Politics

Policy boost urged as financial leasing hits 40.7 trillion VND in Q1

Financial leasing was sound in several categories, such as for cars, up 26.4% to 8.5 trillion VND, ships up 79.44% and medical equipment up 50%.

Financial leasing reaches nearly 40.7 trillion VND (1.6 billion USD) by the end of Q1, representing an increase of 8.4% year-on-year. (Photo: VNA)
Financial leasing reaches nearly 40.7 trillion VND (1.6 billion USD) by the end of Q1, representing an increase of 8.4% year-on-year. (Photo: VNA)

Hanoi (VNS/VNA) - Financial leasing reached nearly 40.7 trillion VND (1.6 billion USD) at the end of the first quarter of this year, representing an increase of 8.4% year-on-year, Vietnam Financial Leasing Association (VFLE) said, urging solutions to promote the role of financial leasing in the economy.

The increase comes amid a complicated global landscape, with geopolitical pressures and spiraling trade tensions, but with a robust domestic market with a solid GDP growth of 6.93% in the quarter, supported by strong public investment and a trade surplus of 5 billion USD.

However, the total outstanding lease balance was flat compared to the end of 2024, due to the impact of rising bad debts, the association said.

Financial leasing was sound in several categories, such as for cars, up 26.4% to 8.5 trillion VND, ships up 79.44% and medical equipment up 50%.

Working capital loans expanded by over 40% to 30 billion VND, thanks to regulatory easing.

The association has set the goal of expanding total leasing outstanding to 300-500 trillion VND over the next five years, in line with the Politburo’s Resolution 68 on private sector development, which represents an annual growth rate of 60-70%.

To achieve this goal, the focus should be on increasing long-term financing, especially for small- and medium–sized enterprises (SMEs) in production technology renovation and digital transformation, the association’s General Secretary Pham Xuan Hoe, said.

The focus should also be on green finance with the integration of environment – social – governance (ESG) criteria, he said.

It is necessary to diversify funding sources from banks, international partners, bond issuance to improve lending capacity, he added.

Hoe called for the development of a financial leasing law within the next 3-5 years, to create a solid legal framework for the sector. /.

VNA
#Financial leasing #Vietnam Financial Leasing Association #trade surplus #domestic market
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