BNP Paribas, KB Kookmin reportedly in talks for $2 billion Vietnam Techcombank stake

BNP Paribas and KB Kookmin Bank are in talks for a $2 billion Vietnam Techcombank stake, sources said on Wednesday.

Korea’s KB Kookmin Bank is also allegedly in separate talks to acquire at least a 15 percent stake in Vietnam’s Techcombank as a strategic investor in a deal that could be worth $2 billion.

The potential deal, which has not been reported previously, would give the winner rare access to Vietnam’s fast-growing banking market and end Techcombank’s long search for a foreign strategic partner.

Techcombank is seeking a valuation of about two times its book value, according to the sources, who are familiar with the deal discussions but spoke on condition of anonymity, as they are not authorized to speak to the media.

If agreed, that would value a 15 percent stake in Vietnam’s third-largest ⁠privately owned bank by total assets at around $2 billion and would represent about a 55 percent premium over its current market price. Techcombank stock was down 9 percent this year as of Tuesday.

KB Kookmin Bank said that it would not comment on market rumors or speculation due to Korea’s capital ⁠markets and disclosure rules. Spokespeople for Techcombank and BNP Paribas also declined to comment.

The latest deal talks come as foreign banks seek a bigger foothold in Vietnam by extending hard-currency loans to local lenders squeezed between rising domestic funding costs and government pressure to expand credit.

Several foreign banks operate in Vietnam through branches, and more could enter under the government’s plan to establish international financial centers, analysts said, though key details remain unclear.

Japanese and Korean banks are already strategic investors in some of the country’s largest lenders. Japan’s Sumitomo Mitsui Banking bought a 15 percent stake in VPBank in 2023.

Vietnam caps foreign ownership at 30 percent for most banks. In Techcombank, foreign ownership currently stands at around 20.5 percent, and the sources said that interested bidders are weighing several options, including purchases from existing foreign investors.

No formal agreement has been reached, and there is no certainty that the talks will result in ⁠a deal, they said, though Techcombank is likely to select only one of the two bidders.

Valuation remains the main hurdle, as Techcombank is seeking a sharply higher premium to its current market value, one of the sources said, adding that a strategic buyer would be buying future growth and access to a scarce banking platform.

A ⁠deal could be reached by the end of 2026 or ⁠the first half of 2027, depending on negotiations, according to the sources.

Techcombank has long said that it is open to a foreign strategic investor. It is one of Vietnam’s few large privately owned banks without such a strategic partner.

For BNP Paribas or KB Kookmin, a Techcombank stake would offer exposure to Vietnam’s expanding middle class, rising wealth management demand and fast-growing private banking sector.

BNP Paribas and KB Kookmin Bank already operate branches in Hanoi and Ho ⁠Chi Minh City, and KB Financial Group — Kookmin’s parent — has a majority-owned securities unit ⁠in Vietnam.

Founded in ⁠1993, Techcombank had more than 18 million clients at the end of 2025 and covered well over half of Vietnam’s high-net-worth and affluent customers, according to its 2025 annual report.

Techcombank’s total assets were 1.273 quadrillion dong ($48.8 billion) at the end of June, with customer deposits amounting to 697.4 trillion dong, per its financial statements.

First-half pretax profit rose 22.5 percent from a year earlier to 18.5 trillion dong, driven by growth in net interest income and fee income, the bank said.

Reuters