Ho Chi Minh City, April 11, 2024 – Truong My Lan, a prominent figure in Vietnam’s real estate industry, faced sentencing on Thursday for her involvement in the country’s largest financial fraud case. The 67-year-old chairwoman of Van Thinh Phat, a leading real estate company, was convicted of orchestrating a fraud scheme amounting to $12.5 billion, nearly 3% of Vietnam’s GDP in 2022.

Who is Truong My Lan?

Born in 1956, Truong My Lan’s journey to prominence began in the bustling markets of Ho Chi Minh City. Collaborating with her mother, a Chinese businesswoman, Lan initially ventured into the cosmetics trade. In 1992, amidst Vietnam’s transition to a market-oriented economy, Lan and her family founded Van Thinh Phat. Under her leadership, VTP flourished into one of Vietnam’s wealthiest real estate enterprises.

Today, Van Thinh Phat boasts a portfolio encompassing some of Ho Chi Minh City’s most prestigious properties, including the iconic Times Square Saigon, Windsor Plaza Hotel, Capital Place office building, and the luxurious Sherwood Residence, where Lan resided until her arrest. Married to Hong Kong investor Eric Chu Nap-kee, Lan is a mother of two daughters.

What is Lan Accused of?

Lan’s legal troubles stem from her involvement in the 2011 merger of Saigon Joint Commercial Bank (SCB) with two other banks, orchestrated by Vietnam’s central bank. Allegations against her include using SCB for personal gain, exerting illegal control over the bank from 2012 to 2022, and funneling funds through numerous shell companies in Vietnam and abroad. These actions resulted in staggering losses totaling $27 billion.

Additionally, Lan was accused of bribery, including payments to government officials, exacerbating SCB’s financial woes and undermining public trust in the Communist Party’s leadership. The severity of her crimes led to a death sentence, reflecting the court’s condemnation of her egregious actions.

A Case That Shocked the Nation

Lan’s arrest in October 2022 marked a significant development in Vietnam’s anti-corruption campaign, known as the Blazing Furnace initiative. This crackdown, initiated in 2022, has targeted corruption at all levels of Vietnamese society, prompting even high-ranking officials like former President Vo Van Thuong to resign amid allegations.

The magnitude of Lan’s fraud has raised concerns about the integrity of Vietnam’s banking and business sectors, casting a shadow over the country’s economic prospects. Foreign investors, eyeing Vietnam as an alternative to China for their supply chains, have grown wary amidst the revelations of widespread corruption.

This report was contributed from Los Angeles.

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