Hanoi: Promulgation of Vietnamese Standards for immovable property valuation

Promulgation of Vietnamese Standards for immovable property valuation

• The Vietnamese Standards for immovable property valuation prescribe and guide the valuation of immovable property by the regulations of the law on valuation. These standards do not apply to the land valuation according to the law on land.

• The Vietnamese Standards for immovable property valuation will apply to:

  • Valuation practitioners and valuation enterprises that provide valuation services according to the law on valuation.

  • Organizations and individuals performing state valuation activities according to the law on valuation.

  • Organizations and individuals requesting valuation, third parties using valuation reports as per valuation contracts (if any).

Approaches and Methods for Immovable Property Valuation

• The approaches applied in immovable property valuation include the market approach, cost approach, and income approach as specified in the Vietnam Valuation Standards, or a combination of these approaches.

• The methods used in immovable property valuation encompass valuation methods from the various approaches or a combination of these approaches. The surplus-based method is a valuation method based on combining the market approach, cost approach, and income approach—is one of these methods.

• Based on the characteristics of the immovable property to be valued, the purpose of the valuation, the point in time of the valuation, the basis of value, and the information and data on the immovable property available for collection, an appropriate approach and valuation method shall be selected.

More details nay be found in Circular 42/2024/TT-BTC, which comes into effect on August 5, 2024, replacing Circular 145/2016/TT-BTC.

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