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The obstacles related to regulations on vehicle registration and management deprive the financial leasing industry of opportunities to develop its debt portfolio, especially in the leasing of various types of vehicles, which is a key product group in the sector.

Limitations in vehicle registration and management regulations

The issuance of regulations aimed at implementing digital technology in vehicle registration and management. However, the new policy changes and procedures in registering and managing transportation vehicles lack consistency and coherence, and they have not fully anticipated the issues that arise in practice. This has created legal barriers, increased compliance costs, and hindered the development of the financial leasing industry.

The obstacles regarding registration time and regional license plates, which currently only refer to the main headquarters and lack solutions for plate changes, have led to many customers rejecting financial leasing. According to preliminary statistics from four member companies, the total value of financial leasing contracts that could not be executed due to obstacles related to vehicle registration and operation amounted to over 400 billion Vietnamese dong.

Recommendation to remove obstacles

According to Mr. Pham Xuan Hoe, the Secretary-General of the Vietnam Financial Leasing Association, the Association has made recommendations to resolve the obstacles in Circular 24/2023/TT-BCA concerning the issuance, recovery, and registration of vehicle license plates.

According to the Association’s feedback, businesses have reported that the process of moving vehicles for registration is time-consuming and costly. Therefore, measures should be taken to reduce waiting time. In addition, the high cost of obtaining license plates and issues related to license plates are also obstacles that need to be addressed. Businesses have proposed options for waiving or reducing transportation fees for customers who lease vehicles in provinces or cities where they reside, even if the leased vehicles are registered in Hanoi or Ho Chi Minh City, where the financial leasing company is headquartered.

Mr. Hoe shared that the outstanding debt for leasing various types of vehicles in 2023 is 6.6 trillion Vietnamese dong, representing a growth rate of 17.3% compared to the same period last year. Leasing various types of vehicles is also a key product group in the financial leasing industry, alongside leasing construction and mining machinery and leasing production machinery lines.

Thao Nguyen

(Source: Compiled from Investment newspaper:  https://baodautu.vn/quy-dinh-ve-dang-ky-quan-ly-phuong-tien-lam-kho-cho-thue-tai-chinh-d208423.html