As astaff works at Vinashin finance leasing company, a financial leasing company establishedover 7 years ago, found itself on the issue of inadequate asset management: financialleasing a
Rationale - -.- -Q HH HT TT TT HH TH Hiệp 9 2 Literature review nh cee cee cece cree ẻ
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 do 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, 8 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 7 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 that the capability collected the loans on time is high, relatively low credit quality.
Therefore, the asset management in financial leasing activities is a urgency matter in improving credit quality Based on outstanding issues in the company, I choose the topic for my thesis was "Solutions for improving the financial leasing asset management in Vinashin finance leasing company ".
2 Literature review Financial leasing is considered as the highest stage of development of credit and conductive capital channel is effective for businesses to invest in capital goods, especially suitable for small and medium enterprises In the world today, the scale of the financial leasing activity is growing rapidly and has grown enormously over the years, especially in developing countries.
In Vietnam, leasing activity started to appear since 1996 and until now has 13 companies licensed and operating Of which, the financial leasing companies under the Bank include financial leasing companies Bank of Agriculture and Rural Development, Vietinbank, Vietcombank, Bank for Investment and Development of Vietnam The financial leasing companies with 100% foreign capital may include ANZ-VTRAC financial leasing company; Kexim leasing company and Chailease International Financial leasing company There are also companies such as other forms of financial leasing company International Vietnam (joint venture); Asia Commercial Bank financial leasing company; Vinashin financial leasing company At the end of 2014, total loans of financial leasing companies are more than 15.540 billion VND Although leasing activity has appeared in Vietnam for nearly 20 years but still do not have the legal documents as well as comprehensive policies to encourage this type effectively However, Vietnam enterprises, especially small and medium enterprises have known this type of service and began using leasing as a financial tool to serve the needs of their business development.
Currently, there are some topic, essay and reports related to research the financial leasing For example, the topic about “The current situation of leasing companies” by the group of students launched the review of the operation and status of the company at the time in August 2013 Besides, the author Nguyen Phuong Huyen also research about “the solution for improving the financial leasing activities” and this research show that the general status of the leasing activities in Vietnam and the solutions for improving.
However, this topic research in the big scope and not show the relevant problems to the leasing asset management Another author Le Thi Khanh Hoa give the research with topic
“Improve the leasing fixed asset management in the Hung Yen electricity company” This
10 topic show the asset management in the narrow and detailed scope in the electricity industry The result of this research contribute to improve the methodology management and efficient use of fixed assets in electricity distribution businesses Because the research apply to the special industry, not cover the whole asset for the leasing companies The solutions for this topic also use for the electricity distribution businesses, not suitable for the leasing company.
Moreover, the business has benefited from the competition between commercial banks leads to loosening credit approval mechanism and reducing marginal profits of some banks in order to attract customers and increase the loan balance In the future when the Vietnam commercial banks under pressure to comply with the regulations of bank in accordance with international rules will have to be more cautious in the decisions to grant its credit Therefore, access to traditional loans from the commercial banks will have to comply with the regulations stricter evaluation.
Management of asset in the financial leasing activity is the implementation of the monitoring and inspection of the asset and equipment during the implementation of the contract: since the handover of assets until finishing the contract in order to classify and evaluate the assets, warned about the use of assets to ensure the quality of credit The biggest difference between the financial leasing assets and the pledged and mortgaged assets is the financial leasing assets excluding real estate (assets in the land, the rights of using land) and input materials Thus in the management of assets, there are also many differences With the pledged and mortgaged assets, through the process of revaluation, if the value of revaluation is lower than the initial valuation, to ensure the loan the mortgager must pledge the additional assets to ensure the total value of mortgaged assets equals the value of the initial valuation in order to provide credit This makes a huge difference in the management of financial leasing assets.
Thus there are many researches about the financial leasing activities, but without any research works on asset management in financial leasing companies and especially in Vinashin finance leasing company.
Research about the status of managing the leasing asset in Vinashin finance leasing company and propose the solutions in order to improve the management of assets in financial leasing companies.
Buiding the general issues about financial leasing and 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 of financial leasing assets in Vinashin finance leasing company: © Internal solutions fit to the operatenal model of the company. o Recommend and proposals about the current law.
Object of research The object of the thesis: the management of financial leasing assets in Vinashin finance leasing company.
Scope of research Space research: focusing on the activities of leasing and the management of leasing asset in Vinashin finance leasing company.
The period of research: Secondary data were collected during the period from 2009-2015 in Vinashin finance leasing company.
Research methodology Thesis will use the research methodology are expected:
Comparison methodology: is used to compare the assessment of changes in financial leasing activities, asset management of the company over the years.
