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Foreign investors establish valuation enterprises
Valuation is becoming an increasingly popular service in Vietnam as the economy is growing 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 on the conditions, opportunities and challenges for foreign investors when operating in this field in the Vietnamese market.
Introduction to valuation services in Vietnam
Definition and scope of valuation services in Vietnam
Definition: Valuation services are the process of determining the value of assets, real estate, businesses, stocks, or land use rights through the use of methods of analysis, inspection and evaluation of related factors.
Scope: Valuation services in Vietnam include 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 accurate assessments of asset values to make investment decisions and financial transactions.
Driving force from the real estate sector: The real estate sector plays an important role in the Vietnamese economy. Valuation of real estate assets is a necessary factor to determine the real value of projects, increase transparency and investment attractiveness.
Leverage from foreign investment: The attraction of foreign investment in Vietnam provides great opportunities for valuation services. Foreign investors often need independent and accurate assessments of asset values when participating in mergers and acquisitions and cooperation agreements.
Shaping financial policy: Valuation services also play an important role in shaping financial policy Vietnam’s government. Through asset valuation, 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 valuation services according to the provisions of the 2012 Law on Prices as follows:
Regarding the capital ownership ratio
Members are organizations: maximum 35% of the total charter capital of a valuation limited liability company with two or more members.
Founding shareholders are organizations: maximum 35% of the total charter capital of a valuation joint stock company.
In case there are many organizations contributing capital, the total capital contribution of the organizations is maximum 35% of the charter capital of a valuation limited liability company with two or more members, a valuation joint stock company.
In terms of investment form
Foreign investors are required to form a joint venture when investing in establishing a valuation enterprise.
Vietnamese partners participating in investment activities
Must be a Vietnamese valuation enterprise.
For foreign investors
Foreign investors have been established and legally provide valuation services in the host country.
That means both Vietnamese investors and foreign investors participating in the joint venture must have experience in the valuation field.
Opportunities and challenges when foreign investors establish valuation enterprises in Vietnam
Opportunities and Potentials
Growing Market: Vietnam is one of the fastest growing economies in Southeast Asia. The strong growth of the financial, real estate and corporate markets creates great opportunities for valuation businesses.
Growing Demand: The development of the financial, investment and real estate markets requires an increasing demand for valuation services. Foreign investors can take advantage of this opportunity to provide high-quality services and meet the needs of the market.
Risks and Challenges
Competition: The valuation market in Vietnam has developed local companies and organizations. Foreign investors will face competition from existing competitors in the market.
Legal regulations: Complying with legal regulations and procedures for establishing a business in Vietnam can be a challenge. Foreign investors need to understand the regulations and business conditions to comply with the legal process.
Localization: Successfully building a local client network and establishing relationships is a difficult challenge. Understanding local culture, markets and regulations is very important to gain trust and success in the valuation business.
Measures to limit risks and develop customer network
Understand regulations and laws: Foreign investors need to access and understand the legal regulations and laws related to valuation enterprises in Vietnam. This helps to limit risks and comply with legal procedures.
Build a network of local partners: Create links with local companies, agencies, and experts in the valuation field to understand the market and build a network of local customers.
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 develop the network and enhance reputation in the industry.
In general, foreign investors establishing valuation businesses in Vietnam offer opportunities for growth in a market with great potential. However, they also face challenges and risks, such as competition, changes in tax policies and local business culture. By improving service quality and diversifying their customer base, foreign investors can limit risks and develop successfully in this field.
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