BNP Paribas, KB Kookmin vie for $2 billion Techcombank stake

BNP Paribas and KB Kookmin Bank are competing for a $2 billion stake in Vietnam's Techcombank, a deal that would give the winner rare access to the country's fast-growing banking market.

Techcombank is seeking a valuation of about two times its book value, two people familiar with the discussions said, which would value a 15 percent stake at around $2 billion and represent a roughly 55 percent premium over the bank's current market price. Techcombank stock is down 9 percent this year as of Tuesday, reflecting investor caution about the gap between the bank's asking price and its market value.

The 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. Vietnam caps foreign ownership at 30 percent for most banks, and Techcombank's foreign ownership currently stands at around 20.5 percent. Interested bidders are weighing several options, including purchases from existing foreign investors, the people said. Japan's Sumitomo Mitsui Banking Corp bought a 15 percent stake in VPBank in 2023, the most recent comparable strategic investment in a Vietnamese private lender.

For the winning bidder, a Techcombank stake offers exposure to Vietnam's expanding middle class, rising wealth management demand and a fast-growing private banking sector. 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. A deal could be reached by the end of 2026 or the first half of 2027, the people said.

No formal agreement has been reached and there is no certainty the talks will result in a deal, the people said, adding that Techcombank is likely to select only one of the two bidders. Valuation remains the main hurdle, with Techcombank seeking a sharply higher premium to its current market value. A strategic buyer would be purchasing future growth and access to a scarce banking platform, one of the people said.

KB Kookmin Bank declined to comment on market rumors, citing South Korea's capital markets and disclosure rules. Spokespersons for Techcombank and BNP Paribas declined to comment.

Techcombank's Growth Story

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. Total assets reached 1,273 trillion dong ($48.76 billion) at the end of June 2026, with customer deposits of 697.4 trillion dong. 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. At current exchange rates, $1 equals 26,107 dong.

BNP Paribas and KB Kookmin Bank already operate branches in Hanoi and Ho Chi Minh City, while KB Financial Group, Kookmin's parent, has a majority-owned securities unit in Vietnam. Several foreign banks operate in Vietnam through branches, and more could enter under the government's plan to establish international financial centres, though key details remain unclear. Japanese and South Korean banks are already strategic investors in some of the country's largest lenders.

Techcombank has long said it is open to a foreign strategic investor, making it one of Vietnam's few large privately owned banks without such a partner. The last comparable deal came in 2023, when Sumitomo Mitsui Banking Corp acquired its VPBank stake, setting a precedent for foreign strategic investment in the country's private lenders.

The outcome of these talks will shape the competitive dynamics of Vietnam's banking sector, where foreign participation remains tightly controlled. If Techcombank secures a strategic partner at a 55 percent premium, it could set a new valuation benchmark for the country's private banks and encourage further foreign investment. For BNP Paribas, the deal would deepen its Southeast Asia presence beyond its existing branch network; for KB Kookmin, it would mark the South Korean lender's largest overseas strategic investment to date.

This article is for informational purposes only and does not constitute investment advice.