Statistical analysis methodology: described, analyzed statistic inference This method is used for statistic the asset management of the company over the years.
Synthetic analysis methodology: is used to analyze the situation of leasing asset management , the risks incurred, indicating the existence of asset management, the cause.
The data collection is mainly based approach, the use of data in the financial statements of the Company, the aggregate data from reference sources on the Web, including:
Secondary data: o Legal documents on accounting operations of Vietnam financial leasing from 1995 to present. o Data of Vinashin Financial leasing Company. o Data of financial leasing association.
12 o Data of Internet source. o Textbooks or other scientific publications related to the thesis, Banking syllabus of economics university, Syllabus of Commercial banking,
THE BASIC THEORIES FOR THE MANAGEMENT OF
The basic issues about financial leasẽng - - SH, 14
1.1.1 The concept of financial leasing
Financial leasing is considered as the highest stage of development of credit and conductive capital channel is effective for businesses to invest in capital goods, especially suitable for small and medium enterprises In the world today, the scale of the financial leasing activity is growing rapidly and has grown enormously over the years, especially in developing countries.
In theory and practice, there are many views on the financial leasing Depending on the angle of the study, or as prescribed by the laws of each country, there are several different concepts.
The concept according to International Accounting Standards (IAS 17):
"Financial leasing is transferred substantially all the risks and benefits related to asset ‘s ownership The following ownership of may be transferred or not".
The concept according to the Vietnam Accounting Standards (Standard No 06) issued under Decision No.165/2002/QD-BTC dated 31/12/2002 on the issuance and publication of six Vietnam accounting standards (2nd): "financial leasing is the leasing of assets which the lessor has transferred substantially all the risks and rewards associated with ownership of the property to the lessee Property of ownership can be transferred at the end of the lease term".
The concept of financial leasing in Vietnam according to Decree No.16/2011/ND- CP dated 05/02/2001 of the Government on the organization and operaten of financial leasing companies: "Financial leasing is operaten of medium and long-term credit through the leasing of machinery, equipment, vehicles and other movable assets on the basis of the leasing contract between the lessor and the lessee The lessor is committed to the purchase of machinery, equipment, vehicles and other movable assets at the request of the lessee and retains ownership over the leased assets The lessee uses the leased asset and lease payments during the lease term has been mutually agreed At the end of the lease term, the lessee has the option to purchase the leased assets or continue the lease under the terms agreed in the contract of financial leasing Total leased expense for a property is specified in the financial leasing contract, at least equal to the value of such asset at the time of signing the contract".
The introduction of Decree No.16/2011/ND-CP dated 02/05/2001 has officially marked an important step in the development of the financial leasing in Vietnam From now on, the financial leasing is official considered an active medium and long term credit, and become a new credit operatens by the financial leasing companies done.
According to Decree 65/2005/ND-CP dated 19/5/2005 providing for the amendment of some articles of Decree No.16/2001/ND-CP also provides definitions of financial leasing transactions:
”A financial leasing transaction must satisfy one of the following conditions:
- At the end of the leasing term under the contract, the lessee may transfer ownership of the leased property or be continually leased through the agreement of both parties.
- At the end of the leasing term under the contract, the lessee has the priority right to purchase the assets at nominal prices lower than the actual value of the leased asset at the time of acquisition.
- The lease term of each asset must be at least 60% of the time needed for depreciation of leased assets.
- Total leased expense for a property is specified in the financial lease contract, at least equal to the value of such assets at the time of signing the contract.”
Thus, on the standpoint of the finance leasing company/lessor, we can see the biggest differences between the views of financial leasing in Vietnam and around the world about the object that is leased, does not apply to lease the property, but only for financial loans in machinery, equipment, vehicles and other movable property
1.1.2 Characteristics of financial leasing activities
From the above financial leasing concept, it is possible to give some basic features of leasing activities as follows:
Financial leasing activities must meet certain conditions According to the Commission of International Standard Accounting issued four conditions that any lease transactions satisfy at least one of four conditions which are to be treated as financial leasing transactions From the concept of financial leasing can provide some basic characteristics of financial leasing activities as follows:
- Ownership of the leased asset are transferred to the lessee at the end of the contract.
- Present value of total minimum lease payments paid by the lessor is not less than the market value of the leased asset at the time of signing the contract.
- Duraten of the leasing contract accounts for most of the time of the useful leased asset.
- The leasing contract is stipulated an option to purchase the leased asset at the end of a contract with a value lower than the value at the end of leasing contract.
