Vietnam May Let SMEs Use Digital Assets as Loan Collateral

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Proposed reform could reshape startup financing in Southeast Asia’s fastest-growing digital economy.

As governments worldwide race to modernize financial systems for the digital era, Vietnam is considering a policy shift that could dramatically expand access to capital for startups and small businesses. The country’s Ministry of Finance has proposed allowing small and medium-sized enterprises (SMEs) to use digital assets, intellectual property, and other intangible assets as collateral for bank loans — reducing Vietnam’s long-standing dependence on real estate-backed lending.

The proposal is part of a draft amendment to Vietnam’s Law on Support for Small and Medium Enterprises, currently open for public consultation. If approved, the move would mark one of the most progressive financing reforms in Southeast Asia, particularly for technology startups, innovation-driven companies, and firms operating in the digital economy.

Under the draft, banks and credit institutions would be encouraged to diversify acceptable collateral beyond traditional physical assets such as land and property. Eligible forms of collateral could include movable assets, future assets, property rights, intellectual property, intangible assets, digital assets, virtual assets, and other legally recognized forms of ownership.

The proposal reflects a broader strategic shift in Vietnam’s economic policy. For years, the country’s credit system has heavily favored businesses with real estate holdings, making it difficult for younger companies — especially in technology, AI, fintech, gaming, and digital services — to access financing despite strong growth potential. By recognizing intangible and digital assets, policymakers appear to be signaling support for a more innovation-led economy rather than one driven primarily by property speculation.

The draft law also introduces preferential treatment for sustainable businesses and green-transition projects. SMEs focused on environmental protection, circular economy initiatives, energy efficiency, and emissions reduction could receive easier access to credit guarantees, subsidized interest rates, seed funding, and tax incentives. The proposal additionally supports accelerated depreciation for green-transition assets and offers assistance for sustainability reporting, digital transformation, and ESG compliance.

For international investors, the implications go beyond Vietnam’s domestic banking system. The country has emerged as one of Asia’s most closely watched manufacturing and technology hubs, attracting billions of dollars in foreign direct investment as global companies diversify supply chains away from China. A financing framework that recognizes intellectual property and digital assets could accelerate the rise of Vietnamese tech firms and deepen the country’s integration into the global digital economy.

The bigger question is whether Vietnam is quietly laying the groundwork for a future where digital assets are treated not merely as speculative instruments, but as legitimate economic infrastructure. If implemented effectively, the reform could become a model for emerging markets seeking to unlock innovation without relying on real estate as the backbone of economic growth.

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Source: Vietnam Insider