Lessons learned for financial leasing companies in Vietnam from the breakdown of agricultural finance leasing companies II

Abstract

In recent years, especially from 2009 to the present, financial leasing activities of Vietnam's finance leasing companies have experienced considerable fluctuations. Typically, the operation of Agricultural Finance Leasing Company II (ALCII) has a bad debt ratio of 100%, losing liquidity. The risk of ALCII breakdown is indispensable and consequently affects economic growth, reducing the prestige of the parent bank, affecting the interests of private homes. Obviously, the operation of ALCII is ineffective due to the reasons arising from the policy mechanism of the Government, the VBARD, the fluctuation of the world economy ... Besides the red cause the human causes. Rent, rental provider, qualifications and ethics of the auditor of lease assets of ÂLCII. For these reasons, the Government, SBV and VBARD should have practical solutions to mitigate the risks of ALC II's financial leases, in order to develop ALCII's financial leases in time.