The Financial Leasing Company II, set up seven years ago as a member of the Bank for Agricultural and Rural Development (Agribank), has made outstandingly bold breakthroughs and is highly valued by its clients for its efficient and secure services. In May 2005, the company was awarded the Third-grade Labour Medal for its stable development during the integration process and its contributions to the country.
The Financial Leasing Company II was set up when the Asian financial and currency crisis was at its worst and was badly affecting the Vietnamese economy. The crisis led to continuous deflations, fluctuating interest rates and fiercer competition among banks in the country. Also at that time, legal framework for financial leasing were insufficient and asynchronous. However, by bold and prudential breakthroughs, the company confirmed its clients’ trust by introducing new services and utilities and raised Agribank’s trademark to a new high in the global economic international process.
As of late fiscal year 2004, the Financial Leasing Company II had a total circulating leasing asset value of VND4,000 billion (US$250 million). The company had nearly 2,000 clients and thousands of leased assets. The firm had a lot small and medium-sized enterprises clients being. Its outstanding leasing debts constantly increased: 225 per cent in 1999, 125 per cent in 2000, 88 per cent in 2001, 73 per cent in 2002, 72 per cent in 2003 and 86 per cent in 2004. Its chartered capital has been also raised from VND55 billion (US$3.44 million) to VND150 billion (US$9.38 million). Presently, its working capital has jumped to VND2,250 billion (US$140.63 million), of which its owned capital is VND735 billion (US$45.94 million) or 33 per cent of the total. The company’s profit also increased year after year from 5 per cent in 2000 to 33 per cent in 2001, 2 per cent in 2002, 72 per cent in 2003 and 134 per cent in 2004.
On the other hand, its transaction network has also been expanded, domestically and internationally, with lessees, providers, insurers, supervisors, consultants and others from nearly all social fields. The company’s services have helped many enterprises to play a part in projects in many provinces and cities, such as healthcare, transportation and industry. In particular, when Vietnam enters the AFTA and WTO, it will pressingly need to renew machinery and technology. And this is a very good chance for the financial leasing service to develop.
The successes of the Financial Leasing Company II under Agribank and other financial leasing firms in Vietnam have proven the opportunities and potential available to financial leasing services. The Financial Leasing Company II is determined to fulfil all its tasks to bring Agribank to new successes and contribute to national industrialisation and modernisation.
Anh Dao
Vietnamese
