THE IMPORTANT OF ASSET VALUATION

Valuation is the evaluation or reassessment of the value of an asset in accordance with the market at a certain place, time in accordance with Vietnamese standards or international practice. (Article 4 - Ordinance on prices No. 40, clause 3 in the Ordinance on Prices)

Basis of price appraisal:

• The basis of valuation is divided into two parts, including a market basis and a non-market basis.

• Market rationale: Assumes that transactions in the market are not constrained by non-market forces.

• Non-market bases: Factors related to usefulness, economic efficiency, function of assets or other non-market conditions.

The role of price appraisal:

In market economy, valuation plays an important role in most fields, applied for many different economic purposes such as sale, mortgage, lease, insurance, tax calculation, liquidation. , investment ... Corresponding to each of the above economic purposes, with the same asset, at the same time of appraisal, the appraisal asset value will be different. Therefore, appraisal results will be used to make decisions in many different situations.

The role of current valuation:

• Counseling on property value and price helps property owners and related parties and the investment public make decisions related to buying - selling, investing, lending property.

• Valuing correctly the market value of resources contributing to the automatic market mechanism optimally allocating resources and the economy to achieve efficiency.

• Contribute to market transparency, promote the development of the property market in the country as well as around the world.

• Creating favorable conditions for globalization and world economic integration.