Improve the mortgaged real estate valuation at joint stock commercial bank for investment and development of viet nam so giao dich 1 branch

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN MINH HAI IMPROVE THE MORTGAGED REAL ESTATE VALUATION AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – SO GIAO DICH BRANCH GIẢI PHÁP NÂNG CAO HIỆU QUẢ KINH DOANH THẺ TẠI BIDV SỞ GIAO DỊCH LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2020 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN MINH HAI IMPROVE THE MORTGAGED REAL ESTATE VALUATION AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – SO GIAO DICH BRANCH GIẢI PHÁP NÂNG CAO HIỆU QUẢ KINH DOANH THẺ TẠI BIDV SỞ GIAO DỊCH Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS HỒNG ĐÌNH PHI HÀ NỘI - 2020 DECLARATION I assure that this is my own scientific research The documents used in the thesis are excerpted from reliable sources The assessments and judgments in this thesis are individually researched and based on the authentic documents The dissertation author i ACKNOWLEDGEMENT During the internship and completion of this thesis, I received lots of help and encouragement First of all, I would like to express my sincere respect and gratitude to Associate Professor Dr Hoang Dinh Phi who has devotedly guided me to complete this thesis I would like to thank the academic staffs and all the teachers at Vietnam National University, Hanoi for teaching and equipping me with valuable knowledge and experience during the past two school years I would like to express my sincere thanks to the Board of Directors, officers and employees of Bank for Investment and Development of Vietnam - So Giao Dich Branch for their enthusiastic support during the data collection process to finish the thesis Finally, I would like to express my sincere thanks to my family, friends and colleagues who have always created favorable conditions to help, encourage me during the time of writing my thesis ii TABLE OF CONTENT DECLARATION i ACKNOWLEDGEMENT ii LIST OF ABBREVIATION iv LIST OF TABLES v LIST OF FIGURES vi INTRODUCTION 1 The necessity of the topic Objectives of the study Researched subjects Research scope Research methodology The structure of the thesis CHAPTER 1: THEORETICAL BASIS FOR MORTGAGED REAL ESTATE VALUATION OF COMMERCIAL BANK 1.1 Overview of mortgaged real estate 1.1.1 Definition of Mortgaged real estate 1.1.2 Features of mortgaged real estate 1.1.3 The role of mortgaged real estate 1.2 Valuation of mortgaged real estate of joint stock commercial banks 1.2.1 Definition of Mortgaged real estate valuation 1.2.2 Foundation and principles of mortgaged RE valuation 1.2.3 Mortgaged real estate valuation methods 11 1.2.4 Mortgaged real estate valuation process 14 1.3 Factors affecting mortgaged real estate valuation of joint stock commercial banks 17 1.3.1 Objective factors 17 1.3.2 Subjective factors 19 CHAPTER 2: CURRENT SITUATION OF MORTGAGED REAL ESTATE AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – SO GIAO DICH BRANCH 20 i 2.1 Overview of Joint stock Commercial Bank for Investment and Development of Vietnam - So Giao Dich Branch 20 2.1.1 The process of formation and development 20 2.1.2 Organizational structure 21 2.1.2 Business situation of Joint stock Commercial Bank for Investment And Development Of Vietnam - So Giao Dich Branch between 2016 and 2018 23 2.2 Analyze the status of mortgaged RE valuation at th Joint Stock Commercial Bank for Investment and Development of Vietnam - So Giao Dich Branch 29 2.2.1 Types of mortgaged real estate at the Branch 29 2.2.2 Bases and principles of mortgaged RE valuation at the branch 30 2.2.3 Current situation valuation method at the Branch 42 2.2.4 Current situation of mortgaged RE valuation process at the Branch 45 2.3 Evaluate the status of mortgaged RE valuation at Joint Stock Commercial Bank for Investment and Development of Vietnam - So Giao Dich Branch 53 2.3.1 Achieved results 53 2.3.2 Limitations and causes 54 CHAPTER 3: SOLUTIONS TO IMPROVE THE VALUATION OF MORTGAGED REAL ESTATE AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – SO GIAO DICH BRANCH 58 3.1 Development orientation of Investment and Development Bank of Vietnam So Giao Dich Branch 58 3.1.1 General development orientation 58 3.1.2 Orientation to improve the mortgaged RE valuation 59 3.2 A number of solutions to improve the mortgaged RE valuation at Joint Stock Commercial Bank for Investment and Development of Vietnam - So Giao Dich Branch 60 3.2.1 Big data application in mortgage real estate valuation 60 3.2.2 Completing and strictly complying with the process of valuation for mortgaged RE 62 3.2.4 Improve the quality of RE valuation staff 65 ii 3.2.5 Limiting risks and mistakes in valuation 67 3.2.6 Improve the organization of RE valuation activities 68 3.2.7 Strengthen the application of science and technology 68 CONCLUSION 70 LIST OF REFERENCES 