Vietnam Ministry of Finance Proposes Digital Assets as SME Loan Collateral

Expanding collateral for SME financing

Small and medium enterprises make up over 98% of all registered businesses in Vietnam, yet they capture only around 19-20% of total banking credit. Outstanding SME loans totaled nearly VND 3.8 quadrillion, approximately $144.2 billion, as of the end of April 2026. The financing gap reflects a structural constraint: traditional lending relies heavily on fixed-asset collateral, a burden many startups and tech-focused firms can't meet.

The proposed amendments would expand acceptable collateral to include digital assets, virtual assets, intellectual property rights, future-formed assets, and other intangible assets. More importantly, the draft encourages banks to adopt lending approaches based on cash flows, business plans, and credit ratings rather than insisting on fixed-asset security. This shift addresses a real gap in Vietnam's SME ecosystem.

Legitimacy and risk

By explicitly naming digital and virtual assets as acceptable collateral under lending law, Vietnam would be giving these assets institutional legitimacy they have not previously enjoyed in the country. The move aligns with Politburo Resolution 68-NQ/TW, which frames the private sector as a pivotal driver of Vietnam's economic growth.

Context matters. In 2017, the State Bank of Vietnam prohibited the use of virtual assets for payments, resulting in a murky legal status for ownership and trading of these assets. From 2025 to 2026, the government initiated a five-year pilot program to oversee digital asset exchanges and the licensing of service providers, involving several banks and conglomerates. This proposal builds on that cautious foundation.

The challenge is substantial. The draft proposal does not prescribe exactly how banks should value digital assets or manage liquidation risk. Regulators and lenders will need to develop frameworks for assets whose valuations can swing significantly. If the framework is sound, the upside is real. If it's loose, banks could face losses when collateral evaporates in a downturn.

"If this passes, digital assets in Vietnam gain a function beyond trading and speculation. They become productive financial instruments that can unlock real-world capital."

If approved, the new rules would take effect on July 1, 2027, with plans to submit the proposal to the National Assembly in October 2026. The timeline gives policymakers and the banking sector six months to prepare operational frameworks and risk-management protocols. Vietnam's SME sector will be watching closely.