Factory Valuation
(TDVC Factory Valuation) – Factory is a common construction work in industrial zones in Vietnam. When the country starts the process of industrialization and modernization, the factory was born, clearly showing the development of industries and it is also the place where production activities take place. Therefore, the factory plays an important role in production, business, import and export for enterprises. Therefore, accurate factory valuation plays an important role in serving many legitimate purposes for businesses, thereby helping businesses have stronger investment and business plans.
Factory valuation means that an agency or organization with the function of price appraisal determines the monetary value of the Factory according to the provisions of the Civil Code in accordance with the market price at the time of price appraisal, for a specific purpose according to the valuation’s criteria.
1. What is a factory?
A factory is a physical asset with a large capacity and management scale (compared to a store), which can be a place to gather manpower, equipment, and materials for the production, storage and transportation of goods.
Factories can be built from steel or wood, but now they are mainly made in the style of steel buildings due to their superior features with the following characteristics:
a, Sustainability
Steel buildings help the production process to be continuous, not interrupted or affected by climatic factors such as rain, storm, snow, or earthquake…
Structural Steel helps to protect the factory against possible fire risks, wooden factories do not have this advantage.
Waterproof and against insect attack: Unlike wooden house structures, steel is a durable material, resistant to water or insects and factors that cause damage to the factory. On the other hand, steel is an extremely durable material that is not easily bent by temperature factors, keeping the factory structure stable over time.
b, Environment friendly
A lot of good wood is needed to build a wooden factory. This adversely affects the habitat of animals as well as humans. Therefore, iron and steel is the best choice to protect the natural environment.
- Fast construction time, economical installation cost, long warranty.
- Depending on the size, the factory can be completed within a few months, the process of dismantling and moving in just a few weeks.
- Steel buildings are built and maintained for a long time, the structures are repainted to ensure the durability for optimal operation of the steel buildings.
- The cost of construction and installation of steel buildings may be higher than that of wooden houses, but the durability, time of use and superior characteristics above are the foundation for steel buildings to be the optimal choice for companies.
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When surveying the actual status, the appraiser should pay attention to: Foundation system; column (aperture between columns); floor; doors; walls, crane system; roof support structure; roof… to assess the remaining quality of the Factory at the time of valuation.
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After surveying the actual condition of the factory, the appraiser referred to the Joint Circular No. 13/LB-TT dated August 18, 1994 on guiding the method of determining the residual value of construction works; and based on legal records to estimate the percentage (%) of the remaining quality of the construction work (%).
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Also according to the actual survey of the current status, appraisers refer to the unit price of new construction of similar properties according to the investment rate of the Ministry of Construction.
2. The purpose of factory valuation
- Buy, sell, transfer.
- Bank loan.
- Joint ventures.
- Equitization and establishment of enterprises.
- Debt settlement, business dissolution.
- Compensation, insurance, complain.
- Accounting, tax calculation.
- Consulting and setting up investment projects.
3. Factory valuation document
- Certificate of ownership of construction works
- Construction permit
- Construction contracts
- Blueprint
- As-built drawing
- Minutes of acceptance of completed works
4. Factory valuation method
Factory buildings, also known as industrial real estate, are often designed and used for specific purposes, with a higher rate of wear and tear than normal. The location factor greatly affects the value of the industrial real estate (electricity, water, roads, slopes, treatment of underlying soil, pollution treatment…). In order to choose a suitable method of factory valuation, the appraiser must base on: Purpose of valuation; Characteristics of the type of appraised factory; Availability and reliability of information and data collected in the market.
The main methods for Factory valuation are chosen by appraisers: Replacement cost method or Renewable cost method, Direct capitalization method, and iscounted cash flow method.
In the context that Vietnam’s economy is developing extremely strongly, international economic integration is deepening. Besides, the country is in the process of industrialization and modernization. Since then, industrial parks and factories have been formed to serve the market economy. Therefore, Factory valuation has become extremely necessary to serve the legitimate purposes of domestic enterprises and FDI enterprises.
Thanh Do Valuation Joint Stock Company is the leading reputable independent valuation enterprise in Vietnam. We have performed many large-scale, complex factory appraisal contracts with the most demanding requirements for the appraisal industry in Vietnam related to bank loan activities, capital contribution to investment linkages, merges, and acquisitions (M&A), consulting on equitization of enterprises, appraisal of investment projects, asset transfer, etc.
Experiencing a development process, Thanh Do has affirmed its position and built its reputation; solid brand, trust with customers and highly appreciated by organizations, enterprises and State management agencies. In 2019, (TDVC) was honored to be certified “Prestigious Exclusive Brand – Trademark 2019” , In 2020 Thanh Do was honored “Prestigious Vietnamese brand 2020”, “Trusted brand 2020”. In 2021 Thanh Do was honored Top 10 Brand Asia – Pacific. Besides, TDVC applies the international standard ISO 9001: 2015 for the quality management system in valuation services (real estate, enterprise value, machinery and equipment, investment projects, construction works) making an important contribution to help customers make key decisions in investment, business and transparency trading in the market. Along with that, the appraisal system is nationwide: Hanoi, Da Nang, Ho Chi Minh City, Hai Phong, Quang Ninh, Bac Ninh, Bac Giang, Thai Binh, Tuyen Quang, Nghe An, Thanh Hoa, Khanh Hoa, Can Tho, Lam Dong, Ca Mau, An Giang and constantly expanding, we guarantee to fully and promptly meet the request for property valuation of customers nationwide.
Thanh Do Valuation Join Stock Company – Professional valuation enterprise, reputation provide real value to customers in the service valuation. In 2019, (TDVC) was honored to be certified as “Top 50 Brand – Trademark Reputabale 2019”, In 2020 Thanh Do was honored with “Top 50 Trusted Brand 2020” and “Top 50 Brand Dat Viet Reputabale 2020”, In 2021 Thanh Do was honored Top 10 Brand Asia – Pacific. In addition, TDVC applies the International Standard ISO 9001: 2015 for the quality management system in property appraisal services, making an important contribution to help customers to have decisions in investment, business and transparent trading in the market.
Contact for appraisal: 0985 103 666 0906 020 090
Website: www.thamdinhgiathanhdo.com