71 APPENDIX 74 iii LIST OF ABBREVIATION No Abbreviation Meaning RE The real estate MRE Mortgaged real estate BIDV Bank for Investment and Development of Vietnam MOF Ministry of Finance AS Appraisal staff G Government DC Decree B State Bank CB Commercial bank UR Use right O Ownership 11 AS Appraisers 12 SC Stock Commercial 13 SGD So Giao Dich Branch 14 B Branch iv LIST OF TABLES Table Content name Table 2.1 Table 2.2 Table 2.3 Table 2.4 Table 2.5 Capital mobilization results of BIDV So Giao Dich Branch between 2016 and 2018 Credit activity results of BIDV So Giao Dich Branch between 2016 and 2018 Service performance results of BIDV So Giao Dich Branch between 2016 and 2018 Debit balance for mortgaged real estate of BIDV So Giao Dich Branch between 2016 and 2018 Number of assessed the real estate documents of Bidv- So Giao Dich Branch between 2016 and 2018 Page 24 25 27 28 38 The number of the real estate valuation documents with Table 2.6 deviations from the revaluation of BIDV So Giao Dich 39 Branch between 2016 - 2018 Survey results to ensure compliance with the principle of Table 2.7 appraisal of mortgaged real estate of BIDV So Giao Dich 40 Branch Table 2.8 The number of assessed the real estate documents that need to be adjusted by BIDV So Giao Dich Branch 42 The survey results of information collected are used for Table 2.9 valuation mortgaged real estate of BIDV So Giao Dich 47 Branch Table 2.10 Survey results of the time to evaluate the value of the real estate of BIDV So Giao Dich Branch 50 Survey results of the mortgaged real estate valuation process Table 2.11 of BIDV So Giao Dich Branch v 50 LIST OF FIGURES Figure Figure 1.1 Content Mortgaged real estate valuation process of commercial banks Figure 2.1 Organizational structure of BIDV So Giao Dich Branch Figure 2.2 The real estate valuation process of BIDV So Giao Dich Branch vi Page 14 22 43 transaction time and sources of information Comparative information needs to be collected from three RE or more, appraisers need to invest time to collect the real estate that has been traded on the market, while information of the real estate for sale is only for reference The source of information collected is usually from field surveys, databases, specialized agencies, banks, government, internet, newspapers Information collection sources must be identified so that the reliability of the information can be checked In addition, it should choose appropriate sources of information, should not collect information from sources that are not reliable enough, Appraisal officers are not able to check as a basis for valuation The selection of these sources of information is only for reference or reluctant Information to collect is a lot and can be obtained from many different sources, but not all information is really reliable After gathering the information, the appraisal officers, with their own experience, combined with the actual market analysis, should retest the information to ensure that the information is accurate and complete reliable The collection of information is very important but the handling and analysis of new information is the work of decision directly to the final result of RE valuation activities Information analysis work must be conducted in a scientific and detailed manner, In particular,: When analyzing properties, it is necessary to identify main characteristics and standards of the real estate which may affect the value of RE in need of valuation Since then, appraisal officers proceed to remove information too petty, unnecessary to focus on evaluating fundamentals, avoid too far from target evaluation or assessment is too general appraised RE In comparative analysis, the appraisal officers needs to consider and assess the origin and nature of market evidence, consider whether the transactions are market transactions or not, on the basis of “people voluntary sale and voluntary buyer "or not When estimating the remaining difference of construction works, it is necessary to have a clear basis In some cases, to get accurate results, it is possible to hire domestic and international experts in the field of construction, architecture When arguing to arrive at a final outcome, the appraisers needs to consider relevant market factors that affect the value of RE in order to make appropriate conclusions, because the nature of the market is diverse and constantly changing The information element is an important basis for applying RE valuation methods, especially direct comparison method In fact, information gathering is a complex task, 61 prone to certain shortcomings In order to complete the analysis and evaluation of information, in addition to the above specific measures, the core issue is to improve the qualification of the appraisal officers Therefore the appraisal officers in the process of mortgaged RE valuation must be very careful and have certain