- The financial leasing contracts are largely to invest in new leased assets The right choice of the leased property belongs to the lessee, the lessor shall be obliged to buy the right kind of property which the lessee has an agreement or commitment with the supplier of assets.
- Financial leasing contracts are irrevocably contracts sothat the lessee is not entitled to terminate the contract ahead of time, unless the lessor has error or lessee requests for pre-term termination of the contract and the lease approval.
Thus, the nature of the financial leasing is a form of medium and long-term credit through the leasing of machinery, equipment, vehicles and other movable assets based on the leasing contract between the lessor and the lessee Owners of leasing properties would transfer ownership to the lessee when the lessee completed the leasing payment Financial leasing is different from alone leasing property form or forms of installment sales on the form of ownership, as well as the nature of the relationship between the parties In financial leasing, the lessee may only use the property and not have ownership and disposition During leasing time, the lessee is entitled to the accounting balance sheet in its accounting of fixed financial leasing asset items but may not use such assets as security for the mortgage When using the leased property, the lessee must pay a certain amount of periodic (monthly, quarterly) was specified in the contract.
1.1.3 Classification of financial leasing forms
Based on the participants in a financial leasing transactions can be divided into two main categories: financial leasing of three members and financial leasing of two parties. a Financial leasing of three members - net financial leasing According to this method, the process for leasing will have the participation of three membersis the lessor, the lessee and the supplier The lessee will choose, agree with suppliers of assets The lessor shall only purchase the property at the request of the lessee were dealed with in the financial leasing contract.
Figure 1.1: Diagram of a financial leasing of three parties
The leasing process includes steps as follows:
(1) The lessee actively choose machinery and agreements with suppliers.
(2) Lessee - lessor signed financial lease contract.
(3) The lessor - supplier sign up the purchased contract of machinery and equipment is assets under the agreement between the lessee and supplier.
(4) Supplier delivery to the lessee, installs, commisses, acceptance of the transferred assets.
(5) The lessor pays for the purchase of leased assets to the supplier.
(6) The lessor finance lease pays to the lessee under the leasing contract.
This is the financial leasing method that is used the most popular in the current world because of the following advantages:
The lessee selects the supplier, has directly agreements, negotiates with vendors, chooses the best suitable product with their needs.
The lessor shall not purchase products in advance, just sign the purchased asset agreement follow by the request of the lessees and suppliers Suppliers are responsible for transferring the property to the lessee Thus, reducing the warehousing costs, wear and tear during the lessor reserves, also not reserve inventory therefore revolving loan should help faster.
The lessor may avoid the risk that if the lessee refuses to receive the assets because of technical errors, because the lessee directly receives the product from the vendor and has made acceptance of the transferred assets.
The lessor does not need to be concerned about the operatenal status of the property because the installation, maintenance and repair of the product are the responsibility of the vendor and the lessee. b Purchasing and subleasing
Purchasing and subleasing is a special form of financial leasing of three parties, including the lessee is also asset suppliers.
The theory of management of financial leasing asset -c se 24
1.2.1 The concept of management of asset in the financial leasing
Management of asset in the financial leasing activity is the implementation of the monitoring and inspection of the asset and equipment during the implementation of the contract: since the handover of assets until liquidation the contract in order to classify and evaluate the assets, warned about the use of assets to ensure the quality of credit At the same time, the management of rental properties must be in terms of both physical assets and value.
1.2.2 Content of management of asset in the financial leasing
Standing on a point of view - property lease, financial leasing companies must manage their rental properties The content of leasing asset management may be divided over time as follows: a The process before handing over of asset:
If the asset has the stage of manufacture, installation, commissioning, the lessors and lessees monitor, transfer and accept the asset.
Registering the financial leasing contracts in Central property transactions Register - the Ministry of Justice Results of registraten must be made in writing with the seal and signature of the competent authority.
For vehicles in circulation must be registered by the provisions of the State, the management of asset Department prepares the paper records and implements the registraten as prescribed After the registraten, the original paper records are kept, and the medical records are transferred back to the lessee.
For vehicles must be registred to circulate by the provisions of the registry agency, the management of asset Department prepares the paper records and implements the registraten as prescribed The original registry records are transferred to the lessee, and the lessor keep the medical one.
Negotiate, negotiate terms, scope of insurance and making insurance contract.
The insurance contract must clearly reflect the insurance beneficiaries is the
24 lessor, the scope of insurance consistent with operatenal characteristics and the operaten of the assets.
- Recognizing the state records of origin, engineering, condition to the database before handing over All the records transfer to customers should be made in delivery records for checking.
- Making the records, history of asset, and planning the test of assets then put into the database.
