PURPOSE OF INVESTMENT PROJECT ASSESSMENT

PURPOSE OF INVESTMENT PROJECT ASSESSMENT

No matter how carefully the project is prepared and analyzed, it still shows the subjectivity of the analyst and project planner, the defects and deviations that exist in the project process are natural. In order to confirm with more certainty the reasonableness and efficiency, feasibility of the project as well as the investment decision to implement the project, it is necessary to review and re-check independently from the standard process. prepare, draft the project, or in other words, need to evaluate the project. Project appraisal helps investors overcome the subjectivity of the drafters and helps to detect and supplement shortcomings in each analysis content of the project. Project appraisal is a part of investment management, it creates a solid basis for the effective implementation of investment activities. 

The project plays a very important role for investors, managers and has a direct impact on the process of socio-economic development. Without projects, it will be difficult for the economy to grasp development opportunities. The century works of mankind in the world are always proof of the importance of the project. The project is an important basis for deciding to invest capital, developing an investment plan and monitoring the investment implementation process. The project is the basis for financial institutions to make funding decisions, state authorities to approve and issue investment licenses. The project is also considered an important tool in the management of capital, materials and labor in the investment implementation process. Therefore, understanding the characteristics of the project is one of the factors that determine the success of the project.

Investment project appraisal is a part of management to ensure effective investment activities.

What is the purpose of investment project appraisal?

  • Evaluation of the projects rationality expressed in efficiency and feasibility in each content and calculation method of the project
  • Evaluate the effectiveness of the project on both financial and socio-economic aspects
  • Evaluating the feasibility of the project: this is a very important purpose. Feasibility is reflected in the consideration of the implementation plan, the legal environment.

What is the meaning of investment project appraisal?

  • A project will be successful if the project characteristics are properly recognized and evaluated by project managers. Therefore, the appraisal of investment projects is very meaningful in businesses
  • Help investors choose the best investment plan
  • Help state management agencies assess the suitability of the project for the general development planning of the industry, the country in terms of objectives, scale, effectiveness
  • Identify the advantages and disadvantages of the project
  • Help sponsors decide whether to finance the project correctly
  • Clearly define the legal status of investment parties.

Indochina International Appraisal & Investment Joint Stock Company (INA) operates with many years of experience in the field of appraisal with an abundant data warehouse, a team of highly qualified and professional appraisal experts, the appraisal process is fast, tight, minimizing the cost of appraisal... Besides, SunValue service will provide customers with information about the value of the business with high reliability for each appraisal purpose, services include:

  • Real Estate Appraisal – SunReal (Townhouses, land, factories, ...)
  • Real Estate Appraisal – SunMovables (Machinery and equipment, production lines, means of transport, ...)
  • Business appraisal – SunAsset (Purchase, joint venture, equitization, ...)
  • Investment Project Valuation – SunInvest
  • Resource Assessment – ​​SunResources
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