Valuation Certificates in Vietnam: Contents, Validity and Checks

A valuation certificate is the document a valuation firm issues to inform its client of the appraised value of an asset. Whether you need a property valued for a bank loan, assets valued for a dispute, or machinery valued for a capital contribution, this certificate is what you end up holding. Knowing what a valuation certificate contains, how long it remains valid and how to check that it is genuine helps you use the result for the right purpose and avoid having your application rejected.

What is a valuation certificate?

In Vietnam, a valuation certificate (chứng thư thẩm định giá) is a document prepared by a valuation firm licensed to provide valuation services. It informs the client and other relevant parties of the value of the appraised asset and the key details of the valuation. It is prepared under the law on prices (currently the 2023 Law on Prices and its implementing regulations) and the Vietnamese Valuation Standards.

In essence, the figure on the certificate is the independent professional opinion of the valuation firm at a specific date and for a specific purpose. Banks, government agencies, courts, enforcement agencies and buyers or sellers rely on it as an important reference when considering or deciding on a price; the final decision still rests with the competent authority or the parties to the transaction.

Valuation certificate vs. valuation report

These two documents are usually issued together but serve different roles:

• The valuation certificate is short and states the conclusion: what the asset is, the purpose of the valuation, the valuation date and the value.
• The valuation report is more detailed, setting out the information collected, the market analysis, the reasons for the chosen methods, the comparable assets, the calculations and the assumptions used.

Many receiving organisations ask for both documents, so you should keep the certificate together with the report, its appendices and the inspection photos.

Key contents of a valuation certificate

A valid valuation certificate normally includes:

• The certificate number, date of issue and details of the valuation firm.
• Details of the client and the service contract number.
• The asset being valued: its name, location and main legal, economic and technical characteristics.
• The purpose of the valuation, such as securing a loan, a sale, a capital contribution, judgment enforcement or a dispute.
• The valuation date, i.e. the date at which the value is determined.
• The basis of value (market value or non-market value) and the valuation methods applied.
• The valuation result, written in both figures and words.
• Assumptions, limitations and conditions of use.
• The period during which the result remains valid.
• The names and signatures of the licensed valuer and the firm's legal representative (or authorised person), together with the company seal.

How long is a valuation certificate valid?

Asset values move with the market, so the result on a valuation certificate is only meaningful for a certain period. The validity period is stated on the certificate and is set by the valuation firm based on the nature of the asset, market volatility and the purpose of the valuation.

Two principles to remember:

• Right purpose: the result may only be used for the purpose stated on the certificate. A certificate prepared for a loan should not automatically be used to divide assets in a divorce or for a capital contribution.
• Right time: once the validity period has expired, the receiving party may reject it, and you will need a new valuation or an updated result.

How to check that a valuation certificate is valid

Before relying on a valuation certificate for an important transaction, you can check it yourself:

1. Check the firm: the issuing firm must hold a certificate of eligibility to provide valuation services and be currently permitted to operate. The Ministry of Finance publishes this list.
2. Check the valuer: the signatory must be a licensed valuer registered to practise at that firm when the certificate was signed.
3. Match the asset details: address, area, title certificate number, chassis and engine numbers and so on must match the original documents.
4. Match the purpose and validity: the stated purpose must fit what you are about to do, and the certificate must still be valid.
5. Check the formalities: all signatures, the seal and the certificate number are present, and the accompanying report carries the same number and consistent figures.
6. Verify directly: if needed, contact the valuation firm to confirm that it issued the certificate.

Common mistakes when using a valuation certificate

• Using an expired certificate on the assumption that the asset's value has not changed.
• Using a certificate for a purpose other than the one stated.
• Reading only the final figure and skipping the assumptions and limitations, which can significantly affect the value.
• Providing incomplete or inaccurate asset documents, so the result does not reflect reality.
• Choosing a provider on price alone without checking its capability and legal standing.

When should you get a new valuation?

You should request a new valuation when the valuation certificate has expired, when the asset has changed significantly (renovation, deterioration, changes in legal status or zoning), when the market has moved sharply, or when the purpose of use changes. If you disagree with the result, you are entitled to ask the firm to explain the basis, methods and data used in the report.

Conclusion

A valuation certificate is more than a number. It is a professional document tied to a specific asset, purpose and date. Reading its contents carefully, watching the validity period and checking the issuing firm's credentials will help your application be accepted faster and reduce the risk of disputes. If you need an asset valued or would like an existing certificate explained, contact our team of valuers for advice.