Methods of settling disputes over valuation contracts in Vietnam

Methods of settling disputes over valuation contracts in Vietnam (Image from the Internet)

1. Methods of settling disputes over valuation contracts in Vietnam

According to Article 58 of the Law on Prices 2023, the methods of settling disputes over valuation contracts in Vietnam include:

- Negotiation and conciliation based on the commitments made in the valuation contract.

- Resolution through commercial arbitration.

- Initiating lawsuits at the Court as per the regulations of civil procedure law.

2. Rights and obligations of customers, relevant organizations, and individuals written in valuation contracts in Vietnam

The rights and obligations of customers, relevant organizations, and individuals written in valuation contracts in Vietnam according to Article 56 of the Law on Prices 2023 are as follows:

- Organizations and individuals have the right to choose valuation enterprises that are eligible to practice as per the law to enter into a valuation contract.- The rights of valuation clients, related organizations, and individuals (if any) stated in the valuation contract are regulated as follows:

+ Request the valuation enterprise to provide information in the registration dossier for the valuation practicing and information about the valuation assessor;

+ Refuse to provide information and documents not related to valuation activities and valuation assets;

+ Request the replacement of the valuation assessor involved in the valuation when there is a basis to believe that the assessor violates the Valuation Standards of Vietnam and the principles of honest, independent, and objective operation during the valuation process;

+ Request the valuation enterprise to provide the valuation certificate and valuation report; ask for compensation in case the valuation enterprise violates causing damage;

+ Consider and decide on the use of the valuation certificate and valuation report;

+ Other rights as per the law.

- The obligations of valuation clients, related organizations, and individuals (if any) stated in the valuation contract are regulated as follows:

+ Provide complete, accurate, honest, prompt, and objective information and documents related to valuation assets as required by the valuation enterprise and take legal responsibility for the provided information and documents;

+ Cooperate and facilitate the valuation assessor in performing the valuation;

+ Inform promptly, fully, and accurately about legal violations and breaches of the valuation contract in the valuation activities by the valuation assessor and valuation enterprise to the competent state authority;

+ Pay the valuation service fee as agreed in the contract;

+ Take responsibility for the use of the valuation certificate and valuation report in deciding and approving asset prices. The use of the valuation certificate and valuation report must be within the validity period of the valuation certificate and for the correct valuation purpose associated with the correct assets and asset quantities in the valuation contract;

+ Other obligations as per the law.

3. Regulations on Valuation certificates and reports in Vietnam

Regulations on the valuation certificates and reports in Vietnam according to Article 55 of the Law on Prices 2023 are as follows:

- The valuation certificate must bear the signature of the valuation assessor performing the valuation and the signature and seal of the legal representative of the valuation enterprise or the head of the valuation enterprise's branch.

- The valuation report must bear the signature of the valuation assessor performing the valuation and approval of the legal representative of the valuation enterprise or the head of the valuation enterprise's branch and cannot be separated from the valuation certificate.

- The legal representative of the valuation enterprise is allowed to authorize the enterprise manager as per the enterprise law to sign the valuation certificate and review and approve the valuation report. The authorized person must be a valuation assessor at the enterprise.

- The valuation certificate and valuation report are used as one of the bases for clients, organizations, and individuals related to the valuation contract to review, decide, or approve asset prices. The valuation certificate and valuation report are only valid for use within the period of effectiveness for the proper valuation purpose associated with the correct information and asset quantities in the valuation contract.

- The valuation certificate must be updated into the National Price Database as regulated by the Ministry of Finance of Vietnam, except in cases classified as state secrets.

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