professional experience Build Big Data providing information to the real estate valuation is a solution should also be done at BIDV – So Giao Dich Branch This is of great significance in helping the appraisal officers to find quick reference information as well as increase the work intensity but still ensure effective accuracy In the market mechanism, information about RE ever-changing, volatile, so to be able to assess accurately the value of the mortgaged real estate, the need to store and analyze the information from market schools, given the forecasts about housing a RE future At the same time, it is possible to search, get information quickly, accurately and with more bases than the current internet search 3.2.2 Completing and strictly complying with the process of valuation for mortgaged RE The mortgaged RE valuation process plays a very important role in the lending process at BIDV – So Giao Dich Branch Strict adherence to the process of appraising RE is very necessary for the current situation of BIDV – So Giao Dich Branch A rigorous, scientific appraisal process will save time and cost for branches and customers On the other hand, it is possible to limit accidental or intentional errors from the appraisal officers, making customers feel professional and trust the branch's SA results The appraisal officers should comply fully with the steps of the real estate valuation process that BIDV made provisions for the entire system, not arbitrarily cut off a certain process or a certain stage of evaluation This is an important solution in improving the professionalism as well as the accuracy of the valuation results The process of appraising the real estate at a branch which wants to be effective needs to be clearly specified in the steps of conducting the real estate valuation In particular,: Clarify the legality of RE to be appraised after receiving documents Legal documents (sovereignty, construction permits, design documents) must be valid original documents for the appraisal officers to examine, compare and use more effectively, avoiding risks to the branch when customers forge papers At the same time, identify clearly the documents to be used in the valuation process, legal documents, documents as evidence and comparative bases; Identify the agencies and organizations that can and are 62 responsible for providing reliable resources for valuation The analysis of the information collected in the market to make a price for the mortgaged RE that needs to be appraised is still general and has not been In particular, guided Therefore, in the appraisal process, it is required to specify the adjustment basis, the rate of adjustment and the method of adjusting RE in comparison with RE to be valued and must be clearly stated in the appraisal report It is required to specific provisions for cases where applicable, as well as the steps of the appraisal method in the process of the real estate valuation, in order to create favorable conditions for appraisal officers in determining appraisal methods for the real estate with different characteristics, the evaluation results are therefore more accurate In addition, it is necessary to focus on and improve the efficiency of the process of re-valuation of collaterals For this, banks should allow appraisers to re-valuate closely to the transaction price in the market However, this is a difficult job, in addition to the expertise and experience of the appraisal officers, there is also the fluctuation of the RE market, if the real estate valuation at the time of revaluation decreases compared to the time of determination lending price, meaning that the collateral value is reduced compared to the loan amount of the customer, it will make it difficult for the credit ministries to convince customers to deposit more money or add assets to guarantee the loan Another feature is that the appraisal officers must forecast changes in the market and inflation of the economy, in the case of mortgage sales to recover debt, the valuation of assets at that time Although the mortgage is no longer meaningful, the revaluation of collaterals is very important As realizing the importance of the work of mortgaged real estate re-valuation, this work should be paid more attention, but first needed to improve the process of allocation of credit, which must emphasize and control mortgaged real estate reevaluation effectively In addition, the appraisal officers should clearly state the price fluctuation of RE in the region as well as the cause of increase or decrease in the value of RE in the evaluation report, so that the controllers and credit officers have catchable The appraisal process at the branch determines the value of the mortgaged RE valuation is the value at the time of valuation Moreover, the argument about valuation results does not take into account factors that may increase or decrease