Vietnam's Ministry of Finance Proposes Allowing SMEs to Use Digital Assets as Bank Loan Collateral

Odaily reports that the Ministry of Finance of Vietnam has proposed allowing small and medium-sized enterprises (SMEs) to use digital assets, virtual assets, and intellectual property rights as collateral for bank loans. This proposal is part of a policy draft aimed at improving access to capital for private enterprises and technology startups. The proposal has been included in the revised draft of the "SME Support Law," which is currently open for public consultation.

According to the draft, the government seeks to diversify the forms of acceptable loan collateral, moving away from a primary reliance on traditional secured assets such as real estate. The draft encourages credit institutions to expand lending based on credit ratings, business plans, market expansion potential, and corporate cash flow, rather than heavily depending on fixed asset collateral. Data shows that as of the end of April, outstanding loans to the SME sector in Vietnam reached only nearly 38 quadrillion Vietnamese dong, equivalent to approximately $144.2 billion, representing only about 20% of the total credit in the entire banking system. (Vietnam News)