3-10-2023 (HANOI) Authorities in Vietnam are seeking assistance from investors as they continue to investigate real estate firm Van Thinh Phat Holdings Group, which is accused of defrauding and misappropriating over 30 trillion dong (approximately US$1.2 billion or RM5.66 billion). The government’s website released a statement confirming that around 42,000 investors have suffered financial losses as a result of the alleged misconduct.
Last year, the Ministry of Public Security detained Truong My Lan, the Chairwoman of Van Thinh Phat, on charges of acquiring properties through fraudulent means. The arrest of Lan, along with other company officials who were suspected of having connections with Saigon Commercial Bank (SCB), triggered a brief bank run on SCB.
This investigation takes place amidst the country’s struggle with a property debt crisis that is exerting pressure on Vietnam’s economy. The woes in the property sector pose risks for banks as real estate companies face challenges in servicing their debts, as highlighted by Moody’s Corp.
Privately-held Van Thinh Phat, known for its ownership of prime land in Ho Chi Minh City, is also involved in financial services, according to information available on its website last year.
In response to the situation, the State Bank has taken measures to restore confidence in SCB’s operations by replacing its board and assuring customers that their deposits are safe. On September 22, the regulator announced the appointment of Phan Dinh Dien, a former board member of Vietnam Bank for Agriculture and Rural Development, as the new chairman of SCB.
Police are investigating Truong My Lan’s involvement in the issuance and trading of bonds for certain companies where large amounts of dong were allegedly misappropriated in 2018 and 2019.
The Ministry of Public Security is seeking cooperation from affected investors as part of its ongoing investigation, as stated by Major General Nguyen Van Thanh, deputy head of the Department for Investigation of Corruption and Economic Crimes.
Vietnam’s General Secretary Nguyen Phu Trong has instructed officials to conclude major investigations, including the Van Thinh Phat case, by the end of the year, as reported on the government’s website.
