Vietnam’s Techcombank is in separate talks with France’s BNP Paribas and South Korea’s KB Kookmin over a strategic stake sale that could be worth as much as US$2 billion, as the bank looks to bring in an international banking partner for the first time.
Key Facts At A Glance
- BNP Paribas and KB Kookmin are separately discussing acquiring a stake of at least 15% in Techcombank
- The deal could be worth up to US$2 billion
- Techcombank is reportedly seeking a valuation roughly double its book value, about 55% above the stake’s value at the bank’s previous closing share price
- Overseas shareholders already hold about 20.5% of Techcombank; combined foreign ownership in a Vietnamese commercial bank is typically capped at 30%
- Techcombank is Vietnam’s third-largest privately owned bank by total assets
- Techcombank’s shares rose as much as 7% after the talks were reported
- Sources expect Techcombank to choose no more than one of the two prospective investors
- A transaction could close by the end of 2026 or in the first half of 2027
Neither discussion has produced a formal agreement, and either could end without a transaction. Two people familiar with the matter said talks with BNP Paribas and KB Kookmin are proceeding on separate tracks, with no indication yet of which bank Techcombank favors.
Valuation Gap Seen As Main Sticking Point
Price has emerged as the central point of friction. Techcombank is said to be pushing for a valuation near double its book value, which would value a 15% stake at roughly US$2 billion, a premium of about 55% over what that stake would be worth at the bank’s most recent closing share price. One source identified this valuation gap as the main obstacle standing in the way of an agreement.
The parties are reportedly weighing several possible deal structures, including a purchase of shares from Techcombank’s existing foreign shareholders rather than a fresh issuance, an approach that could help navigate Vietnam’s foreign ownership ceiling. Overseas investors currently hold about 20.5% of the bank, and combined foreign ownership in a Vietnamese commercial bank is generally capped at 30%, meaning a full new 15% stake would need to be carefully structured to stay within regulatory limits.
Foreign Ownership Rules Shape Deal Options
Vietnam’s foreign ownership caps have historically shaped how its banks bring in international partners, often requiring share purchases from existing holders or partial stake structures rather than straightforward primary issuances. Techcombank has previously signaled openness to adding an international banking partner, and a deal of this size would mark one of the largest foreign investments in a Vietnamese bank in recent years.
Both banks under discussion have been cautious in public. KB Kookmin declined to address what it called market speculation, citing South Korean disclosure requirements, while BNP Paribas and Techcombank both declined to comment on the report.
Market Reaction
Techcombank shares rose as much as 7% following the report, reflecting investor interest in the prospect of a large foreign capital injection. Sources cautioned that a transaction, if it materializes, is more likely to close toward the end of 2026 or in the first half of 2027, given the scale of the potential deal and the valuation gap still to be resolved.