Vietnamese lender Techcombank is reportedly negotiating with two major overseas banks over the sale of a 15% stake worth up to $2bn.

France’s BNP Paribas and South Korea’s KB Kookmin Bank are holding separate discussions with Techcombank as the Vietnamese lender looks to secure its first foreign strategic shareholder, Reuters reported, citing people familiar with the matter.

The bank is seeking a valuation of about twice its book value, which would put the potential 15% transaction at roughly $2bn. Techcombank is expected to choose only one of the two prospective investors.

Also, the agreement could be reached by the end of this year or during the first half of 2027, although negotiations remain ongoing and no formal deal has been signed.

The possible transaction comes as international banks deepen their presence in Vietnam’s financial sector. Japan’s Sumitomo Mitsui Banking Corporation, for example, bought a 15% holding in VPBank for about $1.5bn, while Mizuho Bank acquired a 15% stake in Vietcombank in 2011.

For BNP Paribas and KB Kookmin, an investment in Techcombank would further expand their presence in Vietnam. Both institutions already operate branches in Hanoi and Ho Chi Minh City.

Founded in 1993, Techcombank has become one of Vietnam’s leading commercial banks, serving more than 18mn customers. It provides retail and corporate banking services and has assets of approximately $48.76bn.

A successful deal would mark a significant milestone for Techcombank by bringing in its first foreign strategic investor, while giving the selected bank a sizeable position in one of Vietnam’s largest private lenders.