Vietnam Expands SME Financing Options with Digital Asset Collateral

The Vietnamese government has proposed a significant shift in its approach to small and medium-sized enterprise (SME) financing, aiming to increase access to credit for these businesses.

Under the proposal, banks would be allowed to accept digital assets, virtual assets, and intellectual property as loan collateral. This move is intended to address the current limitations faced by SMEs in accessing bank loans, which are often restricted to companies with land or other fixed assets.

The draft amendment to the Law on Support for SMEs has been open for public comment since its release, and it marks a major policy shift for SME financing in Vietnam. By allowing banks to consider wider business factors when assessing loan security, the proposal aims to encourage credit institutions to take on more risk and support the growth of private companies.

While the proposal has raised interest across the crypto and fintech sectors, any use of digital assets as collateral would need to follow Vietnamese law and bank lending standards. The valuation and assessment of these assets could also become a central issue for lenders, requiring clear controls and methods to evaluate ownership, value, and recovery rights.