Despite their dominant presence in the economy, SMEs currently access only 19 percent–20 percent of total outstanding credit. One of the main reasons is the lack of collateral that meets traditional banking standards, particularly real estate assets.
In the draft amended Law on Support for Small and Medium-Sized Enterprises, the Ministry of Finance proposes expanding the range of acceptable collateral for bank loans. Besides traditional tangible assets such as real estate, businesses may also use future assets, property rights, intellectual property, digital assets, and virtual assets as loan security.
Dr. Tran Quy, Director of the Vietnam Institute for Digital Economy Development, said that the proposal to accept digital and virtual assets as loan collateral is both feasible and necessary in the era of the digital economy. He noted that many technology startups primarily hold intangible assets such as software and data rather than physical assets, making it difficult for them to access traditional bank loans.
However, he stressed that the volatility of digital assets requires a multi-layered risk management framework and automated liquidation mechanisms based on smart contracts. Under such a system, automatic margin calls would be triggered when asset values fall below a predetermined threshold. If collateral values continue to decline, the system could automatically liquidate assets to recover loans without lengthy civil litigation procedures.
In addition, customers’ digital assets should be held on banking-standard custodial platforms and kept separate from balance sheets to safeguard the interests of both lenders and borrowers against cybersecurity risks or insolvency.
Meanwhile, Dr. Chau Dinh Linh, a lecturer at the Ho Chi Minh City University of Banking, noted that commercial banks can participate in digital asset-backed lending but emphasized the need for a clearer legal framework governing such transactions.
He said that the most important factor for businesses seeking bank loans is a viable business model and a sound business plan capable of generating cash flow for debt repayment. Collateral is only a secondary safeguard and the last line of defense, he added.
Turning to the international financial center
Beyond expanding eligible collateral to ease financing constraints, policymakers are also looking to reduce businesses’ dependence on bank lending by developing alternative capital channels through the International Financial Center.
Associate Professor Dr. Nguyen Huu Huan, Vice Chairman of the Executive Agency of the Vietnam International Financial Center in Ho Chi Minh City (VIFC-HCMC), said that the capital market and the International Financial Center will become two major pillars supporting economic growth while easing pressure on the banking system.
The Vietnam International Financial Center is expected to serve as a hub for attracting international capital and helping businesses access long-term financing. Importantly, the center is designed not only for large corporations but also for SMEs and startups.
One of its key features is a crowdfunding platform established under Decree No. 324/2025/ND-CP. Through this mechanism, each enterprise can raise up to US$700,000 annually.
Although the amount that can be raised each year may appear modest, it can still help address the financing needs of SMEs, which make up the majority of enterprises in the economy, Mr. Nguyen Huu Huan said.
Mr. Tran Viet Anh, Vice Chairman of the Ho Chi Minh City Union Business Association (HUBA), noted that SMEs in the city have long faced capital shortages and remain heavily dependent on bank loans and informal financing channels.
He suggested that beyond crowdfunding, the International Financial Center should adopt policies that encourage large enterprises to take the lead in supporting SME ecosystems. This collaboration would enable smaller firms to tap into capital flows generated by major corporations, fostering a more integrated and mutually supportive business environment.
