Domestic banks seek foreign partners

Facing the storm of global technology development, continuing to seek foreign partners to improve financial and management capacity, increasing competitiveness with not only domestic credit institutions but also foreign-invested banks is the goal of Vietnamese banks in 2025.

Customers transact at Tien Phong Commercial Joint Stock Bank. Photo: Nguyen Quang

Opportunities for foreign investors

According to current regulations, the foreign room ceiling (the maximum percentage of shares that foreign investors are allowed to own) for banks in Vietnam is 30%, except for 3 banks: Vietnam Prosperity Joint Stock Commercial Bank (VPBank), Ho Chi Minh City Development Joint Stock Commercial Bank ( HDBank ), Military Commercial Joint Stock Bank (MB). These three banks will be raised to 49% from May 19, due to the transfer of three weak banks from the beginning of 2025. This is considered an opportunity for foreign investors.

It is known that foreign investors are holding more than 1.4 billion shares of MB, equivalent to 23.24%, but this bank does not have any foreign strategic shareholders. HDBank is one of the few large banks that have not chosen foreign strategic shareholders, but only have the participation of some foreign investment funds. Therefore, when HDBank's room is increased to 49%, it will be an opportunity for foreign investors and for HDBank itself to attract capital and improve financial potential.

However, HDBank is expected to only reserve about 10% of foreign room for capital increase. The plan to sell capital to strategic investors can be implemented when market conditions are favorable and the bank finds suitable partners. HDBank has received attention from a number of partners from Korea, Europe and the US.

According to the latest data from the Vietnam Securities Depository (VSD), as of March 20, 2025, 12/27 banks listed on the stock exchange had a foreign ownership ratio of over 15%. Of which, the foreign ownership ratio at Vietnam Technological and Commercial Joint Stock Bank (Techcombank) was 22.51%; at Asia Commercial Joint Stock Bank (ACB ): 30%; Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank): 26.84%; Maritime Commercial Joint Stock Bank (MSB): 27.55%; Tien Phong Commercial Joint Stock Bank (TPBank): 28.05%.

Techcombank representative said that the foreign ownership space in this bank is nearly 10% and the bank is considering issuing to strategic shareholders. Normally, issuing to strategic shareholders has a higher price, bringing common benefits to shareholders, so the bank is looking for opportunities and hopes that when the market is better, it will meet a suitable foreign strategic investor.

Many specific plans

Regarding the specific plan to attract foreign investors, Chairman of the Board of Directors of Vietnam International Commercial Joint Stock Bank (VIB) Dang Khac Vy said that currently, the foreign room at VIB is 25% empty and the bank is looking for foreign partners after strategic shareholder Commonwealth Bank of Australia (CBA) divested.

It is known that CBA invested in VIB in 2010, with an initial contribution ratio of 15% and increased its ownership ratio to 20%. This shareholder plays an important role in VIB's strategic transformation from a bank specializing in corporate lending to a professional retail bank.

In addition, also in 2025, VIB plans to issue bonus shares at a rate of 14% (in addition to a 7% cash dividend); issue 7.8 million ESOP shares (shares for employees); issue nearly 417.1 million shares to existing shareholders (rate of 14%). After completion, VIB's charter capital will increase from more than VND 29,791 billion to more than VND 34,040 billion, equivalent to a capital increase rate of 14.26%.

Meanwhile, MB is actively seeking foreign strategic partners to quickly access advanced technologies, business development and management know-how. In addition, MB can take advantage of the partners' experience, network, and customer base to develop new markets; stabilize shareholders, ensure consensus and consistency in business development, and implement strategies. MB sets criteria for selecting foreign partners with good financial capacity, consensus on goals and implementing strategies that are culturally appropriate, as well as having a high commitment to MB, avoiding conflicts of interest, ensuring long-term strategic cooperation, and mutual development.

More specifically, MB leaders added that the bank can sell 100% of its capital at the transferee bank (Oceanbank, renamed MBV) to foreign investors. After receiving the transfer, Oceanbank's legal form will change from a single-member LLC owned by the State (holding 100% of the charter capital) to a single-member LLC owned by MB. MB plans to contribute charter capital to MBV with a level not exceeding VND5,000 billion.

A bank in the “Big 4” group, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), offered 123.8 million individual shares to professional investors at a price of VND38,800/share. Of which, BIDV offered nearly 38.7 million shares to domestic investors and nearly 85.2 million shares to foreign investors.

Opportunities are still "open" for many other foreign investors in banks with very low foreign ownership ratios, even with full foreign room such as Loc Phat Commercial Joint Stock Bank (LPBank), Southeast Asia Commercial Joint Stock Bank (SeABank), Nam A Commercial Joint Stock Bank (Nam A Bank)...

Financial experts say that attracting foreign strategic investors not only helps banks increase their financial resources, but also provides support in technology, management, and meeting international standards. However, the biggest barrier for foreign investors who want to participate in Vietnamese banks is still the room restriction. Therefore, if the room for foreign partners is loosened, the "door" for foreign partners will be wide open.

Source: https://hanoimoi.vn/ngan-hang-noi-tim-doi-tac-ngoai-700713.html