Vietnam sentences real estate mogul Truong My Lan to death for fraud charges

Real estate tycoon Truong My Lan has been sentenced to death by a court in Ho Chi Minh City, Vietnam, in the country’s largest financial fraud case ever. The 67-year-old chair of the real estate company Van Thinh Phat was accused of fraud amounting to $12.5 billion, nearly 3% of the country’s 2022 GDP.

Lan was found guilty of illegally controlling the Saigon Joint Stock Commercial Bank between 2012 to 2022 to siphon off these funds through thousands of ghost companies and by paying bribes to government officials. Her arrest in October 2022 was part of an ongoing anti-corruption drive in Vietnam, known as the Blazing Furnace campaign, which has implicated high-ranking officials, including former President Vo Van Thuong who resigned in March.

The scale of Lan’s trial has shocked the nation, as her company, VTP, was one of Vietnam’s richest real estate firms with projects ranging from luxury residential buildings to hotels and shopping centers. The scandal has raised concerns about the integrity of other banks and businesses in Vietnam, impacting the country’s economic outlook and making foreign investors wary.

The real estate sector in Vietnam has been particularly affected, with many property firms withdrawing from the market and developers offering discounts and incentives to attract buyers. Despite these efforts, many shophouses in Ho Chi Minh City remain empty, reflecting the broader economic challenges facing the country.

Communist Party General Secretary Nguyen Phu Trong has vowed to continue the anti-corruption fight for the long term, signaling a commitment to rooting out financial misconduct and restoring trust in Vietnam’s business environment.