AVA Conference 26th April 2014
Sheraton Hotel
Nha Trang Vietnam
Valuation Industry - Integration in ASEAN
The new trend of valuation profession
Presented by: Leon Cheneval Director CBRE Vietnam
Certified Property Practitioner Vietnam and Australia
Certificate IV in Workplace Training and Assessment
Contents
Contents
1. Introduction
2. Premise
3. Why Intergrade?
4. What is ASEAN
5. What Else
6. Where to Next
7. Some Strategies
8. Regulators and Local Authorities
9. ASEAN working groups and membership
10.ASEAN Membership Categories
11.The Act of Valuing in ASEAN
12.Conclusion
CBRE | Page 2
Introduction
This paper provided will talk, in brief , it will propose many
questions and hopefully answers to those questions that arose
during the papers research phase and concludes that the AVA
can take a prominent lead in various areas of integration.
Some areas of integration will prove less problematic than
others to implement. Training and education and assisting
developing countries to create and develop world class best
practices are areas that can have immediate focus.
CBRE | Page 3
Premise
This topic does pose some real issues… most countries in ASEAN have institutes, they are
governed by laws. There for the purpose of discussion I have assumed:
•
The various institutes and associations in ASEAN are in agreement to forge an
environment of integration.
•
The integration is necessitated due to the formation of the ASEAN economic
community 2015 and;
•
Further necessitated by the pending TPP talks that would see the member nations form
greater trading opportunities. Asia in its own right has and will continue to grow as a
major trading Centre.
The paper identifies key issues that would need consideration and cooperation amongst
the various ASEAN members to create dialogue and a tangible framework to establish
integration in the valuation profession.
CBRE | Page 4
Why Integrate?
Ministers from the Association of Southeast Asian Nations reaffirmed their
commitment recently to achieve their aim of creating an economic community
by 2015.
ASEAN official sources…. an internal scorecard showed that the group's progress in
implementing measures to achieve the ASEAN economic community had slowed
slightly.
The statement said that 2015 should not be seen as "an end-date to conclude the
initiatives of realizing the AEC." The ministers agreed at the meeting to raise
public awareness on the AEC, promote a more equitable economic development
in the region, strengthen regional cooperation.
CBRE | Page 5
What is ASEAN
ASEAN is the Association of Southeast Asian Nations (ASEAN) and was formed on 8
August 1967 by Indonesia, Malaysian, the Philippines, Singapore and Thailand. Since
that time membership expanded to include Brunei, Burma
(Myanmar), Cambodia, Laos, and Vietnam.
Its aims:
• Accelerate economic growth, social progress and cultural development.
• Protection of regional peace and stability, and opportunities for member
countries to discuss differences peacefully.
ASEAN covers a land area of 4.46 million km², which is 3% of the total land area of
Earth, and has a population of approximately 600 million people, which is 8.8% of
the world's population.
If ASEAN were a single entity, it would rank as the eighth largest economy in the world.
CBRE | Page 6
What else?
TPP: talks with Australia, Brunei, Chile,
New Zealand, Peru, Singapore and
Vietnam were originally initiated by the
Bush Administration. Since 2010,
negotiations have occurred for a
significantly expanded version of TPSEP.
The TPP is a proposed trade agreement
under negotiation with:
Australia, Brunei, Chile, Canada,
The OECD Development Centre reports:
The economic outlook in Emerging Asia
(Southeast Asia, China and India) as robust
over the medium term, anchored by the
steady rise in domestic demand. Real GDP
growth in Emerging Asian economies is
projected to be moderating gradually but
remains robust over the 2014-18 period,
according to the results of the OECD
Development Centre’s Medium-Term
Projection Framework (MPF-2014)
Japan, Malaysia, Mexico, New
Zealand, Peru, Singapore, the United
States, and Vietnam.
Selected basic ASEAN indicators
as of 31 January 2014
Indicators
2010
2011
2012
4,435,617
km2
4,435,670
4,435,674
thousand
600,291
608,383
616,614
US$ million
1,884,068
2,184,499
2,311,315
percent
7.8
4.7
5.7
US$
3,139
3,591
3,748
US$ million
2,009,116
2,388,444
2,476,427
Export
US$ million
1,051,614
1,242,199
1,254,581
Im port
US$ million
957,502
1,146,245
1,221,847
US$ million
98,873
109,320
110,291
thousand
73,752.6
81,229.0
89,225
Total land area
Total population
Gross dom estic product at current prices
GDP grow th
Gross dom estic product per capita at current prices
International m erchandise trade
Foreign direct investm ents infow
Visitor arrivals
CBRE | Page 7
Unit
Remarks
ASEAN figure is estimated using country grow th rates
and country share of w orld GDP valuated in PPP$ from
the IMF WEO Database April 2013.
