Vietnam is considering a new policy that would allow small and medium-sized businesses (SMEs) to use digital assets, virtual assets, and intellectual property as collateral for bank loans.

The proposal comes from the Ministry of Finance and is part of a planned update to the country's Law on Support for SMEs.

If approved, businesses would be able to use a wider range of assets when applying for loans. These assets could include digital assets like bitcoin, intellectual property, software, patents, and other intangible assets. Today, banks mainly accept physical assets such as land and buildings as collateral.

The Ministry of Finance says the goal is to help more businesses gain access to financing. Many startups and technology companies own valuable digital products, software, or patents, but they often do not have the property or equipment that banks usually require for loans.

This is an important issue because SMEs make up more than 98% of all businesses in Vietnam. However, they receive only about 20% of the total bank credit.

According to the ministry, many smaller businesses struggle to borrow money because they lack acceptable collateral and often have limited financial records.

To address this problem, the draft law encourages banks to look at more than just physical assets. Lenders would also be encouraged to consider a company's credit history, business plans, cash flow, and growth potential when making lending decisions.

The proposal states that the government wants to expand the types of assets that can be used as collateral.

Supporters believe the change could benefit thousands of startups and technology-focused companies. Many of these businesses create value through software, data, patents, brands, or digital assets, yet they often struggle to secure bank financing.

The proposal is linked to Resolution 68-NQ/TW, a government policy that recognizes the private sector as a key driver of economic growth. Officials hope the new rules will encourage innovation, entrepreneurship, and business investment.

The plan comes as Vietnam continues to develop regulations for digital assets. The country has become one of the world's most active digital asset markets and ranked fourth in Chainalysis' 2025 Global Crypto Adoption Index.

Vietnam is also working toward creating a regulated digital asset market. Earlier this year, regulators opened a licensing process for domestic trading platforms. Several companies connected to major Vietnamese banks have already passed an initial qualification stage.

Even though many people support the proposal, there are still challenges. One major issue is how banks would determine the value of digital assets, which can rise or fall sharply in price over a short period of time.

Banks would also need rules for storing digital assets, managing risks, and handling situations where borrowers cannot repay their loans. The current draft does not explain exactly how these issues will be addressed.

Another important point is that only assets recognized as legal under Vietnamese law would be accepted as collateral. This means more legal and regulatory work may be needed before the system can be fully implemented.