Amending the Law on Prices: Improving capacity of enterprises to practice price appraisal

State management authorities will continue to perfect the system of legal documents of price appraisal.

Enhance business professionalism

The Ministry of Finance is consulting for the Law on Prices (amended), which has amended the existing shortcomings of the current Law on Prices, contributing to improving the quality of professional price appraisal services, and limiting the rent and borrowing appraiser card.

Regarding the number of price appraisers, the draft Law on Prices (amended) stipulates that, when applying for a Certificate of eligibility for operating price appraisal services, the enterprise must have five people holding a price appraiser card registered to practice at the enterprise (instead of three people as in the current Law on Prices). Business branches must have at least three appraisers (instead of two like before).

Discussing this content, Mrs. Dinh Thi Ha, VNG Vietnam Valuation Company Limited said that the regulation to increase the minimum number of appraiser cards for valuation enterprises and branches of price appraisal enterprises will partly reduce micro businesses and contribute to improving the quality of valuation enterprises.

“In the past, there was a situation where a number of valuation enterprises regularly change their legal representatives, making it difficult for the state management of these enterprises as well as controlling the quality of their operations. The regulation on a minimum period of one year to continue to be the legal representative, director or general director of another valuation enterprise would partly overcome the above situation. At the same time, the higher requirement for the legal representative of the valuation enterprise was having at least 36 months as a practicing price appraiser before becoming the legal representative in order to limit the situation of poor management, weak professional qualifications of some legal representatives," Mrs. Dinh Thi Ha said.

In addition, regulations on the minimum charter capital and the amount of capital contributed by shareholders who are appraisers also received the attention of valuation enterprises. Some businesses suggested that it is necessary to regulate charter capital to contribute to improving the capacity of the enterprise, instead of developing in quantity. The above regulations are intended to create conditions for sustainable professional development. It is possible to increase the level of charter capital or regulations for business capital to manage better the number of valuation enterprises.

Strengthening inspection and examination

According to the Price Management Department, the Ministry of Finance, the price appraisal profession needs to be further consolidated and make great progress, to be able to meet the socio-economic development in the new situation.

In order to improve the state management of price appraisal services, Ministry of Finance continues to perfect the system of legal documents on valuation synchronously; studying and amending the Law on Price on valuation and guiding documents to perfect regulations in order to prevent and handle violations in valuation activities.

In addition, the state management agency will review and complete the system of standards for price appraisal, ensuring that it is suitable to Vietnam's conditions and international standards of appraisal; and continuing to consolidate and perfect the construction of the National Database of Prices as a reference when conducting a valuation.

The Price Management Department said that the management agency will strengthen the management, inspection, supervision and evaluation of the quality of price appraisal activities of the valuation enterprises and strictly and promptly handle the price appraiser and the valuation enterprise. Activities of inspection, examination, control and evaluation of the quality of valuation activities are increasingly playing an important position in the state management of price appraisal.

This is a management function that is important for a conditional and specialized business as valuation, as improving the effectiveness and efficiency of inspection, examination and quality control of appraisal activities is a current urgent requirement.