Key facts
- BNP Paribas and KB Kookmin Bank were in separate discussions to acquire a significant stake in Vietnam's Techcombank.
- The potential deal was valued at around $2 billion for a 15% stake.
- Techcombank was seeking a valuation of approximately two times its book value.
- BNP Paribas has since issued a statement denying any plans to acquire an equity stake in the Vietnamese bank.
- Foreign banks are actively seeking greater access to Vietnam's growing financial market.
France's BNP Paribas and South Korea's KB Kookmin Bank were reportedly engaged in separate discussions to acquire at least a 15% stake in Vietnam's Techcombank, a deal that could be worth around $2 billion. Techcombank was seeking a valuation of approximately twice its book value, which would represent a significant premium over its current market price. The potential transaction aimed to provide a foreign strategic investor with rare access to Vietnam's rapidly expanding banking sector. However, BNP Paribas subsequently issued a statement clarifying that it has no current plans to acquire an equity stake in the Vietnamese lender. KB Kookmin Bank declined to comment on the speculation. The talks highlight foreign banks' interest in increasing their presence in Vietnam, driven by the country's economic growth and demand for financial services. Foreign ownership in Vietnamese banks is capped at 30%, and Techcombank currently has around 20.5% foreign ownership. No formal agreement has been reached, and valuation remains a key hurdle in the negotiations.