Prominent real estate tycoon Truong My Lan, was handed a death sentence by a court in Ho Chi Minh City for her involvement in the nation’s largest fraud case according to reports from state media.
Lan (67) arrested in 2022, serves as the chair of Van Thinh Phat, a prominent real estate firm. She stands accused of perpetrating a $12 billion fraud, equivalent to nearly 3% of Vietnam’s 2022 GDP, as reported by The Associated Press, citing Vietnam’s Thanh Nien.
During the period spanning 2012 to 2022, Lan illicitly managed the Saigon Joint Stock Commercial Bank, funneling funds through numerous ghost companies and offering bribes to government officials.
Lan’s arrest was one of the most notable in an extensive anti-corruption campaign that has gained momentum since 2022. This campaign, known as the ‘Blazing Furnace,’ has even targeted prominent Vietnamese politicians.
Last month, Vo Van Thuong resigned from his position after being implicated in the anti-corruption efforts.
Van Thinh Phat stands as one of Vietnam’s wealthiest real estate enterprises, boasting projects encompassing luxury residential complexes, office spaces, shopping centers, and hotels.
The magnitude of the fraud raised concerns among analysts, particularly as Vietnam aimed to establish itself as an alternative destination for investors seeking to diversify their supply chains away from China.
In 2023, approximately 1,300 property firms reportedly exited Vietnam’s real estate market, inflicting significant damage on the sector.
As per reports from state media, developers have resorted to offering discounts and gold as incentives to attract buyers. Despite a one-third decline in shophouse rents in Ho Chi Minh City, numerous properties in the city center remain unoccupied.
Vietnam’s top politician, Communist Party General Secretary Nguyen Phu Trong, stated in November of last year that the anti-corruption campaign would “continue for the long term.”