HANOI, Vietnam. Truong My Lan, a prominent figure in Vietnam’s real estate industry, faced the harshest penalty as she was sentenced to death by a court in Ho Chi Minh City on Thursday. This ruling marked the culmination of the country’s most significant financial fraud case to date, according to state media Vietnam Net.
Lan, aged 67 and chair of Van Thinh Phat real estate company, stood accused of orchestrating a massive fraud amounting to $12.5 billion, nearly 3% of Vietnam’s GDP in 2022. Her illicit activities included her illegal control of Saigon Joint Stock Commercial Bank (SCB) between 2012 and 2022, during which approximately 2,500 loans were approved, leading to staggering losses of $27 billion for the bank, as reported by state media VnExpress. The court mandated Lan to compensate the bank with $26.9 million.
Despite Lan’s involvement in charitable endeavors and the absence of prior offenses, the court attributed the severity of the sentence to the gravity of the case. According to VnExpress, the court labeled Lan as the mastermind behind a sophisticated criminal operation, which not only violated property management rights but also undermined trust in the leadership of the Party and State.
Lan’s niece, Truong Hue Van, who served as the chief executive of Van Thinh Phat, received a 17-year prison sentence for aiding her aunt in her fraudulent activities.
Truong My Lan’s journey from selling cosmetics in Ho Chi Minh City’s oldest market to establishing Van Thinh Phat in 1992 encapsulates a remarkable rise in Vietnam’s market-oriented economy. Her company evolved into one of the nation’s wealthiest real estate firms, engaging in diverse projects such as luxury residences, offices, hotels, and shopping centers, solidifying her status as a significant player in Vietnam’s financial landscape.
The court determined that Lan exploited her position to siphon funds from SCB, indirectly owning a substantial portion of the bank and approving loans to fictitious entities. These loans were funneled back to Lan’s businesses. Moreover, she resorted to bribery to evade detection, according to government documents cited by VNExpress.
The implications of Lan’s actions reverberated beyond her trial, casting a shadow over Vietnam’s economic prospects and raising concerns among foreign investors. The scandal, alongside the ongoing anti-corruption campaign, led to a sense of uncertainty within the financial sector and prompted a reassessment of investment strategies in the region.
In the wake of Lan’s sentencing, Vietnam’s real estate sector experienced significant turbulence, with numerous firms withdrawing from the market and developers resorting to discounts and incentives to attract buyers. Despite these efforts, vacant properties remained a common sight, particularly in Ho Chi Minh City’s central areas.
The severity of Lan’s punishment underscores Vietnam’s commitment to combating corruption, as highlighted by Communist Party General Secretary Nguyen Phu Trong. However, the fallout from this case serves as a stark reminder of the challenges facing Vietnam as it strives to maintain economic stability and attract foreign investment in an increasingly competitive global landscape.
Si Venus L Peñaflor ay naging editor-in-chief ng Newsworld, isang lokal na pahayagan ng Laguna. Publisher din siya ng Daystar Gazette at Tutubi News Magazine. Siya ay isa ring pintor at doll face designer ng Ninay Dolls, ang unang Manikang Pilipino. Kasali siya sa DesignCrowd sa rank na #305 sa 640,000 graphic designers sa buong daigdig. Kasama din siya sa unang Local TV Broadcast sa Laguna na Beyond Manila. Aktibong kasapi siya ng San Pablo Jaycees Senate bilang isang JCI Senator.
