The 2024 trial starts for the largest embezzlement case in history of Vietnam involving Mrs Truong My Lan, CEO of Van Thinh Phat real estate company, the control of Saigon Commercial Bank and the corruption of State Bank of Vietnam officials.

Starting tomorrow, the long awaited trial of Mrs Truong My Lan, CEO of Van Thinh Phat group, will start from 5-mar-2024 to 29-apr-2024. Mrs Lan, used the Saigon Commercial Bank SCB, she secretly controlled and she bribed 24 inspectors of the State Bank of Vietnam to turn a blind eye on the SCB, thus building the VTP group real estate empire, through a cascade of fake companies borrowing money. A wipe out equivalent of 6% of Vietnam GDP or the assets of 9 largest listed companies of Vietnam.

For whoever follows the economy in Vietnam, the post Covid 2022 was heavy on arrests of prominent real estate developers. After Mr Quyet of FLC real estate manipulating the share prices on the HCMC stock market, Mr Hoang of Tan Hoang Minh real estate manipulating the land price bidding for $100,000 per sqm in Thu Thiem future financial center and the Novaland bond issuance frenzy, one could feel the worse was behind us. Vingroup was not far away…

Probably the trial of the year 2024 will surely unveil the quadruple ‘hold-up’ by Mrs Truong My Lan, CEO owner of Van Thinh Phat real estate developer company.

The case involves prime and huge land attribution since 1991. The financing is still murky as Mrs Lan ‘hi-jacked’ the SCBank voting rights, the stock market and the banking system regulators by organized corruption with cash. The justice will tell if the 42,000 bond holders will lose their money depending if they hold a guaranteed bank deposit or VTP group dream real estate dream venture debt in disguise, what professional bankers call a junk bond?

Van Thinh Phat group, holds-up prime real estate and huge pieces of land all over HCMC… since 1991.

Once upon a time in 1991, Vạn Thịnh Phát (VTP Group) was founded by Mrs Truong My Lan and her husband Mr Chu Nap Kee. 

Over the years, Ms Lan started to gather prime location in District 1 in the iconic walking street in front of the city hall, becoming the queen of Nguyen Hue.

Over the years, the huge real estate portfolio extended to prime locations in various districts of the city. Unnoticeably accumulating a fortune of $12.5Bn, more than the total wealth of the 5 largest billionaires of Vietnam in aggregate -that includes famous Vingroup-Vinfast, Pham Nhat Vuong CEO-.

The empire grew until recently in 2016, the attribution of 118ha of land of stalled Saigon Peninsula project in District 7 for a US$6 Bn investment.

Just one figure says it all, the Van Thinh Phat case, investigated since Mrs Lan arrest in oct-2022 is equivalent to 6% Vietnam GDP value wiped out. To relate easier to a developed country like Germany, a comparative calculation is 6% of US$4.5 trillions (+20% population factor) it is a US$216Bn loss. 

Van Thinh Phat group issuing ‘guaranteed’ bonds/debts to the public via SCBank at 12%/year interest’

From bank guaranteed deposit to junk bonds sold by SCB, 42,000 bond buyers from the public will discover what the court decides they can get back depending on the underlying debt guarantees promised by whom, if any valid asset is left.

The court will also define who at Saigon Commercial bank sold what type of financial product to the poor investors, gullible depositor for higher rate dont know:

• No control on the financial product (corporate debt/bond) sold by the banker
• No control the borrower and the amounts
• No control the VTP group assets backing the bond issued to the public

Now it is known Mrs Trung My Lan. What did the bank teller sell to their client coming for a deposit of their hard earned savings?

It can range from the best case to the worst: a State bank deposit, a SCB bank guarantee, a VTP group asset-backed loan to  a ‘junk’ bond to finance future real estate projects by a VTP affiliate company.

In short, the SCB clients scammed? Were they financially educated to understand what they purchased? Were they clearly informed by the bank employees on the risk reward their investment paper exposed them, if the paper is an investment product at all?

Mrs Truong My Lan, CEO of VTP group, holds-up the SCBank, by secretly controlling the voting rights and using the bank for her own business needs.

On paper Mrs Truong My Lan owns 5% of SCB bank shares, in reality, she manages to hold-up the Saigon Commercial Bank and secretly control 91.5% of the voting rights bribing hundreds of shareholders votes, so that the bank would work to her private business interest.

The economic police investigating on SCB and VTP group wrongdoing mechanism counted 1,300 loans by a cascade of 40 companies created to borrow money thanks to 42 bank accounts, 1,400 property ownership ‘pink books’, 996 Mio SCB shares control and 22 valuable assets ranging from yachts to Rolls Royce cars.

Some new companies were created, with temporary assets, for the purpose of contracting loans to the sole purpose of extending loan facilities. The bank manager’s due diligence on company assets and revenues was eased or simply waived by bribes in kind or cash.

As shown above, Mrs Truong My Lan wiped out VND304 trillion  -via the SCB heist- that is equivalent to the total registered capital of the 6 largest Vietnamese banks.

Mrs Truong My Lan, holds-up the regulators of the HCMC Stock Exchange and  24 inspectors of the State Bank of Vietnam

Over the years, the State bank of Vietnam auditors uncovered bad debts and unsecured loans. Starting 2017, Mrs Do Thi Nhan, head of the State bank of Vietnam’s inspection and banks supervision department II, uncovered:

• Mrs Truong My Lan was secretly owner of 91.5% of the bank voting rights and decisions,
• the bad debt ratio was a whopping 36% of assets
• 71 SCB companies had doubtful assets and income sources

Mrs Lan, controlling of SCB, organized the bribery of the 24 staff of State Bank supervisory team, from 5000$ to US$ 5.2 Mio to Mrs Do Thi Nhan head of the supervision team to falsify the bad debts ratio to an acceptable 6.8% and turn a blind eye on controlling the 71 SCB dubious borrowers clients.

CONCLUSION on Mrs Truong My Lan, VTP group trial is already decided. To be delivered on 30-april national reunification day, labor day.

Will there be anything new under the sun? The biggest hold-up is land in Vietnam, Mrs Lan and her husband Mr (Chu Nap Kee) HK-CH  had thousands property ownership red books.. Will the prince and the princess trial disclose any new names? Who are the kings who made the princes? Where are they from? VN, HK, China? Are Mrs Lan & Mr Chu the real owners of huge pieces of land? 

The new year will tell us more of the wrongdoings of the princes, and perhaps unveil and punish the rainmakers, the kings behind the land attributions? 

Mrs Lan 2024 trial may mark a new era of compliance for the stock market and banking sector. If some old Phoenix are uncovered and sacrificed, then some new dragons may rise to elevate the real estate sector in Vietnam.

As the Investigation is already complete, the start and closing date of the trial being defined already, as Julius Caesar ‘Alea jacta es’ ie the die is cast. 

Let’s see if the Dragon or the same old Phoenix will rise this year?

You can read more on our INSIDER VIEW, the elements we believe favorise the Phoenixes rise again.