VPBank leads Vietnamese bank capital raises as foreign investors return

Overview

Vietnamese banks are intensifying capital-raising efforts and seeking foreign strategic investors, with VPBank, HDBank, OCB, and Techcombank at the forefront. Techcombank is reportedly in talks to sell at least 15% to BNP Paribas or KB Kookmin Bank, while VPBank plans to raise its charter capital to over VND 106,200 billion by 2026. These moves aim to strengthen financial capacity and support long-term growth.

Key Facts

• VPBank plans to raise charter capital from over VND 79,300 billion to over VND 106,200 billion by 2026.
• The first phase involves issuing shares from retained earnings at a ratio of over 26.0414%, lifting charter capital to VND 100,000 billion.
• The second phase includes a private placement of over 624 million shares to a foreign investor, raising capital to over VND 106,200 billion.
• In 2023, VPBank completed a private placement of 1.19 billion shares to SMBC for over VND 35,900 billion (nearly $1.5 billion), a record M&A deal in Vietnam’s banking sector.
• Techcombank is in talks with BNP Paribas and KB Kookmin Bank to sell at least 15% of its shares as a strategic investor, according to Reuters on August 26.
• HDBank plans to privately place up to 700 million shares to domestic and foreign professional investors.
• OCB has hinted at seeking foreign investors through share sales or convertible bond issuance.

What Happened

According to a Reuters report on August 26, BNP Paribas of France and KB Kookmin Bank of South Korea are separately negotiating to buy at least 15% of Techcombank as strategic investors. The parties are considering various options, including purchasing shares from existing foreign investors. This news has brought the foreign ownership story back into focus for Vietnam’s banking sector.

VPBank, building on its landmark deal with SMBC in 2023, is pursuing an ambitious capital increase plan. The bank will first issue shares from retained earnings, then conduct a private placement of over 624 million shares to a foreign investor. The plan aims to enhance financial capacity, governance, and operational scale. HDBank and OCB are also pursuing similar strategies, with HDBank planning a private placement of up to 700 million shares and OCB exploring foreign partnerships via share sales or convertible bonds.

Market Context

VPBank (HOSE: VPB) closed at VND 26,750 on August 26, 2026. The banking sector is seeing renewed interest from foreign investors, with Techcombank (HOSE: TCB) at VND 33,450, HDBank (HOSE: HDB) at VND 27,750, and OCB (HOSE: OCB) at VND 10,950. These capital-raising plans come amid a broader trend of Vietnamese banks seeking to bolster capital adequacy ratios and support credit growth, aligning with the State Bank of Vietnam’s regulatory requirements.

Strategic Significance

For long-term investors, these capital increases signal a strategic shift toward international partnerships that bring not only capital but also expertise in technology, governance, and risk management. VPBank’s plan to raise capital to over VND 106,200 billion would solidify its position among the largest banks in Vietnam, enhancing its competitive edge. The entry of foreign strategic investors like BNP Paribas or KB Kookmin Bank into Techcombank could reshape the competitive landscape, bringing global best practices and potentially improving profitability and asset quality.

What to Watch

• Completion of VPBank’s private placement to a foreign investor, including the identity of the investor and final pricing.
• Techcombank’s negotiations with BNP Paribas or KB Kookmin Bank, including any definitive agreements and regulatory approvals.
• HDBank’s private placement of up to 700 million shares and the response from institutional investors.
• OCB’s specific plans for foreign investment, whether via share sale or convertible bonds.
• Regulatory approvals from the State Bank of Vietnam for these capital increases and foreign ownership limits.