Studies on Criteria for Determining the Value of Forestry Enterprises

discounted cash flows. As a result, the value of the enterprise will vary depending on the purpose and future activities of the investor, for example, the investor can invest more in the enterprise after the acquisition and achieve good growth in the future. The value of the enterprise also depends a lot on the risk of the merger and acquisition. In short, the value of the enterprise in the merger and acquisition depends a lot on the development expectations of the enterprise and the risk level of this restructuring activity.

A very important question is whether the value of the enterprise after valuation with the selected methods and criteria is appropriate or not, a number of studies have been conducted to answer this question. Beisland has synthesized a number of related studies to determine how appropriate different methods are for determining the value of the enterprise, there are 4 groups of enterprise valuation methods synthesized in this study: the group of methods based on income and cash flow criteria, the group of methods based on equity and profit criteria, the group of methods assessing the appropriateness of enterprise value over time, and the group of methods based on accounting data criteria. The results show that there is a relationship between the book value of an enterprise and its stock value. For example, the market value of a company's shares has a strong correlation with the accounting data and information of the enterprise.

1.2. Domestic research projects

1.2.1. Studies on criteria for determining the value of forestry enterprises

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Author Le Trong Hung (2008) has researched the topic: " Research on theoretical and practical basis for building forest leasing policy, building and developing the market for land use rights of production forests in Vietnam ". The topic has researched the theoretical and practical basis for forest leasing policy, building and developing the market for land use rights of production forests in Vietnam. This is an important and necessary research in production and business.

forestry enterprises today to solve the problem of determining the value of forest types as a basis for developing leasing policies for users for business purposes in accordance with the previous Law on Forest Management and Protection and the current Forestry Law. At the same time, the author has also initially proposed methods for determining land value as a basis for building and developing the market for land use rights for production forests in Vietnam. When forests and forest land have been valued and there is an exchange market, determining the value of state-owned forestry enterprises will be more convenient and accurate. When the value of forestry enterprises is accurately valued, it will help the processes of innovation, improvement, transformation, arrangement or equitization of forestry companies to be more feasible. However, the author's topic also focuses on determining forest value criteria and forest land use rights value criteria as a basis for developing the market for land use rights for production forests in Vietnam.

Author Vu Tan Phuong and the research team (2007) conducted the topic: "Research on forest valuation in Vietnam". The topic focused on studying 4 main contents: 1) Scientific basis for principles and methods of forest valuation; 2) Valuation of some types of forests in the North, Central and South, 3) Development of principles, methods and forest valuation frameworks at research locations and subjects, 4) Testing and perfecting principles, methods and criteria for determining the value of forest types. Forest valuation was considered on the basis of assessing the total economic value of forests, the international methodological system, the concept of forest value and the legal framework for forest management in Vietnam. Accordingly, the principles, methods and criteria for determining the price of forest types were proposed to be applied in forest valuation in Vietnam. The topic developed and proposed a forest valuation framework based on the research results. Forest price framework includes forest product asset price criteria framework; land use right price criteria framework.

Forest use and forest asset price criteria framework for natural forests and plantations of Acacia, Eucalyptus urophylla, Pinus cerevisiae and Pinus latifolia. The forest asset price framework is built for natural forests including production forests, protection forests and special-use forests according to the states of rich, medium, poor and recovery. The forest asset price criteria depend on the volume and quality of the forest and there are significant differences between regions. The criteria for the right to use natural forests determined for a period of 50 years are very different and depend on the quality of the forest. The natural forest asset price criteria framework includes direct use value (use right value) and environmental value determined for a period of 50 years of forest use. The production forest asset criteria framework is planted forests built for planted forests of Acacia hybrid, Acacia auriculiformis, Eucalyptus urophylla, Pinus latifolia and Pinus latifolia according to different ages and for the research regions. The forest asset price framework is the basis for localities to base on when determining forest prices; for management agencies to develop forest management policies, forest investment and development and especially the monetization of forest values such as calculating compensation, compensation for forest conversion or deforestation and calculating the value of enterprise assets, forest rent, fees and charges. The summary report of the topic mentions the scientific and practical bases on the principles, methods and criteria for determining forest prices. The report also proposes a price framework for some forest types based on research results. The results of the topic are an important scientific basis for changing the concept of forest value, developing policies related to payment for forest environmental services and especially the monetization of forest value for environmental services, contributing to sustainable forest management in Vietnam.

