(LUẬN VĂN THẠC SĨ) Solutions for improving the financial leasing asset management in Vinashin finance leasing company

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - LÊ QUANG THIỆP SOLUTIONS FOR IMPOVING THE FINANCIAL LEASING ASSET MANAGEMENT IN VINASHIN FINANCE LEASING COMPANY MỘT SỐ BIỆN PHÁP HỒN THIỆN CƠNG TÁC QUẢN LÝ TÀI SẢN CHO TH TÀI CHÍNH TẠI CƠNG TY TNHH MTV CHO TH TÀI CHÍNH CƠNG NGHIỆP TÀU THỦY LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH Hà Nội - 2017 TIEU LUAN MOI download : skknchat@gmail.com ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - LÊ QUANG THIỆP SOLUTIONS FOR IMPOVING THE FINANCIAL LEASING ASSET MANAGEMENT IN VINASHIN FINANCE LEASING COMPANY MỘT SỐ BIỆN PHÁP HOÀN THIỆN CÔNG TÁC QUẢN LÝ TÀI SẢN CHO THUÊ TÀI CHÍNH TẠI CƠNG TY TNHH MTV CHO TH TÀI CHÍNH CÔNG NGHIỆP TÀU THỦY Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM THỊ THANH HÒA Hà Nội - 2017 TIEU LUAN MOI download : skknchat@gmail.com DECLARATION The author confirms that the research outcome in the thesis is the result of author‟s independent work during study and research period and it is not yet published in other‟s research and article The other‟s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration Hanoi, May 19th, 2017 TIEU LUAN MOI download : skknchat@gmail.com ACKNOWLEDGEMENT I would like to send my sincere thanks to Dr Pham Thi Thanh Hoa - Lecturer of the Institute of Finance and banking - Finance academy, who devoted her guidance to help me complete this dissertation I would also like to thank: - Teachers and lecturers in Master of Business and Administration – Vietnam national University, Hanoi taught and imparted knowledge to me during the course of higher education - Friends and colleagues in the work unit have encouraged me to study and research Hanoi, May 19th, 2017 Student Le Quang Thiep TIEU LUAN MOI download : skknchat@gmail.com TABLE OF CONTENTS ABBREVIATION INTRODUCTION Rationale Literature review 10 Aim of research 11 Object of research 12 Scope of research 12 Research methodology 12 Thesis structure 13 LIST OF FIGURES LIST OF TABLES CHAPTER I: THE BASIC THEORIES FOR THE MANAGEMENT OF FINANCIAL LEASING ASSETS 14 1.1 The basic issues about financial leasing 14 1.1.1 The concept of financial leasing 14 1.1.2 Characteristics of financial leasing activities 15 1.1.3 Classification of financial leasing forms 16 1.1.4 Comparison of financial leasing with operating leasing (net leasing) 19 1.1.5 Comparison between financial leasing with medium and long-term loans 21 1.1.6 The role and significance of financial leasing 22 1.2 The theory of management of financial leasing asset 24 1.2.1 The concept of management of asset in the financial leasing 24 1.2.2 Content of management of asset in the financial leasing 24 1.2.3 The indicators for managing the financial leasing asset 26 1.2.4 Comparing the management of financial leasing assets with the management of pledged, mortgaged assets in other credit institutions 28 1.3 Factors affecting the management of financial leasing assets 30 1.3.1 Subjective factors 30 1.3.2 Objective factors 30 CHAPTER II: THE SITUATION OF MANAGEMENT OF THE FINANCIAL LEASING ASSET IN VINASHIN FINANCIAL LEASING COMPANY 31 2.1 Overview of Vinashin Financial leasing Company 31 2.1.1 The foundation and development of the Company 31 TIEU LUAN MOI download : skknchat@gmail.com 2.1.2 Characteristics, main activities of the Company 32 2.1.3 Characteristics of the management system of the Company 33 2.1.4 Overall performance of the Company 35 2.1.5 Position of the Company in the financial leasing market 39 2.2 Situation of financial leasing operatens in VFL company 42 2.2.1 Situation of financial leasing operation and credit of risk 42 2.2.2 Situation of financial leasing operatens in VFL company 47 2.3 Evaluate the management of financial leasing assets 55 2.3.1 Advantages 55 2.3.2 Limitations and causes 56_Toc487100950 Chapter III Solutions for improving the management of leasing asset management in Vinashin finance leasing company 60 3.1 Development orientation of Vinashin finance leasing company 60 3.1.1 The general context of socio-economic 60 3.1.2 Orientation of the company in the future 60 3.2 Solutions to improve the management of financial leasing assets in Vinashin finance leasing company 62 3.2.1 Administration solutions 62 3.2.2 Solutions to build the asset management system for financial leasing 63 3.2.3 Human resource solutions 69 3.3 Recommendations and proposals 70 3.3.1 Recommendations to the State Bank 70 3.3.2 Recommendations to the Ministry of Finance 71 3.3.3 Recommendations to the Ministry of Police, Registry agency 71 CONCLUSION 73 REFERENCES 74 TIEU LUAN MOI download : skknchat@gmail.com ABBREVIATION - Ministry of Finance: MOF - Vietnam commercial bank of industry and development: BIDV - Vietnam commercial bank for Foreign: Vietcombank - Vietnam commercial bank for industry and trade: Vietinbank - Vinashin finance leasing: VFL - Vinashin finance company: VFC - Vietnam State bank: SBV TIEU LUAN MOI download : skknchat@gmail.com LIST OF FIGURES Figure 1.1: Diagram of a financial leasing of three parties………………………………17 Figure 1.2: Diagram of financial leasing of two members……………………………….19 Figure 2.1: The organizational structure of VFL company………………………………34 Figure 2.2: Chart of VFL