(Bloomberg) -- JSC Bank for Foreign Trade of Vietnam, known as Vietcombank, is seeking advisors for a plan to raise about $1 billion to boost its capital, according to people familiar with the matter.

The Hanoi-based lender will sell about 5% stake via a private placement, said the people, who asked not to be identified because the information is private. Reuters reported earlier that Vietcombank plans to raise at least $600 million in fresh capital to compete with its rivals.

Representatives of Vietcombank were not immediately available for comment. 

The move comes as Vietnamese lenders are rushing to shore up their financial strength, with many issuing shares or selling stakes to strategic partners this year. In March, Vietnam Prosperity JSC Bank sold a 15% stake to Japan’s Sumitomo Mitsui Financial Group Inc. for about $1.5 billion, marking the end of a years-long sale process.

The State Bank of Vietnam has allowed Vietcombank to increase its registered capital by 18% to 55.89 trillion dong ($2.4 billion), according to a May 30 statement on lender’s website. 

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