However, the topic also has some limitations such as: The research results cannot fully reflect the characteristics of forest types and forest types nationwide. Some environmental values (watershed protection) of forests are not only

depends not only on the forest cover but also on other natural conditions. Therefore, this value is local. The research results only reflect the values of forests in the research area of the topic.

Authors Le Trong Hung and Pham Van Dien with the topic: " Research on determining the value of production forests as natural forests ". The research on determining the value of production forests as natural forests, based on the "total economic value of the forest", is referenced with the value of forest use rights within the legal framework of forest management in Vietnam and in relationships such as: forest allocation, forest leasing, tax and fee calculation, conversion of use purposes, compensation when reclaiming forests and forest compensation due to forest destruction according to the Law on Forest Protection and Development is extremely necessary and important. The topic has researched and proposed a number of methods and indicators to determine the value of natural forests in Vietnam. The research results of the topic are an important basis for determining the value of forestry companies with production forests as planted forests and natural forests.

In 2010-2011, author Tran Huu Dao carried out the topic: " Research on theoretical and practical basis of equitization of forestry companies ". The topic systematized the theoretical and practical basis of the equitization process of forestry companies, evaluated the possibility of equitization for forestry companies, and used criteria to determine enterprise value when conducting equitization. To build equitization plans, there are many contents, many activities and many processes to solve, but for the plans to be implemented, the selection of methods and criteria to determine enterprise value is extremely important and determines the success of the equitization process of forestry companies today. When transforming into joint stock companies, forestry enterprises can mobilize capital better, be more autonomous in production and business, and improve the efficiency of their business operations. The project has researched and developed a pilot equitization plan at 3 forestry companies located in 3 provinces: Tuyen Quang, Binh Dinh, and Long An.

Dinh, Dak Lak; assessed the possibility of equitization and the difficulties that the company encountered when carrying out equitization.

The equitization options at the companies also mentioned the land value criteria and forest value criteria when determining the value of joint stock enterprises. The author has proposed the possibilities of using the land use right value criteria for two possibilities: annual land lease and one-time land allocation to include in the equitization options.

However, the limitation of the topic is that there is still no consensus on the criteria in the method of determining land value and forest value at companies, the proposals have not yet solved the difficulties in determining land value of companies, so there are many different options. The research results show that the implementation of forestry policies at the local level is very weak. The natural forest areas managed by State-owned enterprises are still being degraded. The participation of the private sector in forestry production and business activities is still very small due to the lack of support from local authorities and their own limited production capacity. This leads to the contribution of the forestry sector to the economy being small and tending to decrease. Although the author of the research topic has mentioned the content of determining the value of state-owned forestry enterprises at the selected research sites, it is to serve the proposal of equitization plans for forestry companies, and the topic has not mentioned other objectives.

Author Nghiem Sy Thuong (2015) with the topic "Determining the valuation model of State-owned enterprises in the equitization process in Vietnam, current situation and solutions". The author analyzes in depth the current situation of determining the value of state-owned enterprises in the equitization process, the author points out the necessity of determining the value of enterprises in equitization. The topic also provides viewpoints, objectives and some important and suitable solutions, recommendations and proposals to the Government to improve the valuation of state-owned enterprises in the renovation period.

The study by author Nguyen Thi Thanh Huyen (2013) mentioned the issue of determining the enterprise value at Quy Nhon - Binh Dinh Forestry One Member Co., Ltd. The study gives the expected enterprise value of the company according to the asset method. The enterprise value includes: current assets, fixed assets, business advantage value, land value, forest value. In this study, current assets and fixed assets are summarized on the accounting report, the value of business advantage is calculated as the difference between the average after-tax profit rate on state capital for 3 consecutive years compared to the average profit rate of government bonds. The value of land use rights is calculated for the area of production forest. The value of forest is calculated according to the income method and the cost method. The research results propose 4 different options for determining the enterprise value, serving the work of enterprise equitization.