loan and membership loans in Financial Leasing Association……………………………………………………………………………… 41 Figure 2.3: Loans and finance lease sales in VFL company (2008-2015)……………… 43 Figure 2.4: Structure of customer loans in the VFL company (2013 - 2015)…………….44 Figure 2.5: Percentage value of assets classified by categories………………………… 47 Figure 2.6: Number of assets in and outside shipbuilding……………………………… 48 Figure 2.7: Percentage and value of asset in inside and outside shipbuilding industry… 48 Figure 2.8: Distribution of assets according to geographical area……………………… 48 TIEU LUAN MOI download : skknchat@gmail.com LIST OF TABLES Table 1.1: Comparison between Operating and Financial leasing………………………20 Table 1.2: Table of comparing the management of collateral, mortgage with financial leasing assets…………………………………………………………………………… 29 Table 2.1: Structure of deposits of VFL company (2009-2015)…………………………36 Table 2.2: Results of business activities in VFL company (2008-2015)……………… 38 Table 2.3: List of financial leasing companies in Vietnam………………………………39 Table 2.4: List of companies of Vietnam Financial Leasing Association……………… 40 Table 2.5: Market share of financial leasing activities of VFL company (20082012)…………………………………………………………………………………… 41 Table 2.6: Results of financial leasing activities in VFL company (2008 - 2015)……….42 Table 2.7: Results debt classification at the time of 31/12/2013 -31/12/2015……………44 Table 2.8: Structure of loans in VFL company (2013-2015)…………………………… 44 Table 2.9: Structure of loans in the leasing Association at 31/12/2015………………… 45 Table 2.10: Structure of financial leasing loans by economic sector (2012-2015)……….46 Table 2.11 Overdue loans and the rate of overdue loans in VFL company (from 2008 to 2015)…………………………………………………………………………………… 52 Table 2.12 Target of recovering the debt…………………………………………………53 Table 2.13: The rate of bad debt in VFL company (2013-2015)…………………………54 Table 2.14: The rate of bad debt of members in the Vietnam leasing association in 2014.54 Table 2.15: The rate of bad debt of members in the Vietnam leasing association in 2015.55 TIEU LUAN MOI download : skknchat@gmail.com INTRODUCTION Rationale Financial leasing is a form of medium and long-term credit has many advantages, in line with the small and medium-sized enterprises, enabling them to equip the fixed assets where the ability to raise capital in the restricted long-term financing market, or the medium and long term loans in troubled banks, especially property mortgage procedures Not only small businesses, large corporatens or government agencies in many countries also use this service as a tool to reduce costs and investment real estate Financial leasing is a new business field, have only been in Vietnam about 15 years and only be used for investment in property Realizing the problems that exist with the financial leasing companies are generally the asset management was not good, and the financial leasing company almost has completed the process about the asset management also have many shortcomings, resulting in credit quality is not good, bad debt rate is relatively high According to the data of the Association of Vietnam financial leasing, loans of 08 financial leasing companies are active, not including 04 abroad financial leasing companies not join the Association, by the end of 2013 was more than 17.424 billion VND and more than 15.540 billion VND in 31/12/2014 The total revenues of these enterprises in 2013 reached more than 3452 billion VND and total spending than 5,066 billion VND; in 2014 revenues reached 2,159 billion and total spending is 3779 billion VND Thus, enterprises in 2013 was a loss before tax of more than 1,614 billion VND and in 2014, nearly 1,620 billion VND loss The growth rate of financial leasing in Vietnam increased sharply, from finance leasing debt balance in 2009 is more than 13 969 billion was increased to more than 19 719 billion in 2012, up more than 41% after two years Just as credit lending by banks, leasing loans always come with increasing risk as high risk Therefore, by 2014, the outstanding balance of finance lease fell to 17 424 billion, down 11.64% compare with in 2012 In 2014, the debt was 15 540 billion, down 10.81% compared with in 2013 The problem is how to manage and control the leasing asset in the current financial leasing, and with the managers‟ views of the financial leasing assets, what should have the solutions to improve the quality of investment performance as well as reduce the lost? As a staff works at Vinashin finance leasing company, a financial leasing company established over years ago, found itself on the issue of inadequate asset management: financial leasing activities, a business sector contributes a large proportion of the company's sales TIEU LUAN MOI download : skknchat@gmail.com Chapter III Solutions for improving the management of leasing asset management in Vinashin finance leasing company 3.1 Development orientation of Vinashin finance leasing company 3.1.1 The general context of socio-economic In the context of integration, the renewal of technology, machinery and equipment in manufacturing enterprises is a pressing requirement to improve product quality as well as productivity, reduce costs, increase productivity, competition in the market Most of the equipment of many enterprises