Small businesses can borrow using digital assets and intangible assets.
The Ministry of Finance is gathering opinions on the draft Law on Supporting Small and Medium Enterprises (amended), focusing on expanding access to capital for the group of businesses that make up a significant portion of the economy.
According to the draft, small and medium enterprises can not only take out loans based on traditional collateral but also be considered for loans based on credit ratings, cash flow, business plans, or value chains.
Notably, businesses can use assets formed in the future, asset rights, intellectual property rights, intangible assets, digital assets, and virtual assets to secure loans.
Opening up additional funding channels for 98% of businesses.
According to the Ministry of Finance, small and medium-sized enterprises along with household businesses currently account for about 98% of the total number of enterprises in the economy, but only access about 20% of credit sources.
Therefore, the draft encourages credit institutions to develop more new financial products like supply chain financing, co-investment, order financing, and data-driven lending.
Besides credit, small and medium-sized enterprises can also get support for taxes, accounting, production space, technology, digital transformation, innovation, trade promotion, and legal matters.
Expected to take effect from July 2027.
The Ministry of Finance stated that the law amendment aims to concretize the direction in Resolution 68 of the Politburo regarding the development of the private economy, while also supporting tech startups and digital transformation businesses.
This agency also draws on experiences from countries like Japan, South Korea, China, Thailand, and the USA, where policies to support small and medium-sized enterprises are often designed as framework laws.
Some countries also apply support forms like innovation vouchers, export coupons, or financial support from the budget to share costs with businesses.
It's expected that the amended Law on Support for Small and Medium-sized Enterprises will be presented to the National Assembly in the session in October 2026 and will take effect from July 1, 2027, if approved.$BTC $ETH $BNB #FIL🧿 #CreatorpadVN #Binance