TRUONG MY LAN

(RAAP—007)

The trial of Truong My Lan, a Vietnamese property developer, is widely regarded as one of Vietnam’s most significant and high-profile legal cases, highlighting one of the largest bank frauds in the world. Truong My Lan, who was convicted of defrauding Saigon Commercial Bank of $44 billion over an 11-year period, received a death sentence for her crimes. This case is notable for its scale and its impact on Vietnam’s banking sector.

Truong My Lan controlled over 90% of Saigon Commercial Bank through a network of shell companies. Her loans accounted for 93% of the bank’s total lending portfolio, and prosecutors estimated that she withdrew approximately $4 billion in cash over a three-year period. In addition to her death sentence, Truong My Lan was ordered to repay $27 billion, a sum that is widely considered unrecoverable. Alongside her, eighty-five other individuals were tried, with four receiving life sentences and others receiving various prison terms.

The trial is part of the “Blazing Furnaces” anti-corruption campaign initiated by Communist Party Secretary-General Nguyen Phu Trong. This campaign aims to target high-profile figures to combat corruption and reassert control over the business culture in Ho Chi Minh City, which had long been dominated by powerful and often corrupt figures. Truong My Lan’s case underscores the broader challenges Vietnam faces in balancing anti-corruption measures with its economic growth model, which has historically relied on corrupt practices to facilitate development. The trial marks a significant effort by the Communist Party to address corruption in Vietnam.