- Tagging and handing over the asset. b The process after hand over and use the asset In the process after the assets are transferred to the lessee, the main task of asset management is to monitor the entire physical changes and the value of assets in the duraten of the financial leasing.
Earlier every 06 months, the department of asset management plans the inspection of assets each times, each region (North - Central - South).
- Managing the records of asset includes: o Certificate of registraten o Operating license:
" Registering for vehicles of transportation, special-motor vehicles
= Registering for river ships, waterway vehicles: checking yearly
= Registering for seagoing vessels: each certificate of each item components in the board has its own deadline of time, the deadline depends on classification of ship.
= Register for cranes, tower cranes.
= Verifing the pressure assets. o Certificates of insurance: validity period o The records of inspecting assets
- The situation of asset: o The adequacy of assets o Purpose of using assets o Time of using assets o Scope of using assets o Change, depreciation of assets o Failure and replacement of assets - The situation of use, maintenance and preservation of assets:
Regular maintenance has implemented fully and properly or not.
The preservation of assets during use and at the end of operating hours.
The driver of means have full license or not (with some vehicles and machinery required for the operator license).
Safety equipment and infrastructure to ensure the safe operaten, proper technique.
Assessing the profitability of the asset (asset ‘s involvement in production and business activities and generate revenue for clients).
The process after the end of contract
Register of removing the financial leasing contracts in Central Register of property transactions - the Ministry of Justice.
In the case of the lessee repurchases, the department of asset management delivers the legal and original records to the buyer in order to transfer the ownership of assets from the lessee to the purchaser.
In case of the lessee does not repurchase the assets, the department of asset management performs the jobs for supporting the company of valuation gives the value of assets for sale, or for continually leasing.
1.2.3 The indicators for managing the financial leasing asset
In order to effectively evaluate the management of financial leasing assets, we can use the following criteria:
The rate of loss or misplacement of assets o Meaning: to express the rate of asset is not found, lost through a cycle of inspection, this criteria not only evaluates the effectiveness of management of asset, but also evaluates the risk assessment when payback the capital.
Calculation: (The number of assets is lost, not found)/(Total the number of assets is inspected) o This rate is meant to be good if it is below 0,5%.
The proportion of assets are lost because of flood and disaster o Meaning: to show the proportion of assets of malfunctioning, damage caused by natural disasters such as floods through a cycle of inspection.
Characteristic of the shipbuilding companies is located near the sea sothat they are huge influenced the weather conditions on production and the safety of production.
Calculation: (The number of assets 1s damaged)/(Total the number of assets is inspected through a cycle of inspection)
This rate is meant to be good if it is below 3%.
- The proportion of assets is damaged by the excessive process of extraction and use or by the differences compared to the technical requirements of the assets © ©
Mean: to show the proportion of assets of malfunctioning, damage because of the subjective reasons from the lessee used over a cycle of inspection This indicator evaluates the capabilities of managing asset by the lessee, then it could put the additional measures immediately to avoid the unwanted loss in the future.
Calculation: (The number of assets is damaged)/(Total the number of assets is inspected through a cycle of inspection)
This rate is meant to be good if it is below 5%
- The rate of assets to be insured © ©
Mean: represents the number of assets 1s being 1nsured In one year This indicator is very important for the assessment of risks to the credit.
Calculation: (The number of assets to be insured)/(The number of financial leasing assets in one year)
This rate is meant to be good if it is over 80%
- The proportion of assets to be renewed insurance © ©
Mean: represents the number of assets to be renewed insurance in one year This rate evaluates the monitoring of managing and buying the insurance of assets.
Calculation: (The number of assets to be renewed insurance)/(The number of financial leasing assets expried the insurance in one year)
This rate is meant to be good if it is over 85%
- The rate of evaluating the profitability of assets: the assets have been engaged in production and business processes of customers and generated their revenue or not © ©
Mean: represent the assets are used and generated the revenue in the process of production and business activities of the customer or not.
