VietNamNet Bridge – The Hanoi-based Bank for Investment and Development of Vietnam (BIDV) hopes to choose a foreign strategic investor later this year or next year, said BIDV Chair Tran Bac Ha on April 14.

BIDV Chair Tran Bac Ha.

"The bank has entered into the stage of negotiation to select investors. There are seven to eight investors on the list," Ha said.

Under the plan passed by the shareholders’ meeting early last year, BIDV will issue additional shares to sell to the selected investor but the total foreign ownership will not exceed 30% of the charter capital. The selling price will be determined by the method of agreement.

Earlier, BIDV said it planned to sell a 25% stake to foreign partners - 15% stake to a foreign strategic partner and 10% to a foreign financial investor.

"The bank’s policy is to select the investors that are appropriate to its business strategy," Ha stressed.

BIDV is a commercial bank with the second largest charter capital in the banking system of Vietnam, reaching more than VND28,112 billion. The State Bank of Vietnam is the representative of state ownership in the bank at the rate of 95.76% of charter capital.

In the first quarter 2015, BIDV obtained VND1,835 billion of pre-tax profit, an increase of 2% compared to the same period last year, completing 24.5% of the yearly plan.

$1 = VND21,100

Son Tung