Truong My Lan, a prominent figure in Vietnamese real estate and the head of the major development firm Van Thinh Phat, is currently facing the possibility of a death penalty as she and 85 other individuals are being tried in one of Vietnam’s largest-ever corruption scandals, involving an estimated $27 billion in damages. Accused of fraudulent activities with the Saigon Commercial Bank (SCB) spanning over a decade, My Lan, alongside her husband—a wealthy entrepreneur from Hong Kong implicated in creating sham loan applications to embezzle funds from SCB—is awaiting the court’s final decision.
As the trial proceeds in Ho Chi Minh City, Vietnam, the property mogul could potentially receive the death penalty, following allegations that she diverted $12.5 billion from SCB. The case’s total financial impact is pegged at $27 billion, a figure that represents about six percent of Vietnam’s GDP for 2023. Despite facing severe accusations, My Lan has repudiated all claims, attributing the fraud to the actions of her junior executives.
What is at stake for Truong My Lan?
The prosecution has recommended the capital punishment for My Lan in light of her arrest, which was part of a broader national effort to combat corruption. The investigation has led to the confiscation of over 1,000 properties tied to her, while the alleged $5.2 million bribe she and some SCB bankers offered to governmental officials has been touted as the largest in Vietnam’s history.
Truong My Lan’s courtroom declaration During her last appearance in court, My Lan expressed profound distress and contemplation of suicide, citing her regret for entering the highly competitive and complex banking sector with limited knowledge.
The aftermath of My Lan’s detainment Following her arrest in October 2022, significant public unrest manifested in protests across Vietnam’s major cities, Hanoi and Ho Chi Minh City, reflecting the high-profile nature of the case and its impact on the Vietnamese public and business community.
