Procedures for establishing a Council for Valuation, Assets Valuation in civil proceedings in Vietnam

Procedures for establishing a Council for Valuation, Assets Valuation in civil proceedings in Vietnam​ (Image from the Internet)

1. Cases when the Court decides to value assets and establish the Council for Valuation in civil proceedings

According to Clause 3, Article 104 of the Civil Procedure Code 2015, the Court decides to value assets and establish the Council for Valuation in the following cases:

- Upon the request of one or more parties involved;

- The parties involved do not agree on a valuation organization for the assets, present different asset values, or cannot agree on the asset price;

- The parties agree with each other or with the asset valuation organization at a price lower than the market value where the asset is located at the time of valuation to evade obligations to the State or a third party, or there is evidence that the valuation organization violated the law during the valuation.

2. Procedures for establishing a Council for Valuation, Assets Valuation in civil proceedings in Vietnam

According to Clause 4, Article 104 of the Civil Procedure Code 2015, the procedures for establishing a Council for Valuation, Assets Valuation in civil proceedings in Vietnam are regulated as follows:

- The Council for Valuation, established by the Court, consists of a Chairman who is a representative of the financial authority and members who are representatives of relevant specialized agencies. Persons who have conducted procedures in that case or are specified in Article 52 of the Civil Procedure Code 2015 shall not participate in the Council for Valuation.

The Council for Valuation only proceeds with valuation when all its members are present. If necessary, a representative of the communal People's Committee where the asset is located may be invited to witness the valuation. Parties involved are informed in advance of the time and place of the valuation, with the right to attend and express opinions on the valuation. The decision on the value of the assets to be valued is the prerogative of the Council for Valuation;

- Financial and relevant specialized agencies are responsible for appointing members to the Council for Valuation and facilitating their duties. The appointed member of the Council for Valuation must participate fully in the valuation process. If financial and specialized agencies do not appoint a member, the Court will request the competent management body to directly instruct the financial and specialized agencies to comply with the Court's request. If the appointed member fails to participate without a legitimate reason, the Court requests the leader of the appointing agency to consider responsibility, assign a replacement, and notify the Court for continued valuation;

- The valuation process must be documented, clearly stating the opinions of each member and any involved party if present. The Council for Valuation's decision must be approved by more than half of the total votes. Members of the Council for Valuation, involved parties, and witnesses sign or mark the document.

3. Regulations on commissioning evidence collection in civil proceedings in Vietnam

According to Article 105 of the Civil Procedure Code 2015, regulations on commissioning evidence collection in civil proceedings are as follows:

- During the resolution of civil cases, the Court may decide to commission other courts or competent agencies as stated in Clause 4, Article 105 of the Civil Procedure Code 2015 to take statements from the parties involved, witnesses, conduct on-site appraisals, carry out asset valuations, or take other measures to gather evidence and verify civil case details.

- The commissioning decision must clearly specify the names, addresses of the plaintiff, defendant, dispute relationship, and specific tasks commissioned to collect evidence.

- The Court receiving the commissioning decision is responsible for carrying out the specific tasks within 01 month from the date of receiving the decision and notifying the Court that issued the commissioning decision of the results in writing; if unable to carry out the commission, a written notice with clear reasons must be sent to the Court that issued the commissioning decision.

- If evidence collection needs to be conducted abroad, the Court commissions it through the competent authorities of Vietnam or those of a foreign country that is a co-signatory to an international treaty with the Socialist Republic of Vietnam regarding this matter.

- If the commissioning cannot be executed according to Clause 3 and Clause 4, Article 105 of the Civil Procedure Code 2015, or if it has been executed but no response is received, the Court will resolve the case based on the existing evidence in the civil case file.

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