By Vietnamese real estate tycoon Truong My Lan has been sentenced to life in prison by a Ho Chi Minh City court for fraudulently obtaining property worth billions of dollars. This verdict comes as part of Vietnam’s intensified crackdown on corruption, marking another high-profile case in the government’s “blazing furnace” campaign.
Lan, the chairwoman of property developer Van Thinh Phat, was already facing a death sentence from an April conviction for fraud amounting to $12.5 billion – nearly 3% of Vietnam’s GDP. The latest trial, addressing additional allegations, has added to her legal troubles as she awaits the appeal of her death sentence.
The court found Lan guilty of multiple charges, including obtaining property by fraud, money laundering, and illegal cross-border money transfers. She was accused of raising $1.2 billion from nearly 36,000 investors through illegally issued bonds and siphoning off $18 billion obtained through fraud. Additionally, Lan was convicted of using companies under her control to illegally transfer more than $4.5 billion in and out of Vietnam between 2012 and 2022.
In her closing statement, Lan expressed remorse, stating, “Standing here today is a price too expensive for me to pay. I consider this my destiny and a career accident.” She acknowledged the impact of her actions on thousands of families.
The case has affected many ordinary Vietnamese citizens, including Nguyen Hieu, a schoolteacher whose life savings of $36,000 are tied up in illegal bonds issued by Lan’s company. Hieu considered the life sentence fair but hoped for a commutation of the death sentence to allow Lan the opportunity to repay her victims.
All 33 co-defendants in the case were also found guilty of various charges, receiving sentences ranging from two to 23 years in prison. Lan’s husband, Chu Nap Kee, was sentenced to two years for money laundering.
Lan’s arrest in October 2022 was a significant development in Vietnam’s ongoing anti-corruption drive, which has intensified since 2022. The campaign has touched the highest levels of Vietnamese politics, leading to the resignation of former President Vo Van Thuong in March and implicating other high-ranking officials.
The scale of Lan’s fraud has raised concerns among analysts about the stability of Vietnam’s financial industry and its potential impact on foreign investment. This comes at a time when Vietnam is positioning itself as an attractive destination for businesses looking to diversify their supply chains away from China.
Lan’s case is part of a broader trend in Vietnam’s anti-corruption efforts. Since 2018, authorities have increasingly scrutinized the private sector, leading to the arrest of several owners of fast-growing Vietnamese businesses. The campaign, initiated by former Communist Party General Secretary Nguyen Phu Trong, aims to root out corruption at all levels of society and government.
