HÀ NỘI — Financial leasing reached nearly VNĐ40.7 trillion (US$1.6 billion) at the end of the first quarter of this year, representing an increase of 8.4 per cent year-on-year, Vietnam Financial Leasing Association (VFLE) said, urging solutions to promote the role of financial leasing in the economy.

The increase comes amid a complicated global landscape, with geopolitical pressures and spiralling trade tensions, but with a robust domestic market with a solid GDP growth of 6.93 per cent in the quarter, supported by strong public investment and a trade surplus of $5 billion.

However, the total outstanding lease balance was flat compared to the end of 2024, due to the impact of rising bad debts, the association said.

Financial leasing was sound in several categories, such as for cars, up 26.4 per cent to VNĐ8.5 trillion, ships up 79.44 per cent and medical equipment up 50 per cent.

Working capital loans expanded by over 40 per cent to VNĐ30 billion, thanks to regulatory easing.

The association has set the goal of expanding total leasing outstanding to VNĐ300-500 trillion over the next five years, in line with the Poliburo’s Resolution 68 on private sector development, which represents an annual growth rate of 60-70 per cent.

To achieve this goal, the focus should be on increasing long-term financing, especially for small- and medium–sized enterprises (SMEs) in production technology renovation and digital transformation, the association’s General Secretary Phạm Xuân Hòe, said.

The focus should also be on green finance with the integration of environment – social – governance (ESG) criteria, he said.

It is necessary to diversify funding sources from banks, international partners, bond issuance to improve lending capacity, he added.

Hòe called for the development of a financial leasing law within the next 3-5 years, to create a solid legal framework for the sector. — VNS