Truong My Lan, who heads the property firm Van Thinh Phat, had previously been sentenced to death by lethal injection in April after a Ho Chi Minh City court found her guilty of committing fraud worth $12.5 billion, which is nearly 3% of Vietnam’s gross domestic product.
Due to the overwhelming number of accusations against her, the legal proceedings were divided into two parts. The verdict handed down on Thursday carries a potential maximum sentence of life imprisonment and adds complexity to Lan’s ongoing legal battles as she awaits the resolution of her death penalty appeal.
Over the years, Vietnam has issued more than 2,000 death sentences and has executed over 400 individuals. Although the death penalty is available for 14 different offenses, it is primarily reserved for serious crimes such as murder and drug trafficking.
During her closing statement, as reported by VNexpress, Lan expressed profound regret: “Standing here today is a price too expensive for me to pay. I consider this my destiny and a career accident.” She emphasized the burden of her actions, stating, “For the rest of my life, I will never forget that my actions have affected tens of thousands of families.”
Thirty-three co-defendants were also part of the proceedings, though their individual outcomes were not disclosed immediately. The announcement of Lan’s sentence was anticipated later that same day.
In addition to fraud, Lan faced conviction for money laundering and conducting illegal cross-border money transfers. Reports indicate that she had raised approximately $1.2 billion from around 36,000 investors through the unlawful issuance of bonds via four companies.
Moreover, she was accused of diverting $18 billion acquired through fraudulent tactics and utilizing firms under her control to illicitly transfer over $4.5 billion in and out of Vietnam from 2012 to 2022.
It remains uncertain whether Lan will appeal the recent verdict, and no hearing date for her death penalty appeal has been established. Her earlier conviction involved a scheme that led to substantial financial losses, reported to be around $27 billion, by illegally operating a significant bank.
Arrested in October 2022, Lan’s case has become emblematic of the intensified anti-corruption measures in Vietnam, which have escalated since 2022. These investigations have reached influential political figures, leading to the resignation of former President Vo Van Thuong in March due to alleged involvement in corruption.
Since 2016, thousands of party officials have faced disciplinary actions, including resignations from high-ranking leaders like former President Nguyen Xuan Phuc and the ex-chairman of parliament, Vuong Dinh Hue.
In total, eight powerful members of the Politburo have been dismissed on corruption charges, a dramatic contrast to the period between 1986 and 2016 when no such actions were taken.
The anti-corruption campaign, initially launched in 2013, gained traction in 2018 when the private sector came under scrutiny. Many executives of Vietnam’s rapidly expanding enterprises have since been apprehended.
This campaign, led by Communist Party General Secretary Nguyen Phu Trong, who passed away earlier this year at the age of 80, has emphasized that corruption poses a severe threat to the party, asserting that no individual is immune to accountability.
In another notable case, business tycoon Trinh Van Quyet was sentenced in August for deceiving investors by artificially inflating his company’s worth, resulting in losses of nearly $150 million. He received a 21-year imprisonment term, with 49 co-defendants facing various sentences ranging from probation to extended prison terms.
Truong My Lan and her family founded Van Thinh Phat in 1992, coinciding with Vietnam’s transition from a centrally planned economy to one more accommodating to foreign investments. Initially, she assisted her mother, a Chinese entrepreneur, in selling cosmetics in one of Ho Chi Minh City’s oldest markets, according to the state media outlet Tien Phong.
Under her leadership, Van Thinh Phat grew into one of the wealthiest real estate development firms in Vietnam, known for its luxury residential properties, offices, hotels, and shopping centers, securing Lan’s position as a pivotal figure in the nation’s financial landscape.
The revelations from Lan’s case have significantly shocked the Vietnamese populace.
Analysts suggest that the magnitude of the fraud raises critical concerns about potential malpractices among other banks and businesses, potentially undermining Vietnam’s economic stability and stakeholder confidence during a period when the nation strives to establish itself as a favorable alternative for companies looking to relocate supply chains away from China.