the value of RE in the future Determining trends in market price movements is essential but not easy to implement Therefore, the branch should have a department to update up-to-date reports on the trends of the real estate market, of experts, organizations and reputable companies operating in the field of the real estate business, analyzing the price data and give warnings 63 to appraisal officers to note and give appropriate value Additionally, it is necessary to focus on strengthening inspection and monitoring closely the mortgaged real estate valuation because Vietnam's the real estate market is always in complex fluctuations affecting the valuation of the real estate as well as the risks in the valuation of collaterals The measure that should be taken is monthly or quarterly lending branches need to organize direct inspection of the field of the status of management and use of the real estate When conducting the inspection, there must be a specific assessment of the situation of the each mortgaged real estate such as: Loss or reduction of value causes and find solutions If there is a change in mortgaged RE, the branch must conduct a re-evaluation of the mortgaged real estate 3.2.3 Flexible application of mortgaged RE valuation methods At present, comparative and cost method are still two commonly used methods at BIDV – So Giao Dich of valuation results and simple Branch re-application due to the technique However, high there conviction is much special mortgaged real estate which is unique, difficult to valued and rarely traded on the market At this time, there should be a combination of other methods such as income method, surplus method and profit methods which have accurate results In order to make good use of these methods as well as to make it more effective for the valuation of mortgaged real estate, it is necessary to develop a standard and uniform content for all types of mortgaged real estate and complete these methods accordingly in line with actual credit operations at the branch In addition, it is also necessary to consider and apply a combination of other methods to increase the effectiveness of appraisal For example, the appraisal method of assets formed from loan capital are hotels, restaurants, etc should be combined direct comparison with income method Compare hotels that are similar in structure, but in other locations, then adjust the revenue of the forming hotel and implement an income method for valuation Besides, when participating in the mortgaged RE valuation of the RE under the direct comparison method, it is advisable to get accurate information such as obtaining transaction information the RE transaction at center of of comparable RE for review the real estate competent and centers authority or evaluation After of commercial banks, may that, it visit the is required in place that the appraisal officers and the controller have to study and give an adjusted rate from compared the real estate to the real estate that needs to be appraised consistently, if necessary, it must be included in the appraisal report so that the leader can approve and 64 check it more clearly Although the introduction of such adjustment rates may be subjective, in return it is easier to manage, avoiding collusion between appraisers and customers 3.2.4 Improve the quality of RE valuation staff It can be said that any organization in the economy, the human factor is always a pioneer and decisive condition to the existence of that organization Working in a real estate valuation even more indispensable and is a major factor directly affecting the valuation results In other words, professional qualifications and professional ethics of the officers working in the work of RE valuation is a determining factor in the quality of appraisal work and operational risk appraisal An advantage of BIDV – So Giao Dich Branch is that it has a young and dynamic appraisal team, under high pressure and responsible at work However, knowledge of related fields such as architecture, construction, etc is still limited, young appraisal officers lack experience in the field of valuation Meanwhile, the appraisal in general and the appraisal of mortgaged RE In particular, is a complex activity, in order to it, it is necessary to understand and manipulate the legal documents, appraisal officers must have comprehensive knowledge about many fields In order to improve the qualifications of the appraisal officers: - Fostering professional skills, the ability to grasp and understand the laws, mechanisms, policies and related documents for appraisal officers, so that they can have the fastest and most effective access Legal documents related to the real estate valuation are many, and often change Therefore, the appraisers must regularly update, conduct analysis and flexibly apply those documents in each specific situation Thereby, the appraisers can