Vietnam Imposes Death Sentence on Businesswoman Behind Largest Corruption Scandal in Country’s History

Ho Chi Minh City, Vietnam - A Vietnamese businesswoman has been sentenced to death after being found guilty of embezzling billions of dollars from one of the country’s largest banks.

Truong My Lan, 67, founder of Van Thinh Phat Group, a real estate development company, was arrested in 2022 for her role in a massive financial fraud that has shaken the nation.

The Scandal

According to local media reports, Lan was accused of falsifying loan applications and embezzling approximately $12.5 billion from Sai Gon Joint Stock Commercial Bank, nearly three percent of Vietnam’s 2022 GDP.

The People’s Court of Ho Chi Minh City found her guilty on three counts:

• Property embezzlement
• Bribery
• Violations of lending regulations in the operations of credit institutions

Sentencing and Fines

The court handed down a death sentence for property embezzlement, as well as 20-year prison sentences for bribery and violating lending regulations. Lan was also ordered to pay over 673 billion VND (£21.4 million) in first-instance civil court fees.

Additionally, 84 defendants identified as accomplices were sentenced to:

• Three years of suspended imprisonment
• Life imprisonment

for their roles in the fraud. Investigators alleged that Lan controlled the bank through dozens of proxies and siphoned off more than 304 trillion dong from its funds.

Impact on Vietnam’s Financial Markets

The scandal has sent shockwaves through Vietnam’s financial markets, with Vietnamese stocks suffering a wipeout of $40 billion after a series of high-profile corporate arrests in 2022. The country’s fast-growing economy is facing increased scrutiny amid concerns over corruption and economic instability.