Cases of Suspension of Valuation Service Business

Cases of Suspension of Valuation Service Business in Viet Nam

According to the Journal of Industry and Trade, the newly issued Decree by the Government details certain provisions of the Pricing Law on valuation, which clearly specifies the cases where the valuation service business is suspended. Specifically, the Government has issued Decree No. 78/2024/ND-CP detailing certain provisions of the Pricing Law on valuation, effective from July 1, 2024, the same date as the Pricing Law.

Decree 78/2024/ND-CP provides detailed regulations for Articles 45, 49, and 54 of the Pricing Law concerning the dossier, order, and procedures for registering the practice of valuation; the dossier, order, and procedures for granting and re-granting the Certificate of Eligibility for Valuation Service Business; the suspension of valuation service business; and the revocation of the Certificate of Eligibility for Valuation Service Business.

Procedures for Registering the Practice of Valuation

The decree specifically stipulates the dossier for registering the practice of valuation, including:

1. Application for practicing valuation at the enterprise;
2. A certified copy or a valid electronic copy of documents proving the update of knowledge on valuation as per the regulations of the Ministry of Finance, suitable to the registered field of practice and valid at the time of registration (except in cases where the valuation practitioner's card was issued less than 1 year from the time of registration);
3. A paper-based judicial record number 1 issued by a competent authority no more than 6 months before the time of registration or a certified copy or valid electronic copy of this record, or an electronic judicial record number 1 issued through the VNelD electronic identification and authentication application no more than 6 months before the time of registration;
4. A copy of the business registration certificate in cases where the person with the valuation practitioner’s card registers to practice valuation as the legal representative, Director, or General Director of the enterprise;
5. A certificate of actual working time at the valuation enterprise, state management agency on pricing and valuation or a certified copy or valid electronic copy of the social insurance book showing the process of paying social insurance at the valuation enterprise, state management agency on pricing and valuation (except in cases where they have been notified as a valuation practitioner according to the Pricing Law);
6. A copy of the labor contract signed between the enterprise and the person with the valuation practitioner's card (except in cases where the person with the valuation practitioner's card is the legal representative of the enterprise).

The decree states that individuals with a valuation practitioner's card, when registering for valuation practice, are responsible for preparing the dossier in compliance with the above regulations, ensuring completeness, accuracy, and legality. The legal representative of the valuation enterprise is responsible for reviewing the dossier to ensure it contains all necessary components and signing the Application for Practicing Valuation at the enterprise for each person with a valuation practitioner's card. The valuation enterprise will send the registration documents to the Ministry of Finance via postal service, direct submission, or online public service (if available).

Suspension of Valuation Service Business

The decree also specifies the cases of suspension of valuation service business. Accordingly, a valuation enterprise will be suspended from valuation service business in the cases stipulated in Clause 1, Article 54 of the Pricing Law. The Ministry of Finance will issue a decision to suspend the valuation service business, except for cases of suspension under enterprise law, administrative violations, and criminal law. Within 3 working days from the date of suspension of activities, the valuation enterprise must report the situation to the Ministry of Finance.

During the suspension period, the valuation enterprise must handle all arising issues related to valuation contracts signed with clients, labor contracts with practitioners and employees, and other legal obligations.

The Ministry of Finance will publicly announce on its website the list of valuation enterprises suspended from valuation service business and the list of valuation enterprises eligible to continue the business after suspension.

Revocation of the Certificate of Eligibility for Valuation Service Business

A valuation enterprise will have its Certificate of Eligibility for Valuation Service Business revoked in the cases stipulated in Clause 2, Article 54 of the Pricing Law. When falling into one of these cases, the valuation enterprise must immediately cease the valuation service business and within 3 working days, the legal representative of the valuation enterprise must send a report with the original Certificate of Eligibility for Valuation Service Business to the Ministry of Finance.

The Ministry of Finance will issue a decision to revoke the Certificate of Eligibility for Valuation Service Business and publicly announce the list of enterprises with revoked certificates on its website. The enterprise must stop valuation service business from the effective date of the revocation decision and is responsible for resolving all arising issues related to signed valuation contracts, labor contracts with practitioners and employees, storing valuation records, and other legal obligations.