In a groundbreaking move aimed at alleviating the significant credit gap facing small and medium-sized enterprises (SMEs), Vietnam's Ministry of Finance has put forth a proposal allowing these businesses to use digital assets, including intellectual property, as collateral for bank loans. This initiative is poised to revolutionize access to credit for a sector that represents over 98% of all enterprises in the country but only receives a mere 20% of total bank lending.
According to a recent report by Vietnam News, the draft revision of the Law on Support for SMEs, currently open for public consultation, includes provisions that would permit companies to secure loans against intangible assets and virtual properties. This policy change seeks to level the playing field for technology firms and startups that possess valuable intellectual property or software but lack the traditional physical assets banks typically require for loans.
Addressing Financial Exclusion
The Ministry has highlighted the existing imbalance in the financial ecosystem, attributing it to inadequate collateral options, limited financial transparency, and the modest capital bases of many SMEs. The proposed legislation envisions a financial landscape where credit institutions can utilize business plans, cash flows, and credit ratings to issue loans, moving beyond relying solely on fixed assets.
As Vietnam has emerged as a notable player in the global cryptocurrency landscape—ranked fourth in Chainalysis’s 2025 Global Crypto Adoption Index—the acceptance of digital assets as loan collateral reflects a significant cultural and financial shift, expanding opportunities for thousands of startups that have previously faced barriers to financing.
Incentives for Sustainable Growth
Beyond collateral reforms, the draft law also focuses on promoting green and sustainable business practices. It proposes providing incentives such as preferential access to credit guarantees and support for projects aimed at enhancing energy efficiency and embracing circular economy principles. Moreover, there are measures planned for tax benefits and backing for Environmental, Social, and Governance (ESG) compliance.
As the discussion surrounding this proposal gains momentum, stakeholders from various sectors are eager to weigh in, pinpointing the need for innovative financing solutions in a rapidly evolving economic environment.
The draft's public consultation phase will play a critical role in shaping Vietnam's financial landscape as it gears towards the anticipated launch of a regulated crypto market by the third quarter of 2026. This move is part of a broader strategy, including the recent opening of a licensing pathway for domestic crypto trading platforms, positioning Vietnam as an emerging hub in the digital finance ecosystem.
Vietnam's proactive approach may effectively empower the country's SMEs, allowing them to harness their digital wealth for growth and innovation.