Calculation: (The number of assets involved in the process of production and business activities)/(Total the number of assets in one year)
27 o This rate is meant to be good if it is over 70%
- The rate evaluates for selling off and recovering the bad debt o Mean: represent the effectiveness of selling off the asset and recovering the bad debt for the assets are not involved in the business activities of the customer and the customer is not able to pay the financial leasing liabilities. o Calculation: (The number of assets to be sold off)/(Total the number of assets which the customer is not able to pay the financial leasing liabilities) o This rate is meant to be good if it is over 60%
In addition, the assessment of the management of financial lease assets is also seen through the assessment of the level of credit risk of assets and leases Credit risk is represented by the customer's overdue debt and the customer's overdue debt ratio on the total outstanding balance of a financial leasing company Some indicators to assess asset management on a value perspective include:
- Recovery criteria o Significance: demonstrates the effectiveness of asset management in recovering the principal of financial leases. o Method of calculation: (Actual net debit)/(debt receivable) o This rate is understood to be good if the rate is over 80%
THE SITUATION OF MANAGEMENT OF THE FINANCIAL
Overview of Vinashin Financial leasing Company - -s-cccscsscseeres 31
2.1.1 The foundation and development of the Company
The VFL company is State Leasing Company was established and operates under license for establishment and operaten No.79/GP-NHNN of Vietnam State Bank granted March 19, 2008, the certificate of business registraten and tax registraten of limited liability company No.0102718939 by the Department of business registraten - Department of Planning and Investment in Hanoi the first time on 10/04/2008, registering changes 8th on 04/04/2016 The company officially put into operaten on 17/07/2008 with the initial charter capital of 100 billion VND.
VFL company is an independent accounting company and operates mainly in the field of finacial leasing, owner of Vinashin Finance Company VFC is a State Finance company belonging to Vietnam Shipbuilding Industry Corporation, manufacturer of Vietnam Shipbuilding In 2008, Vietnam shipbuilding ranks fifth in the world about the value of the order, in which Vietnam Shipbuilding Industry Corporation accounted for over
As a financial intermediary, with the identification of the customer is the center of financial leasing Operatenal objectives of the Vinashin finance leasing companyas a bridge between financial investors, manufacturers, suppliers to customers of financial leasing In particular, the strategic and longterm objectives of the Vinashin finance leasing companyis to become a bridge between Shipbuilding Industry Corporaten with customers are domestic and foreign ship owners Through the operaten of financial leasing, the Vinashin finance leasing companywill a channel of investing the capital of Shipbuilding Industry Corporaten for the member units.
As of December 31, 2015, after nearly ten years, Vinashin finance leasing company is a financial intermediary with a charter capital of VND300 billion.
Name of company Vinashin Financial leasing Company
Name of transaction Vinashin finance leasing Head office No.120 Hang Trong street, Hoan Kiem district, Ha Noi
Ower: Vinashin Finance Company The certificate of No.0102718939 Department of Planning and Investment in business registraten: Hanoi the first time on 10/04/2008, registering changes 8th on
Finance - Leasing Since its establishment, with nearly 10 years operaten, but the board and the employees are identified:
The long-term strategy of the development is as a bridge between Shipbuilding Industry Coroperaten and the shipowners customers in Vietnam and abroad.
In shortterm, the Vinashin finance leasing companyidentifies the common goals are enlisting additional investment needs of the equipment in shipyards, financial leasing, on the one hand to exploit effective immediately for equipment; on the other hand is to build long-term partnership with Vietnam shipyards, making a basis for implementing long-term development plans.
2.1.2 Characteristics, main activities of the Company a Characteristics of the Company b
Exploit the internal funds, foreign currencies under the provisions of law and the State agencies competent to fulfill capital the requirements for financial leasing.
Implementing the financial leasing operatens for enterprises established under the laws of Vietnam in accordance with the regulations on financial leasing of the State, the State Bank, Limited Shipping Industry Finance Company; ensuring the principle of efficiency, conservation and development funding.
The main fields of activities of the Company
The activities of owners: o Financial leasing o Purchasing and subleasing through the financial leasing o Shortterm loans for the lessee o Implementation of factoring for the lessee The activities of liabities:
32 o Accepting the deposits, loans from organizations and individuals at home and abroad o Issuing bonds, deposit certificates and other valuable papers to mobilize capital at home and abroad o Receiving capital entrusted to financial leasing o Buying the receivables from financial leasing contracts - Other activities: o Get entrusted asset management, including the lessee's rights o Investment consulting, financial advisory to financial leasing clients o The financial products
2.1.3 Characteristics of the management system of the Company a The principles of organization and administration - The Company is managed by Limited Shipbuilding Industry Finance Company about the capital, the strategic development, the organizational personnel and by the management of the State Bank about the content and scope of operatens breast.
- The company carries out operatens in accordance with the law on finance, credit, financial leasing and completely responsible before the law for all its business activities.
- The company is subjected to the management, inspection and supervision of the
SBV and VFC. b The organizational structure of the company The VFL company was held in the form of a subsidiary of Limited Shipbuilding Industry finance company, with its own legal personality.
The company officially put into its operaten with a simple organizational model under the basic array operatens of a financial institution, initially with 19 employees are divided into three blocks (business, supervise and support) to match decentralization and monitoring, ensuring consistent and efficient business operatens early stages.