draw on themselves the successes and shortcomings in the valuation process, at the same time, draw out personal experience In order to gain knowledge of the legal system, the branch should facilitate the employees to regularly attend legal training courses, or even invite legal experts to teach the staff at the branch - Organize training, coaching and improving knowledge for the appraisal Officers of other knowledge in related fields such as architecture, construction, technical operations such as reading drawings, assess the remaining difference of construction This is a vast but essential area of knowledge for the real estate valuation Appraisal officers can take short-term or long-term courses tailored to each individual Based on the knowledge learned, the appraisers need to develop a system of important criteria applied in the field of the real estate valuation At the same time, it is also often to learn about the cultural, 65 customs and psychological characteristics of different customers that affect the value of the real estate - Appointing the appraisal officers, inspectors to participate in short-term training courses of appraisal to improve their qualifications In addition, appraisers, as well as inspectors and leaders need to learn from experience, how to conduct valuation of other organizations and businesses, especially reputable foreign businesses and organizations, or organizations and agencies specializing in the real estate valuation to improve the efficiency of the real estate appraisal process - Create a dynamic, healthy and fun working environment, motivate employees to promote their best, work, enthusiastically and effectively This is also an important factor to attract talented people to work at the branch In addition to the solutions to improve the qualifications of appraisal officers, an issue for the branch is the need to add a team of appraisers At present, the branch desperately needs high quality employees, especially who have appraisal cards issued by the Ministry of Finance Therefore, in the coming time, the branch needs to quickly conduct the recruitment of human resources to meet the above requirements or have a preferential treatment regime, encouraging appraisers to strive to get this card, as a premise for establishment of an independent appraisal enterprise In addition, it is advisable to focus on recruiting people who have experience working in some other businesses related to appraisal or training the employees who are working in the company but in other related departments At the same time, it is also possible to improve the quality of the appraiser by recruiting people with the right major, without the need for additional training Over the last time, the number of staff was reduced again to suit the general situation so the work was almost overloaded for remaining staff Meanwhile, the real estate valuation work needs to perform a lot of stages with different job characteristics The number of documents is increasing Therefore, in the time to come, the branch needs to quickly implement the recruitment of human resources, thus ensuring the quality as well as the progress of work performance In some cases at the branch the situation of inconsistency in the prices between leaders and appraisers directly It takes time for the two sides to directly revalue this, which can cause conflicts and distrust of each other internally Therefore, in order for the valuation to work well, first of all the appraisers as well as the controllers need to frankly exchange experience, discuss problems, specific cases encountered when determining price If so, there is a relative agreement on the prices on the areas offered by the Branch 66 From that, we can build a school value framework used for mortgaged real estate valuation In addition, a clear reward and punishment regime should be developed, clearly defining the rights and responsibilities of appraisers in valuation work In addition, a system of standards such as the number of records, the processing time, the total value of appraisal or the amount disbursed on each record, can serve as a basis for evaluating employees, creating motivation for employees to constantly strive Moreover, it is also essential to clearly define rights and responsibilities for appraisers, to limit the cases due to private feelings and ineligible the real estate cases as mortgaged real estate valuation is higher than its real value in the market For these cases, when detecting, they must strictly punish and give material responsibility to the wrongdoers In contrast, there must also be sympathy and responsibility sharing for appraisers in case of risks caused by objective reasons In such cases, it is advisable to handle risks with the risk reserve fund and to have a commendation and reward regime worthy of appraisal officers who always well in their jobs to motivate them