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RENTING COMPANY IN VIET NAM | Advantage| Disadvantage| Market| Viet Nam is considered being a great potential market to get developing economical leasing actions. In Vietnam, this form of credit is very suitable for small , and medium organization, so the range of small and medium enterprises are the cause of more than 95% of the count of enterprises created a big demand and practical for financial leasing services.

The fundamental reason of this require comes from the aspects including: * The urgency of innovation of equipment, machine and technology to get enterprises * The limited capital options for small and medium-sized enterprises| Actually leasing firms have not found a suitable marketplace segment.

Numerous small and channel enterprises in Vietnam are definitely the target consumers of the renting companies have no idea of or have little information about accurate benefits of economical leasing services.

Above downside is due to pursuing main reasons: * It is difficult to improve habits of Vietnamese businesses: When they will need capital to renewal technology, they often borrow from the banking institutions * The propaganda, distributing information, and access the leasing business customers remain limited. | Market share| At the present, there are 12 companies operating in economical leasing field, so the competition is not really great.

Companies can share the market discuss and generate profit| | Legal | | Approach to law inside the financial leasing activities is definitely asynchronous and inadequate: specifically, the procedures on settlement of differences, asset recovery, asset sign-up is not consistent| Capital | | In fact , the main city of the leasing company is extremely small , while credit activity of this type of organization is the moderate and long term (1 year or more).

On the other hand, It is rather difficult to raise capital to leasing company in Viet Nam, which will mainly depend on the bank’s loans but State Bank regulations about these loans are really strict| Negative debt| | In 2012, leasing companies have highest negative debt ratio in the list of credit institutionsFor example: Awful debt rate of the procurment companies in Ho Chi Minh Town went up to more than 50% by mid-2012The difficulties inside the recovery of assets because of incomplete basis legal is among the most drawback to the rental company| Recruiting | | Lack of competent staff and manager.

Ongoing recruitment bring about waste considerable time and money and have much negative influence on business activities of business. | http://taichinh. vnexpress. net/tin-tuc/goc-chuyen-gia/2012/09/cong-ty-cho-thue-tai-chinh-be-tac-trong-xu-ly-no-xau-21085/ http://www. vcci. com. vn/dau-tu-tai-chinh/20130121092728839/loi-thoat-nao-cho-thue-mua-tai-chinh. htm

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