Why Do Enterprises Need To Appraise The Value Of An Investment Project?

Not any project is accepted, because it also depends on many different factors such as: the reputation of the investor, the present time, the benefits from the project to the society ... The reason that state management units always apply the appraisal of the value of investment projects to see if this project has any problems that need to be solved and can be done or not.

WHAT IS VALUATION OF INVESTMENT PROJECT?

Appraisal means the examination and evaluation of the person determining investment, investors, and specialized construction agencies for the necessary contents in the process of preparing and implementing construction investment projects as a basis. Department review and approval.

Appraisal of an investment project is the objective, scientific and comprehensive research and analysis of all economic and technical contents of the project. Put them in relation to the natural environment, socio-economic situation to decide to invest, finance the project.

Establishing and evaluating an investment project dealing with:

- Reviewing the complete content of the project has been established or not.

- Compare the projects criteria with the standards that investors expect.

- Conclusion whether this project is invested or not, beneficial or not.

OBJECTIVES OF INVESTMENT VALUATION

The valuation of a real estate investment project is to determine the real value of the project on the basis of a comparison with accepted standards, or with other alternative projects. The true value of a project is expressed through: legality, rationality, practicality and efficiency. Therefore, appraisal of the value of investment projects helps state agencies to determine.

- The conformity between the projects objectives with the socio-economic development strategic goals of the locality, the country or the goals identified by the investor.

- Are the technology of the project suitable for the level and requirements of the industry in the implementation period?

- Financial capacity, supply source with inputs, ability and management skills to operate the equipment of the investor.

- The role of the investment project and the benefits that the project brings to investors and to the country. At the same time, ensure safety for people and other activities in the project area.

Appraise the value of an investment project in accordance with Vietnams valuation standards to serve as a basis for reviewing and approving that investment project to see if the project is feasible and brings benefits to the society. Evaluate the source and magnitude of the risks, as well as how to minimize them.

PURPOSE OF VALUATION OF INVESTMENT PROJECT

The implementation of price appraisal to serve the important jobs of businesses today such as:

- Negotiation on transfer, joint venture capital contribution.

- For the purpose of equitization of State-owned enterprises.

- For the purpose of state management of localities.

- For the purpose of proving the financial capacity of organizations and individuals.

- Other purposes

Appraisal of an investment project is a mandatory requirement for any investor before investing. This process will examine, review and comprehensively evaluate the contents that affect the economic, social and feasibility of the project. From there, it helps investors to decide whether to invest in this project or not.

For more details about the appraisal process, investment project appraisal principles to ensure legal safety. You should contact us - the current leading reputable investment project appraisal company for consulting support as soon as possible. Surely your business will be satisfied with the quick working style and enthusiastic, dedicated support by our professional consultant team.