Vietnam's Ministry of Finance has floated a plan that would let small and medium enterprises put up digital assets, virtual assets, and intellectual property as collateral for loans. The proposal, still in its early stages, targets a longstanding bottleneck for SMEs: access to bank credit without physical collateral like land or buildings.
Why the proposal matters
Small and medium businesses account for roughly 40% of Vietnam's GDP and employ a large share of the workforce. Yet they often struggle to get loans because they lack the hard assets — real estate, machinery — that banks typically demand. By expanding the definition of acceptable collateral, the government hopes to unlock capital for a sector that has been starved of formal financing.
The move also signals a shift in how Hanoi views digital assets. Until now, the legal status of cryptocurrencies and tokens has been murky. The Ministry of Finance's proposal treats them as legitimate property that can be pledged to a lender, which could accelerate adoption and bring more activity into the regulated financial system.
What assets are included
The proposal covers three categories. Digital assets: think cryptocurrencies, tokens, and blockchain-based instruments. Virtual assets: a broader term that includes in-game items, digital art, and other non-fungible tokens. And intellectual property: patents, trademarks, copyrights, and trade secrets.
The ministry hasn't yet specified how these assets would be valued or how lenders would seize them if a borrower defaults. That detail is expected to come in later implementing regulations — assuming the proposal survives its review period.
For a tech startup with a strong patent portfolio but no factory, the change could mean the difference between getting a loan and being turned away. The same goes for a game studio whose main asset is a popular virtual world. In theory, the proposal levels the playing field between traditional manufacturers and newer, knowledge-based firms.
But there are risks. Valuing digital assets is notoriously volatile. A cryptocurrency that is worth 100 million dong one month could be worth half that the next. Banks will need to build new risk models and possibly demand over-collateralization — meaning borrowers might have to pledge assets worth more than the loan itself to account for price swings.
Intellectual property valuation is equally tricky. Patents and trademarks require expert appraisals, and there's no liquid market for most IP. Lenders may be hesitant unless the government sets clear valuation standards and a mechanism for enforcing claims.
Next steps
The Ministry of Finance has opened the proposal for public comment. After the feedback period closes, the ministry will revise the text and submit it to the National Assembly for approval. No timeline has been set for a final vote, but officials have signaled they want to move quickly — partly to keep pace with other Southeast Asian economies that are already experimenting with digital asset regulation.
If passed, the law would take effect in phases, starting with a pilot program for a handful of commercial banks. Lenders that participate would have to report their experiences to the central bank before the policy is rolled out nationwide.
The unresolved question is how aggressively Vietnamese banks will embrace the new rules. Many are conservative by nature, and collateralization of digital assets is uncharted territory here. The proposal opens the door — but whether lenders walk through it remains to be seen.
