Penalties for violations of regulations on valuation practice in Vietnam from July 12, 2024

Penalties for violations of regulations on valuation practice in Vietnam from July 12, 2024 (Image from the Internet)

On July 12, 2024, Hanoi issued Decree 87/2024/ND-CP regulating administrative sanctions in price management in Vietnam.

Penalties for violations of regulations on valuation practice in Vietnam from July 12, 2024

To be specific, the penalties for violations of regulations on valuation practice from July 12, 2024, are as follows:

(1) A fine ranging from VND 10,000,000 to VND 15,000,000 for failure to explain the price appraisal report conducted by the price appraiser to the competent state authority upon request as prescribed by law.

(2) A fine ranging from VND 30,000,000 to VND 40,000,000 for one of the following acts:

+ Failure to adhere to guidelines for collecting information on appraisal assets and information serving the appraisal process as prescribed in Vietnam Valuation Standards;

+ Failure to comply with the prescribed approaches and appraisal methods as stipulated in Vietnam Valuation Standards;

+ Failure to apply all required valuation methods as stipulated in Vietnam Valuation Standards.

(3) A fine ranging from VND 80,000,000 to VND 100,000,000 for acts of forgery, renting, lending, or using the valuer card contrary to the regulations of the 2023 Price Law and related laws without reaching the threshold for criminal prosecution as prescribed by the Criminal Code.

Note: The above fines are applicable to individuals. The fines for organizations are double the amounts for individuals.

Besides the fines, violators will be subject to additional penalties and remedial measures as follows:

- Additional penalties:

+ Temporary revocation of the valuer card for a period from 02 months to 03 months from the effective date of the penalty decision for violations stipulated in (2);

+ Temporary revocation of the valuer card for a period from 06 months to 09 months from the effective date of the penalty decision for violations stipulated in (3) except in cases of forging the valuer card.

- Remedial measures: Enforced explanation of the price appraisal report conducted by the price appraiser to the competent state authority for violations stipulated in (1).

(Article 22 Decree 87/2024/ND-CP)

Conditions for valuation practice registration in Vietnam in 2024

Individuals with a valuer card registering for valuation practice must meet the following conditions:

- Full civil act capacity;

- A valid labor contract as prescribed by the labor law with the enterprise where the valuer cardholder registers for valuation practice, except for the case where the valuer cardholder is the legal representative of the enterprise;

- A total actual working time at valuation enterprises, state management agencies in charge of price and valuation with a university degree or higher of at least 36 months. In case of working with a university degree or higher in the field of price or valuation under an application-oriented orientation program as prescribed by law, the total actual working time at valuation enterprises, state management agencies in charge of price and valuation from at least 24 months;

- Updated knowledge of valuation as prescribed by the Ministry of Finance, except where the valuer card has been issued for less than 01 year since the time of registration for practice;

- Not subject to the following categories:

+ Officials and public servants as prescribed by the law on public servants; officers, professional soldiers, and defense workers in agencies and units under the Vietnam People's Army; officers, non-commissioned officers specialized in professional duties, non-commissioned officers specialized in technical duties, and police workers in agencies and units under the Vietnam People's Public Security;

+ Individuals being prohibited from practicing price appraisal according to legally effective court judgments or decisions; individuals under investigation, prosecution or trial as prescribed by criminal procedural law; individuals convicted of economic, position-related crimes involving finance, price, valuation but who have not been rehabilitated; individuals undergoing administrative measures for education at commune-level towns; individuals mandated to be in compulsory detoxification or education centers;

+ Individuals currently revoked of their valuer card by administrative penalty decisions of the competent authority as prescribed by the law on handling administrative violations.

(Clause 1, 2 Article 45 2023 Price Law)

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