Vietnam Opens Digital Assets as Loan Collateral for SMEs, June 01

Vietnam’s Ministry of Finance has proposed a draft law allowing small and medium-sized enterprises to use digital assets, virtual assets, and intellectual property as loan collateral. The proposal targets a USD 24 billion annual credit gap. SMEs make up 98% of Vietnamese businesses but receive only 20% of total bank credit. Many tech startups hold valuable patents and software but lack physical assets to pledge, locking them out of traditional lending.

Closing the Credit Gap for Tech Startups

Vietnamese SMEs account for only 20% of total outstanding bank loans, roughly VND 3.8 quadrillion (USD 144.2 billion) as of April 2026. The State Bank of Vietnam estimates an annual credit gap of up to USD 24 billion, especially as SMEs seek funding for green and sustainability transitions. Many startups and technology-driven companies hold high-value intellectual property, software, or patents but have no land or equipment to pledge. The Ministry’s proposal to accept digital and intangible assets as collateral could unlock significant capital for these companies, particularly in the fast-growing technology sector.

What the Draft Law Proposes

The draft revised Law on Support for SMEs is now open for public consultation. Under the framework, businesses could secure loans using future-formed assets, property rights, intangible assets and digital or virtual assets. The draft also pushes credit institutions to expand lending based on credit ratings, business plans, cash flows and market potential, rather than fixed assets alone. Beyond collateral reform, the law outlines incentives for green and sustainable businesses, including preferential access to credit guarantees, concessional financing and interest-rate support for circular economy and energy-saving projects.

Why Collateral Rules Matter Now

The Ministry attributed the lending imbalance to a lack of eligible collateral, limited financial transparency and the small capital base of most SMEs. This policy shift marks a significant change in how Vietnamese banks evaluate creditworthiness. The proposal addresses a structural barrier that has kept thousands of startups locked out of the formal lending system. The draft law also includes tax incentives and support for environmental, social and governance compliance reporting.

Final Thoughts

Vietnam’s proposal could unlock significant funding for tech startups and SMEs currently excluded from formal lending. The draft law shifts focus from physical collateral to business fundamentals, addressing a USD 24 billion annual credit gap.

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