Vietnam Proposes Allowing SMEs to Use Digital Assets and Intellectual Property as Loan Collateral

Vietnam is considering a major financial policy shift that could allow small and medium-sized enterprises to use digital assets, intellectual property, and other intangible assets as collateral when applying for bank loans.

The proposal is part of the draft revised Law on Support for Small and Medium Enterprises, which has been opened for public consultation, according to reports from Viet Nam News.

If approved, the new framework would significantly expand the range of assets businesses can present to banks when seeking financing. Under the draft law, SMEs may be allowed to use future assets, intellectual property rights, property rights, intangible assets, digital assets, virtual assets, and other legally recognized assets as loan collateral.

The proposed reform marks a departure from the traditional lending model in Vietnam, where banks have largely depended on fixed assets such as land, buildings, and physical property to secure loans.

Vietnam’s Ministry of Finance said the move is designed to improve access to funding for private businesses, startups, and technology-driven enterprises that often possess valuable digital products, patents, software, data, or brand assets but lack conventional collateral accepted by financial institutions.

The proposal is expected to particularly benefit innovation-focused companies operating in sectors such as technology, fintech, artificial intelligence, and digital services, where intellectual property and digital products often represent a significant portion of company value.

According to data from the State Bank of Vietnam, outstanding loans to SMEs had reached nearly VNĐ3.8 quadrillion, equivalent to approximately $144.2 billion, by the end of April. Despite accounting for more than 98 percent of enterprises in Vietnam, SMEs and household businesses currently receive only about 20 percent of the country’s total banking credit.

The draft law also encourages banks and financial institutions to adopt broader methods for assessing loan applications beyond traditional collateral requirements. Under the proposal, lenders would be encouraged to consider factors such as credit ratings, business plans, cash flow performance, and market expansion potential when evaluating SME creditworthiness.

Officials believe the shift could help unlock financing for thousands of businesses that have struggled to secure loans despite operating viable and innovative enterprises.

The Ministry of Finance linked the proposal to Resolution 68-NQ/TW issued by Vietnam’s Politburo, which identifies the private sector as a key driver of national economic growth and development.

In addition to improving access to capital, the proposed reforms are also aimed at supporting digital transformation, green economy initiatives, sustainable business models, and innovation-led growth across the country.