HO CHI MINH CITY — A prominent Vietnamese property and airline executive, recently convicted of large-scale fraud, has made a visible return to public life, signaling a complex moment for Vietnam’s ongoing anti-corruption efforts. Truong My Lan, founder of Van Thinh Phat, has proposed a restructuring plan for Saigon Commercial Bank (SCB) and has begun repaying a portion of the US$26.8 billion she was found to have misappropriated, according to reports.
Lan’s case, Vietnam’s largest-ever fraud, centers around the systematic defrauding of bondholders and clients of SCB. In April 2025, she repaid 8 trillion dong ($310 million), representing roughly a quarter of the funds involved in the bondholder fraud, with the hope of a reduced sentence. The repayment was reported by the state-run Vietnam News Agency.
The return to prominence of another convicted business leader, Trịnh Văn Quyết, founder of FLC Group and Bamboo Airways, further illustrates this dynamic. Quyết was recently seen meeting with the South Korean Ambassador to Vietnam, Choi Youngsam, in late January, according to a post on FLC Group’s homepage. This appearance, following fines related to stock market manipulation, has raised questions about the application of justice in Vietnam.
Quyết’s case involved a fraud network that manipulated the stock market, causing significant disruption. He reportedly sold large shareholdings without proper notification to financial regulators, a violation of corporate governance standards. The scandal surrounding Quyết and FLC Group had a ripple effect, even prompting speculation within online aviation forums about the future of Bamboo Airways, a company linked to his business empire.
Lan’s proposed restructuring plan for SCB aims to address the massive 700 trillion dong ($26.8 billion) shortfall resulting from her fraudulent activities. The plan’s details remain largely undisclosed, but the initiative represents a significant attempt to mitigate the damage caused to SCB’s clients and the broader financial system. The scale of the fraud underscores the vulnerabilities within Vietnam’s banking sector and the challenges facing regulators.
Both cases highlight Vietnam’s intensified crackdown on corruption, a campaign that has targeted high-profile business figures and government officials. The government’s efforts to address financial crimes are seen as crucial for maintaining investor confidence and fostering sustainable economic growth. However, the re-emergence of these figures, even in a limited capacity, raises concerns about the consistency and effectiveness of these measures.
The situation with Bamboo Airways, connected to Trịnh Văn Quyết, is particularly noteworthy. The airline has faced financial headwinds, and the founder’s legal troubles have undoubtedly added to the uncertainty surrounding its future. While the company has not been directly implicated in the fraud, its association with Quyết has raised questions about its governance and financial stability.
The Vietnamese government has not publicly commented on the implications of these developments beyond the official reports regarding the legal proceedings and repayments. However, the cases are being closely watched by international investors and observers, who are keen to assess Vietnam’s commitment to transparency and accountability in its financial system.
The repayment by Truong My Lan, while substantial, represents only a fraction of the total amount defrauded. The potential for a reduced sentence hinges on continued cooperation and the successful implementation of the SCB restructuring plan. The outcome of these cases will likely set a precedent for future fraud investigations and enforcement actions in Vietnam.
The broader context of these scandals is a rapidly developing Vietnamese economy that has attracted significant foreign investment. However, concerns about corruption and weak governance have long been cited as potential risks to the country’s economic prospects. The government’s response to these high-profile cases will be critical in shaping investor perceptions and ensuring the long-term stability of the financial system.
As of , the full extent of the impact of these cases on Vietnam’s economy remains to be seen. The focus now shifts to the implementation of the restructuring plans, the outcome of the legal proceedings, and the government’s broader efforts to strengthen financial regulations and combat corruption.
