Vietnam Proposes Digital Assets as Loan Collateral, June 01

Vietnam’s Ministry of Finance has proposed a major shift in lending rules. Small and medium enterprises could soon use digital assets, cryptocurrency, and intellectual property as collateral for bank loans. The draft law targets a $24 billion annual credit gap that limits funding for SMEs, which make up over 98% of Vietnamese businesses. Public consultation runs through May 29, 2026, with submission to the National Assembly planned for October 2026.

The Credit Gap Holding Back Vietnamese Businesses

Vietnamese SMEs account for only 20% of total outstanding bank loans despite representing over 98% of all registered businesses. As of April 2026, SME loans totaled VND 3.8 quadrillion, approximately USD 144.2 billion. The Ministry of Finance estimates an annual credit gap of up to USD 24 billion, particularly as SMEs seek funding for green and sustainability transitions.

Many startups and tech-driven companies hold valuable software, patents, or intellectual property but lack physical assets like land or equipment to pledge to banks. This collateral shortage has locked thousands of businesses out of the formal lending system.

What the Proposal Would Allow

The draft amendment to the Law on Support for SMEs would expand acceptable collateral to include digital assets, virtual assets, intellectual property rights, future-formed assets, and other intangible assets. Banks would also shift toward lending decisions based on business plans, cash flows, credit ratings, and market potential rather than fixed assets alone.

The proposal aligns with Politburo Resolution 68-NQ/TW, which frames the private sector as a driver of Vietnam’s economic growth. The draft was released for public feedback between May 25 and May 29, 2026, with plans to submit it to the National Assembly in October 2026.

Vietnam’s Path Toward Crypto Integration

Vietnam ranks fourth globally in crypto adoption, behind India, the United States, and Pakistan, according to Chainalysis’ 2025 Global Crypto Adoption Index. In 2017, the State Bank of Vietnam prohibited virtual assets for payments, leaving their legal status unclear. From 2025 to 2026, the government launched a five-year pilot program to oversee digital asset exchanges and licensing of service providers.

By explicitly naming digital and virtual assets as acceptable collateral under lending law, Vietnam would give these assets formal institutional recognition. The proposal also includes incentives for green and sustainable businesses, including preferential credit access and interest-rate support for circular economy projects.

Timeline and Implementation

If approved by the National Assembly in October 2026, the new rules would take effect on July 1, 2027. The draft law is currently open for public consultation. Beyond collateral reform, the framework encourages banks to adopt modern, data-driven lending approaches that move beyond traditional fixed-asset requirements.

Final Thoughts

Vietnam’s proposal marks one of Southeast Asia’s most concrete moves to integrate digital assets into traditional finance. If approved, the law could unlock significant capital for tech-driven SMEs currently locked out of formal lending.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.