Valuation services; valuation of enterprises serving equitization.

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Valuation services; valuation of enterprises serving equitization

Foreign organizations are not allowed to provide asset valuation services except:

– In the case they are an established organization, the provision of valuation services is legal in the host country, and

– Through the form of limited liability companies with two or more members, joint-stock companies with Vietnamese enterprises.

– Foreign individuals are not allowed to provide property valuation services.

2. Law of Vietnam

a) Ownership rate of charter capital of investors Foreign: The proportion of capital contributed by foreign valuation organizations and representatives of foreign valuation organizations participating in capital contribution shall comply with Article 18 of Decree No. 89/2013/ND-CP[1]. Accordingly, the total amount of capital contributed by shareholders being organizations, capital contributors being organizations must not exceed 35% of the charter capital of the valuation joint stock company or the valuation limited liability company two or more members.

The representative of a member being an organization specified in Clause 1, Article 18 of Decree No. 89/2013/ND-CP must be a price appraiser and must register to practice at the valuation enterprise to which the participating organization contributes. capital; at the same time, not allowed to contribute capital to such enterprise as an individual, not to be the representative of the organization contributing capital to establish another valuation enterprise.

b) Investment form : Only in the form of Company Limited or Joint Stock Company.

c) Scope of activities : valuation enterprises with foreign capital contribution appraisal organizations are not allowed to conduct price appraisal for: (i) The cases specified in Article 10 of Decree 89/2013/ND -CP;

(ii) Assets belonging to national security and defense as prescribed by law.

d) Investor’s capacity; Partners participating in investment activities: Only foreign valuation organizations established and lawfully providing valuation services in the host country may contribute capital with a Vietnamese valuation enterprise to establish a two-year limited liability company. members or more, joint-stock companies to conduct business in valuation services in Vietnam.

– Law on price  2012

– Decree No. 89/2013/ND-CP dated August 6, 2013 of the Government detailing the implementation of a number of articles of the Law on Price regarding price appraisal.

– Decree No. 151/2018/ND-CP dated November 7, 2018 of the Government amending and supplementing the Decree stipulating investment and business conditions under the state management of the Ministry of Finance.

– Decree No. 12/2021/ND-CP dated February 24, 2021 of the Government amending and supplementing a number of articles of the Government’s Decree No. 89/2013/ND-CP dated August 6, 2013 on spending detailing the implementation of a number of articles of the Law on Price on valuation.

Foreign consulting organizations may provide consulting services to determine enterprise value when they fully meet the criteria specified in Clause 6, Article 12 of Decree No. 126/2017/ND-CP (amended and supplemented). supplemented by point c, clause 2, Article 3 of Decree 140/2020/ND-CP).

– Decree No. 126/2017/ND-CP dated November 16, 2017 of the Government on transforming state-owned enterprises and one-member limited liability companies with 100% charter capital invested by state-owned enterprises into companies share.

– Decree No

140/2020/ND-CP dated November 30, 2020 of the Government amending and supplementing a number of articles of Decree No. 126/2017/ND-CP dated November 16, 2017 of the Government on transfer of state-owned enterprises and one-member limited liability companies with 100% charter capital invested by state-owned enterprises into joint-stock companies;

– Decree No. 91/2015/ND-CP dated October 13, 2015 of the Government on state capital investment in enterprises and management and use of capital and assets in enterprises

– Decree No. 32/2018/ND-CP

dated March 8, 2018 of the Government amending and supplementing a number of articles of Decree No. 91/2015/ND-CP