On June 20, 2024, the Minister of Finance issued Circular No. 42/2024/TT-BTC on Vietnamese Valuation Standards for Real Estate Valuation.
These standards provide guidelines for real estate valuation in accordance with the pricing laws. These standards do not apply to land valuation under land law.
The approaches applied in real estate valuation include:
- Market Approach
- Cost Approach
- Income Approach as stipulated in the Vietnamese Valuation Standards, or a combination of these approaches.
Valuation Methods Used in Real Estate Valuation Include:
- Valuation methods belonging to the approaches or combinations of the approaches mentioned above.
- The residual method is a valuation method constructed based on combining the market approach, cost approach, and income approach.
Bases for Determining the Highest and Best Use of Real Estate
The highest and best use of real estate is determined based on the following:
- Characteristics of the appraised real estate.
- Information on land use planning, construction planning, transportation planning, regulations on land use change, and construction investment regulations approved by competent authorities.
- Guidance on analyzing the highest and best use is provided in the Vietnamese Valuation Standards on collecting and analyzing information about the appraised property.
Circular 42/2024/TT-BTC takes effect from August 5, 2024, and replaces Circular 145/2016/TT-BTC.
