On April 26, 2025, the Hanoi People's Court delivered a significant verdict in a high-profile case involving the illegal transportation of over 425 million USD across the border. The court sentenced Nguyen Ngoc Phuong, the director of Vang Phu Cuong Company, to 14 years and 6 months in prison for his central role in orchestrating this massive financial scheme.
Nguyen Ngoc Phuong was found guilty of two major offenses: illegally transporting goods and currency across the border and violating banking regulations. In addition to his prison sentence, the court ordered him to pay more than 31 billion VND in principal debt and an additional 11 billion VND in bank interest.
During the trial, which lasted six days, the court also addressed the fates of 12 other defendants involved in the case. Dinh Thi Dieu Thuy, the Human Resources Director of Lotte P&D Vietnam, received a sentence of 27 months in prison for her involvement in illegally transporting currency across the border, along with an additional 24 months for forging documents of agencies and organizations.
Among the other defendants, eight individuals were sentenced to prison terms ranging from 30 months to 5 years for their roles in the illegal transportation of currency. Furthermore, three former bank officials received sentences between 3 to 8 years for their violations of banking regulations.
The court established that Phuong played a mastermind role in this operation, directing his employees to execute illegal money transfers and create false records to secure bank loans. From 2014 to 2018, Phuong established and managed seven companies in Vietnam and three in Hong Kong, using them to fabricate import contracts and other documentation to legitimize bank loans and facilitate international payments.
Specifically, Phuong directed his employees to create false international payment records, leading to 148 illegal transfers of money abroad, totaling over 214 million USD, which is equivalent to more than 4,719 billion VND. During the same period, he also orchestrated the illegal transfer of funds from abroad back to Vietnam, amounting to 212 million USD, or about 4,773 billion VND.
The total sum of money that Phuong and his accomplices illegally transferred back and forth exceeded 425 million USD, translating to nearly 9,500 billion VND. This operation not only violated numerous laws but also posed significant risks to the country's monetary policy.
Phuong's collaboration with bank officials was crucial to the scheme's success. He directed his employees to fabricate records to secure loans from banks, leading to significant financial losses estimated at over 42 billion VND. The court emphasized the severity of the defendants' actions, noting that the amounts involved and the damage caused were particularly large, impacting the state’s monetary policies.
While the court recognized the necessity of strict penalties to deter such crimes, it also considered the defendants' circumstances. Many were young employees who acted under Phuong's directives and expressed remorse for their actions. The court noted that several defendants were simply following orders and lacked the life experience to fully understand the implications of their actions.
As a result, some defendants received sentences below the minimum threshold of their respective legal frameworks. The court's decision reflects a balance between ensuring justice and recognizing the potential for rehabilitation among younger defendants.
The case has raised significant concerns about regulatory oversight in both financial institutions and corporate governance in Vietnam. Experts argue that the scandal highlights the need for stricter compliance measures and accountability within the banking sector to prevent similar occurrences in the future.
In the aftermath of the trial, there are calls for more robust regulatory frameworks and oversight mechanisms to ensure that such large-scale financial malpractices do not recur. The repercussions of this case may lead to a reevaluation of existing laws and regulations governing banking operations and corporate practices in Vietnam.
As the dust settles from this high-profile case, it serves as a stark reminder of the vulnerabilities within financial systems and the critical importance of ethical practices in corporate governance. The verdict against Phuong and his accomplices might be seen as a pivotal moment in Vietnam's ongoing battle against financial crime, signaling a commitment to uphold the rule of law and protect the integrity of its financial systems.
