Hanoi – The captivating tale of Vietnamese real estate tycoon Truong My Lan continues to unfold as her second trial commenced on Thursday, as reported by state media.
At 67 years old, Truong My Lan, the chair of the prestigious real estate company Van Thinh Phat, was initially sentenced to death in April for her involvement in Vietnam’s largest financial fraud scandal, totaling a staggering $12.5 billion — nearly 3% of the nation’s 2022 GDP. Additionally, she was found guilty of improperly controlling a prominent bank, resulting in losses of $27 billion, according to state media reports.
Her arrest and subsequent conviction were part of a nationwide anti-corruption initiative that gained traction in 2022. The sweeping reform, known as the blazing furnace campaign, permeated the uppermost levels of Vietnamese politics, leading to the resignation of a former president associated with the scandal.
Truong My Lan faces new charges of fraudulent property appropriation and money laundering in her current trial. According to police investigations, she illicitly amassed $1.2 billion from nearly 36,000 investors through unauthorized bond issuances facilitated by four companies.
Furthermore, authorities uncovered evidence that revealed 21 companies under Van Thinh Phat’s jurisdiction engaged in unlawful transfer activities, moving over $4.5 billion in and out of Vietnam between 2012-2022.
The prosecution alleges that Truong My Lan embezzled $18 billion through fraudulent means, implicating her in a complex web of financial deceit.
The trial involves 33 other defendants and is anticipated to span a month, shedding light on one of Vietnam’s most significant financial scandals.
Truong My Lan and her family established Van Thinh Phat in 1992 following Vietnam’s transition to a market-oriented economy. Initially involved in her mother’s cosmetics business, Lan transformed the company into one of Vietnam’s premier real estate firms, overseeing various upscale projects ranging from residential complexes to commercial ventures. Her ascent to prominence positioned her as a key figure in Vietnam’s financial landscape.
The ramifications of Truong My Lan’s initial trial reverberated across Vietnam, sparking concerns about the integrity of other financial institutions and dampening the country’s economic prospects. The uncertain climate also unnerved foreign investors seeking alternative supply chain diversification options away from China, impacting Vietnam’s reputation as a favorable investment destination.
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