Leasing Company in Viet Nam

LEASING COMPANY IN VIET NAM Advantage mischief Market Viet Nam is considered as a great potential market for developing financial leasing activities. In Vietnam, this form of credit is quite suitable for broken and medium enterprise, so the number of small and medium enterprises account for much than 95% of the total number of enterprises created a huge demand and pragmatical for financial leasing services.The fundamental reason of this demand comes from the aspects such as * The exigency of innovation of equipment, machine and technology for enterprises * The limited chapiter sources of small and medium-sized enterprises In fact, leasing companies have not found a suitable market segment. A large number of small and medium enterprises in Vietnam are the manoeuver customers of the leasing companies do not know or have little data about true benefits of financial leasing services.Above disadvantage is due to following chief(prenominal) reasons * It is difficult to change ha bits of Vietnamese businesses When they need capital to renewal technology, they practically borrow from the banks * The propaganda, disseminating information, and access the leasing companys customers are still limited. Market share At the present, there are 12 enterprises operating in financial leasing field, so the competition is not great.Companies can share the market share and gather profit Legal System of law in the financial leasing activities is asynchronous and inadequate especially, the provisions on settlement of disputes,asset recovery, asset register is not consistent Capital In fact, the capital of the leasing company is very small, patch credit activity of this type of company is the medium and long status (1 year or more).On the other hand,It is very difficult to raise capital to leasing company in Viet Nam, which mainly rely on the banks loans but kingdom Bank regulations about these loans are so strict Bad debt In 2012, leasing companies have the highe st bad debt ratio in the list of credit institutionsFor good exampleBad debt ratio of the leasing companies in Ho Chi Minh City went up to more than 50% by mid-2012The difficulties in the recovery of assets due to rudimentary basis legal is one of the most disadvantage of the leasing company humans resources Lack of qualified staff and manager.Continuous recruitment lead to waste a lot of time and money and have much negative set on business activities of company. http//taichinh. vnexpress. net/tin-tuc/goc-chuyen-gia/2012/09/cong-ty-cho-thue-tai-chinh-be-tac-trong-xu-ly-no-xau-21085/ http//www. vcci. com. vn/dau-tu-tai-chinh/20130121092728839/loi-thoat-nao-cho-thue-mua-tai-chinh. htm