Truong My Lan, once one of Vietnam’s wealthiest businesswomen, has lost her appeal against a death sentence for masterminding one of the largest financial frauds in history. The 68-year-old real estate tycoon was found guilty of embezzling more than $12 billion—an amount equivalent to roughly 3% of Vietnam’s entire economy—sending shockwaves through the country’s financial system and rattling investor confidence.
Lan amassed an extensive portfolio of luxury real estate, hotels, and commercial properties both in Vietnam and abroad, but prosecutors allege that she effectively turned Saigon Commercial Bank (SCB) into her personal source of funds. On paper, Lan owned just 5% of SCB’s shares—the maximum allowed under Vietnamese law—but authorities claim she controlled 91.5% of the bank through a web of thousands of shell companies. The fraud, which took place over more than a decade, involved loans and cash siphoned off with the help of bribed banking regulators and government officials, according to state media reports.
Her downfall began with her arrest in October 2022, which triggered a week-long run on SCB, then the country’s fifth-largest lender. The incident revealed just how fragile Vietnam’s financial system was, as investors and regulators scrambled to contain the fallout. Investigations uncovered losses totaling a staggering $44 billion, with $12 billion ruled as direct embezzlement.
In addition to her death sentence for embezzlement, Lan was handed a life sentence in a separate trial for fraud, money laundering, and illegal cross-border money transfers involving approximately $27 billion. The scale of the criminality is unprecedented, dwarfing other global financial scandals such as Malaysia’s 1MDB fund scandal, which involved $4.5 billion, and the $8 billion fraud linked to crypto entrepreneur Sam Bankman-Fried.
Lan’s appeal to overturn her sentence was rejected this week, with judges declaring that her crimes caused “grave consequences” for the nation’s economy and financial stability. They emphasized that no mitigating factors justified reducing her punishment.
Despite this, Lan has a small chance to avoid execution: her death sentence could be commuted to life imprisonment if she repays three-quarters of the embezzled $12 billion—around $9 billion. Lan has publicly expressed remorse and pleaded for mercy, telling the court, “I never intended to commit fraud, but I take responsibility.”
From Humble Beginnings to a Financial Empire
Lan’s story began modestly. Born in 1956 to a Sino-Vietnamese family, she started out selling cosmetics with her mother in Ho Chi Minh City’s oldest market. Her fortunes began to rise after meeting Eric Chu, a Hong Kong investor whom she married in 1992. Together, they established Van Thinh Phat, a real estate company that helped her build an empire.
By 2011, Lan was already a powerful but low-profile figure in Vietnam’s business scene. Her wealth and influence grew significantly after becoming involved in the merger of the struggling Saigon Joint Commercial Bank with two other lenders—a deal orchestrated by Vietnam’s central bank.
However, cracks in her empire began to show as Vietnam’s real estate bubble burst and businesses linked to Lan faced financial hardship during the Covid-19 pandemic. Her fraudulent activities were exposed, prompting her arrest in 2022, which set off a financial and political crisis.
The Broader Fallout
Lan’s case is part of Vietnam’s broader anti-corruption drive, launched in 2016 under the leadership of Nguyen Phu Trong, the general secretary of the ruling Communist Party. Known as the “blazing furnace” campaign, the crackdown has targeted corruption at all levels, including high-ranking officials and business leaders. Thousands have been indicted since its launch, as the government seeks to strengthen transparency and attract foreign investment.
Analysts say the case highlights systemic flaws within Vietnam’s financial and regulatory systems. Despite the government’s focus on Lan as the central figure, experts argue she could not have orchestrated such a massive fraud without implicit cooperation from officials and regulators.
“In Vietnam, the land is controlled by the state. There’s no way she could have done what she did without more official connivance,” Zachary Abuza, a professor specializing in Southeast Asian politics, told CNN. He added that the government has focused on Lan’s individual guilt to avoid scrutiny of broader systemic corruption.
Bank regulators and financial officials, notorious for being underpaid and vulnerable to bribery, were accused of turning a blind eye to Lan’s activities. “Vietnamese investigators were shocked at the sheer scale of the corruption,” Abuza said, “but the case has been carefully framed to minimize links to the Communist Party.”
A Public Reckoning
The trial, which began in March 2024, was deliberately high-profile, with live-streamed broadcasts and extensive coverage in state media. The government sought to send a clear message to the public and foreign investors that it remains committed to tackling corruption.
Nguyen Khac Giang, a visiting fellow at the ISEAS-Yusof Ishak Institute, noted that Lan’s case is as much about reinforcing party authority as it is about financial accountability. “The scale of corruption signaled major vulnerabilities in Vietnam’s financial system, and the authorities needed to act decisively to restore confidence.”
While Lan’s fate remains uncertain, her conviction marks one of the most significant corruption cases in Vietnam’s history. The unprecedented scale of the fraud exposed deep-rooted flaws in the country’s financial infrastructure, raising questions about oversight and accountability.
As Vietnam continues to court foreign investment amid global economic tensions, Lan’s downfall serves as both a cautionary tale and a stark warning to other elites. Whether her death sentence will be carried out or commuted remains to be seen, but the case has already left an indelible mark on Vietnam’s economy and political landscape.
