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The Vietnam Financial Leasing Association has determined to actively participate in providing comments and contributing to the development of legal regulatory documents as required by the relevant government authorities

Financial leasing – abundant potential for development

Financial leasing is an effective long-term capital mobilization channel for businesses, especially small and medium-sized enterprises (SMEs). The benefits of financial leasing include high financing ratios (up to 100% of the asset value), no requirement for collateral assets, flexible lease terms and repayment options, and it does not affect the company’s credit limit with banks.

Mr. Pham Xuan Hoe, the General Secretary of the Vietnam Financial Leasing Association (VILEA), stated that the outstanding debt of financial leasing is still at a very modest level, accounting for less than 0.33% of the total lending debt in the economy. Meanwhile, long-term credit has become a burden for commercial banks.

The reasons for this situation stem from the obstacles in the legal regulations and the fact that the financial leasing sector is often overlooked in policy design. Additionally, most businesses in Vietnam are familiar with using banking services and are unfamiliar with and do not understand financial leasing services.

Enhancing research activities and formulate development plans for financial leasing sector in Vietnam

Mr. Pham Xuan Hoe, stated that during the upcoming term, the Association will focus on research, developing plans, and enhancing the role and position of the Association. They will work towards establishing a unified voice of the Association in proposing and recommending solutions to develop the financial leasing sector in Vietnam.

The member companies of the VILEA will closely collaborate with the Association in reporting, proposing, and recommending to the relevant authorities to review and address challenges and obstacles in policy mechanisms. The objective is to ensure the safe and effective development of financial leasing activities, thereby promoting the socio-economic development of the country.

BSL is a reputable financial leasing company in Vietnam. With strong financial capabilities and robust support from strategic shareholders, namely the Bank for Investment and Development of Vietnam (BIDV) and Sumitomo Mitsui Trust Bank (SMTB), BSL provides specialized capital financing solutions for small and medium-sized enterprises in Vietnam.

(Source: https://www.tinnhanhchungkhoan.vn/bi-bo-quen-trong-thiet-ke-nhieu-chinh-sach-doanh-nghiep-cho-thue-tai-chinh-kho-phat-trien-post328357.html)

Thao Nguyen