Vietnam's Ministry of Finance proposes letting SMEs use digital assets and IP as loan collateral, targeting a credit gap where 98% of firms get 20% of bank credit.
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Vietnam's Ministry of Finance has proposed allowing small and medium-sized enterprises to use digital assets, virtual assets, and intellectual property as collateral for bank loans. The proposal is part of the draft revised Law on Support for SMEs, which is open for public consultation, according to Viet Nam News.
The change would widen the type of assets that businesses can use when applying for bank loans. Under the draft, SMEs could pledge assets formed in the future, property rights, intellectual property rights, intangible assets, digital assets, virtual assets, and other lawful assets. The shift moves lending beyond the current focus on real estate and other fixed assets.
The Ministry of Finance said the proposal aims to improve capital access for private companies and technology startups. Many such firms own software, brands, data, patents, or digital products. They lack land or property that banks usually accept as collateral.
State Bank of Vietnam data showed that outstanding SME loans reached nearly VNĐ 3.8 quadrillion, or about $144.2 billion, by the end of April. That was equal to about 20% of total credit in the banking system. SMEs and household businesses account for more than 98% of enterprises in Vietnam.
The mismatch is stark. The vast majority of businesses operate on thin collateral bases. Banks remain anchored to real estate-backed lending. The draft law attempts to close that gap by recognizing a broader set of assets.
The draft also encourages credit institutions to assess borrowers through credit ratings, business plans, market expansion potential, and enterprise cash flows. This would give banks more ways to review SME credit risk without relying only on fixed collateral.
For lenders, the shift means developing new underwriting skills. A bank that today evaluates a factory's land title would need to appraise a software startup's patent portfolio or a logistics firm's digital token holdings.
The proposal does not force banks to accept every digital or virtual asset. The draft says assets must be lawful under Vietnamese law. That leaves valuation, custody, risk control, and legal recognition as key issues for lenders before any new rules take full effect.
Digital assets are volatile. A token pledged as collateral today could lose 30% of its value in a week. Banks would need to apply haircuts, monitor prices in real time, and enforce margin calls. These processes are standard for securities lending. They are unfamiliar for most Vietnamese lenders.
Custody is another open question. Who holds the private keys? What happens if the exchange or wallet provider fails? The draft does not specify custody standards. Banks may need to partner with licensed custodians or develop their own infrastructure.
The draft's encouragement of credit ratings and business plan analysis suggests a dual approach. Banks would not rely solely on collateral value. They would also evaluate the borrower's ability to repay from operations. That could reduce the risk of a collateral-driven lending boom that turns sour when asset prices fall.
The collateral proposal comes as Vietnam builds a wider legal framework for digital assets. Related crypto market analysis has reported that Vietnam has been working on a domestic digital asset exchange pilot and tighter rules around overseas crypto trading.
A licensed exchange would provide price discovery and liquidity for digital assets used as collateral. Without a regulated market, banks would struggle to value tokens or liquidate them in a default. The pilot is therefore a prerequisite for the collateral plan to function in practice.
Vietnam is also tightening rules on overseas crypto trading. That could push more activity onto domestic platforms, increasing transparency and regulatory oversight. For banks, that means a clearer legal status for assets held on licensed exchanges.
The Ministry of Finance linked the proposal to Resolution 68-NQ/TW of the Politburo, which treats the private sector as an important driver of the economy. The draft also seeks to support innovation, digital transformation, green projects, and sustainable business models.
The proposal is a draft open for public consultation. It is not law. The path to enactment involves parliamentary review, regulatory drafting, and implementation guidelines.
The consultation period allows feedback from banks, businesses, and industry groups. The National Assembly would then debate the revised Law on Support for SMEs. If passed, the State Bank of Vietnam would issue implementing regulations.
For traders and investors watching Vietnam's crypto adoption, the collateral proposal is a signal of intent. It does not guarantee that banks will start accepting Bitcoin or Ethereum tomorrow. It opens the door for a legal framework that could eventually integrate digital assets into the mainstream credit system.
The better read is not "Vietnam legalizes crypto collateral." The better read is "Vietnam is building the plumbing for digital asset finance, one draft at a time." The confirmation will come when the State Bank of Vietnam publishes specific valuation and custody rules. The risk to watch is that the final law narrows the definition of lawful digital assets so much that only government-issued tokens qualify.
For now, the proposal puts Vietnam ahead of most Southeast Asian peers in exploring digital asset collateral. The execution risk is high. The direction is clear.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.