Vietnam proposes allowing SMEs to use digital assets as loan collateral
Vietnam’s Ministry of Finance has proposed a major change to SME lending rules: small and medium-sized businesses could use digital assets, virtual assets, intellectual property, future-formed assets and other intangible property as collateral for bank loans. The draft revised Law on Support for SMEs is open for public consultation. The move targets a financing gap: SMEs and household businesses make up over 98% of firms in Vietnam but receive only about 20% of bank credit. Officials say limited eligible collateral, weak financial transparency and small capital bases restrict lending. The reform could help startups and tech firms that own software, patents or IP but lack land or physical assets. The draft also encourages banks to lend based on credit ratings, business plans, cash flow and market potential, not just fixed assets. It includes incentives for green and sustainable businesses, such as credit guarantees, concessional financing and interest support.
