Vietnam Real Estate Mogul, My Lan Sentenced To Death For $12.5 Billion Fraud

A Vietnamese real estate mogul, Truong My Lan, has been sentenced to death for fraud.

According to AP News, a court in Ho Chi Minh City, southern Vietnam, handed down a death sentence to Lan on Thursday, in what is described as the nation’s most significant financial fraud case.

The chair of the real estate company Van Thinh Phat, faced allegations of fraud amounting to $12.5 billion, representing nearly 3% of the country’s 2022 GDP.

Between 2012 and 2022, the 67-year-old illegally managed the Saigon Joint Stock Commercial Bank, diverting funds through numerous phantom companies and offering bribes to government officials.

Lan’s arrest in October 2022 was a significant event in an ongoing anti-corruption initiative in Vietnam that has gained momentum since then.

The scale of Lan’s trial has indeed left the nation astounded. VTP, a significant player in Vietnam’s real estate landscape, was renowned for its expansive portfolio, which included prestigious residential properties, commercial offices, high-end hotels, and bustling shopping complexes.

The vast scale of the scam has prompted analysts to question whether other banks or businesses may have engaged in similar activities. This has led to apprehensions about Vietnam’s economic trajectory and unsettling foreign investors.

This comes amidst Vietnam’s efforts to position itself as an attractive alternative for businesses looking to diversify their supply chains away from China.

Vietnam’s real estate industry has taken a severe blow, as evidenced by the departure of around 1,300 property firms from the market in 2023.

Developers are offering discounts and even gold as perks to attract potential buyers.

Despite a notable decline in shophouse rents by a third in Ho Chi Minh City, numerous properties in the city centre remain vacant, according to state media reports.

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