Vietnam Real Estate Tycoon My Lan Sentenced to Death in $12.5 Billion Fraud Case

Leading figure in Vietnamese real estate, Truong My Lan, has been sentenced to death for her central role in a staggering $12.5 billion fraud case. This marks a significant moment in Vietnam’s real estate fraud investigations.

The court in Ho Chi Minh City handed down the death sentence to Lan on Thursday, marking the largest financial deception case in Vietnam’s history, as reported by AP News.

Lan, 67, the head of the property firm Van Thinh Phat, was charged with a fraud totaling $12.5 billion, which is nearly 3% of Vietnam’s GDP in 2022. This landmark case has sent shockwaves through the country and the real estate industry.

She was found guilty of illicitly taking control of the Saigon Joint Stock Commercial Bank from 2012 to 2022, draining the funds through numerous fictitious companies and by offering bribes to government officials.

Lan’s detainment in October 2022 was a significant event in Vietnam’s ongoing crackdown on corruption, which has escalated since 2022. The campaign, known as “Blazing Furnace,” has reached the highest levels of Vietnamese politics, leading to the resignation of former President Bo Van Thuong in March after his involvement in the campaign.

The magnitude of Lan’s trial has astonished the nation. Her company, VTP, was among the wealthiest real estate firms in Vietnam, with ventures including high-end residential buildings, offices, hotels, and shopping centers.

Experts suggest that the extent of the scam raises concerns about potential similar misconduct in other banks or companies, casting a shadow over Vietnam’s economic prospects and causing unease among foreign investors. This comes at a time when Vietnam is striving to position itself as an ideal destination for businesses looking to diversify their supply chains away from China.

The Vietnamese real estate industry has suffered significantly from fraud. Approximately 1,300 property companies exited the market in 2023, developers have resorted to offering discounts and gold as incentives to attract purchasers, and despite a one-third reduction in rent for shophouses in Ho Chi Minh City, many in the city centre remain vacant, as per state media.

In November, Nguyen Phu Trong, the General Secretary of the Communist Party and Vietnam’s leading politician, declared that the anti-corruption campaign would persist over the long term.