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In a historic verdict, Truong My Lan, a prominent figure in Vietnam’s real estate sector, was sentenced to death by a Ho Chi Minh City court for her role in the country’s largest financial fraud case. As the chair of Van Thinh Phat, Lan was found guilty of orchestrating a fraud that amounted to $12.5 billion, nearly 3% of Vietnam’s GDP in 2022. Her illegal activities included manipulating the Saigon Joint Stock Commercial Bank (SCB) to approve 2,500 loans, leading to staggering losses of $27 billion.
Lan’s sentencing, demanding her to compensate $26.9 million, reflects the severity of her crimes, which have deeply undermined public trust and financial stability. This case marks a significant moment in Vietnam’s ongoing anti-corruption campaign, intensifying since 2022, and highlighting the government’s resolve to tackle high-level financial misconduct.
The trial of Lan, whose company was among Vietnam’s wealthiest and involved in numerous high-profile projects, has sent shockwaves through the country, raising concerns about the broader financial and real estate sectors. The case has impacted Vietnam’s economic image and investor confidence, with many questioning the integrity of other institutions.
The broader repercussions of this event are evident in the real estate market downturn, with a notable retreat of property firms and diminishing investments, reflecting the deep-seated challenges facing Vietnam’s economic and political landscape.