Vietnam court may commute tycoon’s death sentences if she repays $11 billion

Family Law

A court in Vietnam on Tuesday upheld the death sentence for real estate tycoon Truong My Lan but said it could be commuted to life if she reimburses some $11 billion, or three-fourths of what she defrauded in the country’s biggest financial crime.

The scale of her fraud shocked the nation, with analysts raising questions about whether other banks or businesses had similarly erred. It has also dampened Vietnam’s economic outlook and made foreign investors jittery at a time when Vietnam has been trying to position itself as a home for businesses pivoting their supply chains away from China.

Lan, 67, was convicted in April of embezzlement and bribery amounting to $12.5 billion, equivalent to 3% of the country’s GDP. As chairperson of the Van Thinh Phat real estate firm, the court said she illegally controlled Saigon Joint Stock Commercial Bank between 2012 and 2022 and allowed 2,500 loans that cost the bank $27 billion in losses.

A higher court in Ho Chi Minh on Tuesday rejected her appeal of the conviction but said that her death sentence could be commuted to life if she reimburses three-fourth of the losses, working out to around $11 billion, state media reported.

Her lawyers argued that she had repaid the money but the court disagreed since there were legal issues with some of the seized properties and prosecuting agencies couldn’t assess their value, VN Express reported.

Lan’s lawyers also noted several mitigating circumstances — she had admitted guilt, showed remorse and had paid back part of the amount.

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