Financial leasing is one of the few equipment financing channels Vietnamese enterprises use widely, and its provider — the financial leasing company — is a non-bank credit institution licensed by the State Bank, even where 100% of its capital belongs to a foreign leasing group.
Legal basis
- Law on Credit Institutions 32/2024/QH15: a financial leasing company is a non-bank credit institution; establishment conditions and procedures and the scope of financial leasing activity.
- Decree 39/2014/ND-CP on operations of finance companies and financial leasing companies: detail of leasing operations and party rights and obligations in leasing contracts.
What conditions apply to foreign-invested financial leasing?
Establishment conditions for a foreign-invested financial leasing company include: the legal form of a limited liability or joint stock company licensed by the State Bank with an establishment and operation licence; minimum legal capital of VND 150 billion fully contributed; foreign owners and capital contributors that are reputable financial institutions or leasing companies in their home jurisdiction, meeting financial capacity and leasing experience conditions; management and executive staff meeting State Bank standards on qualifications and finance and leasing experience; and head office, risk governance and internal control systems fit for a credit institution. Unlike the mindset of a trading company renting out machinery, a financial leasing company bears the full credit-institution safety supervision regime: credit exposure limits, debt classification, provisioning and supervisory reporting to the State Bank.
What is the minimum capital, and where is the licence obtained?
The legal capital of a financial leasing company is VND 150 billion — fully contributed before licensing and maintained throughout operations as a licence condition. The establishment and operation licence is issued by the State Bank of Vietnam; the dossier comprises the application, charter, foreign owner and group leasing-capacity files, proof of capital contribution, the business plan, management personnel files, and operating and risk governance procedures. The appraisal point specific to foreign investors is genuine leasing operating experience in the home market and the parent group support commitment, because the State Bank assesses a financial leasing company as a credit institution, not as an equipment distributor.
How does financial leasing differ from lending?
Three fundamental differences. First, asset structure: in lending, the bank gives money and the customer buys and owns the asset from day one; in financial leasing, the leasing company buys the asset as designated by the lessee and keeps ownership throughout the lease, the lessee holding only use rights — at contract end the lessee may buy the asset, extend the lease or return it as agreed. Second, risk handling: retaining ownership makes asset recovery easier than cash-debt recovery, in exchange for managing residual value and the resale market. Third, funding scope: a financial leasing company does not take individual deposits like a commercial bank; funding comes from equity, valuable paper issuance and borrowing from credit institutions within the regulatory frame. For enterprise customers, financial leasing typically suits high-value, long-life machinery, production lines and vehicles with good liquidity value.
Frequently asked questions
What conditions apply to foreign-invested financial leasing?
Establish a financial leasing company — a non-bank credit institution under the Law on Credit Institutions 32/2024 — with VND 150 billion of legal capital fully contributed; reputable foreign owners that are financial institutions or experienced leasing companies; management meeting SBV standards; and credit-institution safety supervision.
What is the minimum capital?
VND 150 billion of legal capital, fully contributed before licensing and maintained throughout operations as a condition of the establishment and operation licence.
Where is the licence obtained?
From the State Bank of Vietnam, which issues the establishment and operation licence for financial leasing companies and appraises both the parent group leasing experience and the Vietnamese company risk governance capacity.
How does financial leasing differ from a loan?
In leasing, the company buys and owns the asset while the lessee uses it and may buy it, extend or return it at expiry. In a loan, the customer receives money, owns the asset immediately and repays cash. A leasing company also takes no individual deposits like a bank.
This article has been quality-reviewed by the FLAW AI Legal Council