This is shared by Mr. Can Van Luc - senior advisor to the Chairman of BIDV, cum Director of BIDV Training School, with a reporter from Vietnam Financial News Agency
* Reporter: Sir, how do you assess the financial leasing market in Vietnam today?
- Mr. Can Van Luc: Financial leasing is not a new field in Vietnam. It has been formed and developed since the early 2000. However, recently, this field has not really developed as fast and strong as expected.
Up to now, there are 11 financial leasing companies in Vietnam, including 7 Vietnamese companies, 1 joint venture company and 3 companies with 100% foreign invested. Regarding the scale of operation of the financial leasing companies is quite limited. Currently, total outstanding loans of financial leasing is about VND 90,000 billion - a relatively small scale compared to the size of the system of credit institutions.
Because the size of the financial leasing market in Vietnam is still quite small, this is also the potential and huge potential for development of the financial leasing market in the next time.
* Reporter: which reason the fact that the development of the financial leasing market is limited, sir?
- Mr. Can Van Luc: The development of financial leasing market in Vietnam is still limited due to many reasons, including the main reasons as follow:
Objectively, the institution, the legal environment for the field of financial leasing have not been really completed, should not promote the strong development of this type. Specifically, in terms of capital, according to the provisions of the Law on Credit Institutions, financial leasing companies are only allowed to receive deposits from organizations to supplement their capital, while the issuance of deposit certificates, treasury bills, bonds to raising capital from organizations is not yet implemented. Therefore, the main source capital of financial leasing companies rely on their parent bank or inter-bank capital market. This is a problem that financial leasing companies have not had feasible remedies.
Secondly, the operating costs, financial leasing activities are medium and long term credit. The procedures for leasing are similar to loans in commercial banks, while commercial banks are allowed to charge fees related to lending activities, but financial leasing only charge the arrangement fee for syndicated loans, no charges any other fees. This is also a problem that limits financial operations.
Thirdly, the incentive policies, financial leasing is also a form of credit such as medium and long-term credits of banks, but in recent years, the State's preferential policies have only been applied to enterprises using sources medium and long-term credit capital of commercial banks to invest in equipment for business; if they implement through the form of financial leasing, the preferential policies, support businesses are not applied. This has created an unfair "playing field" and reduced the competitive advantage of financial leasing services in the market.
In addition, most of the legal document system only focuses on regulating the operation of banks, the law provisions in the recovery and disposal of financial leasing assets are not tight enough, so it is not enough to deter and lead to psychology the lessee "lags", does not perform debt repayment obligations to financial leasing company or shows signs of appropriating financial leasing assets ... affecting the operational safety of the financial leasing companies ...
Subjectively, Financial leasing companies are still limited in marketing and promotion activities, so the knowledge of enterprises about financial leasing products is low ...