Full Breakdown
Vietnam’s Banks Target Nearly $7 Billion in Share Sales
By Drooid · · How we work
Context: Rapid Growth and Regulatory Shifts
Vietnam’s economy has been expanding at close to 10% in the most recent quarter, creating strong demand for credit. The banking sector, already one of the fastest-growing in Asia, faces a funding squeeze as loan growth outpaces domestic capital. To meet Basel III capital requirements slated for 2030, regulators have begun easing long-standing limits on foreign ownership—raising the overall offshore borrowing ceiling by 11% to $6.1 billion and allowing three lenders to increase foreign stakes to 49%. The FTSE Russell upgrade to emerging-market status and plans for international financial centres further signal a more open stance.
Capital-Raising Plans and Key Transactions
Banks collectively aim to raise almost $7 billion through equity offerings by the end of next year. Notable plans include:
- VPBank’s private placement of $560 million, seeking to lift its foreign ownership to 20% from 15%.
- Vietcombank’s sale of 6.5% of shares, valued at roughly $1.2 billion.
- BIDV’s intention to sell an additional 11% of its stock, targeting about $1.4 billion.
- HDBank’s projected 10.7% stake sale, and Techcombank’s ongoing discussions with foreign partners.
Offshore borrowing by banks and corporations totals $5.3 billion this year, while the finance ministry contemplates its first sovereign bond sale since 2014.
Official Views and Market Outlook
Finance lecturer Quynh Nguyen of Hoa Sen University noted that the policy shift is “selective” and does not constitute a wholesale liberalisation, but it does open the door for strategic investors familiar with Vietnam.
Verbatim Quote
- “We see some opportunities among the smaller banks to score some tie-ups down the line, provided Vietnam can maintain its growth story,” — Fitch's Willie Tanoto