Svmuu News: Vietnam's Ministry of Finance has proposed allowing small and medium-sized enterprises (SMEs) to use digital assets, virtual assets, and intellectual property as collateral for bank loans. This proposal is part of a policy aimed at improving access to funding for private businesses and tech startups, and has been included in the revised draft Law on Support for SMEs, which is currently open for public comment.

According to the draft, the government seeks to diversify acceptable forms of loan collateral, moving away from a primary reliance on traditional secured assets such as real estate. The draft encourages credit institutions to expand lending based on credit ratings, business plans, market expansion potential, and corporate cash flow, rather than heavily depending on fixed asset collateral. Data shows that as of the end of April, outstanding loans to Vietnam's SME sector reached nearly VND 3.8 quadrillion, equivalent to approximately $144.2 billion, accounting for only about 20% of the banking system's total credit. (vietnamnews)