is outdated 2-3 generations compared to advanced countries The dilemma is still the question: Where does capital come from to innovate technology and replace machinery? Currently, the amount of long-term investment capital for these projects in Vietnamese enterprises is very modest The familiar financing channel is still borrowing from commercial banks However, for small and medium enterprises, newly established enterprises not have enough assets as well as reputation, accessing bank loans is very difficult In such cases, financial lease can be an optimal solution So what is the difference between financial leasing and renting that it is a good credit channel for businesses In Vietnam, this activity has been present since 1995 following Decision No.149/QD-NH5 dated 17 May 1995 of the Vietnam State bank At present, there are 07 finance leasing companies licensed to operate, including companies belonging to commercial banks, companies with 100% foreign investment The strong development of financial leasing activities in recent years has shown the advantages of this credit channel for Vietnamese enterprises, especially small and medium enterprises 3.1.2 Orientation of the company in the future The objective of Vinashin finance leasing company is to restructure the Company's operations, thereby building the Company into a stable, sustainable and secure financial leasing company a Short-term planning - Strengthen inspection and evaluation, customer classification and asset finance lease to have policies and measures of conduct appropriate to each client, each property to recover the best debt For customers are classified debt in category I, closely monitoring implementation and urge the recovery of debts due For financial leasing customers have switched debt but willingness to repay, repayment was good in recent years, to apply their own policies in order to make debt collection 60 TIEU LUAN MOI download : skknchat@gmail.com - Each department plans to review, build, improve the system of internal legal documents in order to improve work efficiency, increase control, improve the quality of operations departments - Arrange, organize the personnel by concentrating personnel for the recovery of debts - Strengthening the property inspection to ascertain the situation of assets, for the creditors group oriented treatment recovery is ahead of plans for approval by the parent company - Vinashin plans for evaluation, property auction to recover the debt For the debt the customer groups most troubled time can not pay, the property holds tight situation prevented property damage - With assets of customers not use it for a long time to build cooperation mechanisms leased or transferred to other affiliates of Vinashin are in demand in order to avoid wasteful investment - Regarding the handling of bad debts for customers in Vinashin: To handle debts for each Vinashin customer b Orientation development - Based on the merger with the Credit Institution or in cooperation with outside investors, Vinashin finance leasing company will change owners and have new funds for the operation so as to expand the leased space to all active customers Legal action in Vietnam, accordingly, investment direction in the direction of strengthening outsourcing to reduce credit risks - Pay attention to the quality of company's operations to reduce risks and improve the quality of financial leasing - Research and develop the operations of leasing asset, especially for operators to exploit leasing assets recovered during processing of Vinashin debt - Enhance training in depth and additional staff required for the strategic development and implementation of the new management model 61 TIEU LUAN MOI download : skknchat@gmail.com 3.2 Solutions to improve the management of financial leasing assets in Vinashin finance leasing company 3.2.1 Administration solutions Solutions to build internal processes and regulations for asset management: Base options: according to the limited situation of the initiative and flexibility of asset management department, which is already mentioned in chapter II shows that there are still many shortcomings powers and responsibilities of the asset Management division lead to not be fully active in the work Besides, the process of coordination between asset management department with other departments is also not promote efficiency and ensure risks to the stages Therefore the company needs to change and administrative framework Objective: To enhance the effectiveness of asset management and information exchange, and risk management systems in company Content of solution: - Changing the administrative structure in the direction of specialization and strengthen supervision, enhance the autonomy of each department - Regulating clearly the functions and tasks of departments and divisions to ensure the coordination of activities are close and linked, thereby contributing to limit the credit risk - Separating the current property management division into an department has the independent function to provide the asset management right shows the important role of credit management Strengthen the autonomy of all activities related to asset management - Achiving the risk management and internal control by amending and supplementing the rules which are better suitable