Currently, in order to meet compliance with the operatens as well as the requirements, the organizational model was reorganized with 19 staffs on 31/12/2015 The organizational structure of the company is reflected in the following diagram:
Figure 2.1: The organizational structure of VFL company
- Business includes: Customer and Evaluation departments, Department of
- Supervise and support includes: General Division, Risk Management Division,
- The internal audit department under the control Board.
To meet the requirements of growth and sustainable development, Vinashin finance leasing decided selection the consulting firm and auditing consulting partner KPMG is re- designed management structure coupled with the completion improve business processes and manage risk In 2011, KPMG has completed the organizational restructuring and build the key business process and operatens.
Currently, the functions of managing assets are under the department of customer, with the functions and duties as follows:
- Lead the implementation related the professional asset management and insurance operatens.
- To provide professional guidance to other staff performs the function of tasks by the Head of Customer department and Director.
- Implementing the report and take responsibility before the Head of Customer department and Director about the results of its operatens of Asset management.
- For Risk Management and Internal Control department: o Be directly administrated by Director, developing the policies and risk management strategies of the Company for the Directors Board of Directors approve.
Administraten o Develop, establish systems of risk identification, risk scenarios and responses. o Collect and manage the general economic information and information of economic sectors related to the business strategy of the Company. o Combined building the online information system of Director for all customers, creating updated systems of market information, analysis and evaluation of the new product forecasting. o To advise the Director on the organization and planning to implement the risk management of the Company. o Manage and monitor risk management activities as assigned or authorized by the Directors each period, to ensure safety, efficiency and compliance with the current regulations.
2.1.4 Overall performance of the Company
- Activities of mobilizing capital Mobilization of capital is one of the major activities and the most important activities of credit institutions This activity provides the capital for Vinashin finance leasing company can perform other activities such as providing for credit and financial services to customers.
With specific activities in the field of supply of medium and long-term credit, the consistent view of Vinashin finance leasing company is mobilizing the medium or long- term capital is a fundamental solution to liquidity management Therefore, Vinashin finance leasing company has always focused on developing the tools to mobilize the long- term capital Besides, deposit and short-term investments through the currency market, the valuable papers is focused to improve the income and daily liquidity guarantee for Vinashin finance leasing company.
According to Decree No.16/2011/ND-CP dated 02/05/2001 of the Government about the organization and operaten of the financial leasing companies, the financial leasing company is to mobilize capital from the following sources: term deposits received from a year or more of the organizations and individuals in accordance with the regulations of the State Bank; Issuing bonds, deposit certificates and other valuable papers with maturity of over one year to mobilize capital from organizations and individuals at home and abroad as approved by the State Bank; Loans from financial institutions, domestic and foreign credit; Get other capital sources stipulated by the State Bank.
Table 2.1: Structure of deposits of VFL company (2009-2011)
No Criteria Proporti Proporti Proportio
Exchange Exchange Exchange on (%) on (%) n(%)
Deposit of credit 1 813.000) 84 806.815) 87 759.920| 86 institutions 1.1 |Vinashin finance company 633.000) 65 746.815} 80 699.815) 83
Loans from credit 2 37.500} 4 32.500} 3 33.360 4 institutions 2.1 |Vinashin finance company 17.500} 2 32.500 3 33.360 4 2.2 |Other institutions 20.000} 2
Structure of deposits of VFL company (2012-2015)
No Criteria Propo Propor Propo Propo
Exchange] rtion | Exchange | tion |Exchange| rtion | Exchange | rtion
(Source: Audited Financial Statement of Vinashin finance leasing company period from 2009-2011 and 2012-2015)
Situation of financial leasing operatens in VFL company
a Status of financial leasing activities of VFL company Financial leasing activities of VFL company are currently deployed mainly financial leasing with the participation of three parties (lessor, lessee and vendor), and Purchase and sublease in form for financial leasing These are the main activities brings the revenue for Vinashin finance leasing company.
From its inception, VFL company identifies the short-term goals are enlisting additional investment needs of the equipment for shipyards, lease the shipbuilding devices for effective implementation.
Defining those objectives, the activities of VFL company focused on market segments of the member of Vinashin In 2008, thecompany implemented the operatens with total leasing sales is 67.2 billion VND The financial leasing activities continued growth, in 2009, sales increased by 345% and loans to more than 406% compared to 2008.
This is the result of, VFL company actively promote the leasing service for state-owned enterprises and non-state enterprises.
