Vietnam’s Bold Step: Unlocking SME Growth with Digital Assets as Collateral

The Ministry of Finance, Vietnam, has proposed allowing small and medium-sized enterprises (SMEs) to use digital assets, virtual assets, and intellectual property as collateral for bank loans. This change, part of a draft revision to the Law on Support for SMEs now open for public consultation, could reshape access to finance in a country where SMEs make up over 98% of businesses but receive only about 20% of total bank credit.

This is a timely move that addresses a long-standing barrier and signals Vietnam’s growing embrace of innovation. By expanding collateral options beyond traditional real estate, the proposal paves the way for stronger private sector growth, better support for tech startups, and deeper integration of digital finance.

First, it directly tackles the collateral gap that holds back Vietnam’s SMEs. Many young tech firms and startups might hold valuable software, patents, or crypto holdings but lack physical property to pledge. Banks have traditionally demanded fixed assets, leaving innovative businesses underserved. Under the new framework, SMEs could secure loans using intangible assets, future-formed assets, property rights, and digital assets. This shift aligns lending with modern business realities and could open formal credit to thousands of firms currently locked out.

Broader data shows the scale of the problem. Studies indicate that only around 10-36% of Vietnamese SMEs access formal bank loans, often due to insufficient collateral, limited transparency, and small capital bases. Informal financing fills the gap but comes with higher costs and risks. By recognizing diverse collateral, Vietnam can reduce reliance on these channels, lower borrowing hurdles, and help SMEs invest in growth, jobs, and innovation.

Second, the proposal is in line with Vietnam’s digital momentum. The country ranks 4th globally in crypto adoption according to Chainalysis’ 2025 index. It is preparing for a regulated crypto market as early as Q3 2026, with licensing pathways already opened for domestic platforms. Allowing digital assets as collateral builds on this foundation. It encourages responsible use of holdings instead of forced sales, while promoting regulatory clarity and integration with systems like the expanding VNeID digital ID platform.

Third, the move supports broader economic goals. The draft encourages lending based on business plans, cash flows, credit ratings, and market potential rather than assets alone. It also includes incentives for green and sustainable businesses, such as preferential credit, interest support, tax breaks, and ESG reporting help. This aligns with Politburo Resolution 68, which positions the private sector as a key driver of national growth. In a global economy shifting toward knowledge and technology, enabling SMEs to leverage IP and digital assets will boost competitiveness and resilience.

Frameworks that broaden collateral, especially for movables and intangibles, have improved credit access, lowered interest rates in some cases, and supported financial inclusion. For Vietnam, this could mean more productive lending, reduced information gaps through better assessment tools, and stronger SME contributions to GDP and employment.

Vietnam should move swiftly to refine and enact this proposal while building the necessary safeguards. Clear valuation standards for digital assets and IP, robust risk management for banks, and anti-money laundering measures will be essential to maintain stability. Public consultation offers a great opportunity to gather input from businesses, banks, and experts.

Pairing this with capacity building such as training for lenders on digital asset assessment and expanding digital identity tools like VNeID, will ensure smooth implementation. By mid-2027, as targeted, Vietnam could see results like more SMEs thriving, innovation flourishing, and the economy gaining new momentum.

This proposal is about recognizing the true value creators in Vietnam’s economy and giving them the tools to succeed. Policymakers, banks, and businesses should seize this opportunity. The result will be a more inclusive, dynamic, and future-ready Vietnam. Readers invested in the country’s progress should watch closely - where a communist party at the helm of affairs has recognized the fact that private players drive growth and that non-tangible innovation value is real!

Source:

1. Aziz, Ayesha. "Vietnam Proposes Digital Assets as Loan Collateral." CoinMarketCap Academy, June 2026. https://coinmarketcap.com/academy/article/vietnam-digital-assets-loan-collateral.

2. "Crypto Assets Emerging as a New Pillar of Việt Nam's Digital Economy: SSC Vice Chairman." Việt Nam News, June 6, 2026. https://vietnamnews.vn/economy/1782893/crypto-assets-emerging-as-a-new-pillar-of-viet-nam-s-digital-economy-ssc-vice-chairman.html.

3. Riehl, Ingrid. "Vietnam Proposes Allowing SMEs to Use Digital Assets as Loan Collateral." BIIA.com, June 8, 2026. https://www.biia.com/vietnam-proposes-allowing-smes-to-use-digital-assets-as-loan-collateral/.