The latest Code of ethics in valuation in Vietnam as of July 1, 2024

The latest Code of ethics in valuation in Vietnam as of July 1, 2024 (Internet image)

The latest Code of ethics in valuation in Vietnam as of July 1, 2024

The latest Code of ethics in valuation in Vietnam as of July 1, 2024 will be applied according to the Vietnam’s Valuation Standards regarding code of ethics in valuation issued with Circular 30/2024/TT-BTC.

Specifically, the Code of ethics in valuation in Vietnam includes the following essential principles: integrity; objectivity, impartiality; professional competence and due care; confidentiality; professional behaviour.

The content of each essential principles is specified as follows:

(1) Integrity

- Valuers or individuals that perform state valuation in accordance with price laws (hereinafter referred to as valuation professionals) should be straightforward, honest, and non-concealment in all work and professional relationships, non-engagement in self-seeking behavior from valuation.

- Valuation professionals must not use false information or information given without basis.

- Valuation professionals must not omit information that, if missing, could cause misunderstandings for users of the valuation report.

- In case of discovery of discrepancies related to the value of the subject asset, the valuation professional must do the following:

+ For valuation services: notify the valuation firm to inform the valuation client in writing;

+ For state valuation: notify the agency, organization, or person with authority to establish the valuation council.

(2) Impartiality and objectivity

- Valuation professionals, valuation firms should not allow bias, conflict of interest, or undue influence (either financial or spirit interests) of other to override their professional judgments; should not bargain or negotiate based on subjective will to distort the value of the subject asset to gain illegal profits.

- If the valuation professional or valuation firm cannot maintain a reasonably independent position and the objectivity of the valuation, they must decline or abandon the valuation assignment.

- When providing periodic valuations of the same asset, the valuation professional should consider adopting safeguards to maintain their impartiality and objectivity in valuation.

(3) Professional competence and due care

- Valuation professionals must attain necessary legal knowledge and professional knowledge, experience and skills when performing valuation.

- Valuation professionals must possess and maintain their professional competence when performing valuation through continuous learning, acquisition of new valuation knowledge, and enhancement of valuation skills.

- Valuation firms must ensure that individuals assisting valuation professionals in their professional valuation work are adequately trained and possess the appropriate professional competence.

- In the event that a valuation professional assesses that they do not have the necessary professional competence and experience to undertake a specific valuation engagement, they must decline to perform the valuation.

- Valuation professionals must carefully review the collected data and consider it thoroughly before performing the valuation.

(4) Confidentiality

- Valuation professionals, valuation firms, or valuation councils shall not disclose any information about a valuation engagement that has been conducted, that the person requesting the valuation has requested to be kept confidential, or that is not permitted by law. In the event that a valuation engagement has been completed, the confidentiality requirements must still be adhered to.

- Valuation professionals may use information about the subject asset as a basis for gathering market data.

- Valuation professionals, valuation firms, or valuation councils shall not use information that has been requested to be kept confidential by the client about the valuation engagement to serve the interests of the valuation professional, valuation firm, or the interests of a third party.

- Valuation firms and valuation councils must take measures to prevent participants in the valuation engagement and consultants from disclosing confidential information about the valuation engagement.

- Valuation professionals may use their work experience to demonstrate their competence when changing employers or seeking new clients, but they must still comply with the provisions of Clause 1 of this Article.

(6) Professional behavior

- Valuation professionals, valuation firms, and valuation councils must ensure that valuations are conducted in accordance with the provisions of the valuation standards system, valuation laws, and other relevant laws.

- Valuation professionals, valuation firms, and valuation councils must act responsibly towards the individuals and organizations requesting the valuation, as well as the public interest.  Professional judgments should consider the potential wider impacts (if any) on third parties./.

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