1. The concept of movable asset valuation
Under Law on Prices No. 16/2023/QH15, valuation is the advisory activity of determining the monetary value of an asset at a given place and time, for a specific purpose, carried out by a valuation firm or a valuation council in accordance with the Vietnamese Valuation Standards.
Movable asset valuation covers machinery and equipment, transport vehicles and other goods and services, etc. Depending on the specific case and purpose of the valuation, the concept of market value or non-market value is applied as the basis of valuation. Movable asset valuation is an estimate, expressed in monetary terms, of the value of the ownership rights to specific assets for a clearly defined purpose, under the conditions of a given market and using appropriate methods.
2. The movable asset market and movable asset valuation
Like the real estate market, the market for machinery and equipment, technology lines, workshops, materials and goods – collectively referred to as the movable asset market – is the “place” where market participants buy, sell, transfer, lease and mortgage movable assets and use related services such as intermediation, brokerage and consultancy.
The prices of movable assets depend largely on supply and demand in the market. Under the Vietnamese Valuation Standard on the basis of value (issued with Circular No. 30/2024/TT-BTC of 16 May 2024 of the Ministry of Finance), the market value of a movable asset is the estimated value at the valuation date and place between a willing buyer and a willing seller in an objective, arm’s-length transaction, where the parties are well informed, act knowledgeably and prudently, and are not under compulsion.
However, the prices of movable assets also depend on many other factors, such as market imbalances arising from unforeseeable causes (monopoly, speculation, unfair competition, etc.) and factors arising from State policy intervention, such as changes in tax policy or import quotas...
