HONG KONG/HANOI, Aug 26 - Two sources familiar with ongoing negotiations said France's BNP Paribas and South Korea's KB Kookmin Bank are separately exploring purchases of at least a 15% strategic stake in Vietnam's Techcombank. The potential transactions, which have not been previously reported, could be valued at about $2 billion if they meet Techcombank's asking price, the sources said.
The people, who spoke on condition of anonymity because they were not authorised to discuss the matter publicly, said Techcombank is targeting a valuation near two times its book value. At that multiple, a 15% stake in the lender - currently the third-largest privately owned bank in Vietnam by total assets - would be roughly $2 billion and would imply about a 55% premium to the bank's current market price.
Techcombank's shares have fallen about 9% year-to-date as of Tuesday, according to the sources. Bank officials and spokespeople for BNP Paribas declined to comment. KB Kookmin Bank said it would not comment on market rumours or speculation, citing South Korea's capital markets and disclosure rules.
Deal dynamics and strategic rationale
The discussions come as foreign lenders look to deepen their presence in Vietnam by extending hard-currency loans to local banks facing higher domestic funding costs and regulatory pressure to increase credit. According to the sources, the successful bidder would gain access to Vietnam's fast-growing banking market and to Techcombank's platform, which the bank and potential investors see as scarce.
Foreign ownership limits are a relevant constraint. Vietnam caps foreign stakes at 30% for most banks, and Techcombank already has foreign ownership of around 20.5%, the sources said. Potential buyers are weighing different routes for obtaining stakes, including purchases from existing foreign investors.
Valuation and selection process
Valuation remains the main sticking point in talks. One of the sources said Techcombank's asking premium is materially higher than its current market value, reflecting the bank's growth prospects and the strategic access it offers. The sources cautioned there is no certainty the negotiations will yield a deal and said Techcombank would likely pick only one investor if an agreement is reached.
Timing for a transaction is uncertain. The sources said a deal could close as early as the end of 2026 or in the first half of 2027, depending on how negotiations proceed.
Context within Vietnam's banking sector
Techcombank has previously signalled that it is open to taking on a foreign strategic investor. The bank is one of Vietnam's large private lenders without such a partner, a status that has made its search particularly notable.
For either BNP Paribas or KB Kookmin, acquiring a stake would provide exposure to the expanding Vietnamese middle class and to growth areas such as wealth management and private banking, the sources said. Both BNP Paribas and KB Kookmin already maintain operations in Vietnam through branches in Hanoi and Ho Chi Minh City. KB Financial Group, Kookmin's parent, also owns a majority stake in a local securities unit.
Techcombank's scale and financials
Founded in 1993, Techcombank reported having more than 18 million clients at the end of 2025 and said it serves well over half of Vietnam's high-net-worth and affluent customers, according to its 2025 annual report. At the end of June 2026, Techcombank's total assets stood at 1,273 trillion dong, with customer deposits of 697.4 trillion dong, as shown in its financial statements.
In the first half of the year, the bank's pretax profit increased 22.5% from a year earlier to 18.5 trillion dong, driven by growth in net interest income and fee income, the bank's numbers show. The sources reiterated the exchange rate used for dollar conversions in public filings: $1 = 26,107.0000 dong.
Uncertain outcome
While the discussions involve two prominent international banks and a substantial price tag, the sources emphasised that no formal agreement has been signed and that the talks may not result in a transaction. If a deal does occur, Techcombank is expected to accept only one strategic investor.
Any final arrangement will depend on negotiation outcomes, regulatory considerations given foreign ownership limits and the ability of a bidder to meet Techcombank's valuation expectations.