A Vietnamese court has upheld the death sentence for real estate tycoon Truong My Lan in one of the largest fraud cases in the country’s history. Lan, chairwoman of the Van Thinh Phat Group, was convicted of embezzling $12.5 billion through fraudulent schemes, disrupting Vietnam’s banking sector and raising concerns about financial oversight.
Lan was found guilty of using her control of Saigon Commercial Bank (SCB) to issue more than 2,500 fraudulent loans through shell companies between 2012 and 2022. The embezzled amount represents nearly 3% of Vietnam’s gross domestic product in 2022.
A court in Ho Chi Minh City rejected Lan’s appeal, stating that her sentence could be reduced to life in prison if she repaid at least $9 billion of the losses. Her lawyers claim that some assets have been returned, but disputes over property valuations have delayed further restitution.
Lan’s crimes extended beyond SCB. Authorities accused her of fraudulent bond schemes worth $1.2 billion involving 36,000 investors, siphoning $18 billion, and illegally transferring $4.5 billion internationally.
Van Thinh Phat Group, which Lan founded in 1992 during Vietnam’s transition to a market-oriented economy, became one of the country’s largest real estate firms. It developed luxury residential complexes, hotels and commercial properties, while her alleged control of SCB provided access to resources that funded fraudulent schemes benefiting her companies.
This case has significantly disrupted Vietnam’s banking sector, undermining public confidence and raising questions about financial oversight. Analysts view it as part of a broader anti-corruption campaign targeting high-profile figures in business and government.
Vietnam has intensified its efforts to combat corruption, with the death penalty being a possible sentence for crimes such as fraud and drug trafficking. Lan retains the option to seek a presidential pardon, which could result in a reduced sentence. The case remains a focal point in Vietnam’s efforts to address white-collar crime and restore trust in its financial systems.
Lan’s family members and associates, including her husband and niece, were also implicated in the scandal, with several receiving prison sentences. The case has drawn attention to the extent of corruption in Vietnam’s banking and real estate sectors, raising concerns among investors and citizens alike.
