Vietnamese real estate magnate, who was already sentenced to death for fraud, stands trial

HANÓI – The second trial of Vietnamese real estate tyrant Truong My Lan, who was sentenced to death in April for financial fraud, began on Thursday, state media reported.

Van Thinh Phat, the 67-year-old chairman of real estate company, was found guilty of orchestrating the largest financial fraud in Vietnam's history, causing damage of $12.5 billion – nearly 3% of the country's GDP in 2022. He was also guilty of illegally controlling a major bank that made loans that led to losses of $27 billion, state media reported.

Her arrest and conviction was one of the most high-profile cases in the anti-corruption campaign that has intensified since 2022. The so-called “Blazing Furnace” campaign has also affected the highest levels of Vietnamese politics and led to the resignation of a former president who was implicated in it.

Lan now faces new charges of fraudulent appropriation of property and money laundering. According to a police investigation, she collected $1.2 billion from nearly 36,000 investors by illegally issuing bonds through four companies, state media reports said.

Investigators discovered 21 companies controlled by Lans Van Thinh Phat that illegally transferred over $4.5 billion to and from Vietnam between 2012 and 2022.

She is also accused of embezzling $18 billion obtained through fraud.

There are 33 other defendants involved in the case, which is expected to last a month.

Lan and her family founded Van Thing Phat in 1992, after Vietnam shifted from a state-run economy to a more market-oriented approach open to foreign investors. Lan started by helping her mother, a Chinese entrepreneur, sell cosmetics in Ho Chi Minh City's oldest market, state media outlet Tien Phong reports.

Van Thinh Phat became one of Vietnam's richest real estate companies, with projects including luxury residential buildings, offices, hotels and shopping malls, making her a major player in the country's financial industry.

Lan's first trial shocked many Vietnamese. Analysts said the scale of the fraud raised questions about whether other banks or companies had made similar mistakes. This is clouding Vietnam's economic prospects and making foreign investors nervous – at a time when Vietnam is trying to position itself as an ideal location for companies looking to diversify their supply chains away from China.