to better and better jobs 3.2.5 Limiting risks and mistakes in valuation For any industry or business sector, there are certain potential risks Vietnam’s the real estate market always complicated changes affect the valuation of the real estate as well as the risks in the process of determining the value of the collateral Hence branches should strengthen inspection and closely monitor mortgaged real estate valuation Between technically organize conducted revaluation of collaterals which has the mortgaged RE, is the basis for closely monitoring the market of mortgaged real estate Measures are implemented as follows: - Check carefully the valuation results including typographical errors Even a very small mistake can have serious consequences There is such a high accuracy of the new results - Need to monitor and check the valuation activities regularly to detect the wrong places, make timely adjustments That will minimize risks in valuation activities - The process of collecting information must be carefully reviewed as there are many sources of inaccurate information which are no longer appropriate The information collected must be selective and scientifically processed - Monthly or quarterly branch organizations directly check the scene on the management and use of the mortgaged RE When conducting the test must have a specific assessment of the status of the mortgaged RE as: Damaged, lost or devalued the causes 67 and find solutions 3.2.6 Improve the organization of RE valuation activities - For the case of BIDV – So Giao Dich Branch self-valuation: Need constantly updated information to the relevant legal can perform and make the final result is correct Every step in the RE valuation process is very logical and strict, so following the general valuation process as well as applying reasonable valuation methods is a very important solution in improving the professional as well as the accuracy of the pricing results For greater convenience, the branch needs to agree on the legal documents applied during the specific valuation process It is necessary to list the legal bases to be applied in each case The value of the RE is often contributed by many different factors, usually the biggest factor contributing to the value of the RE is the location so it is necessary to develop a system of factors that reflect the difference In particular,, the geographic location of the RE, the closer a property is to the urban center, the higher the value of the land with similar characteristics but far from the center However, with a number of different needs and appraisal purposes, the contribution of the elements will change and the appraiser must know how to change the contribution factors to have a more consistent appraisal result At times, there is confusion between capitalization rates and discount rates, so it is necessary to have more explicit rules on how to calculate each type of rate as well as to understand the nature This requires valuation schools to pay attention to this issue On the other hand, the current capitalization rate or discount rate is usually applied based on the Government bond interest rate, the State Bank's capital mobilization interest rate and inflation rate However, with the current unstable economic situation, the State should take clear measures and regulations in order to build a RE market with fuller and more transparent information to avoid the situation The fever has caused virtual price - In case BIDV – So Giao Dich Branch hires an outside valuation organization: The branch should have an understanding of the results of its valuation activities, it is necessary to select reputable organizations in the market, thereby creating the most favorable conditions for the valuation process to take place such as: Proactively providing information on real estate to be valued, providing support to the valuation of organization… 3.2.7 Strengthen the application of science and technology Science and technology are currently developing very quickly, the applications of science and technology in today's life are gradually replacing people thanks to the accuracy 68 and efficiency of work In the evaluation of mortgaged real estate In particular, and the operation of the bank in general, the use of supporting machine is gradually popularizing There are so many new machines and technologies that are very helpful for the valuation Such as information processing software, value calculation software, field survey machines, actual measuring machines, etc Appraisers can use machines to analyze and make evaluation on the quality of target real estate, depreciation and value of use or storage information about RE Therefore, it is necessary to strengthen the application of science and technology in valuation Advances in science and technology will reduce the hard work of appraisers, supporting the bank's valuation activities