Joint Circular No. 02/2014/TTLT-TANDTC-VKSNDTC-BTP-BTC guides the implementation of Article 92 of the Civil Procedure Code, amended and supplemented by the Law Amending and Supplementing Certain Provisions of the Civil Procedure Code regarding valuation of assets and appraisal of assets.

JOINT CIRCULAR

Hguiding the implementation of Article 92 of the Civil Procedure Code which has been amendedand supplemented

 by the Law Amending and Supplementing Certain Provisions of the Civil Procedure Code regarding valuation of assets and appraisal of asset value

Pursuant to the Civil Procedure Code which has been amended and supplemented by the Law Amending and Supplementing Certain Provisions of the Civil Procedure Code adopted by the National Assembly of the Socialist Republic of Vietnam at its 9th session of the 12th term on March 29, 2011;

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Pursuant to the Law on Organization of People's Courts;

Pursuant to the Law on Fees and Charges 2015;

Pursuant to the Law on Organization of People's Procuracy;

Pursuant to the Decree on Costs for Appraisal and Valuation; Costs for Witnesses and Interpreters in Litigation in 2012;

Pursuant to the Government's Decree No. 22/2013/NĐ-CP dated March 13, 2013 stipulating the functions, tasks, powers, and organizational structure of the Ministry of Justice;

Pursuant to the Government's Decree No. 215/2013/NĐ-CP dated December 23, 2013 stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The President of the Supreme People's Court, the Prosecutor General of the Supreme People's Procuracy, the Minister of Justice, and the Minister of Finance jointly issue this Joint Circular guiding the implementation of Article 92 of the Civil Procedure Code which has been amended and supplemented by the Law Amending and Supplementing Certain Provisions of the Civil Procedure Code regarding valuation of assets and appraisal of asset value.

This Joint Circular guides the implementation of the provisions of Article 92 of the Civil Procedure Code which has been amended and supplemented by the Law Amending and Supplementing Certain Provisions of the Civil Procedure Code adopted by the National Assembly of the Socialist Republic of Vietnam at its 9th session of the 12th term on March 29, 2011 (hereinafter referred to as the Civil Procedure Code) regarding valuation of assets and appraisal of asset value.

Article 1. Scope of Regulation

Article 2. Principles of Asset Valuation

1. The parties shall negotiate on determining the asset value and selecting an appraisal organization to determine the asset value. The State respects the agreement of the parties on determining the asset value and selecting an appraisal organization in accordance with the law, except where the parties agree among themselves or with the appraisal organization at a low price to evade their obligations to the State.

2. Asset valuation shall be based on technical standards and the actual condition of the asset; it must be consistent with the market price of the asset at the time of valuation in the location where the asset is situated.

3. Ensure honesty, objectivity, transparency, and compliance with the law.

4. The asset value shall be calculated in Vietnamese Dong.

5. In cases where the asset being valued no longer exists, the determination of the value shall be based on the documents and evidence in the case file or by referring to the price of similar assets or assets with the same functionality and technical standards to determine the value. Similar assets and assets with the same functionality and technical standards shall be determined in accordance with the law.

Article 3. Agreement on Determination of Asset Value

Agreements on the determination of the value of disputed assets must meet the following requirements:

1. Persons participating in the agreement on the determination of asset value must be the parties or their authorized representatives;

2. All parties participating in the agreement must do so voluntarily;

3. Compliance with the guidance provided in Article 2 of this Joint Circular;

4. The agreement must be documented in writing and signed by all parties participating in the agreement.

4. The agreement shall be drawn up in writing and signed by the parties to the agreement.

Article 4. Agreement on the Selection of Appraisal Organizations for Assets

The agreement among the parties regarding the selection of appraisal organizations for assets must meet the following requirements:

1. The agreement among the parties must comply with the requirements set forth in Article 3 of this Joint Circular.

2. The selected appraisal organization must have the necessary conditions to operate in accordance with the laws on asset appraisal.

Article 5. Requirements for Asset Appraisal Organizations

1. In cases where all parties request the Court to require an appraisal organization to appraise assets, they must specifically name the appraisal organization. Within ten working days from the date of receipt of the party's request document, the Court shall send a document requesting that organization to conduct the asset appraisal.

2. If one party requests the Court to require an appraisal organization to conduct an asset appraisal, the Court must notify the other parties in the civil case in writing. Within fifteen days from the date of receipt of the Court's notification document, if the party does not object or agrees with the request for the appraisal organization, the Court will send a document requesting the appraisal organization to conduct the asset appraisal as requested by the parties. In cases where a party disagrees with the selected appraisal organization, the parties have the right to request the Court to appraise the asset according to Clause 1 of Article 7 of this Joint Circular.

