Vietnam: What are the cases where valuation enterprises in Vietnam shall be suspended from providing valuation services? What are the obligations and rights of valuation enterprises?

What are the cases where valuation enterprises in Vietnam shall be suspended from providing valuation services?

Under Clause 1, Article 54 of the Price Law 2023 on suspension of valuation service provision and revocation of certificates of eligibility for valuation services in Vietnam:

Suspension of valuation service provision and revocation of certificates of eligibility for valuation services

1. Valuation enterprises shall be suspended from providing valuation services when they fall into one of the following cases:

a) Failing to meet one of the requirements prescribed in Clause 1 Article 49 of this Law in 3 consecutive months;

b) Issuing valuation certificates and/or reports signed by persons who are not valuers;

c) Other cases of operational suspension according to laws on enterprises and handling of administrative and criminal violations.

2. Valuation enterprises shall have their certificates of eligibility for valuation services revoked when they fall into one of the following cases:

a) Providing false declarations or forging applications for issuance or re-issuance of certificates of eligibility for valuation services;

b) Failing to issue valuation certificates and reports in 12 consecutive months;

c) Failing to remedy violations against regulations prescribed in Point a Clause 1 of this Article within 60 days after being suspended from providing valuation services;

d) Self-terminating their provision of valuation services;

dd) Having their certificates of business registration or certificates of enterprise registration revoked.

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Thus, a valuation enterprise shall be suspended from providing valuation services in the following cases:

- Failing to meet one of the requirements prescribed in Clause 1 Article 49 of Price Law 2023 in 3 consecutive months;

- Issuing valuation certificates and/or reports signed by persons who are not valuers;

- Other cases of operational suspension according to laws on enterprises and handling of administrative and criminal violations.

What are the cases where valuation enterprises in Vietnam shall be suspended from providing valuation services? What are the obligations and rights of valuation enterprises in Vietnam? (Image from Internet)

What are the rights of valuation enterprises in Vietnam?

According to Clause 1, Article 53 of the Price Law 2023, the rights of a valuation enterprise in Vietnam are as follows:

- Provide valuation services under this Law;

- Participate in domestic and foreign occupational associations or organizations for valuation as prescribed by laws;

- Request customers to provide documents and data related to assets subject to valuation and facilitate the implementation of the valuation;

- Refuse to provide valuation services;

- Exercise other rights as prescribed by laws.

What are the obligations of valuation enterprises in Vietnam?

Under Clause 2, Article 53 of the Price Law 2023, the obligations of a valuation enterprise in Vietnam are specified as follows:

- Comply with regulations on valuation operations of this Law;

- Perform valuation by the correct valuation contracts and permitted fields of expertise; allocate valuers or persons with sufficient expertise to perform valuation by concluded contracts; facilitate valuers to perform valuation independently and objectively;

- Develop and organize the quality control of valuation reports to issue and provide valuation certificates to their customers;

- Ensure that valuation certificates are issued in compliance with the Valuation Standards of Vietnam, except for cases where customers deliberately provide false information on assets subject to valuation; take responsibility for the provision of valuation services under concluded contracts with their customers;

- Compensate for damage as prescribed by laws due to violations of agreements in valuation contracts or in cases where the valuation operations harm the benefits of agencies, organizations, and individuals due to incompliance with regulations on valuation;

- Purchase occupational responsibility insurance for valuation operations or extract and establish provision for occupational risks according to regulations of the Minister of Finance of Vietnam;

- Manage and supervise valuation operations of valuers at enterprises;

- Adequately implement regulations on reports on valuation operations as per regulation of the Minister of Finance of Vietnam

- Preserve and archive documentation on valuation safely, sufficiently, and legally, ensuring its confidentiality according to laws on archives;

- Perform other obligation as prescribed by laws.