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Foreign investors establish price appraisal businesses
Price appraisal is becoming an increasingly popular service in Vietnam as the economy grows rapidly. Many foreign investors are interested in investing in establishing a valuation business in Vietnam but do not understand the conditions that need to be met before applying for a license. Through this article, Siglaw will provide basic information about conditions, opportunities and challenges for foreign investors when operating in this field in the Vietnamese market.
Introduction to price appraisal services in Vietnam. Definition and scope of valuation services in Vietnam
- Definition: Valuation service is the process of determining the value of assets, real estate, businesses, stocks, or land use rights through the use of analysis, examination and evaluation methods. related factors.
- Scope: price appraisal services in Vietnam include the valuation of land assets, real estate, industrial and infrastructure assets, businesses, stocks, land use rights and other assets.
Potential and development of valuation services
- Growth of the financial market: With the rapid development of the financial market in Vietnam, the demand for valuation services has increased. Companies, banks, and individuals all need an accurate assessment of asset value to make investment and financial transaction decisions.
- Real Estate sector: The real estate sector plays an important role in the Vietnamese economy. Real estate asset valuation is a necessary factor to determine the true value of projects, increasing transparency and investment attractiveness.
- Leverage from foreign investment: The attraction of foreign investment into Vietnam provides great opportunities for valuation services. Foreign investors often need an independent and accurate assessment of asset value when participating in mergers, acquisitions and cooperation agreements.
- Shaping financial policy: Valuation services also play an important role in shaping Vietnam’s financial policy. Through asset value assessment, the government and relevant agencies can determine appropriate tax policies, regulations and financial structures.
Investment conditions for establishing a valuation enterprise for foreign investors in Vietnam
Foreign investors are allowed to invest in price appraisal services according to the provisions of the 2012 Price Law as follows:
Regarding the capital ownership ratio
- An organization is the founding shareholder: a maximum of 35% of the charter capital of the joint stock companies;
- An organization is a member: a maximum of 35% of the charter capital of a limited liability company with two or more members;
- In case there are many organizations contributing capital, the maximum total capital contribution of the organizations is equal to 35% of the charter capital of the joint stock company; LLC with two or more members
Investment form: joint venture cooperation in the form of a joint stock company or limited liability company;
Vietnamese partners participating in investment: Vietnamese valuation enterprises;
Foreign investors: legal appraisal business in the host country
That means that both Vietnamese investors and foreign investors participating in the joint venture must have experience in the field of valuation.
Opportunities and challenges when foreign investors establish valuation businesses in Vietnam
Opportunities and potential
- Growing market: Vietnam is one of the fastest-growing economies in Southeast Asia. The strong growth of the financial, real estate and business markets creates great opportunities for valuation businesses.
- Growing demand: The development of financial, investment and real estate markets requires increasing demand for valuation services. Foreign investors can take advantage of this opportunity to provide high-quality services and meet market needs.
Risks and challenges
- Competitors: The valuation market in Vietnam has seen the development of local companies and organizations. Foreign investors will face competition from existing competitors in the market.
- Legal regulations: Meeting the legal regulations and procedures for establishing a business in Vietnam can be challenging. Foreign investors need to clearly understand business regulations and conditions to comply with the legal process.
- Localization: Succeeding in building a local customer network and establishing relationships is a difficult challenge. An understanding of local culture, markets and regulations is critical to gaining trust and success in the valuation business.
Measures to limit risks and develop customer network
- Mastering regulations and laws: Foreign investors need to access and understand clearly the legal regulations and laws related to valuation businesses in Vietnam. This helps limit risks and comply with legal procedures.
- Build a local partner network: Create links with local companies, agencies, and experts in the field of valuation to understand the market and build a local customer network.
- Improve service quality: Focus on providing high-quality valuation services, fully meeting the needs and requirements of customers. Create trust and positive reviews from customers to grow your network and enhance your reputation in the industry.
Overall, foreign investors establishing valuation businesses in Vietnam provide opportunities for development in a potential market. However, they also face challenges and risks, such as competition, changes in tax policies and local business culture. By improving service quality and diversifying customer networks, foreign investors can limit risks and develop successfully in this field.
Siglaw is always ready to give advice and support customers with necessary information while carrying out procedures to change the investor’s address. Please contact Siglaw Law Firm for specific advice
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