A court in Vietnam has sentenced real estate tycoon Truong My Lan to death for her involvement in a $12.46 billion financial fraud case, the largest in the country’s history. Lan, the chairwoman of Van Thinh Phat Holdings Group, was found guilty of embezzlement, bribery, and violations of banking rules. Her trial, part of a broader campaign against corruption led by party leader Nguyen Phu Trong, resulted in a dramatic verdict that shocked many.
Lan has denied the charges against her and plans to appeal the verdict. Despite her pleas of innocence, she was sentenced to death for embezzlement and 20 years for bribery and banking regulation violations. Vietnam commonly imposes the death penalty for violent crimes, but also for economic offenses, leading to concerns from human rights organizations about the high number of executions in recent years.
The massive financial fraud case involved 84 defendants, with sentences ranging from probation to life imprisonment. Lan’s husband, Eric Chu, received a nine-year jail term, while her niece was sentenced to 17 years. Lan, who started as a cosmetics trader and later founded her real estate company, was accused of siphoning off billions of dong from Saigon Joint Stock Commercial Bank (SCB). Her unauthorized loans to shell companies led to the bank’s collapse and subsequent government bailout.
As the central bank works to restructure SCB and identify the legal status of assets used as collateral for loans and bonds, the extent of the financial damage caused by Lan’s actions becomes clearer. High-end properties and unfinished projects are among the assets under scrutiny. Lan’s fall from grace highlighted the depth of corruption in Vietnam, from bribery of officials to manipulation of financial institutions for personal gain.
Vietnam’s anti-corruption campaign, known as “Blazing Furnace,” has targeted numerous high-ranking officials and business leaders, reflecting the pervasive nature of corruption in the country. The crackdown has led to widespread public distrust in government institutions, with many citizens resorting to bribery even for essential services like healthcare. While the sentencing of Truong My Lan marked a significant victory in the fight against corruption, it also underscored the challenges faced in upholding the rule of law and restoring public confidence in Vietnam’s financial system.
