Police face challenges in Việt Nam’s most severe financial fraud

The IFC One Saigon owned by a subsidiary of Vạn Thịnh Phát Group is one of the assets recovered by authorities for repayment to the victims in the scandal. — VNS Photo Bồ Xuân Hiệp

HCM CITY — Authorities are facing challenges in enforcing claims in Việt Nam’s largest financial fraud case involving assets worth billions of dollars linked to Trương Mỹ Lan, the chairwoman of the Vạn Thịnh Phát group.

Nguyễn Văn Hòa, director of the HCM City Civil Enforcement Department, said the department lacks the resources to handle the extensive workload. 

Authorities have already confiscated more than VNĐ590 billion and nearly $15 million, freezing additional assets tied to Lan, who holds a substantial stake in Saigon Commercial Bank (SCB).

An inventory of over 1,240 properties owned by Lan has been conducted, including eight in Quảng Ninh Province, and various other assets such as shares, vehicles, and a yacht. 

In addition, 42 accounts linked to Lan and co-defendants have been frozen, holding nearly VNĐ1.9 trillion and over $8.4 million.

“These funds will be prioritised for repayment to the bond victims,” the police said.

Lan has acknowledged her wrongdoing and pledged to use seized assets for repayment to the bondholders.

The HCM City Civil Enforcement Department has created two accounts for her and co-defendants to transfer funds to compensate the victims.

The HCM City People’s Court is preparing for an upcoming trial related to bond fraud affecting 35,000 bondholders and nearly VNĐ40 trillion.

The court has requested bondholders confirm their information online. 

While it has not yet announced a specific date for the trial, it is expected to take place within this year.

The scam is the largest financial scam in Việt Nam’s history, with Lan currently on death row for embezzlement causing losses of VNĐ677 trillion ($27 billion) to SCB. She was also ordered to fulfill repayment obligations to the private lender.

She has appealed her death sentence. 

Three SCB executives involved received life sentences, while 81 others face prison terms for various charges. — VNS