Vietnam's Ministry of Finance has unveiled a significant proposal aimed at facilitating access to bank loans for small and medium-sized enterprises (SMEs) by allowing them to use digital assets, virtual assets, and intellectual property as collateral. This initiative is part of a draft revised Law on Support for SMEs, which has been released for public consultation.
Currently, SMEs and household businesses make up over 98% of all enterprises in Vietnam, yet they only account for about 20% of total bank credit, according to the report from Vietnam News. The Ministry has identified the lack of acceptable collateral and limited financial transparency as key factors contributing to this disparity.
The proposed framework would enable businesses to secure loans with assets that are not traditionally accepted, such as future-formed assets and intangible property. Additionally, the draft law encourages credit institutions to base lending decisions more on credit ratings and business plans rather than solely on fixed assets.
In a broader context, the proposal includes incentives for promoting green and sustainable business practices, offering preferential access to credit guarantees and financing for projects focused on the circular economy and energy efficiency. The draft law is currently open for public feedback.