for the actual conditions and strengthening the monitoring and warning Solution to build insurance for the leasing asset: Base options: based on the situation analyzed in Chapter II about the ratio of assets not insured is very high, the rate of property insurance is not renewed is low, the difficulty in negotiating insurance arrangements with customers and problems in the work of urging customers property insurance premium payment Given the current financial difficulties, difficulties with good solvency, the raising of debt guarantees for the assets in insurance is very important and necessary strong measures to tackle this matter thoroughly Objective: Increasing the proportion of insured property 62 TIEU LUAN MOI download : skknchat@gmail.com Content of solution: Cooperating with a long-term insurer, on that basis, set a price strategy, provide risk assessment counseling, advise on appropriate insurance options, devise payment methods, Payment periodically to provide the best conditions for customers with cash flow difficulties can still participate in the coverage for the leasing assets 3.2.2 Solutions to build the asset management system for financial leasing Solutions to build indicators for assessment of asset management: Base options: based on the criteria in the management of current assets was relatively low compared with demand Requirements is set out to improve these indicators in order to enhance the effectiveness of asset management through reconstructing the parameters about managing the asset more efficient Objective: improving the efficiency of the management of financial leasing assets, reducing the unwanted targets Content of solution: Developing the criteria to evaluate the status of assets and the use of the property in order to update on the periodical credit scoring system by the evaluation division to provide a full assessment about the loan Key indicators 63 TIEU LUAN MOI download : skknchat@gmail.com No Assessment criteria 01 Area activities Assessment There is within contractual commitments or not There are suitable technical characteristics of 02 Conditions of use assets or not Full parts 03 The adequacy of assets Defects: Stability 04 Activity Unstable More reviews: Yes 05 Breakdown, failure No Full 06 Maintenance No Full 07 Safety Equipment No Good Preservation and sanitation 08 assets Bad Exceeds a certain level 09 Operating time Within the limits allowed level Yes 10 Registry No Yes 11 Insurrance No Solutions to develop a method to classify each asset group for management: Base options: The situation of leasing asset has many assets are not used, not participate effectively in production and business activities of the customers, while customers can not afford to pay the loan These are wasteful and increase the risk of property loss, impaired ability to recover the capital Therefore, we have the classification of assets to specific measures orientation to each asset group to sort out Objective: processing the assets not involved in the operation of customers and can not afford to repay Content of solution: Classifing the detailed assets according to the following criteria: the use, the ability to exploit the assets of each client in order to making and planning the list of handling assets when the client does not guarantee the return it - Classification of the use on the target: o Regular use o Using frequencies under months /1 time 64 TIEU LUAN MOI download : skknchat@gmail.com o Using the frequency of to months/1 time o Using the frequency of years o Not use - Assess the use: o The function of assets plays an important role in the production of customers o The function of the asset does not play an important role in the production of the customer Solutions to construct the asset valuation for credit risk assessment: Base options: the situation of leasing asset is impaired liquidation value to make difficulties of capital recovery for the company, so frequently appraise the value of assets in order to ensure the timely information of asset values as the basis for the evaluation of the loan, asset liquidation revoked Objective: Assessing completedly, timely liquidation value, the exchange of assets in the market Content of solution: Making the periodical valuation of assets to proactively identify credit risk early The valuation of debt can be outsourced to ensure risks, combined with long-term training to build own price evaluation team, the future can be extended valuation services No The duration of valuation for the asset groups as follows: STT Group of asset Deadline of valuation (month) 01 Boats - Water works 18 02 Construction machine 06 03 Motor vehicle 06 04 Means of transport and lifting equipment 09 05 The cranes 12 06 Mechanical processing machinery 18 07 Production line 18 08 Welding and cutting equipment 12 09 Equipment - Auxiliary 12 - When appraising assets classified by the value compared with the debt balance at the time of evaluation to guide risk management in case customers can not 65 TIEU LUAN MOI download : skknchat@gmail.com afford to repay It can be classified the evaluation results to assess risks and provide the specific additional measures depending on the circumstances No Appraisal value compared to outstanding loans STT at the time of appraisal Assessment 01 > 100 % Good 02 80% - 