Vietnam’s Ministry of Finance proposes allowing SMEs to use digital assets, intellectual property, and virtual assets as collateral for bank loans. The reform aims to ease credit access, reduce reliance on real estate, and encourage lending based on cash flow, credit ratings, innovation potential, and sustainable business growth.
Vietnam expands collateral definition
Vietnam’s Ministry of Finance has introduced a proposal that could reshape business lending rules for SMEs and startups significantly.
The draft revised Law on Support for Small and Medium-sized Enterprises allows firms to use digital assets, virtual assets, intellectual property rights, and other intangible holdings as loan collateral.
The move aims to improve financing access for private companies and startups facing persistent credit constraints.
Authorities want to reduce dependence on traditional collateral such as real estate. Instead, banks would gain permission to accept a wider range of lawful assets, including future-formed property rights.
The proposal reflects a policy shift toward recognizing value created through technology, data, and innovation. It also aligns with national strategies that position the private sector as a central driver of economic growth.
Officials in Vietnam believe the change can help unlock hidden value in modern business models that lack physical assets but hold strong growth potential in Vietnam’s digital markets.
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Financing gap for small businesses
Access to bank credit remains a long-standing challenge for SMEs in Vietnam. Although they make up more than 98% of all enterprises in Vietnam, they receive only about 20% of total credit in the economy.
Many small companies lack adequate collateral as per the set requirements, thus reducing the ability to borrow funds within the set requirements.
Many businesses rely on patents, software, and other technological infrastructure in operations, but lenders hardly consider these types of resources as collateral.
The low degree of financial transparency and inability to withstand risks reduce the possibility for small businesses to obtain finance. As indicated by the Ministry of Finance, this gap discourages innovation and the expansion of the private sector.
New direction for credit and incentives
This proposed law seeks to ensure that banks stop relying solely on collateral-based financing and instead place emphasis on factors such as credit rating, business plans, financial stability, and market prospects.
The idea is to reflect the performance of companies in today’s world. At the same time, there are incentives included in the proposal that cater specifically to eco-friendly, digital, and sustainable ventures.
SMEs would have the benefit of accessing credit guarantee services and concessional financing at reduced interest rates for their eco-friendly initiatives.
Tax incentives and faster depreciation of green equipment, among other benefits, are included in the proposal.
Recognizing the inefficiency of the existing incentive structures, including credit guarantee systems, the government will work to strengthen these structures as well as foster innovations in the SME sector.
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