Real estate mogul Truong My Lan is on trial for alleged fraud totaling $12.5 billion, which accounts for nearly 3% of Vietnam’s GDP in 2022, making it the country’s largest financial fraud case ever recorded.
Accused of utilizing thousands of fraudulent companies, bribing officials, and breaching banking regulations, the 66-year-old chairwoman of Van Thinh Phat real estate firm is also charged with illicitly controlling Saigon Joint Stock Commercial Bank from 2012 to 2022, funneling the embezzled funds.
Additionally, 85 individuals, including a former State Bank of Vietnam official, are facing prosecution for involvement in the scheme, which led to Lan’s arrest in October 2022 and potentially carries a death sentence upon conviction.
Lan’s arrest marks a significant development in Vietnam’s ongoing anti-corruption campaign, which intensified since 2022, causing ripples throughout the government and business sectors. The campaign, known as the “Blazing Furnace,” has triggered investigations into numerous officials and executives, culminating in the resignation of high-ranking government figures in January 2023 due to corruption scandals.
Despite its success in rooting out corruption, the anti-corruption drive has also disrupted Vietnam’s economic landscape, unsettling investors and hindering bureaucratic processes. This has resulted in sluggish public spending on essential development projects, exacerbating delays and impeding economic growth.
In particular, the real estate sector has borne the brunt of the anti-corruption efforts, with numerous firms exiting the market, developers resorting to discounts and incentives to attract buyers, and commercial properties in urban centers remaining vacant.
The economic slowdown, compounded by global demand fluctuations and reduced public investment, has led to a decrease in Vietnam’s growth rate from 8.02% in 2022 to 5.05% in the following year.
Amid ongoing investigations into Lan’s real estate ventures for money laundering, Communist Party General Secretary Nguyen Phu Trong affirmed the commitment to the long-term anti-corruption fight, signaling continued scrutiny of corruption in Vietnam.
By FCCT Editorial Team
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