on Article 7 of the Vietnamese Valuation Standards on Professional Ethics for Appraisers issued together with Circular 30/2024/TT-BTC, information must be kept confidential in the following manner when appraising:

(1) Persons conducting appraisal activities, valuation enterprises, or appraisal councils are not allowed to disclose any information about the appraisal at the request of the organization or individual requesting the appraisal or as prohibited by law.

Even after the completion of the appraisal, the confidentiality requirement must be adhered to.

(2) Persons conducting appraisal activities may use information regarding the assets being appraised to collect market information.

(3) Persons conducting appraisal activities, valuation enterprises, or appraisal councils are prohibited from using confidential information requested by clients for their own benefit or the benefit of third parties.

(4) Valuation enterprises and appraisal councils must have measures in place to prevent participants in the appraisal process and consulting specialists from disclosing confidential information about the appraisal.

(5) Persons conducting appraisal activities may use their work experience to demonstrate competence when changing workplaces or seeking new clients, provided they comply with the requirement stated in (1).

How to register for practicing appraisal according to the Price Law 2023?

Under Article 45 of the Price Law 2023, a person who holds an appraisal card must meet the following conditions to register for practicing appraisal:

- Full civil capacity;

- Have a valid labor contract according to labor law with the valuation enterprise where the person holds the appraisal card and registers for appraisal practice, except for cases where the person with the appraisal card is the legal representative of the enterprise;

- Have a minimum of 36 months of actual working time at valuation enterprises, state management agencies on prices, or valuation with a bachelor's degree or higher.

In the case of working with a bachelor's degree or higher in price or valuation according to an applied orientation program prescribed by law, the total actual working time at valuation enterprises, state management agencies on prices, and valuation must be at least 24 months;

- Have updated knowledge of valuation as prescribed by the Ministry of Finance, except for cases where the appraisal card has been issued for less than 1 year up to the time of registration;

- Not subject to the following:

+ Officers as defined by the law on officers; officers, professional soldiers, defense workers in units affiliated with the People's Army; officers, non-commissioned officers in operational or technical occupations, professional police officers in units affiliated with the People's Public Security;

+ Persons prohibited from practicing appraisal by a legally effective court ruling; persons under prosecution, investigation, or trial as per criminal procedural law; persons convicted of crimes related to finance, pricing, or appraisal who have not had their convictions expunged; persons subject to administrative measures like educational counseling at the commune level; persons in compulsory detoxification, or compulsory educational establishments;

+ Persons stripped of their appraisal card as per administrative penalty decided by competent authorities under administrative violation handling law.

Persons holding an appraisal card meeting the conditions for registration must register their appraisal practice with the Ministry of Finance through valuation enterprises to be officially informed as appraisers at those enterprises.

Persons holding an appraisal card in the field of enterprise valuation can register to practice in both fields specified in Clause 1, Article 44 of the Price Law 2023.

Persons holding an appraisal card cannot register to practice appraisal simultaneously at more than one valuation enterprise.

Circular 30/2024/TT-BTC takes effect from July 1, 2024.

Price Law 2023 takes effect from July 1, 2024. The provisions in Clause 2, Article 60 of the Price Law 2023 take effect from January 1, 2026.

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