The VCCI said that: Proposing to abandon joint-stock companies for business valuation and strict requirements for business conditions will narrow the number of companies, causing users to pay higher fees ...
The Vietnam Chamber of Commerce and Industry (VCCI) has just had some comments on the draft Policy Impact Assessment Report proposing the development of the revised Price Law of the Ministry of Finance.
In the above comment, VCCI emphasized: setting stricter business conditions for valuation enterprises such as: increase the number of price appraisers in the enterprise, require all capital contributors to be price appraisers, or set conditions for the legal representative, there is not enough evidence that it will improve the quality of services provided by the business, while the responsibility for the quality of the Appraisal Report is still the individual appraiser.
"Customers will have fewer options for valuation businesses than in the past, as the number of valuation businesses will be less and risk incurring higher costs than before, while quality is not guaranteed."
Vietnam Chamber of Commerce and Industry (VCCI).
VCCI also noted that, in the draft proposal to improve business conditions of businesses doing business in the field of valuation, the number of valuation enterprises is expected to be narrowed. This will have a significant impact on the competitive market and consumer choice.
In addition, regarding the elimination of the type of joint-stock company for valuation enterprises, VCCI said that currently, about 46% of enterprises are joint-stock companies. This is a large number of businesses that will have to convert to the type of limited liability company.
"The new draft-only provides a theoretical explanation that 'responsibility is always attached to individuals and businesses, so it is not appropriate to have a valuation enterprise model as a joint-stock company" without any practical assessment. This policy proposal has a great impact on valuation enterprises, so it needs to be evaluated with caution,” noted VCCI.
The Law on Pricing has been implemented and enforced for more than 9 years, this period is long enough to assess the impact of the valuation enterprise in the form of the joint-stock company on valuation activities. According to the analysis of VCCI, theoretically, the model of a joint-stock company and limited liability company is basically not different, because they both operate under limited liability, even though a joint-stock company may have a larger number of shareholders. In practice in Vietnam, the number of shareholders of a joint-stock company is similar to that of a limited liability company, rarely more than 50 members.
VCCI asked the drafting committee to clarify the issue of "what inadequacies and difficulties exist in the operation of joint-stock valuation companies that are forced to eliminate this type of enterprise". The draft does not provide this practical information, so the reason for making this proposal is not convincing.
Previously, to overcome the shortcomings, limitations, and inadequacies after implementing the Law on Prices No. 11/2012/QH13, the Ministry of Finance proposed to amend the Law on Prices, including regulations on valuation and taking comments from relevant agencies.
Regarding the conditions for granting certificates of eligibility for valuation services, draft assessments, the current regulations on eligibility for the issuance of certificates of eligibility for valuation services are too "open", making the establishment and licensing of valuation enterprises easy.
Appraisal businesses that have poor service quality, compete by lowering service prices. The type of joint-stock company is not suitable for the nature of valuation activities.
As a result, the Ministry of Finance makes two policy proposals. Firstly, improve the conditions for being granted the Certificate of eligibility to conduct business in valuation services. Specifically, the condition on the number of price appraisers from 03 to 05 people, the capital contributors are all price appraisers, the conditions of the branch director correspond to the conditions of the director of the enterprise. Second, remove the form of joint-stock company for enterprise valuation.
Collected from source
Anh Tuyet