100% Not good 03 60% - 80% Risk 04 50% - 60% High risk 05 30% - 50% Very high risk 06 < 30% Emergency Solution to develop asset transfer plan to improve the process of using and debt collection: Base options: there are now a lot of the assets of companies in Vinashin did not use because of production delays, but on the other hand some companies still have investment needs, hire purchase assets to meet production needs Thus the angle of financial leasing companies, the company should provide the collaborative solutions to transfer or lease the assets in order to remove difficulties in the repayment pressure for customers and meet the demand for leasing assets of entities in Vinashin Objective: The asset participates in productive activities, creates cash flow for debt repayment Content of solution: Building the plans for cooperation lease or transfer assets to other units in Vinashin wishing to use the property to just avoid wasteful investment and ensure cash flow for debt repayment assets financial leasing customers have no need to use for long periods, performance steps are as follows: - For transfer of assets: o Step 1: Review of the assets without the need to use without paying debts o Step 2: Move the list of assets to cooperate with the vehicle department needs to consider is the other units on this property o Step 3: Agreement on the mechanism of exchange, transfer, mode of repayment, maturity, debt recipients 66 TIEU LUAN MOI download : skknchat@gmail.com o Step 4: Signing the record, the agreement confirms liabilities and responsibilities, the rights of the parties to make a plan for transfer of assets o Step 5: Prepare plans and coordinate implementation of a safe transfer of assets, savings, rational regulations o Step 6: Update the changes to the system of property asset management data - For cooperation to leasing, mining assets: o Step 1: Review of client assets without the need to use without paying debts o Step 2: To find alternatives asset management system, customer, market and reference customer plans in order to offer the research evaluation o Step 3: The agreement on the mechanism for lease, units responsible for management, methods of managing the cash flow, maturity o Step 4: Signing the record, confirmed the responsibility agreement, the rights of parties to implement the leasing, asset exploitation o Step 5: Update the changes to the system of asset management data, make plans to monitor and check the property regularly to avoid the risk of loss or damage Solutions to build internal rules of asset control, financial risk control and improve the management of assets: Base options: the management of credit risk in terms of asset tracking and monitoring in the current financial situation was not effective and loose Therefore, the solution needed to tighten the management, inspecting the property, financial situation promptly Objective: improve the efficiency of monitoring and supervising the financial situation, assets situation Content of solution: - Developing regulations on coordination of internal exchange, updated information on the assets timely and closely for any fluctuations of assets in order to limit any risks - Developing the mode of risk management corresponds to the status of customer loans: debt group, according to the debt situation of the group, according to the business situation, customer revenues, as follows: 67 TIEU LUAN MOI download : skknchat@gmail.com Debt group Mode of risk management Checking finance Checking asset 01 year/time 06 months/time 09 months/time 06 months/time 06 months/time 03 months/time Applied additional measures - Verifing the cash flow months/time - Verifing the cash flow each quarterly - Verifing the asset each quarterly - Verifing the cash flow every month 03 months/time 03 months/time - Researching recovery plan and handling the asset - Researching the valuation and auction - Verifing the asset periodically 60 days/time - Researching recovery plan and handling the asse 03 months/time 03 months/time - Researching the valuation and auction - Verifing the asset periodically every month Solution to build the database of asset management: Base options: information data base to update the storage of assets is mainly craft, making it difficult to track information The property is transportation have no positioning device remote for monitoring Therefore, we have the solution improved asset information system to ensure more efficient and associated with the administration of company leaders Objective: building asset information system smoothly, efficiently and accurately Content of solution: investing in the database system of asset management to ensure the update, storage, warning information on the assets for asset officers, managers, leaders of the company This is the system to meet the requirements of operational leasing operations in the future - Function: o Having the hardware to control the location, journey, time and statistics remote o It can be updated, storage, retrieval, reporting, alerting, data transfer o Decentralisation, use, access o It can be queried, updated remotely through server 68 TIEU LUAN MOI download : skknchat@gmail.com o Easy to pair the system with information technology base of the existing company and later o Easy to upgrade and expand in the future