Real estate tycoon Truong My Lan has been sentenced to death by a court in Ho Chi Minh City, Vietnam in the country’s largest financial fraud case. Lan was charged with fraud amounting to $12.5 billion, nearly 3% of the country’s 2022 GDP, for illegally controlling Saigon Joint Stock Commercial Bank. This scandal allowed Lan to issue 2,500 loans that resulted in losses of $27 billion for the bank. Lan’s niece, Truong Hue Van, who is the chief executive of Van Thinh Phat, has been sentenced to 17 years in prison for aiding her aunt in the fraudulent activities.
Lan’s arrest is part of an ongoing anti-corruption drive in Vietnam known as the Blazing Furnace campaign. The trial has sent shockwaves throughout the nation, raising concerns about other banks and businesses that may be involved in similar fraudulent activities. As a result of the scandal, the real estate sector in Vietnam has been heavily impacted, with many property firms withdrawing from the market in 2023 and property prices seeing a significant decrease.
Communist Party General Secretary Nguyen Phu Trong has promised to continue the fight against corruption in Vietnam for the long term. The case of Truong My Lan serves as a stark reminder of the consequences of financial fraud and the importance of cracking down on corruption to protect the country’s financial stability. Stay updated with Insider Wales Sport for more news on this developing story.
