BNP Paribas and KB Kookmin negotiate $2 billion stake in Vietnam's Techcombank
France's BNP Paribas and South Korea's KB Kookmin Bank are in separate negotiations to acquire a minority stake in Vietnam's Techcombank, a move that highlights intense foreign competition for access to Southeast Asia's fastest-growing banking market.
BNP Paribas and KB Kookmin Bank are in separate discussions to acquire at least a 15 per cent stake in Vietnam’s Techcombank. The transaction, which could reach $2 billion, would end the lender's prolonged search for a foreign strategic partner and grant the winner rare entry into the country's rapidly expanding financial sector.
Techcombank is targeting a valuation of approximately twice its book value for the stake. Achieving this price would represent a 55 per cent premium over the bank's current market capitalization, though its shares have declined 9 per cent this year. Sources indicate that valuation remains the primary obstacle, as buyers are being asked to pay significantly above market rates for future growth and platform access.
Foreign ownership in most Vietnamese banks is capped at 30 per cent, with Techcombank currently sitting at around 20.5 per cent. Interested parties are reportedly evaluating several structures, including purchasing shares from existing foreign investors. No formal agreement has been finalized, and the bank is expected to select only one of the two suitors.
If negotiations proceed smoothly, a deal could be concluded by late 2026 or the first half of 2027. Representatives for KB Kookmin, Techcombank, and BNP Paribas declined to comment on the ongoing discussions, with the South Korean lender citing local disclosure rules regarding market speculation.
The talks underscore a broader push by international banks to secure a foothold in Vietnam. Local lenders are currently squeezed between rising domestic funding costs and government mandates to expand credit, creating opportunities for foreign institutions to extend hard-currency loans. Furthermore, the Vietnamese government is advancing plans to establish international financial centres, which could invite additional foreign entrants.
Acquiring a stake in Techcombank offers direct exposure to Vietnam's rising middle class and surging demand for wealth management. Founded in 1993, the bank serves more than 18 million clients and claims to cover over half of the country's high-net-worth and affluent customers. It is one of the few large privately owned banks in the country still lacking a strategic foreign backer.
Techcombank reported strong recent financial performance, with first-half pretax profit increasing 22.5 per cent from a year earlier to 18.5 trillion dong. This growth was driven by higher net interest and fee income. At the end of June 2026, the bank's total assets stood at 1,273 trillion dong, supported by 697.4 trillion dong in customer deposits.
Regional peers are already active in the space, with Japan's Sumitomo Mitsui Banking Corp acquiring a 15 per cent stake in VPBank in 2023. Both BNP Paribas and KB Kookmin maintain existing branch networks in Hanoi and Ho Chi Minh City, while KB Financial Group also operates a majority-owned securities unit in the country.
