Vietnam Finance Ministry Proposes Crypto as SME Loan Collateral

Vietnam's Ministry of Finance has proposed allowing small and medium enterprises to pledge digital and virtual assets – including cryptocurrencies and blockchain-based holdings – as collateral for bank loans. Intellectual property would also qualify under the same proposal.

The move targets a structural bottleneck in Vietnam's economy. SMEs account for the majority of business activity but routinely fail to meet banks' collateral requirements, which are tied to physical assets such as land, machinery, or real estate. A business holding a meaningful position in Bitcoin or a proprietary software patent currently cannot convert that value into a loan under existing rules. The Ministry's proposal would change that directly.

The SME Lending Gap in Vietnam

Vietnam consistently ranks near the top of global crypto adoption indexes. A young, tech-forward population and limited access to traditional financial services in rural and semi-urban areas have driven stablecoin adoption and broader crypto usage across the country. The Ministry's proposal is a logical extension of that reality: digital assets are already embedded in everyday commerce, the banking system has not yet recognized them.

For tech startups and creative businesses, the change would be structural. These companies often hold significant value in software platforms, tokens, or digital infrastructure but cannot tap that value through conventional lending. A startup with a crypto treasury or a proprietary software asset could theoretically use it as collateral if the proposal passes.

What the Proposal Covers and What It Leaves Out

The Ministry's language is broad. It covers digital assets, virtual assets, and intellectual property as eligible collateral categories. That includes cryptocurrencies, tokenized assets, and potentially stablecoins. The text does not specify which digital assets would qualify or whether the Ministry plans to restrict the list to certain types.

The proposal still requires government approval. No implementation timeline has been publicly disclosed. The details on how assets get valued, which institutions would accept them, and what the regulatory guardrails look like remain thin. It is unclear whether those specifics are even drafted yet.

The Valuation Problem Banks Cannot Ignore

Financial institutions accepting digital asset collateral face a problem that does not exist with real estate or machinery: price volatility. A business pledging Bitcoin at one price could see that collateral drop 30% in a week. Banks would need mechanisms to manage that risk.

The Ministry has not spelled out how assets would be valued, what haircuts would apply, or whether margin requirements or dynamic revaluation mechanisms would be required. These are not minor administrative details. They determine whether a bank can safely lend against a volatile asset without exposing itself to losses that exceed the collateral's value.

Practical rule: A bank willing to take a property deed as collateral operates in a well-understood legal environment – clear title, established valuation methods, courts that know how to handle disputes. Digital assets lack that infrastructure in Vietnam's lending sector. The proposal cannot work without building it first.