Regulations to Know About Industrial Real Estate Appraisal

23:34, 10/07/2024

This is one of the prominent contents mentioned in Circular 145/2016/TT-BTC promulgating Vietnam Valuation Standards No. 11.

According to Circular 145/2016/TT-BTC, the appraisal of industrial real estate is conducted as follows:

- Industrial real estate includes land and construction works that comply with the land use purpose as prescribed by law, for example: cement production plants, non-ferrous metallurgy plants, seafood processing plants, food processing plants,…

- Construction works of industrial real estate are usually designed and used for specific and peculiar purposes, with a higher depreciation rate than normal.- The location factor greatly affects the value of industrial real estate (power source, water, roads, slope, subsoil treatment, pollution treatment, etc.).

- The main applied methods: Replacement cost method or reproduction cost method, direct capitalization method, discounted cash flow method.

See the full text of the regulations at Circular 145/2016/TT-BTC effective from January 01, 2017.

- Thanh Lam -

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