To date 31/12/2015, VFL company put the official relations of credit for 24 customers, including 17 customers were the members of Vinashin and 7 external customers The financial leasing sales in 2010 fell sharply to 90%, the loans decreased 2.64% compare with 2009 And in 2011, the results of operatens and business of VFL company even more serious decline, sales just over 3.5 billion, down 87.99% compare with 2010; Sales of debt and rates also fell sharply as shown in Table: Results of financial leasing activities in VFL company (2008-2015) The financial leasing activities in 2010 and 2011 declined because the impact of the global financial crisis through the impact on sea transport, Vietnam shipbuilding industry and Vinashin led to the ability to mobilize capital decline seriously.
In 2012, the company just signed 02 new contracts and from the period 2013-2015, company focuses primarily on recovering and handling the bad debts, the sales reached 3.6 billion VND, the revenue reached 7.7 billion VND.
Table 2.6: Results of financial leasing activities in VFL company (2008 - 2015)
No Year Leasing sales Loans recovering the | recovering the original debt benefit
(Source: Audited Financial Statement of Vinashin finance leasing company period from 2008-2015)
Figure 2.3: Loans and finance lease sales in VFL company (2008-2015)
350000 300000 250000 200000 150000 100000 50000 b Credit outstanding of VFL company At 31/12/2015, total loans of VFL company are 269.807 billion; total financial
@ Loans leasing customers are affiliates of Vinashin Credit quality of financial leases are significant losses, the rate of bad debt has risen sharply since the second quarter of 2010.
In recent years, the business situation of VFL company fell into the most difficult period since its establishment, all targets of the plan are not achieved The main difficulty in the work of handling the assets are all affiliates of Vinashin Besides that, some rate of sales, income, profitability, credit quality are not achieved Credit quality of financial
43 leases continued to drop significantly, the results of debt classification at the time of 31/12/2015.
Table 2.7: Results debt classification at the time of 31/12/2013 -31/12/2015
1 |Eligible debt |Group 1 2 |Noted debt |Group 2
Through the above table, we can see that the credit quality declines seriously, increases the bad debt rate, especially with irrecoverable debts (Group 5) the proportion is very high in total loans Therefore, the risk management of assets in VFL company needs to be permanent. c Structure of financial leasing loans by customer
Because the impact of the financial crisis and global economic slowdown, the shipyards of Vietnam in general and in particular Vinashin inability to raise additional capital to invest in additional equipment and facilities With the nature is a financial leasing company in Vinashin, the company identified short-term goal is enlisting additional investment needs of the equipment in Vinashin Shipyard to investment focus, the leasing devices serve the shipbuilding industry.
Table 2.8: Structure of loans in VFL company (2013-2015)
(Source: Report of the credit structure in Vinashin finance leasing company 2013 - 2015)
Figure 2.4: Structure of customer loans in VFL company (2013 - 2015)
Gi Debt of state companies B Debt of joint stock companies
Considering the correlation compared with the other leasing companies are the member of the leasing Association of Vietnam, the Vinashin finance leasing company has the proportion of loans for state-owned enterprises in the second after Vietcombank financial leasing company.
Table 2.9: Structure of loans in the leasing Association at 31/12/2015
No Leasing company State-owned Joint stock
Total Amount |Propotion| Amount |Propotion
964.165 925.245 d Structure of financial leasing loans by economic sector
The structure of leasing loan by economic sector in Vinashin finance leasing company is the result of short-term goals of the company After nearly 10 years, the debt of Vinashin finance leasing company focus on the 65% in building industry and ship repair — the specific business Along with the leasing structure descending from the field of shipbuilding and ship repair, Vinashin finance leasing company gradually adjusted to the field of transport, construction and other industries In 2015, the propotion for production and process had the main debts, accounted for 92,92% of total loans.
Table 2.10: Structure of financial leasing loans by economic sector (2012-2015)
266.242 82,72%| 262.134 91,93% 250.694 92,92% and process (Source: Report of the credit structure in Vinashin finance leasing company 2013 - 2015)
From its inception, Vinashin finance leasing company focused its resources on customers in Vinashin (customers are State-owned enterprises) and mainly on production and process of ship building industry However in the next years, Vinashin finance leasing company diversified the leasing customers are non-state enterprises and other industries such as storage and transportation, construction and other industries, but the proportion loans of customers in production and process of ship building industry still account for a large proportion, accounting for over 82% of total loans in 2013 Vinashin finance leasing company violated the principle of diversification of objects through economic sectors and in the field of business, this will inevitably lead to greater risk of credit because the shipbuilding industry depends much on natural conditions, the volatility of raw material in domestic and abroad markets Entering the year 2014 and year 2015, the rate of debt of industries still no change compared with 2013, because of no growth in credit.
