Vietnam Expands SME Financing Framework To Include Digital And Virtual Assets In Draft Lending Reform

Vietnam’s Ministry of Finance has put forward a proposal that would permit small and medium-sized enterprises (SMEs) to use digital assets, virtual assets, and intellectual property rights as collateral for bank loans, as part of broader efforts to improve access to financing for private companies and technology startups.

The measure is included in a draft revision of the Law on Support for SMEs, which is currently undergoing public consultation. It would broaden the definition of acceptable collateral beyond conventional secured assets such as real estate, allowing a wider range of property types, including future-formed assets, intellectual property, intangible assets, digital and virtual assets, and other legally recognised forms of property under Vietnamese law.

The draft also signals a shift in lending practices by encouraging financial institutions to place greater emphasis on factors such as credit ratings, business plans, revenue prospects, and cash flow performance, rather than relying primarily on fixed-asset collateral.

According to the ministry, the initiative is intended to mobilise resources for the private sector and support policy directions outlined in Resolution 68-NQ/TW of the Politburo, which identifies private enterprise as a key driver of economic growth.

SME Financing Gaps Drive Push for Broader Collateral Framework and Green Incentives

The proposal comes against a backdrop in which SMEs continue to face structural barriers to bank financing, despite accounting for more than 98 per cent of all enterprises in Vietnam. At present, lending to this segment represents only about one-fifth of total outstanding credit, a gap the ministry attributes to limited eligible collateral, constrained financial transparency, small operational scale, and weaker risk buffers. Many innovative firms and startups hold value in the form of software, technology, or intellectual property, but lack tangible assets typically required by banks.

In addition, the draft outlines support measures aimed at encouraging innovative, green, and sustainable business activity. These include preferential credit guarantees, concessional lending, and interest rate support for environmentally focused or circular economy projects. It also proposes tax incentives for environmental initiatives, accelerated depreciation for green and energy-efficient assets, and assistance linked to digital transformation aligned with sustainability goals.

Further provisions include support for consultancy services, certification processes, sustainability reporting, and compliance with environmental, social, and governance (ESG) standards.

The ministry also noted that existing support mechanisms, including SME credit guarantee schemes and dedicated development funds, have not yet achieved their intended effectiveness.

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