A Vietnamese court has upheld the death sentence for property magnate Truong My Lan, convicted in a multi-billion dollar fraud case that shook the nation’s financial sector.
The decision, delivered Tuesday by the Ho Chi Minh City court, found “no basis” to reduce the penalty for the 68-year-old founder of Van Thinh Phat Group. Lan was found guilty earlier this year of embezzling funds from Saigon Commercial Bank (SCB), which she effectively controlled, with total damages estimated at $27 billion — approximately six percent of Vietnam’s 2023 GDP.
Courtroom Pleas Rejected
In her handwritten appeal, Lan described the death penalty as “too severe and harsh,” requesting a “lenient and humane approach.” However, prosecutors argued that her actions caused “huge and unprecedented” damage and that she had not met legal conditions to escape the sentence, such as returning three-quarters of the embezzled assets and demonstrating full cooperation.
Lan proposed liquidating SCB and selling her assets, including a shopping mall, a harbor, and luxury housing developments in Ho Chi Minh City, to repay the stolen funds. “I feel pained due to the waste of national resources,” she told the court.
Despite her proposal, prosecutors maintained that the crime’s consequences and the financial turmoil it triggered warranted the death sentence.
Fallout and Protests
The fraud scandal devastated tens of thousands of SCB depositors, triggering rare protests across Vietnam. The State Bank of Vietnam has since injected undisclosed funds to stabilize SCB.
While Lan officially owned only five percent of SCB’s shares, the court determined she controlled more than 90 percent through a network of family, friends, and staff.
Her husband, sentenced to nine years for banking violations, was also present in court to appeal his conviction.
Broader Corruption Crackdown
Lan’s conviction is part of a sweeping anti-corruption campaign dubbed the “burning furnace,” which has implicated dozens of officials and business elites. Alongside Lan, 47 other defendants sought reduced sentences during the appeal.
In April, Lan was convicted of embezzling $12.5 billion, although prosecutors claimed the scam’s broader impact reached $27 billion. Last month, she was separately convicted of money laundering and sentenced to life imprisonment.
The case highlights the severity of Vietnam’s anti-corruption efforts and its impact on the nation’s financial stability and business elite.
