Foreign investors have seen substantial returns from stakes in Vietnam’s largest banks over the past two decades.
Mizuho’s stake in Vietcombank grows sixfold
Japan’s Mizuho Corporate Bank purchased a 15% share in Vietcombank in 2011 for 11.8 trillion dong ($452.5 million). A later investment of 930 billion dong ($35.7 million) in 2019, alongside Singapore’s GIC, maintained its position.
The holding is now worth 75.3 trillion dong ($2.9 billion). Including 5.6 trillion dong ($214.8 million) in cash dividends, the total value reaches 80.9 trillion dong ($3.1 billion)—6.4 times the original investment of 12.7 trillion dong ($487.1 million).
VietinBank and BIDV yield steady profits
The International Finance Corporation paid $182 million for a 10% stake in VietinBank in 2011. It sold most of its shares between 2019 and 2020, earning 2.376 trillion dong ($91.1 million) from an initial 1.44 trillion dong ($55.2 million) outlay. Its stake subsequently fell to 4.99%.
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Bank of Tokyo-Mitsubishi UFJ acquired a 20% stake for 15.465 trillion dong ($593.1 million) in 2012 and still holds 19.73%. Dividends have exceeded 4.9 trillion dong ($187.8 million), while the remaining shares are valued at 49 trillion dong ($1.87 billion), putting the total value at 3.5 times the initial amount.
BIDV’s 2019 sale of a 15% stake to South Korea’s KEB Hana Bank for $778 million has also proven successful. The Korean bank’s 14.21% holding is now worth 40.8 trillion dong ($1.6 billion). Including more than 1.5 trillion dong ($57.5 million) in dividends, the investment is now worth 2.1 times the amount invested.
SMBC’s record deal faces losses
Sumitomo Mitsui Banking Corporation set a new record in October 2023 by paying 35.9 trillion dong ($1.37 billion) for a 15% stake in VPBank—the largest banking investment in Vietnam to date.
Since then, VPBank’s share price has dropped 9.1% below the entry point. The stake is now valued at 32.62 trillion dong ($1.25 billion). Four dividend payouts totaling 3.6 trillion dong ($138 million) have offset some losses, leaving a modest paper gain of over 300 billion dong ($11.5 million).
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Before investing in VPBank, SMBC spent 15 years as a shareholder in Eximbank. In November 2007, it paid $225 million for a 15% stake. In early 2023, SMBC sold most of its shares for more than 3.388 trillion dong ($130 million) and by mid-year had reduced its holding to 2%.
$2 billion Techcombank deal fails before launch
On August 26, reporters stated that BNP Paribas and South Korea’s KB Kookmin Bank were in separate discussions to buy strategic stakes in Techcombank, with valuations potentially reaching $2 billion.
Both banks denied the reports. KB Kookmin told a Seoul outlet it reviews many financial institutions for investments, and Techcombank was one of several under consideration, with no formal talks underway. Techcombank did not respond to requests for comment.