3. Requests made by parties to the Court to require an appraisal organization to conduct an asset appraisal under Clauses 1 and 2 of this Article must be in writing, signed by the requester, and accompanied by documents certifying the organization's compliance with legal requirements for operating an asset appraisal service. The request form follows Model No. 01 issued together with this Joint Circular.

Article 6. Procedure for Implementing Requests for Asset Appraisal Organizations to Conduct Asset Appraisals at the Request of Parties

1. After meeting the conditions to issue a document requesting an asset appraisal organization to conduct an asset appraisal as stipulated in Article 5 of this Joint Circular, the Court shall issue a document requesting the appraisal organization to conduct the appraisal of the disputed asset.

2. Immediately upon receiving the response from the appraisal organization agreeing to conduct the asset appraisal, the Court must notify the parties to proceed with the procedures required by the asset appraisal organization in accordance with the law. In cases where the appraisal organization refuses to conduct the asset appraisal, the Court shall notify the parties to select another appraisal organization.

3. The procedures for conducting the asset appraisal by the appraisal organization shall be carried out in accordance with the laws on asset appraisal.

4. Immediately upon completion of the appraisal results, the asset appraisal organization must submit the appraisal results to the Court. The Court shall notify the relevant parties of the appraisal results.

5. The appraisal results shall be considered as evidence if the appraisal is conducted in accordance with the law.

Article 7. Issuance of Appraisal Decision by the Court

1. The Court shall issue an Appraisal Decision upon a party's request. The request for the Court to issue an Appraisal Decision on disputed assets shall be made in accordance with Model No. 02 attached hereto.

2. The Court may issue an Appraisal Decision without waiting for a party's request when there is evidence that the parties have agreed among themselves or with an appraisal organization at a low price to evade their obligations to the State.

Article 8. Procedures for Establishing the Appraisal Board and Issuing the Appraisal Decision

1. Prior to issuing an Appraisal Decision on disputed assets, the Court must identify the assets to be appraised, relevant specialized agencies, and the number of members of the Appraisal Board. Based on this information, the Court shall send a letter requesting the competent financial agency to appoint a representative as Chairperson of the Appraisal Board, and other specialized agencies with authority to appoint persons with expertise related to the assets to be appraised to serve as members of the Appraisal Board. The Court's letter must clearly state the assets to be appraised and specific requirements for the Chairperson and members of the Appraisal Board. Within ten working days from the date of receipt of the Court's letter, the financial agency and other specialized agencies must send letters to the Court regarding the appointment of persons to join the Appraisal Board. If it is not possible to comply with the deadline for appointing persons, they must provide a letter explaining the reasons.

2. After receiving the letters appointing persons to join the Appraisal Board from the financial agency and other specialized agencies, the Judge handling the case must verify whether the appointed persons fall under the cases stipulated in Article 46 of the Civil Procedure Code and the guidance provided in Article 13 of Resolution No. 03/2012/NQ-HĐTP dated December 3, 2012 of the Supreme People's Court Presidium guiding the implementation of certain provisions in Part I "General Provisions" of the Civil Procedure Code amended and supplemented by the Law Amending and Supplementing Certain Provisions of the Civil Procedure Code. If they do, the Court shall require the agency that appointed the persons to join the Appraisal Board to appoint substitutes.

3. Within five working days from the date the Court receives the letters appointing persons to join the Appraisal Board from the financial agency and other specialized agencies, the Court shall issue the Appraisal Decision. The Appraisal Decision shall be carried out in accordance with Model No. 03 attached hereto.

4. The Court shall assign a Court Clerk to assist the Appraisal Board in recording the proceedings of the asset appraisal and performing tasks guided at point a, Clause 2, Article 15 of the Joint Circular.

5. In necessary cases, the Court may invite representatives of the People's Committee of the commune, ward, town where the assets to be appraised are located to witness the asset appraisal conducted by the Appraisal Board in accordance with Clause 2, Article 92 of the Civil Procedure Code.

Article 9. Delivery of the Appraisal Decision

Within three working days from the date of issuance of the Appraisal Decision, the Court shall deliver the Appraisal Decision and documents concerning the assets to be appraised to the members of the Appraisal Board, the participating parties, and the People's Committee of the commune, ward, town where the assets to be appraised are located (in cases where representatives of the People's Committee are invited to witness the appraisal).

Article 10. Request for Change and Procedure for Reviewing Changes to Members of the Appraisal Council

1. Within three working days from the date of receiving the Appraisal Decision on the disputed property, the party, individual, agency, or organization has the right to submit a request or directly approach the Court to request a change in members of the Appraisal Council.

