FAQ

Q: What is finance leasing ?

A: Finance leasing is a long & medium term credit for use of production equipment and other movable assets. VILC pledges to buy equipments and other movable assets as request of the lessee and holds the ownership title over the equipment during the lease term. The lessee holds the right to use the equipment and pays lease payments over the lease term as agreed by the lessee and VILC. At the expiry of the lease term, the ownership title over the equipment is transferred to the lessee.

Q: How about the term ?

A: The lease term is from 1 to 5 years

Q: What kind of equipment can be leased?

A:

  •   Industrial equipment

  •  Construction equipment

  •   Means of transportation

  •   Office equipment

  •   Medical equipment

  •   Auto mechanic equipment

  •   Measuring, scaling equipment

  •   Others

Q: What kind of currency can be leased?

A:

  • VND

  • USD (US dollar) in condition of equipment imported and the lessee having appropriate USD source (exporting products).

Q: How long does the credit appraisal?

A: It usually takes from 3 days to 10 days

Q: As terminating the contract and transferring the title, does the lessee who leases vehicle has to pay the registration fees once again?

A:     No. You will not be charged once more.

Q: How about the interest rate?

A: Depending on lease term; security deposit and down payment, the interest rate will be negotiated and it is suitable for the prevailing market

Q: What documents does the lessee need ?

A:

  

Lease Request

Labor contract or income identification

Establishment
licence

Business Registration Certificate

Company
charter

 

Tax code sheet

Financial statements

Projection
(if any)

 


(1)


(2)


(3)


(4)
 


(5)
 


(6)
 


(7)
 


(8)
 


Limited company, joint stock company
 

X

  

 

X

X

X

X

X


Foreign invested company
 

X

  

  

X

X

X

X

X


State owned company
 

X

  

X

X

X

X

X

X

From (2) to (6): notarized

 

Q: How many percent does the client often contribute to acquisition cost ?

A: VILC does not request mortgages from the client. So, the lessee is usually requested to contribute 10% - 30% of acquisition cost.

Q: How can I account the expenses from lease equipments?

A: The lease payment include the principal and interest will be collected monthly or quarterly, VILC will issue official invoice for you and you can account for operation expenses and depreciate lease equipments.

Q: Is it necessary to buy insurance for lease asset ? Who will pay the insurance fees?

A: All of lease assets must be insured during lease term at Vietnam - based insurance companies. Insurance fees will be paid by the lessee.

Q: What type of business can lease equipments?

A:

  • Limited company

  • Joint stock company

  • State-owned company

  • Foreign investment company (partial or 100%)

  • Other organizations that allowed to use financial lease equipment by the government