In a shocking development in Vietnam's intensifying anti-corruption drive, a prominent real estate tycoon has been sentenced to death for her role in the country's largest-ever financial fraud case.
Truong My Lan, a 67-year-old businesswoman who chaired a sprawling real estate company, was convicted of fraud amounting to $12.5 billion - nearly 3% of Vietnam's 2022 GDP. She was also found guilty of illegally controlling a major bank and allowing loans that resulted in losses of $27 billion.
Lan's downfall marks a significant turning point in Vietnam's efforts to crackdown on corruption. The case has raised questions about the practices of other banks and businesses, dampening the country's economic outlook and making foreign investors jittery.
Lan, who built a real estate empire that included some of Ho Chi Minh City's most valuable properties, was accused of using the bank as her "cash cow," providing loans to herself and her allies through a network of "ghost companies." She was also charged with bribing government officials, including a former central bank official who has been sentenced to life in prison.
The court's decision to sentence Lan to death, a rare move for a financial crime case, underscores the severity of her offenses. Authorities stated that her actions "not only violate the property management rights of individuals but also pushed [the bank] into a state of special control, eroding people's trust in the leadership of the [Communist] party and state."
The case is part of a broader anti-corruption campaign led by Communist Party General Secretary Nguyen Phu Trong, who has vowed to make the effort a "blazing furnace" where no one is untouchable. Lan's arrest and the scale of her fraud have sent shockwaves through Vietnam, as the country tries to position itself as an attractive destination for businesses seeking alternatives to neighboring China.
While the death sentence is a dramatic step, it remains to be seen whether it will have a lasting impact on curbing corruption and restoring confidence in Vietnam's financial sector. The country's long-standing structural issues, including weak institutions and a lack of transparency, will require sustained and comprehensive reforms to address.