In a dramatic turn of events, the High People’s Court in Ho Chi Minh City has reduced the life sentence of Vietnamese real estate tycoon Trương Mỹ Lan to 30 years for her role in a massive financial scandal that has left thousands of victims in its wake. However, she still faces a death sentence stemming from a separate trial, which complicates her legal situation further.
On April 21, 2025, the court upheld her sentences of 12 years for money laundering and eight years for illegal currency transport, while reducing her life imprisonment for fraudulent appropriation from bondholders, which amounted to over VNĐ30 trillion (approximately $1.18 billion). This financial debacle has affected at least 42,000 victims, showcasing the severe impact of her actions on the Vietnamese economy.
Lan, the former chairwoman of the Vạn Thịnh Phát Group, was previously sentenced to death in April 2024 for embezzling $27 billion from Saigon Commercial Bank (SCB), a staggering amount that represented around six percent of Vietnam’s GDP in 2023. Her appeal against the death sentence was denied, primarily due to the significant consequences of her actions. However, there remains a glimmer of hope for Lan; she could potentially avoid execution if she returns 75 percent of the embezzled funds and cooperates with the authorities.
To date, authorities have confiscated VNĐ8.6 trillion from Lan and anticipate recovering another VNĐ15 trillion through the liquidation of her assets. In addition, she possesses VNĐ21 trillion in securities, which could be utilized to repay her victims. During the court proceedings, Lan expressed her commitment to compensating those affected and addressing the fallout from her fraudulent activities.
In a separate vein, two luxury Hermes handbags valued at over VNĐ10 billion (approximately $367,000) were confiscated during the investigation into Lan’s financial dealings. Despite her pleas for their return, the court ruled that the bags must be used to compensate the victims of her fraud.
Lan's family members, including her niece Trương Huệ Vân and her husband Chu Lập Cơ, received reduced sentences of one to two years due to their limited roles in the fraudulent activities. Meanwhile, Võ Tấn Hoàng Văn, the former general director of SCB, had his 12-year sentence for fraud and five years for illegal currency transport confirmed, resulting in a life sentence. Similarly, Bùi Anh Dũng, the former SCB chairman, had his 10-year sentence maintained, leading to a life sentence as well.
Despite officially owning only 5 percent of SCB’s shares, the court found that Lan effectively controlled over 90 percent through a network of family and associates. This revelation highlighted the depth of her involvement in the scandal, which has been described as Vietnam's most serious financial crime to date.
The case has not only revealed the extent of Lan’s fraudulent activities but has also exposed years of negligent oversight by authorities, particularly the State Bank of Vietnam and the Ministry of Finance’s State Securities Commission. The scandal has sparked public outrage and led to rare protests within the tightly controlled political landscape of Vietnam.
In a statement to the court, Lan referred to the financial disaster as an “accident,” emphasizing her efforts to rectify the situation since her incarceration. Her legal team argued for a lighter sentence, but the court ultimately rejected this plea, citing her direct control over SCB and her position as chairwoman of Vạn Thịnh Phát Group.
As the legal battles continue, the ramifications of Lan's actions are expected to resonate throughout Vietnam's financial system for years to come. The case has raised pressing questions about the integrity of financial institutions and the regulatory frameworks that govern them.
In the meantime, the court has mandated that Lan pay 31 billion VND (approximately $1.2 million) in court fees, further complicating her financial recovery efforts. The High People’s Court's decision represents a significant moment in Vietnam's ongoing anti-corruption campaign, which has intensified since 2021.
Lan’s fall from grace—from a powerful businesswoman to a convicted criminal—serves as a cautionary tale about the dangers of unchecked power and the potential for abuse within the financial sector. The legal proceedings surrounding her case are far from over, and as the dust settles, many will be watching closely to see how the situation unfolds.
With her sentence now set at 30 years, the legal battle over one of Vietnam’s biggest-ever financial frauds enters a new phase, but the effects will be felt for much longer as the nation grapples with the fallout.
