Vietnam proposes using digital assets as loan collateral for SMEs

Vietnam’s Ministry of Finance (MoF) has proposed a draft amendment that would permit small and medium-sized enterprises (SMEs) to use digital assets, virtual assets and intellectual property rights as collateral for bank loans. The measure aims to broaden acceptable forms of collateral and ease financing constraints for private businesses and tech startups.

Under the draft revised Law on Support for SMEs, beyond traditional physical assets such as real estate, businesses could pledge future receivables, property rights, intangible assets, digital and virtual assets as security. The proposal also encourages lenders to place greater weight on credit ratings, business plans, market expansion potential and corporate cash flows instead of relying primarily on fixed-asset collateral. The draft is currently open for public consultation.

Data cited by authorities show the rationale behind the move: outstanding loans to the SME sector stood at nearly VND 3.8 quadrillion (about USD 144.2 billion) by the end of April, equivalent to roughly 20% of total outstanding bank credit, indicating a persistent financing gap for SMEs. The MoF argues that limited eligible collateral, weak transparency and small capital scales constrain SME lending under current rules.

The proposal could improve capital access and foster innovation finance if implemented, but it brings prudential challenges. Banks would need robust valuation and custody frameworks for digital and intangible collateral, clear loan-to-value (LTV) limits, and mechanisms to enforce claims in default scenarios. The draft also includes incentives for green and sustainable projects, such as preferential access to credit guarantees and concessional financing.

Market commentators say the legal recognition of tokenized assets and intellectual property as collateral would require standardized valuation methods, secure custody solutions and regulatory safeguards to prevent misuse and protect bank balance sheets. According to the Ministry, the revised law is expected to be submitted to the National Assembly in October and, if approved, would take effect on July 1, 2027, giving stakeholders time to prepare operational and supervisory arrangements.