2.2.2 Situation of financial leasing operatens in VFL company a The leasing assets of VFL company Financial leasing assets of VFL company include: automobiles, boats, mining machinery, production lines, and other assets Due to the characteristics of a Vinashin company, from the first day of establishment, the company has leased assets for equipment used for building and repairing ships of Vinashin shipyards.
In the present time: the number of leasing contract in VFL company is 55 contracts with hundreds of large and small assets, wide operating areas with many different categories (including vehicles, boats, equipment for shipbuilding industry, ) In the structure of leasing assets, most of assets are dedicated to serving shipbuilding industry.
Classifing by the category of asset
No Classification Quantity | Value (million VND)
01 | Boats — water transportation 07 104.326 02 |Construction machinery 02 3.128 03 | Motor vehicles 05 7.264 04 | Transportation and lifting equipment 32 53.682
05 | Cranes 27 60.332 06 | Equipment for mechanical process 31 70.613 07 | Production line 06 99.268 08 | Welding equipment 254 24.506
Figure 2.5: Percentage value of assets classified by categories
Figure 2.6: Number of assets in and outside shipbuilding
Figure 2.7: Percentage and value of asset in inside and outside shipbuilding industry
Figure 2.8: Distribution of assets according to geographical area
@ Da Nang, 6 — ® Quang Ninh, 10_/ ®# Thai Binh, 5
48 b The current status of the asset management in terms of time The management of financial leasing assets in VFL company divided by the time in the past few years has the following problems:
* The process before handing over the property:
At this stage, VFL company has fully fulfilled the responsibility of the asset supervisor for all signed leases Accordingly, 100% of assets have complete records of pre- acceptance test, installation and handover of assets for use Vinashin finance leasing company also registered the financial leasing contract at the Transaction Center - National Registry of Secured Transactions - Ministry of Justice For vehicles that have to register for circulation and registry are cars, boats the asset management department of Vinashin finance leasing company has carried out registration procedures in accordance with regulations After registration, the original documents have been kept by the Vinashin finance leasing company, while the copy of the copy is transferred to the lessor to save for the move In addition, the property management department also makes insurance contracts for rental properties In the contract, the insurance must show clearly that the insurance beneficiary is Vinashin finance leasing company, the coverage is appropriate to the operating characteristics and operating area of the asset After completing the registration, registration and authorization procedures, the asset management department has also recorded in the status file records of the source, the status of the property into the database and the minutes of handing over the records required for the solder kept As soon as the property is completed and put into use, the asset management department plans to check the property periodically to be included in the database.
* The process after the property is handed over to use In the process after the asset has been handed over to the lessee, the main task of asset management is to monitor the entire physical and financial volatility of the asset over the lease term Usually in the past few years, the team of asset management has combined with customer relations departments to conduct periodic inspections and assess the status of leased assets Inspections take place on the first week of June and December of the year.
Solutions for improving the management of leasing asset management in
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 do 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-NHS 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.
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 do 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.
Solutions to improve the management of financial leasing assets in Vinashin
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.
- 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.
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.
01 |Area activities There is within contractual commitments or not ơ There are suitable technical characteristics of
02 |Conditions of use assets or not
Exceeds a certain level Within the limits allowed level
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, do 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 3 months /1 time
64 o Using the frequency of 3 to 6 months/1 time o Using the frequency of 1 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.
- The duration of valuation for the asset groups as follows:
No 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 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 Assessment at the time of appraisal 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 traHsƒfer pÌan 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 © Step 4: Signing the record, the agreement confirms liabilities and responsibilities, the rights of the parties to make a plan for transfer of assets
Step 5: Prepare plans and coordinate implementation of a safe transfer of assets, savings, rational regulations.
Step 6: Update the changes to the system of property asset management data.
- For cooperation to leasing, mining assets: © Step 1: Review of client assets without the need to use without paying debts.
Step 2: To find alternatives asset management system, customer, market and reference customer plans in order to offer the research evaluation.
Step 3: The agreement on the mechanism for lease, units responsible for management, methods of managing the cash flow, maturity.
Step 4: Signing the record, confirmed the responsibility agreement, the rights of parties to implement the leasing, asset exploitation.
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.
- 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.
Recommendations and prop0saÌS - - G1211 1S 1S ng ng ng rưy 70
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.
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 © 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: © Facilitating the assets registration in registry offices where the property is close to the most.
Facilitating the property owner (the financial leasing company) have access to the information portal of the state registry of assets.
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 Short- term 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.