Improving legal provisions on the valuation of assets contributed as capital in the 2020 Law on Enterprises

Abstract

In Vietnam, the valuation of assets contributed as capital is an important legal issue and is mandatory for any contributed assets that are not in Vietnamese dong. Although the 2020 Law on Enterprises has provisions on the valuation of assets contributed as capital, there remain a number of shortcomings. By analysing and commenting on the provisions of the 2020 Law on Enterprises on the valuation of assets contributed as capital, this article seeks to answer the questions: What are the current legal provisions on the entities with the authority to value, on the principles of valuation of assets contributed as capital, on the liability of the involved entities in overvaluing assets at the time of contribution? What are the existing limitations of these provisions? Are they consistent and compatible with other provisions in the 2020 Law on Enterprises, and do they fully protect the rights of related parties? What contents need to be improved so that the valuation of contributed assets is carried out accurately, transparently, fairly and effectively?