Actions deemed to violate property management rights and jeopardize financial stability have led to a severe verdict against Truong My Lan, a prominent figure in Vietnam's real estate sector.
HANOI, Vietnam — In a landmark verdict, real estate magnate Truong My Lan, 67, was sentenced to death by a Ho Chi Minh City court for her central role in what has been labeled Vietnam's largest financial fraud case to date. As reported by state media Vietnam Net, Lan, chair of Van Thinh Phat real estate company, faced charges related to a staggering $12.5 billion fraud scheme, equivalent to nearly 3 percent of Vietnam's 2022 GDP.
Lan's illicit control over Saigon Joint Stock Commercial Bank from 2012 to 2022 resulted in the approval of 2,500 loans, causing a colossal $27 billion loss to the bank, according to VnExpress. Despite Lan's participation in charity activities and this being her first offense, the severity of the case prompted the court to impose the death penalty. VnExpress cited the court's reasoning, attributing the harsh sentence to the orchestrated and sophisticated nature of the criminal enterprise, with irrecoverable consequences.
Her actions not only infringed upon property management rights but also plunged SCB into a state of special control, undermining public trust in the government, as per VnExpress.
Alongside Lan, her niece Truong Hue Van, CEO of Van Thinh Phat, received a 17-year prison term for aiding her aunt.
Lan's journey from assisting her mother's cosmetics business to establishing Van Thinh Phat in 1992 epitomized Vietnam's shift towards a market-oriented economy. Over the years, the company burgeoned into one of Vietnam's wealthiest real estate entities, overseeing an array of luxury projects.
However, Lan's ambitions allegedly led to unethical practices, including exploiting SCB's resources for personal gain. Despite denying ownership claims over the bank, evidence suggests her indirect control and approval of loans to fictitious entities, with funds ultimately benefiting her, reported VNExpress.
Former central bank official Do Thi Nhan also faced justice, receiving a life sentence for accepting $5.2 million in bribes.
Lan's arrest in October 2022 marked a significant development in Vietnam's anti-corruption campaign. Dubbed the "Blazing Furnace," this campaign has targeted high-ranking officials, raising concerns about the nation's economic outlook and foreign investor confidence.
The repercussions of Lan's actions have reverberated across Vietnam's real estate sector, with numerous firms exiting the market and property values declining. Communist Party General Secretary Nguyen Phu Trong emphasized the long-term commitment to combating corruption, underscoring the need for vigilance at all levels of governance and business.
