Results of the activities of the Financial Leasing industry in 2024
According to statistics from the Vietnam Financial Leasing Association, total assets as well as capital mobilization and credit activities of the CTTC industry have a fairly good growth rate.
Specifically, the total assets of member companies reached over VND45 trillion, an increase of 10.36% compared to 2023. The total mobilized capital is VND 23.4 trillion, an increase of 18.1% compared to 2023, with a capital mobilization increase of 1.5 times the overall increase of the entire credit institution system.
Total CTTC outstanding loans of member companies reached VND40.5 trillion, up 8.6% over the end of 2023, equal to more than 50% of the overall increase of the whole system, the reason being that some member companies had to focus on handling debts, restructuring customer portfolios and products; CTTC outstanding loans increased steadily over the quarters, with the number of lease contracts for the whole year being 9,669 contracts, up 15.8% compared to 2023.
Especially for financial leasing subjects that are increasingly diverse: Leasing of cars of all kinds with outstanding loans of VND 8.3 trillion, up 26.2% compared to the end of 2023; Outstanding loans for construction machinery and mining equipment of VND 3.0 trillion, down 6.79%; Medical equipment of VND 264.3 billion increased by 62.9%; Production lines at a stable level, outstanding loans reached VND 6,955 billion, down slightly by 2.18% compared to the end of 2023.
The bad debt ratio at the end of 2024 is controlled at an average of 1.68%, an increase of 0.68% compared to 2023. Total risk reserve fund increased sharply by nearly 200 billion VND, up 75.2% compared to 2023. Pre-tax income of member companies decreased by 24.33% compared to 2023.
2025 orientation of the Financial Leasing industry
Mr. Pham Xuan home - Economic expert, General Secretary of the Vietnam Financial Leasing Association said that 2025 is a year with many difficulties for the economy in general. Therefore, the Vietnam Financial Leasing Association recommends that member companies be proactive and conduct in-depth research on the market and industry, while being creative in their business activities to grow outstanding leased loans safely and effectively.
The general outstanding debt of the CTTC industry is expected to grow by about 18-20%, focusing on means of transportation, new technology production lines and office equipment with the general orientation of strongly increasing green credit to support businesses and business households to develop green and sustainably. At the same time, focus on handling arising bad debts, increasing income from recovering bad debts that have been provisionally set aside" - Mr. Hoa said.
In addition, the Association will coordinate with members to remove institutional points that are causing difficulties for CTTC's operations such as: The rate of payment safety within 30 days is still too high compared to the specific operation of VND CTTC; Regulations on reporting information on relevant people when granting credit not in accordance with CTTC's credit grant; Seeking opportunities to remove difficulties for CTTC when registering for new issuance, issuing and changing motor vehicle license plates when BCA amends Circular 79/2024/TT-BCA.
