SMBC Seeks Larger VPBank Stake as Japanese Banks Deepen Strategic Expansion Across Vietnam

Four people familiar with the negotiations said SMBC is discussing raising its holding from 15%, which it acquired in 2023 in a transaction valued at about $1.5 billion. The proposed increase would strengthen the Japanese lender’s position in VPBank while expanding its access to Vietnamese households and businesses. The people asked not to be identified because the discussions are not public.

The negotiations have been under way for several months, and the two sides intend to complete the transaction this year, although valuation remains an area of disagreement, according to two people familiar with the matter. The discussions therefore remain subject to further negotiation and do not guarantee that the proposed increase will be completed.

SMBC’s interest comes as Vietnam continues to attract international financial institutions seeking exposure to rising household wealth, business investment and expanding consumer demand. The country has positioned rapid economic growth and increased foreign investment as important components of its longer-term development strategy, supporting demand for banking services and corporate finance.

For Japanese lenders, investments in Southeast Asian banks also provide a route into markets where domestic financial institutions are expanding alongside manufacturing, trade and infrastructure activity. Vietnam’s integration into regional supply chains has increased its importance for Japanese companies operating across Asia, creating potential opportunities for banks with established corporate relationships.

An increased SMBC holding could consequently deepen cooperation between the two institutions beyond equity ownership, including corporate banking, investment services and support for companies operating across Vietnam and Japan.

The negotiations also illustrate the continued strategic interest of Japanese financial groups in Asian banking assets. As regional economies develop and cross-border investment increases, lenders are assessing opportunities to combine local market access with international financing capabilities.

For VPBank, a larger strategic stake from SMBC could strengthen its relationship with a major international banking group while potentially supporting future business expansion.

For SMBC, the proposed investment would represent a further commitment to Vietnam at a time when financial institutions are seeking growth opportunities beyond mature domestic markets.