- How do you evaluate the valuation sector in Vietnam? As an emerging economy and a young real estate market, what are the challenges for the valuation practices in our country?
The property valuation industry in Vietnam is still young but is gradually aligning with international valuation standards. Currently, the biggest challenges are quality control and inconsistent, ineffective and non-transparent market information.
Recently, the Government has worked hard to improved land governance and database through a project funded by the World Bank that last until 2021 with the purpose is to improve the efficiency and transparency of land administration services, through the development and implementation of the national Multipurpose Land Information System (MPLIS). The project includes establishment and development of MPLIS and land database will provide technical assistance for the development of MPLIS and land database, finance digitization of existing maps and records on land use rights; updating and integration of cadastre data, land price data, land use plan data, and land statistics and inventory… This system however remains ineffective for flexible transaction structure or unofficial transaction value.
Another interesting factor influencing property value and real estate market is land planning. All projects’ land uses should follow the high-level land planning; however, inefficiency in land planning management results in market values fluctuation thus showing inconsistent market information. This is more important since the land uses planning are not publicly approached and nowadays the provincial governments have re-enforced all projects master plan to go public.
Last but not least, the valuation market practice was inconsistent for difference purposes then inconsistent information and data introduced. There are different property pricing systems and levels. For example, there is different land price for state compensation purpose, for land financial obligation calculations purpose and different market value follow IVSC.
For those discussed above, property valuation in Vietnam is now facing difficulties and challenges however there will be big potential since the market is growing and close the gap to the region that brings lot of demand for market valuations.
- How do you see the valuation sector growing in professionalism in Asia & Vietnam?
The real estate valuation industry is regulated by professional bodies on both a global basis by the Royal Institution of Chartered Surveyors (RICS) and local bodies – for example, Singapore Institute of Surveyors and Valuers (SISV). All have their own professional standards and guidelines, and both contribute to the betterment of the industry as a whole. In Vietnam, Savills always ensures all its valuations comply with RICS and International Valuation Standards Council (IVSC) (which have been recognized by financial institutions, developers, and investors) whilst adapting market practices in Vietnam.
Thông Similar development exists within the business valuation industry. The establishment of the Institute of Valuers and Appraisers of Singapore (IVAS) in Singapore is a good example. IVAS was founded in 2013 under the auspices of the Singapore Accountancy Commission (SAC), a statutory body of the Ministry of Finance, Singapore. IVAS was established to advance the business valuation profession. It seeks to broaden the talent pool, deepen the expertise of business valuers, and to ensure quality in the delivery of work. The objective is to ensure that the business valuers are competent, trained, developed and adhere to the professional standards set by the industry. This initiative resulted in a certification program launched by the institute which led to qualified and experienced business valuers being awarded the designation of Chartered Valuer and Appraiser (CVA).
Both the SISV and IVAS are members of the IVSC, as the global organisation that sets the International Valuation Standards (IVS) and Professional Membership Obligations.
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