Truong My Lan, a 67-year-old Vietnamese property tycoon and chairwoman of Van Thinh Phat Holdings, has been sentenced to death for her involvement in a major financial fraud case. Convicted of embezzlement, bribery, and violations of banking regulations, the scheme orchestrated by Lan led to approximately $27 billion in losses, about six percent of Vietnam’s GDP in 2023, making it the largest fraud case in the country’s history.

From 2012 to 2022, Lan controlled the Saigon Joint Stock Commercial Bank (SCB), manipulating over 2,500 loans and employing ghost companies to siphon funds from the bank. This fraudulent activity affected around 42,000 victims, and involved the largest recorded bribe in Vietnam. The severity of the fraud, resulting in $12.5 billion embezzled directly by Lan, has raised significant concerns regarding systemic corruption in Vietnam’s banking sector.

Lan’s arrest in 2022 was a part of an extensive anti-corruption crackdown spearheaded by Communist Party Secretary-General Nguyen Phu Trong. The trial exposed the scale of the operations, with evidence such as $4 billion allegedly extracted by Lan’s driver and stored in her basement. The case involved 85 defendants and resulted in the seizure of Lan’s properties, marking a departure from the traditionally secretive legal proceedings in Vietnam.

Despite Lan’s request for leniency and her past charitable activities, the court emphasized the calculated nature of her crimes, the substantial financial losses inflicted, and the eroded public trust in the state’s leadership. This high-profile trial has had profound implications for the integrity of Vietnam’s financial sector, especially concerning the impact on foreign investment and economic prospects.

As part of ongoing investigations, the case against Lan and her co-defendants continues to unfold, highlighting the government’s persistent efforts to combat corruption within the country’s rapidly evolving market economy.