The Importance of Asset Valuation in Debt Settlement

Valuation of collateral at Vietnamese commercial banks currently has many shortcomings, internal characteristics of the bank, affecting credit quality. The independence in collateral valuation will be an effective solution to reduce bad debt of the Vietnamese banking system.

In fact, the valuation of overdue, bad debt and debt valuation projects is seen as a trend that is being interested and developed. As one of the professional and reputable valuation companies, Indochina International Investment & Appraisal Company (INA) always strives to research regulations, methods, research in-depth topics on valuation. debt for most effective valuation. And with the trust of customers, INA is now also one of the companies specializing in appraisal of prices and performing many appraisal contracts on bad debt handling projects as well as debt valuation.

Safeguarding and improving credit quality are an important criterion for increasing the financial capacity of commercial banks (commercial banks) and accurate collateral valuation is extremely important and necessary. In fact, in Vietnam commercial banks, corporate identity is considered a condition to limit credit risk. Compared to other countries, price appraisal services, especially price appraisal for commercial banks in Vietnam are still in the early stage of development, shown through the following characteristics:

Most customers, when assigning financial assets to commercial banks, often self-assess their assets without professional opinion, or consult "unofficial" information sources. Therefore, prices are often overvalued or risk factors are not detected in business plans. This greatly affects the valuation of collateral.

The valuation of corporate assets so far has been an internal affair of commercial banks. However, the banks internal appraisal of prices has not met the markets requirements in the current period. In the past, the valuation of collaterals in banks was usually handled by the credit department, which is a credit officer who is also an appraiser. Currently, many banks have set up an independent valuation department, creating objectivity to ensure the interests of customers. However, each bank has its own pricing method and process, there is no consensus among banks, so the implementation process still faces many difficulties. Due to conflicts of interests (banks and customers), limited experience, leading to incorrect valuation of assets, too high or too low. Thats why hiring independent property valuation firms is essential.

With many years of experience operating with a nationwide appraisal system, we are proud to be a professional operating unit and provide the best service in the field of Valuation. Experienced and trusted by many banks to be the collateral appraisal company to handle debts for customers at the Bank.