In cases where the party, individual, agency, or organization directly approaches the Court to request a change in members of the Appraisal Council, such request must be fully recorded in the minutes and kept in the civil case file.

2. If the Court finds that the request for changing members of the Appraisal Council is justified, within three working days from the date the Court receives the request for changing members of the Appraisal Council, the Court shall send a document to the agency that appointed the member to be replaced to appoint another person to join the Appraisal Council.

If the Court finds that the request for changing members of the Appraisal Council is not justified, within three working days from the date the Court receives the request for changing members of the Appraisal Council, the Court shall notify the party, individual, agency, or organization requesting the change in members of the Appraisal Council in writing.

3. The decision to change members of the Appraisal Council shall be implemented according to Model No. 04 issued together with this Circular.

Article 11. Rights and Obligations of the Appraisal Council

1. The Appraisal Council has the following rights:

a) To request individuals, agencies, or organizations to provide materials and information related to the property to be appraised; to provide documents related to the condition and remaining quality ratio of the property;

b) To propose the Court to hire necessary services to carry out the appraisal of the property;

c) Other rights as prescribed by law;

2. The Appraisal Council has the following obligations:

a) To comply with the principles, methods, procedures, and contents of property appraisal as prescribed by law and the guidance provided in this Circular;

b) To conduct the property appraisal strictly according to the time specified in the Appraisal Decision. In cases where the property appraisal cannot be carried out according to the time specified in the Appraisal Decision, the Chairman of the Appraisal Council must notify the Court at least three working days before the appraisal deadline set forth in the Appraisal Decision so that the Court can decide on changing the appraisal time;

c) To conclude on the value of the property requested to be appraised and bear responsibility for such conclusion;

d) Other obligations as prescribed by law.

Article 12. Rights and Obligations of Members of the Appraisal Council

1. Members of the Appraisal Council have the following rights:

a) To receive the Appraisal Decision;

b) To make observations and evaluations regarding the nature and characteristics of the property to be appraised; regarding the basis, method, and value of the property to be appraised;

c) To vote to determine the price of the property;

d) To be timely notified in writing by the Court about the content, composition, time, and location of the property appraisal session and related matters;

đ) Other rights as prescribed by law.

2. Members of the Appraisal Council have the following obligations:

a) To perform tasks according to the Appraisal Decision and the assignment of the Chairman of the Appraisal Council;

b) To attend the property appraisal session fully, on time, and at the location specified in the Appraisal Decision or in the Court's notice regarding changes to the appraisal time;

c) To be responsible for their observations, evaluations, and votes as stipulated in points b and c of Clause 1 of this Article.

d) Other obligations as prescribed by law.

Article 13. Rights and Obligations of Parties Participating in the Asset Valuation Session

1. When participating in the asset valuation session, the parties have the following rights:

a) To express opinions when permitted by the Chairman of the Asset Valuation Council;

b) To provide information and documents related to the disputed assets being valued.

2. The parties are obligated to strictly comply with the provisions of the law and the guidelines set forth in this Circular.

Article 14. Entrusted Asset Valuation

In cases where the assets requiring valuation are located in areas not within the jurisdiction of the court handling the civil case, the court shall issue a Decision on entrusting asset valuation in accordance with Article 93 of the Civil Procedure Code and the guiding documents for implementation, so that another court or competent authority where the assets are located may conduct the asset valuation.

Article 15. Procedures and Formalities of the Asset Valuation Session

1. The Valuation Council shall only convene a session to value assets when all members of the Council are present.

2. The asset valuation session of the Valuation Council shall be conducted in the following sequence:

a) The Secretary appointed by the court to assist the Valuation Council shall check and confirm the presence or absence of participants based on the summons or notice from the court; if there are absentees, the reasons must be clarified;

b) The Chairman of the Valuation Council shall announce the Decision on valuing the disputed assets;

c) The Valuation Council shall proceed to value each asset or part thereof;

d) The parties may express their opinions on the determination of the asset's value when permitted by the Chairman of the Valuation Council;

đ) Members of the Valuation Council shall express their opinions on the assessment of the assets to be valued and the value of such assets;

e) The Chairman of the Valuation Council shall propose the asset value for voting;

g) The Valuation Council shall vote on the asset value.

The decision on the asset value shall be adopted when more than 50% of the total number of Valuation Council members vote in favor. In the event of a tie, the opinion of the Chairman of the Valuation Council shall prevail.

3. The session of the Valuation Council shall be recorded in the minutes. The asset valuation minutes shall be prepared according to Model No. 05 issued together with this Circular. The minutes must bear the signatures of the Valuation Council members, the parties, witnesses, if any, and the Secretary recording the minutes.

