Domestic banks seek foreign partners.

Customers conducting transactions at Tien Phong Commercial Joint Stock Bank. *Photo: Nguyen Quang*

Opportunities for foreign investors

According to current regulations, the foreign ownership limit (the maximum percentage of shares that foreign investors are allowed to own) for banks in Vietnam is 30%, except for three banks: Vietnam Prosperity Commercial Joint Stock Bank (VPBank), Ho Chi Minh City Development Commercial Joint Stock Bank ( HDBank ), and Military Commercial Joint Stock Bank (MB). These three banks will have their limit increased to 49% from May 19th, due to the transfer of three struggling banks starting in early 2025. This is seen as an opportunity for foreign investors.

It is known that foreign investors currently hold over 1.4 billion shares of MB, equivalent to 23.24%, but this bank does not yet have a foreign strategic shareholder. HDBank, on the other hand, is one of the few large banks that has not yet chosen a foreign strategic shareholder, only having the participation of a few foreign investment funds. Therefore, when HDBank's foreign ownership limit is increased to 49%, it will be an opportunity for foreign investors and for HDBank itself to attract capital and enhance its financial strength.

However, HDBank is expected to allocate only about 10% of its foreign ownership limit for capital increase. The plan to sell capital to strategic investors is entirely feasible when market conditions are favorable and the bank finds suitable partners. HDBank has received interest from several partners from South Korea, Europe, and the United States.

According to the latest data from the Vietnam Securities Depository and Clearing Corporation (VSD), as of March 20, 2025, 12 out of 27 listed banks on the stock exchange had foreign ownership exceeding 15%. Specifically, foreign ownership in Vietnam Technological and Commercial Bank (Techcombank) was 22.51%; in Asia Commercial Bank (ACB ): 30%; in Vietnam Industrial and Commercial Bank (VietinBank): 26.84%; in Vietnam Maritime Commercial Bank (MSB): 27.55%; and in Tien Phong Commercial Bank (TPBank): 28.05%.

A representative from Techcombank stated that foreign ownership in the bank still has nearly 10% room to maneuver, and the bank is considering issuing shares to strategic shareholders. Typically, issuing shares to strategic shareholders results in a higher price, benefiting all shareholders. Therefore, the bank is seeking opportunities and hopes to find a suitable foreign strategic investor when market conditions improve.

Many specific plans

Regarding specific plans to attract foreign investment, Chairman of the Board of Directors of Vietnam International Commercial Bank (VIB), Dang Khac Vy, said that currently, VIB has 25% of its foreign ownership limit vacant and the bank is seeking foreign partners after its strategic shareholder, Commonwealth Bank of Australia (CBA), divested its stake.

Reportedly, CBA invested in VIB since 2010, initially contributing 15% and later increasing its ownership to 20%. This shareholder played a crucial role in VIB's strategic transformation from a bank specializing in corporate lending to a professional retail bank.

Additionally, 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); and issue nearly 417.1 million shares to existing shareholders (at a rate of 14%). After completion, VIB's charter capital will increase from over VND 29,791 billion to over VND 34,040 billion, representing a capital increase of 14.26%.

Meanwhile, MB is actively seeking foreign strategic partners to quickly access advanced technologies, business development expertise, and management practices. In addition, MB can leverage the experience, network, and customer base of its partners to develop new markets; stabilize shareholders, and ensure consensus and consistency in business development and strategic implementation. MB sets criteria for selecting foreign partners based on their strong financial capacity, shared goals and strategic implementation aligned with MB's culture, and high commitment to MB, avoiding conflicts of interest and ensuring long-term strategic cooperation for mutual development.

More specifically, MB's leadership added that the bank may sell 100% of its capital in the acquiring bank (Oceanbank, now renamed MBV) to foreign investors. After the acquisition, Oceanbank's legal form will change from a wholly state-owned limited liability company (holding 100% of the charter capital) to a limited liability company wholly owned by MB. MB plans to contribute no more than VND 5,000 billion to MBV's charter capital.

One of the "Big4" banks, the Vietnam Investment and Development Bank (BIDV), is offering 123.8 million shares in a private placement to professional investors at a price of VND 38,800 per share. Of these, BIDV is offering nearly 38.7 million shares to domestic investors and nearly 85.2 million shares to foreign investors.

Opportunities remain open for many other foreign investors in banks that have very low foreign ownership ratios, or even still have their foreign ownership limits intact, such as Loc Phat Commercial Joint Stock Bank (LPBank), Southeast Asia Commercial Joint Stock Bank (SeABank), and Nam A Commercial Joint Stock Bank (Nam A Bank)...

Financial experts believe 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 obstacle currently facing foreign investors wanting to participate in Vietnamese banks remains the limited foreign ownership limit. Therefore, if the limit for foreign partners is relaxed, the "door" will open wider for foreign partners.

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