I. Current status of company valuation in Vietnam

As Vietnam’s economy continues to grow and integrate deeply into the global market, the need for business valuation has become increasingly important, particularly in activities such as: state-owned enterprise equitization, mergers and acquisitions (M&A), joint venture capital contributions, share transfers, or during the dissolution and bankruptcy process.

However, company valuation in Vietnam still faces significant challenges, such as the absence of uniform standards, discrepancies between book value and actual market value, and inconsistent capacity across valuation organizations.

II. Legal regulations on company valuation in Vietnam

1. What valuation methods are applied in Vietnam?

Pursuant to the Law on Prices 2023 and the Vietnamese Valuation Standards issued under Circular No. 30/2024/TT-BTC, the common valuation methods include:

  • Net asset method: Assessing asset value minus liabilities.
  • Discounted cash flow (DCF) method: Based on projected future cash flows discounted to present value.
  • Market comparison method: Comparing with similar enterprises in the same industry.
  • Excess earnings method: Measuring profits exceeding the average expected return.

2. What contents does company valuation in Vietnam include? 

According to the Vietnamese Valuation Standards (Circular No. 30/2024/TT-BTC), the main contents of a business valuation report consist of:

  • Basic information about the valuation enterprise and appraisers;
  • Purpose, scope, and effective date of valuation;
  • Analysis of assets, liabilities, and financial performance;
  • Assumptions and valuation methodologies applied;
  • Valuation results and disclaimers/limitations (if any);
  • Signatures of appraisers, legal representatives, and appendices (legal documents, calculations, etc.).

3. What is the process for company valuation in Vietnam?

The standard valuation process involves:

  • Entering into a valuation service contract between the business and the valuation organization;
  • Collecting and reviewing financial and legal dossiers, and other input data;
  • Conducting site inspections, business and market analysis;
  • Applying appropriate valuation methods;
  • Preparing the valuation report and valuation certificate signed by the appraiser.

III. Questions on company valuation in Vietnam

1. What is the cost of company valuation in Vietnam?

There are currently no fixed fees for valuation services. Fees are contractually agreed between the parties, depending on:

  • Business size and type;
  • Complexity of assets;
  • Deadline requirements.

Fees typically range from tens of millions to hundreds of millions of Vietnamese dong, and may be higher for large corporations or multinational groups with cross-border assets.

2. What documents are required for company valuation?

Pursuant to Clause 1, Article 66 of the Law on Prices 2023, a valuation dossier includes:

  • Written request for valuation or valuation service contract;
  • Financial statements for the last three years;
  • Enterprise registration certificate and company charter;
  • List of tangible and intangible assets;
  • Explanatory notes on assets, liabilities, and capital;
  • Legal documents proving ownership rights over assets, land use rights, trademarks, etc.

3. How long does a company valuation take?

Generally, the timeframe ranges from 07 to 30 working days from the date of receiving a complete dossier. For complex businesses with diversified activities, or where valuation reports are required for court proceedings, the process may take longer.

4. What laws govern company valuation in Vietnam?

The main legal documents governing valuation include:

  • The Law on Prices 2023;
  • Circular No. 30/2024/TT-BTC issuing updated Valuation Standards;
  • Relevant accounting and financial standards.

5. What legal grounds apply in case of disputes over valuation results?

When disputes arise regarding valuation results, the parties may:

  • Negotiate or mediate;
  • File complaints with the National Valuation Council or the Ministry of Finance if there are signs of professional or ethical violations;
  • Initiate lawsuits at civil courts under the Civil Procedure Code 2015;
  • Resort to arbitration under the Commercial Arbitration Law 2010 if there is an arbitration agreement.

In cases of fraud or deliberate misrepresentation, appraisers or valuation enterprises may be subject to administrative penalties or criminal prosecution in accordance with the law.

IV. Legal advisory services on company valuation in Vietnam

To ensure company valuations in Vietnam are conducted lawfully and to minimize risks, seeking professional legal support is essential. NPLaw offers comprehensive services ranging from contract drafting, clarification of legal provisions, to assistance throughout valuation procedures. Our holistic support helps save time and ensures successful transactions.