Practice Area
Asset Finance Vietnam: Aviation, Shipping & High-Value Assets
Asset finance Vietnam work sits at the centre of our aviation, shipping and maritime practice. IVLF Advisors advises airlines, lessors, shipowners, charterers, lenders, insurers and logistics operators on financing, regulation, insurance and disputes.
Why asset finance Vietnam needs specialist structuring
Asset finance Vietnam transactions revolve around a single valuable asset that can be mobile, foreign-registered and financed across borders. That makes ownership, registration, security, insurance and enforcement more complex than in an ordinary loan.
A well-structured asset finance Vietnam deal makes clear who owns the asset, who bears risk, how the lender or lessor is protected and what happens on default. Getting these points right at the start is cheaper than repairing them later.
Asset finance Vietnam: services
Our asset finance Vietnam practice supports every stage of the transaction.
- Aircraft leasing Vietnam – operating and finance leases, aircraft purchase and financing, delivery and return conditions, and aircraft mortgage and enforcement
- Vessel finance Vietnam – vessel purchase and newbuild financing, bareboat charters and ship mortgages
- Equipment and rolling stock – heavy equipment, rolling stock, mining and industrial equipment finance and leasing
- Sale-and-leaseback – release of capital from existing aircraft, vessels or equipment
- Export credit and ECA-backed finance – structuring around export credit agency support and cover
- Security and registration – registration of ownership and security, security trustee and intercreditor arrangements
- Insurance and risk – insurance requirements, loss payee and assignment arrangements
- Cross-border structures – special purpose vehicles, offshore lessors, tax and withholding planning
- Enforcement and repossession – default, repossession, deregistration and recovery strategy
- Securitization of lease portfolios – residual value risk and lease receivables securitization
Aircraft leasing and finance in Vietnam
Operating leases and finance leases
Aircraft leasing Vietnam work usually starts with the lease structure: an operating lease for flexibility, or a finance lease where the operator intends to own the aircraft. The lease must address delivery, maintenance, insurance, return conditions and default remedies.
Security and registration for aircraft
Lenders and lessors need the aircraft ownership and security properly recorded, with clear rights to deregister and export the aircraft on default. We coordinate these steps with local and international counsel.
Aircraft mortgage enforcement
Enforcement planning is part of the original structure. A lender should know before closing how it would repossess, deregister and sell the aircraft if the operator defaults.
Vessel finance and ship mortgage in Vietnam
Vessel purchase and newbuild financing
Vessel finance Vietnam transactions typically involve a mortgage over the vessel, assignment of insurance and earnings and a clear charter structure. Newbuild financing adds construction milestones and refund guarantees.
Ship mortgage and enforcement
A ship mortgage Vietnam structure should specify registration, priority, insurance and the process for arrest and sale. We advise lenders, owners and charterers on each step.
Aviation law Vietnam: regulatory and transactional support
- Aircraft purchase, sale and lease – purchase, sale, lease and lease-purchase of aircraft between airlines, lessors, manufacturers and guarantors
- Aviation financing and security – loans, guarantees, mortgages and other security connected with aircraft and aviation assets, including export-credit-backed financing
- Establishing an aviation business in Vietnam – representative offices, ticketing offices and agencies of foreign airlines, and local aviation service providers
- Regulatory and certification steps – registration, deregistration and the certificates that protect lenders and lessors, with legal opinions on the transaction
- Aviation insurance – aircraft hull, liability and cargo cover, loss payee arrangements and claims handling
Shipping and maritime law Vietnam: dry works and wet works
Shipping and maritime law Vietnam covers two broad areas: the commercial side of owning, financing and operating vessels, and the incident side when something goes wrong.
