France's BNP Paribas and South Korea's KB Kookmin Bank are engaged in separate discussions to acquire a stake in Vietnam's Techcombank, according to two sources familiar with the matter. The potential deal involves at least a 15% stake in the Vietnamese lender and is estimated to be worth approximately $2 billion.
The negotiations occur as Techcombank, Vietnam's third-largest privately owned bank by assets, seeks a foreign strategic partner. The bank is reportedly seeking a valuation of about two times its book value, which would represent a 55% premium over its current market price. Techcombank stock has declined 9% this year as of Tuesday.
KB Kookmin Bank declined to comment on the reports, citing South Korean disclosure rules, while representatives for BNP Paribas and Techcombank also declined to comment. While foreign ownership in most Vietnamese banks is capped at 30%, Techcombank's foreign ownership currently stands at approximately 20.5%. Sources stated that no formal agreement has been reached and it is likely only one of the two bidders will be selected.
For the approximately 18 million Techcombank customers, a deal could eventually lead to changes in available banking products or services as the lender integrates with a global strategic partner. The scale of the $2 billion investment represents a significant inflow of foreign capital into the Vietnamese banking sector. This comes at a time when local lenders are facing higher domestic funding costs and are seeking hard-currency loans from foreign institutions to meet government credit expansion targets.
The outcome of these talks may influence future foreign investment policy in Vietnam's banking sector, particularly as the government considers establishing international financial centers. While a specific completion date is not guaranteed, sources indicated a deal could be finalized between the end of 2026 and the first half of 2027. The primary hurdle remains the valuation gap between the bank's market price and the premium requested by Techcombank leadership.