which can be quickly completed and the quality guaranteed 69 CONCLUSION For banks, mortgaged real estate valuation activities are base decisions primarily to the provision of credit to customers, the basis for determining the risk level of the bank The commercial banks were aware of the importance of the mortgaged RE valuation process during the loan process and have issued principles, standards of mortgage, strict and scientific valuation process, bringing benefits to both customers and the Bank With research objectives of the thesis proposed that studies issues related to mortgaged real estate valuation at BIDV – So Giao Dich Branch, the thesis has focused on issues of rationale mortgaged RE valuation at commercial banks Analysis assessing the situation the mortgaged RE valuation at BIDV – So Giao Dich Branch phase 2016 201 Based on that, the thesis proposes the main solutions to improve the valuation of real estate in the branch The thesis has achieved the following results: Firstly, the thesis has systematized with additional issues about the scientific basis of the evaluation of mortgaged real estate of commercial banks In particular,: The dissertation has systematized and clarified the theoretical basis of valuation of mortgaged real estate of commercial banks The main contents of the thesis focused on the research in this section include: Overview of mortgaged RE; mortgaged real estate valuation of joint stock commercial banks and factors affecting the valuation of mortgaged real estate of joint stock commercial banks Secondly, the thesis has generalized analysis of the status of real estate valuation at BIDV – So Giao Dich Branch Based on the situation analysis of BIDV – So Giao Dich Branch in the valuation of real estate, the thesis has drawn not only the achieved results but also the limitations and the causes of the limitations Thirdly, based on the limitations and causes of the limitations, the thesis has proposed major solutions to improve the evaluation of real estate value at BIDV – So Giao Dich Branch in the near future 70 LIST OF REFERENCES Nguyen Le Anh (2019), Completing the valuation of mortgaged RE at BIDV Bac Quang Binh, master thesis of economic sciences, National Economics University, Hanoi Pham Van Binh and Do Thanh Tung (2007) “A discussion on security loan to guarantee bank credit in the integrated era”, the Banking magazine no.2, January 2017 Ministry of Finance (2016), Circular No 147/2016/TT-BTC, October 13, 2016 of the Ministry of Finance amending and supplementing a number of articles of Circular No 45/2013/TT-BTC dated April 25, 2013 of the Ministry of Finance guiding the management, use and depreciation of fixed assets Ministry of Finance (2017), Circular No 28/2017/TT-BTC dated April 12, 2017 of the Ministry of Finance amending and supplementing a number of articles of Circular No 45/2013/TT-BTC, April 25, 2013 and Circular No 147/2016/TT-BTC, October 13, 2016 of the Ministry of Finance guiding the management, use and depreciation of fixed assets Ministry of Finance (2014), Circular No 38/2014/TT-BTC dated March 28, 2014 of the Ministry of Finance guiding a number of articles of Decree No 89/2013/NĐ-CP dated 08/06/2013 of the Government detailing the implementation of a number of articles of the Law on valuation The Government (2013), Decree No 89/2013/NĐ-CP dated June 8, 2013 of the Government detailing the implementation of a number of articles of the Law on Prices of appraisal Government (2014), Decree No 44/2014/NĐ-CP, May 15, 2014 of the Government on land prices Government of the Socialist Republic of Vietnam (2005), Civil Code, 2005, Hanoi Dr Phan Thi Thu Ha (2004), Commercial Bank, Statistical Publishing House 10 Nguyen Anh Hoang (2016), Completing the valuation of mortgaged RE at Vietnam Prosperity Bank, Master's thesis in economics, Financial Academy, Hanoi 11 Nguyen Minh Hoang (chief editor) (2011), Curriculum valuation, Financial Publishing House, Hanoi 12 Pham Quoc Hung (2018), Quality appraisal of RE at Vietnam Maritime Bank, Master's thesis in Finance and Banking, Banking Academy, Hanoi 13 Nguyen Manh Hung, Tran Van Trong, Ly Hung Thanh, Bui Huu Phe (2009), “Method of Real estate evaluation, application of theories of position- qualities”, 71 research of the research group in Ho Chi Minh University of Economy Land and Real estate management department, Ho Chi Minh University of Economy 14 BIDV – SGD Branch (2016, 2017, 2018), Report on BIDV's business results – So Giao Dich Branch in 2016, 2017, 2018, Hanoi 15 Bui Thi Mai (2017), Solution to improve the quality of appraisal of RE investment projects at Joint Stock Commercial Bank for Investment and Development of Vietnam Ha Thanh Branch, Master's thesis in Finance - Banking Bank, Banking Academy 16 Le Thi Kim Nhung (Editor) (2017), Property Valuation Curriculum, Hanoi Publishing House, Hanoi 17 Le Thanh Khuyen (2001): “Discussion on theoretical and scientific foundation in management and organization of Real estate market in Vietnam”, Cadastral magazine, No.12/2001, pg 10 18 Nguyen Khac Luyen, Solutions to improve the quality of appraisal of real estate investment projects at Joint Stock Commercial Bank for Investment and Development of Vietnam - Ha Thanh Branch, Master's thesis in Finance - Banking, Banking Academy 19 Congress Socialist Republic BRANCH Vietnam XIII (2013), the Land Law No 45/2013/QH13 20 Ngo Thi Phuong Thao (2011), Valuation of mortgaged RE in Vietnamese commercial banks, PhD thesis, National Economics University, Hanoi 21 Phan Minh Ngoc and Phan Thi Thuy Nga (2008), “Should tighten lending to buy real estate ”, Banking Magazine, March 5, 2008 22 Standing Committee of the National Assembly (2002), Ordinance price 40/2002/PLUBTVQH10, Publisher National Politics 23 The National Assembly of the Socialist Republic of Vietnam, term XIII (2012), Law on Price No 11/2012 / QH13 24 The National Assembly of the Socialist Republic of Vietnam, term XIII (2013), Land Law No 45/2013 / QH13 25 Ngo Thi Phuong Thao (2011), Valuation of mortgaged real estate in Vietnamese commercial banks, PhD thesis, National Economics University, Hanoi 26 Nguyen Chi Thanh (2008), Need to quickly stabilize the real estate market, Banking Magazine No 23, December 2008 27 Nguyen Duy Thien (2011), Real Estate Appraisal, Financial Publishing House, Hanoi 72 28 National Assembly Standing Committee (2002), Ordinance No 40/2002 / PLUBTVQH10, National Political Publishing House 29 Nguyen Ngoc Vinh (2013), Adjusting the method of determining the wear rate of works in Decision 129 / BTC, Journal of Development & Integration No 10 (May 5, 2013) 73 APPENDIX SURVEY OF THE MORTGAGED REAL ESTATE VALUATION AT BIDV – SO GIAO DICH BRANCH Dear Mr and Mrs., Currently, we are conducting research on mortgaged RE valuation at BIDV – So Giao Dich Branch In order to provide more information for the implementation of this research, we are looking forward to you Please take a moment to answer the questions in this interview Please circle all your choice ideas We hereby certify that the information provided by you is for this research purpose only and it is all confidential PART 1: FOR OFFICERS AT BIDV - So Giao Dich Branch Question 1: Please tell us about some of the mortgaged RE activities in your current bank: ……………………………………………………………………………………… ……………………………………………………………………………………………… …………………………………………………………………………………………… Question 2: The valuation of mortgaged real estate is done by BIDV – So Giao Dich Branch and the guarantor is done by: BIDV – So Giao Dich Branch self-values the mortgaged real estate Hire consultancy organizations and organizations with professional valuation functions Question 3: According to you, the RE valuation at BIDV – So Giao Dich Branch has ensured the principles of RE valuation Compliance with principles Not compliance with principles Question 4: RE valuation method at BIDV – So Giao Dich Branch is implemented by the following methods: Direct comparison method Income method Cost valuation method The surplus method Question 5: In the process of mortgaged RE valuation, the collected information is sufficient basis for the mortgaged RE valuation process Excess information 74 Full information Lack of information Question 6: In the mortgaged RE valuation process, the information collected has ensured the accuracy of the mortgaged RE valuation process High accuracy Accuracy at an acceptable level Low level of accuracy Accuracy is at a very low level Question 7: The time to conduct mortgaged RE valuation at BIDV – So Giao Dich Branch lasts for a between of time: Under days From days to 10 days From 10 days to 20 days From 20 days to 30 days Over 30 days Question 8: How you see the time to conduct mortgaged RE valuation at BIDV – So Giao Dich Branch? Quick Normal Slow Question 9: How you evaluate the valuation process of your bank? ……………………………………………………………………………………… ……………………………………………………………………………………………… …………………………………………………………………………………………… Question 10: What are some of difficulties that your bank faces when conducting the mortgaged RE evaluation? ……………………………………………………………………………………… ……………………………………………………………………………………………… …………………………………………………………………………………………… 75 ... Features of mortgaged real estate 1. 1.3 The role of mortgaged real estate 1. 2 Valuation of mortgaged real estate of joint stock commercial banks 1. 2 .1 Definition of Mortgaged real estate. .. COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – SO GIAO DICH BRANCH 2 .1 Overview of Joint stock Commercial Bank for Investment and Development of Vietnam - So Giao Dich Branch 2 .1. 1... 6. 212 4. 415 6,038 4,6 31 6,343 5,0 21 135 47 16 8 50 214 53 1, 911 513 2,378 642 3,0 71 846 the land 24 .18 1 7, 914 29 6 71 11, 352 43 .12 5 16 .14 5 Other the real estate 24,866 5 .18 5 32,763 7 21 48,628 12 .035