04 Operational principles of the State Valuation council under the Law on Prices 2023

04 Operational principles of the State Valuation council under the Law on Prices 2023 (Internet image)

1. What is valuation?

According to Clause 16, Article 4 of the Law on Prices 2023, valuation means advisory operations of evaluating assets at a certain location and period for specific purposes performed by valuation enterprises or valuation councils under the Valuation Standards of Vietnam.

2. 04 Operational principles of the State Valuation council in Vietnam under the Law on Prices 2023

According to Clause 3, Article 60 of the Law on Prices 2023, the principles of operation of the State Valuation Council include:

- The valuation council shall operate under principles of collective and decision by majority. Valuation meeting sessions may only be held when at least 2/3 or more of the members of the valuation council participate, and such meeting sessions shall be administrated by the chairperson. Before the organization of any meeting session, absent members shall have written documents sent to the chairperson of the valuation council specifying the reason for their absence enclosed with their independent opinions on issues related to prices of assets subject to valuation. If the valuation council only has 3 members, its meeting session shall have such 3 members;

- The valuation council shall prepare meeting minutes and valuation reports and provide notifications of the valuation results based on the majority votes of its members at the meeting sessions.  In case of equal votes, the chairperson shall have the casting vote on the value of assets subject to valuation. Members of the valuation council may reserve their opinions if they disagree with the value of assets decided by the council, such opinions shall be written in meeting minutes;

- The valuation council, established under Clause 1 of Article 60 of the Law on Prices 2023, shall self-dissolute after completing the tasks prescribed in the decision on council establishment. In cases of issues arising after the dissolution, competent agencies shall establish other councils to take charge of the handling;

- The valuation council may use the seal of the agency that decides on its establishment or the agency where its chairperson works.

3. Regulations on State valuation dossier in Vietnam

The State valuation dossier is specifically prescribed in Clause 1, Article 66 of the Law on Prices 2023, including:

- Documents assigning tasks of selling, liquidating, leasing, joint venturing, associating, and transferring public assets or purchasing or hiring goods, services, and assets with funding from the state;

- Information and documents on assets subject to valuation;

- Decisions on valuation council establishment; 

- Documents collected and analyzed by the valuation council during the valuation process; reports of experts and certificates of valuation enclosed with reports on valuation of valuation enterprises (if any);

- Meeting minutes of the valuation council; reports on valuation and notifications of valuation results of the valuation council;

- Other documents related to valuation (if any).

More details can be found in Law on Prices 2023, which comes into force from  July 1, 2024, except for the cases specified in Clause 2, Article 74 of the Law on Prices 2023.

Clause 2, Article 60 of the Law on Prices 2023 which comes into force from January 1, 2026.

Law on Prices 2012 ceases to be effective from the effective date of Law on Prices 2023, except for the provisions in Article 75 of the Law on Prices 2023.

Vo Tan Dai

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