1.2.2. Studies on methods of determining enterprise value in general and forestry enterprises in particular

Author Pham Dinh Vu (2006) with the topic: "Improving the method of determining the value of state-owned enterprises in the equitization process in Vietnam" has systematized the theoretical and practical basis related to determining the value of enterprises. The topic also provides a panoramic picture of the methods and criteria for determining the value of enterprises in Vietnam before 2006, the author also proposed solutions to contribute to improving the methods and criteria for determining the value of state-owned enterprises in the equitization process in Vietnam. The author also pointed out that determining the value of assets of enterprises still has many limitations and errors although in the past time, the State and related departments have continuously researched, developed and proposed methods and selected valuation criteria for enterprises to be suitable in practice.

However, the topic only implemented enterprise valuation methods at a more complete level than the previous method and still had many shortcomings, the enterprise value was not calculated correctly and fully, especially in the period before auctioning and listing of enterprise shares on the stock market, through not calculating enough brand value, business advantage value and land use right value,... Therefore, the equitization process during that time caused a significant loss of state assets, generated many negative effects and benefited a number of related individuals and organizations. In fact, the topic only studied the methods of valuing state-owned enterprises during equitization in Vietnam at that time.

In 2005, author Tran Van Dung researched the topic "Improving the business valuation in Vietnam". The topic has systematized quite a complete system of theoretical bases on business valuation methods along with specific illustrative examples, the current status of business valuation in the equitization process in Vietnam, the topic also offers some solutions to improve the business valuation in Vietnam. The topic also points out that the commonly used valuation method is the asset method, and each valuation method has its own advantages and disadvantages, depending on the circumstances as well as the valuation objectives, we choose the appropriate valuation method and criteria for use. However, this topic is limited to the year 2004, the survey object is narrow and the research focuses on the method of enterprise valuation in the industrial production sector. For specific fields such as forestry, the topic has not been mentioned, so the topic has not mentioned the method of land valuation, forest valuation and forest trees.

In 2009, author Tran Huu Dao conducted the topic: " Research on some solutions to improve production and business efficiency for forestry companies operating under the Enterprise Law ". The research results were

Using methods to calculate income criteria, cost criteria and determine the value of forestry companies operating under the Enterprise Law. Initial research shows that the process of converting from "state-owned forest farms" to operating under the "forestry company" model is appropriate, production and business efficiency has been improved, production and management organization have been innovated, workers' lives have been gradually improved.... However, besides those successes, some forestry companies after conversion are still confused in choosing criteria to determine enterprise value, after conversion, production and business are at a loss, workers' lives are difficult.... In particular, the goal when converting "state-owned forest farms" to "forestry companies" is to operate under the unified Enterprise Law, but in reality, forestry companies are still state-owned enterprises operating under the 2003 State-owned Enterprise Law.

Author Nguyen Hoang Minh (2017) with the topic " Methods of determining enterprise value applied in Vietnam and the application of those methods in the equitization of state-owned enterprises in Vietnam ", the results show that the conversion of business types of enterprises is an issue that is being widely implemented throughout the country. To convert business types, determining enterprise value is an indispensable important step. In recent times, the issue of determining enterprise value has emerged as one of the difficulties that greatly hinders the process of enterprise innovation in general and enterprise equitization in particular. The author believes that equitization increases the competitiveness of enterprises, helps mobilize capital from investors to develop enterprises, enhances the position of enterprises in the market, thereby also increasing the development of the stock market. To equitize an enterprise, it is necessary to determine the enterprise value. This is a difficult and complicated task, so it is necessary to have standard asset valuation methods to help determine the correct asset value of the enterprise. However, in the process of application,

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