Inside the majestic yellow portico of the colonial-era courthouse in Ho Chi Minh City, a 67-year-old Vietnamese property developer received a death sentence on Thursday for embezzling from one of the country’s largest banks over an 11-year period.
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Vietnam
This rare verdict places her among the few women in Vietnam sentenced to death for a white-collar crime, underscoring the magnitude of the fraud. Truong My Lan was found guilty of obtaining $44 billion in loans from the Saigon Commercial Bank, with the verdict demanding her to return $27 billion—a sum deemed unrecoverable by prosecutors. Some speculate that the death penalty serves as an incentive for her to return part of the missing funds.
The communist authorities, typically discreet, provided extensive details to the media about the case. Over 2,700 individuals testified, with 10 state prosecutors and approximately 200 lawyers involved. The evidence, totaling six tonnes across 104 boxes, was meticulously presented during the trial involving 85 defendants.
This trial marks a dramatic chapter in Vietnam’s “Blazing Furnaces” anti-corruption campaign, spearheaded by Communist Party Secretary-General Nguyen Phu Trong. With an ideology deeply rooted in Marxism, Trong perceives corruption as a significant threat to the party’s power monopoly. His campaign, initiated in 2016, has led to the resignation of two presidents and two deputy prime ministers, along with the prosecution of numerous officials.
Truong My Lan’s background reflects the evolution of Vietnam’s economy. Beginning as a market vendor in Ho Chi Minh City, she transitioned to property development following economic reforms in 1986. Despite laws limiting individual bank ownership, prosecutors allege that she effectively controlled over 90% of Saigon Commercial Bank through shell companies and proxies. Her influence enabled the approval of hundreds of loans to entities she controlled, amounting to 93% of the bank’s lending.
Questions arise as to how Truong My Lan sustained the fraud for so long, prompting speculation about influential figures protecting her. David Brown suggests a broader agenda, highlighting Trong’s efforts to reassert party authority over the region’s business culture. As Trong approaches retirement in 2026, he seeks to maintain control over Ho Chi Minh City’s influential figures, balancing economic growth with corruption crackdowns—a delicate challenge with potential implications for Vietnam’s future development.
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