In an unexpected turn of events in a Ho Chi Minh City courtroom, Truong My Lan, a prominent Vietnamese real estate billionaire, has been sentenced to death. Lan was found guilty of executing a large-scale financial scam, considered the most significant in the history of Vietnam.
Lan faced fraud charges totaling $12.5 billion, a staggering sum equivalent to nearly 3% of Vietnam’s GDP in 2022.
The 67-year-old was found guilty of diverting funds from the Saigon Joint Stock Commercial Bank, which she secretly controlled. This misappropriation resulted in losses estimated at $27 billion over ten years. The court ruled that her actions had critically undermined public confidence in Vietnam’s financial systems and governance. As part of her sentence, Lan was ordered to repay the bank $26.9 million.
As Chair of the Van Thinh Phat real estate conglomerate, Lan was involved in an intricate scheme that spanned a decade, from 2012 to 2022. The scam involved the approval of thousands of loans to non-existent companies, leading to potentially irrecoverable losses. The severity of her crimes led to the death penalty, highlighting Vietnam’s recent intensified efforts to combat corruption.
Following the verdict, an emotional Lan confessed, “Due to my lack of understanding of legal matters,” she “did the wrong things.”
Born into a Chinese-Vietnamese family from Cholon, a predominantly Chinese quarter in Saigon—also known as Ho Chi Minh City—Lan’s entrepreneurial career began with selling beauty products at a local market stall with her mother. Her ambitions led her into the real estate market during the 1990s, where she began purchasing dining establishments and hospitality venues.
Along with her husband, Eric Chu Nap Kee, a Hong Kong-based real estate mogul, Lan was charged alongside a group of 85 other individuals. These accused conspirators, a varied group of legal professionals and financial administrators from Vietnam’s capital, Hanoi, faced multiple legal charges.
In addition to Lan’s sentence, her niece, the CEO of Van Thinh Phat, received a 17-year prison term for her involvement. A former central bank official linked to the scandal was sentenced to life in prison for accepting bribes. Authorities confiscated over 1,000 properties and significant cash amounts related to the fraudulent activities of Lan and her network.
Seventy individuals, including Lan and her husband, were imprisoned in a maximum-security facility located northwest of the city, near the former U.S. stronghold at Cu Chi. Ten individuals are under house arrest, while five remain at large, with authorities urging them to surrender. The judgments for all involved parties have not yet been disclosed.
Evidence presented during the trial revealed how Lan used her influence over the Saigon Joint Stock Commercial Bank, directing funds to shell companies in Vietnam, Hong Kong, and Singapore. This manipulation not only personally enriched Lan but also destabilized the bank and threatened Vietnam’s banking system’s stability.
Despite her defense team’s argument that Lan only held a minority stake in the bank and had no official banking role, testimonies from major shareholders indicated that she effectively controlled more than 90% of the bank through proxies. Her defense, which pointed to her lack of understanding of legal and banking operations, failed to alter the court’s stringent verdict.
The magnitude and complexity of Lan’s fraudulent activities overshadowed previous financial scandals in Vietnam, drawing substantial domestic and global attention. The trial underscored the ongoing challenges Vietnam faces in fighting corruption within its elite circles.
This case illustrates the Vietnamese government’s rigorous anti-corruption campaign led by the Communist Party of Vietnam. The campaign targets reforming the country’s international image and strengthening public trust in its leadership and economic stability.
The impact of this trial extends beyond Lan and her immediate circle, highlighting the urgent need for increased oversight and transparency within Vietnam’s financial institutions. The case could set a precedent for how future offenses of similar scale will be handled, potentially transforming governance and business practices throughout the country.
