What are methods for valuation of commercial properties in Vietnam?
What are methods for valuation of commercial real estates in Vietnam? What are methods for valuation of industrial properties in Vietnam? What are methods for valuation of other real properties in Vietnam?
What are methods for valuation of commercial real estates in Vietnam?
Pursuant to Point 7, Section II of the Vietnam’s Valuation Standard No. 11 issued together with the Circular 145/2016/TT-BTC stipulating as follows:
Commercial properties prescribed in this Standard include shopping malls, office buildings and hotels.
a) Shopping mall prescribed in this Standard refers to the property forming a complex of shops and service providers, halls, meeting halls and offices for lease, etc. which are established within one or several terraced buildings in conformity with required standards on commercial area, technical facilities and qualifications of managers or organization of business activities, and employ modern and convenient service methods in order to meet demand for development of business activities of businesspeople as well as customers’ demand for goods and services.
- Office for lease prescribed in this Standard is defined as the property which is leased by agencies or organizations to use as working places. Office for lease may be a part of a multi-functional building or private house leased for using as office.
- Hotels prescribed in this Standard are defined as properties that meet demand of tourists and travelers with different services such as lodging, parking, recreation, telephone, meals and beverages, etc.
b) Primary valuation methods: Direct capitalization method, discounted cash flow method, comparative method, substitute cost method or replacement cost method (used in case of comparison).
c) Cases of application: are same with cases of application of commercial houses prescribed in paragraph b Point 6 of this Section.
What are methods for valuation of industrial properties in Vietnam?
Pursuant to Point 8, Section II of the Vietnam’s Valuation Standard No. 11 issued together with the Circular 145/2016/TT-BTC stipulating as follows:
a) Industrial property prescribed in this Standard includes land and buildings which are constructed in conformity with the land use purposes as regulated by laws. E.g. cement plant, non-ferrous metallurgy plants, aquatic processing plants and foods processing plants, etc.
- Industrial properties are designed and used to serve specific or specialized purposes with the attrition rate higher than the normal one.
- Location-related elements cause considerable impacts on industrial properties (including power source, water, roads, slope, treatment of soil or pollution, etc.).
b) Primary valuation methods: Substitute cost method or replacement cost method, direct capitalization method and discounted cash flow method.
What are methods for valuation of other real properties in Vietnam?
Pursuant to Point 9, Section II of the Vietnam’s Valuation Standard No. 11 issued together with the Circular 145/2016/TT-BTC stipulating as follows:
The valuer shall, depending on the valuation purposes, grounds of value of property, legal features, technical – economic features and the availability of property-related information of each type of real property, select an appropriate valuation method or combine different valuation methods in accordance with regulations on valuation methods in the Vietnam’s Valuation Standard System and in conformity with regulations of relevant laws (if any).
Best regards!
