I. Setting the problem
In asset valuation activities, a common mistake today is confusing the price appraisal function with the asset assessment and technical appraisal function. This confusion not only leads to incorrect application of professional processes but also poses serious legal risks for valuation businesses, appraisers and customers using the service.
This article aims to clarify the legal scope of valuation activities, clearly identify the entity with authority to evaluate the technical condition of assets, and at the same time confirm the correct role of valuation enterprises according to current legal regulations.
II. Can valuation businesses directly assess the technical condition of assets?
The answer is no, if "technical status assessment" is understood as performing technical expertise activities such as:
According to the Price Law 2023, Decree 78/2024/ND-CP and the Vietnam Valuation Standards system (issued together with Circular 30/2024/TT-BTC, 31/2024/TT-BTC, 42/2024/TT-BTC), valuation enterprises can only perform the function of determining the monetary value of assets on the basis of legal, objective and legal information and data. trustworthy.
The law does not assign valuation businesses the function of technical appraisal, quality inspection or specialized surveys. Self-conducting or drawing technical conclusions beyond the scope of practice may lead to violations of the law and loss of legal validity of appraisal results.
Valuation business (mh)
III. The entity has the authority to evaluate the technical condition of the asset
The assessment of the technical condition of assets must be performed by organizations and units with appropriate expertise and permitted by law, depending on each specific type of asset.
1. Industrial machinery and equipment
The assessment of the technical condition of machinery and equipment falls under the authority of inspection or technical assessment organizations, including licensed inspection enterprises, independent technical inspection organizations or specialized mechanical, electrical, industrial and automation units. These units have the authority to make conclusions about the operating status, wear level and exploitability of the equipment.
2. Underground water wells, underground water supply and drainage systems
For groundwater wells and underground engineering systems, the assessment is in the field of water resources and construction. Implementing entities are geological and hydrological survey consulting units, organizations with construction survey practice licenses or units recognized by competent state management agencies such as the Department of Natural Resources and Environment and the Department of Construction. This is a specialized technical survey and assessment activity, not a valuation activity.
3. Construction works and technical infrastructure
According to the Construction Law and Decree 10/2021/ND-CP, assessment of construction quality, safety, and longevity can only be performed by construction consulting organizations, construction quality inspection units, or construction inspection organizations. These entities have the authority to make technical conclusions as a basis for asset management, exploitation and valuation activities.
Valuation business (mh)
IV. The correct role of valuation businesses in the asset valuation process
Valuation businesses do not perform technical assessments, but play a central role in determining the monetary value of assets. This role includes:
Collect and check legal documents of assets
Receive and use results of evaluation, inspection, and technical inspection provided by competent units
Analyze the level of wear and tear, exploitability, and efficiency of asset use based on technical conclusions
Apply appropriate valuation methods according to standards
Determine the residual value or market value of the asset at the time of appraisal
These contents are implemented according to the Standards for information collection and analysis (Circular 31/2024/TT-BTC) and Standards for Scope of valuation work (Circular 30/2024/TT-BTC).
The nature of valuation activities is to use legal technical results to convert into monetary value, not to replace technical evaluation activities.
V. Conclusion
To ensure the legality, objectivity and validity of appraisal results, participating entities need to comply with the correct order and scope of law. The technical unit evaluates the current status and makes technical conclusions; Valuation businesses use that result to determine the monetary value of assets.
Clearly defining roles not only helps improve the professional quality of valuation activities but also limits legal risks and protects the legal rights of related parties in transactions and asset management.
Source: Asia Legal Group
Phone number:028 6674 3333 -0945 009002 (Deputy General Director)
Website:https://dinhgiaav.com/
Address: 6-8 Phan Huy Thuc, Tan Kieng Ward, District 7, Ho Chi Minh City (Tan Hung Ward, New Ho Chi Minh City)
https://maps.app.goo.gl/Xj2bH7djxmCxJYjv6?g_st=iz
https://www.facebook.com/thamdinhgiachaua
INSPECT NEW/OLD WARDS 2025 NATIONWIDE, COURT ADDRESS, PEOPLE'S COMMITTEE HEADQUARTERS
PRELIMINARY LAND VALUATION BY ANY LOCATION NATIONWIDE IN 1 MINUTE
CONSULTING ON PURCHASING AND OWNING CONDOMINIUMS FOR FOREIGNERS IN VIETNAM
