Vietnam Proposes Digital Assets as Collateral for SME Loans

Vietnam's Ministry of Finance has proposed allowing small and medium-sized enterprises (SMEs) to use digital assets, virtual assets, and intellectual property as collateral for bank loans. According to Foresight News, this initiative aims to improve financing channels for private businesses and tech startups. The proposal is included in the draft amendment to the Law on Supporting SMEs, which is currently open for public consultation. The draft seeks to expand the range of acceptable collateral assets, enabling businesses to apply for loans using future assets, property rights, digital assets, virtual assets, and other legal assets. SMEs and individual business households account for over 98% of Vietnam's total enterprises, yet their loan balances only represent about 20% of the total credit in the national banking system.