Truong My Lan, once one of Vietnam’s wealthiest businesswomen, built a vast empire of luxury real estate, hotels, and commercial properties—allegedly by exploiting a major bank as her personal cash machine. However, her fortune is now at risk as she faces the death penalty for masterminding one of the largest frauds in global history, involving billions of dollars vanishing from Vietnam’s financial system.
On Tuesday, the 68-year-old lost her appeal against the death sentence for embezzling more than $12 billion, which amounts to around 3% of Vietnam’s GDP. The scale of the fraud severely undermined confidence in the nation’s economy, which has struggled to compete with neighboring China for foreign investment.
Despite the gravity of the charges, a slim hope for reprieve remains. According to the court, Lan’s death sentence could be reduced to life imprisonment if she repays 75% of the funds she illegally obtained, amounting to roughly $9 billion.
Humble Beginnings
Born in 1956 to a modest Sino-Vietnamese family, Lan began her career selling cosmetics at Ho Chi Minh City’s oldest market. She steadily expanded her business ventures, but her wealth soared after meeting Hong Kong investor Eric Chu, leading to the formation of the Van Thinh Phat real estate company in 1992. By 2011, Lan was a powerful figure in Ho Chi Minh City’s business scene.
Her fortunes took a darker turn, however, when the Vietnamese property bubble burst, revealing the extent of her manipulation of the banking system. Lan’s businesses, including her ties to Saigon Commercial Bank (SCB), became a focal point of the financial collapse.
Fraud on a Massive Scale
Lan’s arrest in October 2022 triggered a run on SCB, Vietnam’s fifth-largest bank, due to suspicions of financial misconduct. Prosecutors allege she secretly controlled 91.5% of SCB and bribed officials to cover her tracks. Over more than a decade, she and her associates allegedly embezzled $44 billion through a network of shell companies.
This case dwarfs other infamous financial scandals, such as Malaysia’s 1MDB, which involved a $4.5 billion theft, and Sam Bankman-Fried’s $8 billion fraud. The complexity and scale of the crime led to two separate trials. Lan was sentenced to death for embezzling $12 billion and received a life sentence in a separate case for fraud, money laundering, and illegal cross-border transfers amounting to $27 billion.
Political and Economic Implications
Vietnam’s economy, which relies heavily on manufacturing exports and foreign investment, has been rocked by Lan’s crimes. Experts argue that her case highlights vulnerabilities in the nation’s financial system and the deep-rooted corruption within its regulatory bodies.
The case also comes at a time when Vietnam is striving to improve transparency and attract foreign investment, especially amid rising tensions in the U.S.-China trade war. The Communist Party, led by President Nguyen Phu Trong, has launched a fierce anti-corruption campaign, which Lan’s trial is part of.
While Lan faces the possibility of a presidential pardon or a review of her case, the severe sentencing reflects the government’s commitment to showing that Vietnam is serious about cleaning up corruption.
A Downfall of Legendary Proportions
Lan’s downfall has been stunning not only for the massive scale of her financial crimes but also for the political implications it carries. Business and politics have long been intertwined in Vietnam, and her case sheds light on the deep corruption within the country’s financial system.
As Lan continues her legal battle, the spotlight remains on Vietnam’s political elite and its efforts to regain foreign trust in the wake of one of the largest financial scandals in Southeast Asia.