Vietnam's Bold Move: SMEs to Use Digital Assets as Loan Collateral

In a groundbreaking proposal, Vietnam's Ministry of Finance is aimed at redefining loan accessibility for small and medium-sized enterprises (SMEs) by allowing them to use digital assets and intellectual property as collateral. This move intends to address a stark credit gap, where SMEs currently access a mere 20% of total bank lending despite representing over 98% of all businesses in the country.

The initiative is part of a draft revision of the Law on Support for SMEs, which is now open for public consultation. Under the proposed framework, businesses would be able to secure loans using future-formed assets, property rights, intangible assets, and digital or virtual currencies. This policy shift aims to empower numerous startups and tech-driven companies that possess valuable intellectual properties yet lack the physical assets required by banks for traditional loan agreements.

Addressing the Credit Imbalance

The Ministry's report highlights that many SMEs and household businesses struggle to qualify for loans due to insufficient eligible collateral, limited financial transparency, and their smaller capital base. By incorporating digital and virtual assets as collateral, the Ministry hopes to unlock significant credit access to those currently stifled by the conventional banking framework.

Reformulating Lending Criteria

In addition to collateral reform, the draft law advocates for a more flexible lending model that prioritizes credit ratings, business strategies, cash flows, and market potential over fixed assets alone. This could mark a pivotal change in how financial institutions assess the viability of lending to SMEs, potentially catalyzing economic growth and innovation within the sector.

Moreover, the draft outlines various incentives for green and sustainable businesses, emphasizing a forward-thinking approach to financing that includes preferential access to credit guarantees and interest rate support for projects related to the circular economy and energy conservation. It is expected that tax incentives and assistance for environmental, social, and governance (ESG) compliance reporting will also be introduced.

A Growing Crypto Landscape

Vietnam’s status as a burgeoning hub for cryptocurrencies cannot be overlooked. In 2025, the country ranked fourth in global crypto adoption, according to Chainalysis. The Deputy Minister of Finance indicates that regulated cryptocurrency market activities might commence as early as Q3 2026, paving the way for domestic trading platforms to operate within a controlled framework.

As the government opens licensing pathways for crypto trading, SMEs that engage in digital innovation stand to benefit significantly from this regulatory environment. The intersection of digital assets, innovative financial strategies, and an evolving market could position Vietnam as a leader in leveraging technology for economic upliftment.

This ambitious proposal and its accompanying reforms could herald a new era for Vietnam's SMEs, enabling thousands of businesses to access the capital they need to drive growth and modernization within the economy.

Source: Cointelegraph

Source: CoinTelegraph - Cryptocurrency & Web3