4. Immediately after the conclusion of the Valuation Council session, the Valuation Council shall transfer all relevant files concerning the valuation and the valuation minutes to the court for inclusion in the civil case file.

Article 16. Handling Situations Where There Are Obstructions to the Valuation Council's Valuation Activities

In cases where there are obstructions to the Valuation Council's valuation activities, the Chairman of the Valuation Council shall request representatives of the People's Committee of communes, wards, towns, public security agencies, and other competent authorities to take timely intervention and support measures. Depending on the nature and severity of the obstruction, the person obstructing the Valuation Council shall be dealt with in accordance with the law.

If it is impossible to conduct the valuation due to obstruction, the Valuation Council shall prepare a record of the inability to conduct the valuation due to obstruction and include it in the civil case file. The record of the inability to conduct the valuation shall be prepared according to Model No. 06 issued together with this Circular.

The determination of the value of the assets to be valued in cases where the Valuation Council cannot conduct the valuation due to obstruction shall be handled in accordance with the guidance provided in Article 17 of this Circular.

Article 17. The court determines the value of the property in certain other cases.

1. In cases where the parties cannot agree on determining the value of the property but do not request the court to ask the appraisal organization to appraise the property or do not request the court to establish the Appraisal Board to appraise the property, the court shall require the parties to propose the value of the property without violating the guidelines set forth in Clauses 2, 3, and 4 of Article 2 of this Circular. Within fifteen days from the date the party receives the court's request, if the parties can agree on a unified price, the court will take this price as the value of the property. If the parties propose different prices, the court will take the average of the prices proposed by the parties. If only one party proposes the price of the property while the other parties do not propose a price for the disputed property, the court will determine the value of the property according to the price proposed by the party.

2. In cases where a party obstructs the Appraisal Board from appraising the property, the court shall require the non-obstructing parties to propose the value of the property without violating the guidelines set forth in Clauses 2, 3, and 4 of Article 2 of this Circular. Within fifteen days from the date of receiving the court's request, if the non-obstructing parties can agree on a unified price, the court will take this price as the value of the property. If the non-obstructing parties propose different prices, the court will take the average of the prices proposed by the parties. If only one non-obstructing party proposes the price of the property while the other parties do not propose a price for the disputed property, the court will determine the value of the property according to the price proposed by the non-obstructing party.

3. In cases where the parties cannot propose the value of the property as stipulated in Clause 1 and Clause 2 of this Article or both parties obstruct the Appraisal Board from appraising the property or fail to pay the advance payment for the appraisal costs as prescribed by law, the court will resolve the civil case based on the case file according to the general procedure.

4. After the court determines the value of the property as stipulated in Clause 1 and Clause 2 of this Article, if the party requests a re-appraisal, the court will not conduct the re-appraisal.

Article 18. Conducting Re-appraisal of Property

1. The court handling the case issues a decision to re-appraise the property upon the request of one or more parties in the following circumstances:

a) There is clear evidence showing that the result of the property appraisal does not match the market price at the location of the appraised property at the time of appraisal;

b) There is evidence indicating that the Appraisal Board conducted the appraisal in a biased and unobjective manner.

2. In cases where there is evidence as stipulated in Clause 1 of this Article, the court handling the civil case conducts a re-appraisal of the property. If the appellate court is handling the civil case and needs to re-appraise the property, the appellate court may entrust the trial court that previously handled the case to conduct the re-appraisal.

3. The re-appraisal of the property is carried out by a different Appraisal Board, the procedures for establishing and the regulations regarding the re-appraisal Appraisal Board are implemented as specified in this Circular.

Article 19. Costs for appraisal and valuation of assets

The costs for appraisal and valuation of assets shall be implemented in accordance with Ordinance No. 02/2012/UBTVQH13 dated March 28, 2012 of the Standing Committee of the National Assembly on costs for examination, valuation; costs for witnesses and interpreters in proceedings, and guiding documents for implementation.

Article 20. Effective Date

1. This Circular takes effect from June 1, 2014.

2. For civil cases that have been accepted by the Court before this Circular takes effect, but are newly tried at first instance, appeal, cassation, or retrial from the date this Circular takes effect, this Circular shall be applied to resolve them.

Article 21. Interpretation and supplementary guidance on this Circular

During implementation, if there are issues requiring explanation or supplementary guidance, the People's Courts, People's Procuratorates at all levels, relevant agencies, organizations, and individuals shall reflect these issues to the Supreme People's Court, the Supreme People's Procuracy, the Ministry of Justice, and the Ministry of Finance for timely explanation and supplementary guidance.