40 Facts About Truong My Lan

Early Life and Background

Truong My Lan's story begins in the bustling city of Saigon, South Vietnam. Her journey from humble beginnings to becoming a notorious figure in Southeast Asia is nothing short of dramatic.

1. 01Truong My Lan was born on October 13, 1956, into a Teochew family in Saigon, South Vietnam.
2. 02Her family heritage traces back to the village of Gezhou in Shantou, Guangdong, China, and they settled in "Little Gezhou" in Saigon.
3. 03Her uncle founded the maritime business Hòa Thuận Phát in Chợ Lớn, a significant venture in the region.
4. 04Truong My Lan only completed high school before joining her mother in the family business.
5. 05She started her career by helping her mother sell cosmetics at Ben Thanh Market, the oldest market in Ho Chi Minh City.

Rise in Business

Truong My Lan's business acumen and ambition led her to expand her ventures beyond the market stalls, eventually establishing a real estate empire.

6. 06In the 1990s, economic reforms in Vietnam allowed her to expand her business portfolio, including hotels and restaurants.
7. 07In 1992, she founded and chaired the Van Thinh Phat Group, a prominent real estate conglomerate that became one of Vietnam's richest real estate firms.
8. 08From 2012 to 2022, Truong My Lan controlled the Sai Gon Joint Stock Commercial Bank (SCB), Vietnam's fifth-largest lender, through a network of middlemen.
9. 09In 2011, she orchestrated the merger of three banks facing bankruptcy, leading to the establishment of SCB. This merger was coordinated with the State Bank of Vietnam.
10. 10Despite owning only 5% of the shares, she effectively controlled more than 90% of the bank through family, friends, and staff.

The Fraud Unfolds

Her control over SCB and her cunning strategies led to one of the largest financial frauds in Southeast Asian history.

11. 11Between 2012 and 2022, she approved loans to thousands of "ghost companies" both in Vietnam and internationally, misappropriating billions of dollars.
12. 12Prosecutors accused her of bribing key state bank officials and governors to cover her tracks.
13. 13The total damages caused by the fraud amounted to nearly $27 billion, almost 3% of Vietnam's 2022 GDP.
14. 14The embezzlement led to a bank run, with three SCB employees committing suicide in October 2022, prompting a massive financial crisis.
15. 15Truong My Lan was arrested on October 6, 2022, after years of investigation. Her trial began on March 5, 2024, at the Ho Chi Minh City People's Court.

Legal Consequences

The legal repercussions of her actions were severe, leading to a high-profile trial and a harsh sentence.

16. 16On April 11, 2024, she was sentenced to death by lethal injection for embezzlement, bribery, and violations of banking regulations.
17. 17Her appeal against the death sentence was rejected on December 3, 2024, meaning she can avoid execution only by repaying 75% of the stolen funds, approximately $9 billion.
18. 18Despite appearing defiant early in her trial, Truong My Lan has shown signs of remorse during her appeal, stating she wants to focus on repaying the state for the financial harm caused.
19. 19Her lawyers argue that repaying the money would be easier if she were serving a life sentence rather than facing execution. They also claim that the total value of her holdings exceeds the required compensation amount but require time and effort to sell.
20. 20The state has frozen over 1,000 of her assets as part of the investigation, making it challenging for her to access funds to repay the stolen money.

Broader Impact

The scandal had far-reaching effects, impacting not only the financial sector but also the political landscape in Vietnam.

21. 21Truong My Lan has contacted friends to try to raise the funds to avoid the death penalty, but the outcome remains uncertain.
22. 22The alleged involvement of a high number of individuals and companies, including key players within the banking sector, signals a potential systemic issue where oversight may have been compromised.
23. 23The fraud case has had a significant impact on Vietnam's economy, eroding trust in the leadership of the Communist Party and state.
24. 24The case is part of a national corruption crackdown dubbed the "burning furnace," which has seen numerous officials and members of Vietnam's business elite arrested.
25. 25Besides Truong My Lan, 85 others were sentenced on various charges related to bribery, abuse of power, appropriation, and violations of banking law.

Personal and Family Impact

The scandal also deeply affected her family and close associates, leading to further legal troubles.

26. 26Her husband and niece were sentenced to nine and seventeen years respectively, while five former leaders of SCB are in hiding.
27. 27In a second trial, Truong My Lan was accused of money laundering and selling illegal bonds. She was convicted and sentenced to life imprisonment on these charges in addition to her death sentence.
28. 28Van Thinh Phat Group, under Truong My Lan's leadership, offered financial services alongside real estate development, further complicating the fraud case.
29. 29The company's projects include luxury residential buildings, offices, hotels, and shopping centers, showcasing her extensive business reach.
30. 30One of her notable properties is the Sherwood Residence in Ho Chi Minh City, which features swimming pools, fitness centers, and a cinema.

The Evidence and Trial

The trial was a massive undertaking, involving extensive evidence and numerous witnesses.

31. 31Her driver transported over $4.4 billion in cash from SCB's headquarters to her home and Van Thinh Phat's head office, highlighting her control over the bank's assets.
32. 32The State Bank of Vietnam played a crucial role in the merger of SCB with other banks, which ultimately led to her control over the bank.
33. 33Truong My Lan used 916 fake loan applications to appropriate more than $12.5 billion from SCB between February 2018 and October 2022.
34. 34The evidence presented in court included 104 boxes weighing six tonnes, involving hundreds of lawyers and 2,700 witnesses.
35. 35Prosecutors argued that Truong My Lan had not met the conditions to avoid the death penalty and emphasized the huge and unprecedented consequences of her crime.

Final Plea and Public Reaction

As the trial concluded, Truong My Lan made a final plea for her life, while the public reacted strongly to the scandal.

36. 36In her final remarks before the court, Truong My Lan pleaded for her life, stating she was focused on repaying the debt to the State Bank of Vietnam and the people, and expressing her embarrassment over being charged with such a crime.
37. 37She proposed liquidating SCB and selling their assets to repay the stolen funds, which was seen as a viable option by her legal team.
38. 38The case shocked the communist nation, prompting rare protests from tens of thousands of people who had invested their savings in SCB.
39. 39The case is considered one of the largest corruption scandals in Southeast Asia's history, surpassing the Malaysian 1MDB scandal in terms of financial impact.
40. 40The outcome of her case remains uncertain, with the possibility of her sentence being commuted to life imprisonment if she repays 75% of the stolen funds.

Truong My Lan's Legacy

Truong My Lan's journey from a market stall vendor to a real estate tycoon and then a convicted fraudster is a wild ride. Her rise showcased ambition and business acumen, but her fall highlighted the dangers of unchecked power and corruption. Controlling SCB through a web of middlemen, she misappropriated billions, leading to a financial crisis and a bank run. Her arrest and subsequent death sentence shocked Vietnam, revealing systemic issues within the banking sector. Despite her efforts to repay the stolen funds, her legacy remains tainted. This case serves as a stark reminder of the importance of accountability and transparency in business. Truong My Lan's story is a cautionary tale, illustrating how ambition can lead to both great success and devastating downfall.