Vietnam Seeks to Let SMEs Use Crypto as Bank Loan Collateral

Vietnam is seeking to allow small and medium-sized enterprises to use cryptocurrencies and other digital assets as collateral for bank loans.

Vietnam News and other local media reported on May 31 that a draft amendment to the Law on Support for Small and Medium-Sized Enterprises would allow digital assets and intellectual property rights to be used as collateral for bank loans. The Finance Ministry is gathering public feedback on the draft. The move is intended to broaden access to funding for private companies and technology startups.

The core of the amendment is to ease a lending structure centered on traditional collateral such as real estate and broaden the range of assets banks can accept. The draft also encourages financial institutions to expand lending based on credit ratings, business plans and market expansion potential, rather than relying excessively on fixed assets.

The Finance Ministry said the amendment is designed to promote the use of resources in the private sector. It added that the proposal is aligned with Politburo Resolution 68-NQ/TW, which defines the private sector as a key driver of the national economy.

Small and medium-sized enterprises account for more than 98% of businesses in Vietnam. But outstanding SME loans make up only about 20% of total credit. The ministry said the main reasons are a lack of eligible collateral, limited financial transparency and small capital bases.

Vietnam News reported that the ministry acknowledged existing support measures, including SME credit guarantee funds and the SME Development Fund, have not operated as effectively as hoped.