Dry works: contracts, finance and risk
- Cargo and shipping documents – bills of lading, delivery orders and cargo claims
- Charterparties – voyage, time and bareboat charters, drafting and disputes
- Shipbuilding and offshore construction – shipbuilding contracts, refund guarantees, milestones and delivery
- Ship finance, sale and purchase – ship sale and purchase, ship mortgages and financing structures
- Crew employment and personal injury – seafarer contracts, injury and repatriation issues
- Insurance and risk management – marine insurance programmes, claims and risk allocation
Wet works: casualties and emergencies
- Ship arrest – arresting or releasing vessels to secure maritime claims
- Collision and maritime casualty – collision, grounding and casualty response
- Salvage and general average – salvage claims and general average adjustment
- Towage and wreck removal – towage disputes and wreck removal obligations
- Pollution claims – oil and cargo pollution claims and liability
Insurance and reinsurance for aircraft, vessels and cargo
Insurance is central to asset finance Vietnam transactions, because lenders and lessors rely on the cover to protect the asset. Marine insurance Vietnam work includes hull and machinery, cargo and protection and indemnity cover; aviation insurance covers aircraft hull and liability; and non-marine insurance covers construction, property and project risks.
- Insurance structuring – coverage terms, loss payee and assignment arrangements, and insurance covenants in financing documents
- Claims and recoveries – notice, documentation, claims handling and subrogation
- Coverage disputes – disputes with insurers, reinsurers and brokers, in court or arbitration
- Reinsurance – reinsurance arrangements and treaty or facultative disputes
Logistics, transport and trade
Aviation and shipping clients usually need support on the logistics chain around the asset: freight forwarding and multimodal contracts, port and customs matters, warehousing and carrier liability. We review logistics contracts and handle related disputes, including maritime arbitration and recovery of unpaid freight or charter hire.
Other high-value assets: rolling stock, equipment and energy assets
The same asset finance Vietnam principles apply to rolling stock, mining equipment, data centre equipment and energy assets. Each asset class has its own registration, valuation and enforcement questions, which we address in the financing documents.
For general financing structures, see our structured finance Vietnam practice.
Choosing the right asset finance structure
| Structure | Best suited for | Main trade-off |
|---|---|---|
| Operating lease | Operators that want flexibility and off-balance-sheet use | Higher rental cost; asset returns to lessor |
| Finance lease | Operators that intend to own the asset at the end | Long commitment; asset risk sits with the lessee |
| Secured term loan | Owners that want direct ownership and registered security | Covenants and security enforcement matter |
| Sale-and-leaseback | Owners that want to release capital from an existing asset | Transfer, tax and registration steps must be planned |
Common risk points in asset finance Vietnam transactions
The most common problems in asset finance Vietnam transactions are unclear ownership, unregistered security, inadequate insurance, ambiguous default and repossession rights, and cross-border tax surprises. Early legal review of the structure and the registration steps prevents most of them.
For the banking side of these deals, see our banking and finance practice. Official information: Civil Aviation Authority of Vietnam and Vietnam Maritime Administration.
Asset finance Vietnam: frequently asked questions
What is asset finance in Vietnam?
It is the financing or leasing of a specific valuable asset, such as an aircraft, vessel or heavy equipment, with security over that asset.
Can a Vietnamese airline or shipowner lease an aircraft or vessel from a foreign lessor?
Yes, cross-border leasing is common. Structure, registration, tax and insurance must be planned before signing.
How is security taken over an aircraft or vessel?
Through a mortgage or equivalent security, registered in the relevant register, supported by insurance and assignment arrangements.
What is the difference between an operating lease and a finance lease?
An operating lease returns the asset to the lessor, while a finance lease usually leads to ownership by the lessee.
Can sale-and-leaseback release capital from an existing asset?
Yes, if the transfer, tax and registration steps are planned in advance.
Does marine insurance matter in a ship finance transaction?
Yes. Lenders usually require hull and P&I cover with the lender named as loss payee, so insurance terms are part of the financing documents.
What can be done if a vessel needs to be arrested?
Vessel arrest secures a maritime claim. It requires prompt action, supporting documents and, usually, security for wrongful arrest claims.
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