to serve the wealth management business in other future services such as operational leasing, insurance agent - The basic system components include: o System information technology infrastructure o System management software o Control of information by satellite: GPS Tracker  control positions, the journey of assets  status, activetime, time off of assets 3.2.3 Human resource solutions Base option: based on the status qualification and professional managers of the property, based on the orientation activities and goals of the management of assets in the future to see the need for adding and retraining the asset managers not only to meet current requirements but also to meet the requirements of development in the future Objective: improve the efficiency of asset management, building the professional staff of property management, qualified professional to perform the inspection, monitoring and evaluation asset Content of solutions: a Planning and recruiting: Planning the personnel to meet the requirements of short-term deficits as well as the required development of new services as: operational lease, services of collateral management for the parent company, insurance agency services, credit service for providers Recruitment needs: - To meet short-term requirements: 02 staffs including 01 staff is in the central region, 01 officer is in the South region in order to reduce travel expenses and time for inspection property, ready to respond to the volatility of the asset - Meet the requirements of long-term development of new services in the future: further 05 staff within the next 05 years: o 02 professional staffs in shipbuilding o 02 professional staffs for marine vessel operators o 01 professional staff for mechatronics b Training: 69 TIEU LUAN MOI download : skknchat@gmail.com - Organizing the seminars about asset management operations with the participation of other credit institutions, the units in the financial leasing association to strengthen links, discuss removing difficulties and propose solutions to improve the quality of asset management - Sending staff to training courses, short training by the State Bank, Ministry of Finance, Ministry of Justice organization for credit institutions in general and the financial leasing Association in particular - Sending staff to specialized training courses on property valuation in order to serve the appraisal values before, during and after the rental, while asset disposal 3.3 Recommendations and proposals The financial leasing association have a role as a bridge between the financial leasing companies and State management agencies, particularly the State Bank and the Ministry of Finance Association is the coordination with several ministries such as the State Bank, Ministry of Finance, Ministry of Justice, Ministry of Public Security organized several conferences and seminars participation about the feedback on drafts legal documents, or common policy documents related to financial leasing activities The main activity directions of the financial leasing companies in current period and the near future is still handling with the problems and restructuring under the direction of the State Bank 3.3.1 Recommendations to the State Bank - Allowing the financial leasing companies are required the lessees to adding the assets in case of the value of the periodic valuation of financial assets is lower than the residual debt This is to ensure that credit risk and improving the responsibility to preserve and use the property of the lessee - Asset Insurance: The lessee is responsible to purchase the insurance for the entire period instead of buying the insurance as the current annual The lessors choose the terms, coverage, purchasing procedures and the lessee shall have the premium payment - Developing the specific regulations on risk management, safety ratio, debt classification, classification of assets and the provision for risks to apply for the financial leasing companies 70 TIEU LUAN MOI download : skknchat@gmail.com - Allowing Vinashin finance leasing company to expand the business operations to new business service is insurance agent which is not much risk services, generates revenues, resolves the current difficulties - Allowing Vinashin finance leasing company to expand the operational lease in order to increase revenue, expand business areas - Publishing the legal documents to guide the detailed activities of financial leasing operations, and especially the work of recovery, handling the asset Currently there is Circular 08 between State Bank – Ministry of Police Ministry of Justice about recovery and handle asset however through actual Vinashin finance leasing company faces many difficulties due to the concept of circular has not been clearly explained, or misleading meanings and lead to misapplication - The State bank as well as the competent authorities organize to evaluate, purchase the bad debt On that basis, Vinashin finance leasing company can perform credit growth on the principle of ensuring the new leases have good quality, in order to generate cash flow, gradually adjust the asset structure capital resources 3.3.2 Recommendations to the Ministry of Finance - Having the preferential tax policies for the lessee through the form of financial lease, to promote and encourage this new