Vietnam eyes digital assets as SME loan collateral

Vietnam may let SMEs use digital and virtual assets as collateral for loans, aiming to boost credit access for businesses lacking traditional assets. The draft law is open for public input.

Vietnam's Ministry of Finance has proposed amending the Law on Support for SMEs to allow small and medium-sized enterprises to use digital assets, virtual assets, and intellectual property as collateral for bank loans. This draft amendment, now open for public consultation, seeks to expand the types of acceptable collateral beyond traditional assets like real estate. It would enable businesses to pledge future-formed assets, property rights, intangible assets, and other lawful holdings. The initiative addresses the persistent credit gap faced by SMEs, which represent over 98% of Vietnam's businesses but receive only about 20% of total banking credit. By broadening collateral options, the proposal aims to improve capital access for private companies and technology startups that often lack traditional assets but possess valuable digital or intellectual property. The draft law is scheduled for submission to the National Assembly in October 2026, with potential implementation by July 2027 if approved. The move has attracted attention for possibly paving the way for crypto-backed loans in Vietnam, though final outcomes will depend on legal definitions and banking risk regulations.