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Vietnamese lenders are preparing nearly $7 billion in share sales through the end of 2027, as rapid economic growth and rising demand for credit intensify pressure on banks to secure capital. The fundraising plans could give foreign investors a larger role in the country’s tightly controlled banking sector, where ownership limits have historically constrained their stakes.
The potential capital raising, compiled from public disclosures and a Fitch Ratings report, would likely be Vietnam’s largest-ever wave of lender fundraising. It comes as the government pursues annual economic growth of at least 10% through 2030 and promotes major infrastructure spending, while banks face a domestic funding squeeze and the need to strengthen loss-absorbing capital.
Major lenders outline share-sale plans
Vietcombank, Vietnam’s largest lender, has announced plans to sell 6.5% of its shares by the end of 2026. At current prices, the transaction would be worth about $1.2 billion. Minutes from an April shareholder meeting said Japan’s Mizuho Bank, which holds a 15% stake and is Vietcombank’s largest foreign investor, may increase its holding. Mizuho declined to comment.
BIDV, the country’s second-largest lender, sold roughly 3% of its shares to dozens of investors in March. It plans to sell almost another 11% by the end of 2027, with the combined sales expected to be worth approximately $1.4 billion, according to public disclosures. South Korea’s KEB Hana, BIDV’s top foreign shareholder, did not participate in the March placement; a spokesperson said it was considering whether to join the next one.
Private lender VPBank is seeking a private placement worth about $560 million at current market prices. Japan’s Sumitomo Mitsui Banking Corp. is in talks to raise its stake in VPBank from 15% to 20%, according to Reuters reporting in September. HDBank, meanwhile, has said it plans to sell a 10.7% stake by the end of 2027. Techcombank has also discussed a stake sale with foreign lenders, Reuters reported in August.
Policy shifts create a wider opening
Vietnam has traditionally limited foreign ownership in banks: the cumulative cap is 30%, while an individual investor’s stake is generally limited to 20%. But policymakers have recently allowed three local lenders to raise their foreign ownership limits to 49%, and the country increased its offshore borrowing ceiling by 11% this year, to $6.1 billion.
The changes reflect a more open, though selective, approach to foreign capital as officials seek funding for growth and expanding credit needs. Quynh Nguyen, a finance lecturer at Hoa Sen University in Ho Chi Minh City, said the country was reconsidering how to finance its next phase of growth, while cautioning that the shift did not amount to wholesale liberalisation.
Foreign lenders involved in equity discussions have cited potential investment gains and access to Vietnam’s expanding consumer market, including insurance, according to two people familiar with the talks. Fitch analyst Willie Tanoto said smaller banks could present opportunities for future partnerships if Vietnam maintains its growth story.
Vietnam’s emerging-market upgrade by index provider FTSE Russell last month and plans to establish international financial centres are further elements of the changing investment landscape. The share transactions remain at different stages, however: several are plans or discussions, and the reported valuations use current share prices rather than final offering terms.
Capital needs rise alongside lending risks
The banks’ plans are driven in part by the need to build capital ahead of a transition to stricter Basel III requirements by 2030. Rapid loan growth is adding urgency: Moody’s-backed VIS Rating has warned that it could further weaken banks’ loss-absorption buffers.
Credit demand is also linked to the government’s growth and infrastructure ambitions. But the expansion brings risks: real estate accounts for roughly a quarter of bank loans, and bad debts in the sector are rising quickly, according to an August internal central-bank report cited by Reuters.
Fitch cautioned that the planned fundraising may not materially improve most banks’ capitalisation because the proceeds are expected to be deployed rapidly into new lending. The agency also said further large capital injections are likely to be needed in coming years, underscoring that the announced sales may be part of a longer funding cycle rather than a one-off solution.
Other routes to foreign funding
Share offerings are not the only channel lenders are pursuing. Vietnamese banks and corporations disclosed offshore borrowing plans totalling $5.3 billion this year, according to FiinRatings, an S&P Global partner. Banks are also weighing offshore bond issues, while new rules could allow large municipalities to seek financing in international debt markets.
The finance ministry is considering an offshore sovereign bond sale, which would be Vietnam’s first since 2014. No sale date or terms were established in the reporting. Together, the equity plans and debt discussions point to a wider effort to draw overseas capital into a financial system being asked to support fast growth, even as questions remain about how effectively new funds will bolster banks’ resilience.
