Vietnam has separate plans to establish international financial centres, which are expected to boost foreign capital inflows. (Reuters pic)

HANOI: Vietnamese banks are planning nearly US$7 billion in share sales as the country's fast-growing economy fuels demand for capital, opening a window for foreign investors to expand in the tightly controlled sector.

Communist-run Vietnam, which reported growth of nearly 10% in the last quarter, has one of Asia's fastest-growing banking industries but access has been restricted, with cumulative foreign ownership capped at 30%, individual stakes limited to 20% and offshore borrowing subject to strict limits.

However, in recent months, top leader To Lam's drive to turbocharge economic growth with major infrastructure spending has ushered in a more open approach, as policymakers view larger foreign participation as necessary to meet growing credit demand amid a domestic funding squeeze.