Vietnam tycoon Truong My Lan faces death penalty in $12.5 billion fraud trial

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 found guilty of fraud amounting to $12.5 billion, nearly 3% of the country’s 2022 GDP.

Lan illegally controlled Saigon Joint Stock Commercial Bank between 2012 and 2022, allowing 2,500 loans that resulted in losses of $27 billion to the bank. Despite being a first-time offender and participating in charity activities, the court handed down the harsh sentence due to the seriousness of the case. Lan was described as being at the helm of an orchestrated and sophisticated criminal enterprise with no possibility of the money being recovered.

Her niece, Truong Hue Van, and husband, Eric Chu Nap-kee, were also sentenced to prison for aiding Lan in the fraud. The case has shocked the nation and raised concerns about corruption in Vietnam’s financial industry, impacting the country’s economic outlook and foreign investor confidence.

The real estate sector in Vietnam has been particularly affected, with many property firms withdrawing from the market and developers offering discounts to attract buyers. The anti-corruption drive in Vietnam has intensified since 2022, with high-profile arrests and resignations, signaling a commitment to rooting out corruption at all levels.