Key facts
- BNP Paribas and KB Kookmin Bank are in separate talks to acquire at least a 15% stake in Vietnam's Techcombank.
- The potential deal is valued at approximately $2 billion.
- Techcombank is seeking a valuation of about two times its book value.
- Techcombank's stock is down 9% this year.
- Foreign ownership in Techcombank currently stands at around 20.5%.
- A deal could be reached by the end of 2026 or the first half of 2027.
France's BNP Paribas and South Korea's KB Kookmin Bank are reportedly in separate negotiations to acquire a significant stake, at least 15%, in Vietnam's Techcombank. The deal, which could be valued at approximately $2 billion, would provide the successful bidder with access to Vietnam's rapidly growing banking market and fulfill Techcombank's long-standing objective of securing a foreign strategic partner.
Sources familiar with the discussions indicated that Techcombank is aiming for a valuation around twice its book value. This would place the value of a 15% stake at roughly $2 billion, representing a substantial premium of about 55% over its current market price. Techcombank's stock has experienced a 9% decline this year as of Tuesday.
The ongoing talks highlight foreign banks' increasing interest in expanding their presence in Vietnam. These institutions are looking to extend hard-currency loans to local lenders facing rising domestic funding costs and government pressure to increase credit. While several foreign banks operate branches in Vietnam, and more may enter as the government plans to establish international financial centers, key details of these plans remain unclear.
Japanese and South Korean banks have already established strategic investments in some of Vietnam's major lenders. For instance, Sumitomo Mitsui Banking Corp acquired a 15% stake in VPBank in 2023. Vietnam's foreign ownership cap for most banks is 30%, with Techcombank currently having around 20.5% foreign ownership. Bidders are considering various options, including purchasing shares from existing foreign investors.
No formal agreement has been reached, and the outcome of the talks is uncertain. It is anticipated that Techcombank will select only one of the two potential bidders. Valuation is identified as the primary obstacle, with Techcombank seeking a significantly higher premium than its current market value, as a strategic buyer would be acquiring future growth and access to a valuable banking platform. Negotiations could conclude by the end of 2026 or in the first half of 2027.
Techcombank has consistently expressed its openness to a foreign strategic investor, being one of Vietnam's few large privately owned banks without one. For BNP Paribas or KB Kookmin, acquiring a stake would offer exposure to Vietnam's expanding middle class, growing demand for wealth management services, and a fast-developing private banking sector. Both BNP Paribas and KB Kookmin Bank already have branches in Vietnam, and KB Financial Group, KB Kookmin's parent company, holds a majority-owned securities unit in the country.
Founded in 1993, Techcombank served over 18 million clients by the end of 2025, including a significant portion of Vietnam's high-net-worth and affluent customers. As of June 2026, the bank reported total assets of 1,273 trillion dong ($48.76 billion) and customer deposits of 697.4 trillion dong. In the first half of the year, pretax profit increased by 22.5% year-on-year to 18.5 trillion dong, driven by growth in net interest and fee income.