After giving birth, Dr. Le Thi Giang, a lecturer at Hanoi Law University, received 22 marketing calls from formula brands and postpartum care services within one afternoon.

Sharing this unpleasant experience at the “Banking Collateral Assets: Current Issues of Interest” seminar organized by the Banking Times on April 28, Dr. Giang raised a provocative question: should personal data be considered a digital asset?

“My personal data was leaked to dozens of parties. This highlights the urgent legal questions surrounding digital assets, including the increasingly relevant issue of carbon credits,” Dr. Giang said.

A gap in Vietnam’s legal framework

Digital assets have become an integral part of the digital economy, yet Vietnam’s current legal system lacks specific, comprehensive regulations for them.

Similarly, carbon credits, essential tools for reducing greenhouse gas emissions, are not yet clearly defined as collateral in Vietnam’s legal system.

“Recognizing digital assets and carbon credits as collateral would not only broaden financing opportunities but also support the development of green finance and the digital economy,” Dr. Giang argued.

In Thailand, carbon credits are already used as loan collateral for climate adaptation projects, providing measurable ways to manage climate-related risks, said Vu Thi Van Anh, Senior Manager at KPMG Vietnam's ESG Division.

In Europe, several EU countries have classified EUA (European Union Allowances) as transferable intangible assets, allowing them to be pledged or mortgaged in financial transactions.

Opportunities and risks for banks

Banking legal expert, lawyer Truong Thanh Duc, noted that under Vietnam’s civil and secured transaction laws, collateral includes both existing and future assets.

"Digital assets and carbon credits can be considered types of collateral. In fact, they offer ownership rights, unlike real estate, where only usage rights are conferred," said Mr. Duc.

However, he warned, banks must be cautious: "To qualify as collateral, an asset must meet two conditions: ownership rights must be clear, and it must not be prohibited from transactions."

While collateral is intended to mitigate lending risks, Mr. Duc emphasized that the extreme volatility of digital assets could burden banks with enormous liabilities.

"Even real estate and gold fluctuate unpredictably. Accepting digital assets could make the banks’ responsibilities overwhelming if asset values plunge," he noted.

Do Giang Nam, Member of the Board of Directors at VAMC (Vietnam Asset Management Company), said Vietnam is currently building its legal framework for digital assets.

Completing this framework is a necessary condition for recognizing digital assets as collateral, but sufficient conditions depend on each bank’s willingness to accept them.

Thus, banks must carefully assess these assets’ manageability and liquidation risks in case of default.

Similarly, when accepting carbon credits as collateral, banks must consider the significant price risks involved.

"Vietnam aims to establish a fully operational carbon credit market by 2028. This is essential to ensure that banks can effectively manage and recover debts involving carbon credits," said Mr. Nam.

He concluded: "From a banking perspective, carbon credits have the potential to become a viable collateral asset. However, they must first meet strict legal requirements and demonstrate price stability."

Tuan Nguyen