business in Vietnam - Uniforming the provisions referring to financial leasing companies are exempt from import duties for machinery and equipment in the case of the financial leasing company is directly imported unit There currently exist many provisions of the Tax Department, Ministry of Finance, Ministry of Planning and Investment, Ministry of Industry and Trade addressed this but it does not fully and clearly, there sometimes is controversial 3.3.3 Recommendations to the Ministry of Police, Registry agency - Ministry of Police: o Facilitate for property registration in the area which has the lessee and still named the lessor o The transfer into the name of the owner does not need to withdraw the original dossier (making process interruption procedures and take a long time by going through the stages of withdrawal registration records where old and filing at the registered) 71 TIEU LUAN MOI download : skknchat@gmail.com o Supporting to the lessor in case of assets are be recovery and handled that encounter the resistance of the lessee (appling for the vehicle traffic and other fixed assets) - Registry agency: o Facilitating the assets registration in registry offices where the property is close to the most o Facilitating the property owner (the financial leasing company) have access to the information portal of the state registry of assets 72 TIEU LUAN MOI download : skknchat@gmail.com CONCLUSION Facing the requirements of international economic integration, asset management in financial leasing has become an important priority task towards the objective of safe, effective and sustainable development with the financial leasing companies in Vietnam However, the results of Vinashin finance leasing company achieved in the past is not as expected as well as too low compared with the performance of other financial leasing companies in Vietnam In the current context of Vinashin's difficulties, the introduction of solutions to improve asset management in financial leasing activities at Vinashin finance leasing company is a major and relatively complex issue Based on the application of scientific research methods, the thesis has achieved the following main results: - To outline and systematize the basic theory of financial leasing and asset management in financial leasing activities, thus providing indicators on asset management for prevention purposes And reduce credit risk in financial leasing activities - Analyzing and evaluating the overall organization and operation of Vinashin finance leasing company, which goes into the analysis and assessment of real estate management in financial leasing activities in Vinashin finance leasing company Accordingly, asset management is still limited and risky At the same time, the thesis has pointed out the shortcomings in asset management and the causes of these problems Based on the assessment of the current status and limitations of the management of financial leasing assets, the thesis proposed solutions and recommendations to improve the management of assets in leasing activities in Vinashin finance leasing company Shortterm solutions can be deployed immediately, long-term solutions require additional research and expert consultation Due to insufficient data and accurate representation of the subject, it is hoped that the theoretical, practical and solution issues mentioned in this dissertation will become a reference It makes sense for financial leasing companies and fellow practitioners of the same interest to study this issue in the current context 73 TIEU LUAN MOI download : skknchat@gmail.com REFERENCES  Papers - The Ministry of Justice - Ministry of Public Security - State Bank (2007), Joint Circular 08/2007 TTLT Justice Department - Ministry of Public Security - State Bank - The Government (2001), Decree 16/2001/ND-CP on the organization and operation of financial leasing companies - The Government (2005), Decree 65/2005/ND-CP on amending and supplementing a number of articles of Decree No.16/2001/ND-CP - State Bank (2005), Decision No 493/2005/QD-NHNN dated 22/04/2005 of the Governor of the SBV issued regulations on loan classification, provisioning and use of risk reserve to handle credit risk in banking activities of credit institutions - National Assembly of the Socialist Republic of Vietnam (2010), the Law on credit institutions 47/2010/QH12 - Vinashin finance leasing company, the financial statement in 2012, 2013, 2014, 2015 - Vinashin finance company, 2008, Charter of operation in Vinashin finance company  Online documents Vietnam leasing Association, report the results of business operations, over the years 2012, 2013, 2014, 2015, Hanoi 74 TIEU LUAN MOI download : skknchat@gmail.com ... BASIC THEORIES FOR THE MANAGEMENT OF FINANCIAL LEASING ASSETS CHAPTER II: THE SITUATION OF MANAGEMENT OF THE FINANCIAL LEASING ASSET IN VINASHIN FINANCIAL LEASING COMPANY CHAPTER III SOLUTIONS FOR. .. especially in Vinashin finance leasing company Aim of research 3.1 General aim: Research about the status of managing the leasing asset in Vinashin finance leasing company and propose the solutions in. .. financial leasing asset management in financial leasing activities - Analyzing the situation of the asset management in Vinashin finance leasing company - Proposing some solutions to improve the management