2012 figures are as of 20 December 2013
2012 figures are preliminary as of 30 October 2013; no
data available for Brunei Darussalam
Where to next?
Service companies in the region will need to meet standards required under the
TPP and this as viewed by many will create reputational benefits for member
countries.
 The AVA needs to consider varying options and best approach to an ASEAN
alliance.
 How will the various Valuers Institutes and Associations integrate?
 Many issues come to mind… countries have already implemented and rightfully
so laws, codes of conduct, valuation standards and best practice guidelines to
enhance their valuation industry.
 An easy task?
 What positive actions can the ASEAN community create and implement.
 No doubting some initiatives may need the cooperation of various Authorities
while others can be initiatives by the AVA and its member countries either as a
whole or through agreed strategies at a local country or regional levels.
CBRE | Page 8
Some Strategies
The general aim of integration as key objectives may be considered as follows:
 Bring the industry in ASEAN as a whole to an international/ ASEAN standard.
 To see some form/s of consistency in the industry across various countries and
industry.
 To develop a growth platform for talent in the field of valuation in ASEAN.
 To provide assistance and skills support for the developing ASEAN countries.
 Provide a knowledge transfer platform for ASEAN member Valuers.
 Issue statements and press releases on ASEAN valuation issues.
 Facilitate the creation of information technologies for the industry in ASEAN
(Sale and valuation technologies).
CBRE | Page 9
Regulators and Local Authorities
Issues for local authorities and regulators. There needs to a united approach on
several issues and some are listed below:
 Code of Conduct and Ethical Standards.
 Implementation and adoption of IVSC or other standards at all levels to create a
united ASEAN.
 ASEAN development plan, including working groups.
 Act (decrees) or regulations in ASEAN.
 Minimum education and experience to be a qualified valuer across ASEAN.
 Seek support to set up training and education systems and courses both
practical and theory and to then promote an annual training and
development standard (CPD).
CBRE | Page 10
ASEAN working groups and membership
The goal of the valuation profession as a whole is to enhance the industries
professional standards… there needs to be a focus on how to achieve this, goals to
consider:
 To promote the AVA as the premier property professional Organisation in ASEAN.
 To encourage all property professionals to join and contribute.
 Develop regional professional standards to assist non-compliant members.
 To earn and maintain the respect of the community through the professional
credibility of membership.
 To improve the profile and influence of the profession in ASEAN.
 To encourage the provision and maintenance of the highest standard of
property education in ASEAN
CBRE | Page 11
ASEAN Membership Categories
Consider a uniform approach in the region for Association and Institutes to
recognise its members to bring a consistent approach across ASEAN
Members can be divided into the following classes:
 a. Life Fellows;
 b. Fellows;
 c. Associates;
 d. Provisional Members;
 e. Graduates;
 f. Provisional Associates;
 g. such other class or classes as may be decided
CBRE | Page 12
The Act of Valuing in ASEAN
This is an area of integration that will prove problematic where consistency is the
key objective.
Revision of the member countries web sites indicates that many Acts relating the
act of valuing are very specific to location.
The Acts provide a system of registration as administered by the regulating
authority and include procedures for registration and how disciplinary procedures
are enforced etc.
All the Acts differ, the Australian Valuers Act of 2003 as an example covers key
provisions. For less developed ASEAN members such Acts could form the grounds for
development and enhancement of laws locally.
Note there are many Acts regionally that can also be applied to assist ASEAN
members.
CBRE | Page 13
Conclusion
The valuation industry in ASEAN wants to contemplate integration and that
would be viewed in the region as a positive step and as a group reach a unified
and documented international standard of reporting and training. Not all
initiatives can or will be achieved immediately by the ASEAN members should
look toward other institutions and Governments for guidance and assistance
and can review the directions of other countries to achieve the same. Work
together with similar goals to enhance and promote valuation services in
ASEAN.
The objective of the writer is to see support given to the AVA through its
current members and assist in training and development and the creation of
sub committees to create an integration plan leading eventually and
practically to practice standards that can be seen as uniform and consistent
through the ASEAN valuer’s profession.
The VVA and other regional associations can all become strong advisors and
lead the industry to a bright future of integration.
CBRE | Page 14