Truong My Lan, a prominent Vietnamese real estate tycoon and founder of the Van Thinh Phat Group, is racing to repay $9 billion to avoid execution following her conviction in one of Vietnam’s largest-ever fraud cases. Her appellate court hearing in December 2024 upheld a death sentence for orchestrating a decade-long scheme that caused damages equivalent to 6% of the nation’s GDP.
Lan was found guilty of using her control over Saigon Commercial Bank (SCB) to approve over 900 fraudulent loans, backed by falsified collateral. The fraud enabled her network to embezzle $12 billion, destabilizing the banking sector and triggering rare protests in Vietnam.
The scandal revealed extensive collusion with government officials and financial regulators, with bribes paid to cover up irregularities. This financial mismanagement led to the loss of savings for tens of thousands of depositors and prompted an emergency intervention by the State Bank of Vietnam to stabilize SCB.
Vietnamese law offers a chance for reprieve if Lan repays three-quarters of the embezzled amount. However, her assets remain frozen, hindering her ability to liquidate properties and pay restitution. Her legal team argues that the total value of her holdings surpasses the required repayment, but time and bureaucratic hurdles have made asset liquidation difficult.
Her co-defendants, including SCB executives and government officials, received lengthy sentences, highlighting the scope of collusion in the case. This trial is seen as a landmark in Vietnam’s anti-corruption campaign led by the Communist Party.
The case has deeply shaken public confidence in Vietnam’s financial institutions and the Communist Party. It underscores the challenges the country faces in tackling high-level corruption. The government has taken steps to address systemic weaknesses, but the scale of Lan’s scheme reveals the vulnerabilities still present in its financial oversight.
Lan’s future remains uncertain as she petitions Vietnam’s president for clemency. Meanwhile, her efforts to repay the stolen funds face skepticism from prosecutors, who argue she has not demonstrated meaningful cooperation. Analysts warn that the case symbolizes the increasing risks faced by high-profile figures in Vietnam’s intensifying anti-corruption drive.
