Bribery-accused tycoon built Van Thinh Phat empire with 1,000 plus businesses: investigators

By Vu Pham, Minh Hue
Mon, November 20, 2023 | 10:17 pm GMT+7

Van Thinh Phat Group, whose founder Truong My Lan has been arrested for alleged bribery and other violations, commandeered an empire of more than 1,000 businesses, said investigators.

The group hired hundreds of individuals as its legal representatives, according to the Ministry of Public Security's investigative agency.

The agency has found many violations in Lan’s case including embezzlement, violating banking regulations, giving and receiving bribes, abusing positions and power while performing official duties, lack of responsibility causing serious consequences, and abusing trust for property appropriation. It has recommended that Lan be prosecuted for giving bribes, violating banking regulations and embezzlement.

According to investigators, the Van Thinh Phat ecosystem operated under the joint stock company model with Van Thinh Phat Group playing a central role, holding shares and controlling all activities of companies in the ecosystem without direct involvement in business activities. The group is mainly involved in real estate, restaurants and hotels.

Van Thinh Phat Group's headquarters in Ho Chi Minh City, southern Vietnam. Photo courtesy of the group.

Van Thinh Phat Group's headquarters in Ho Chi Minh City, southern Vietnam. Photo courtesy of the group.

Vast network

The Van Thinh Phat ecosystem consists of more than 1,000 businesses including member companies at home and abroad, divided into four groups.

The first group includes financial institutions in Vietnam such as Saigon Commercial Bank (SCB), Tan Viet Securities JSC, and Viet Vinh Phu Financial Investment Corporation, in which SCB plays a particularly important role as a financial tool to fund companies in the ecosystem.

The second group features companies with business activities in Vietnam, mostly operating in real estate, restaurants and hotels. They have large charter capital and hold dominating stakes in member companies, like Saigon Peninsula Group Corporation with a charter capital of VND18 trillion ($744.26 million) and An Dong Investment Group JSC with VND9 trillion ($327.13 million).

The third group comprises "ghost” companies in Vietnam, established as legal entities to help Van Thinh Group contribute capital to projects, borrow money from banks, carry out debt rollovers or sign cooperation contracts.

The fourth group is a network of many shell companies in "tax haven" territories and countries to serve investment and business activities abroad or for investing in Vietnam as "foreign investors." These are responsible for managing the capital and assets of Lan’s family abroad.

Family-run business

Van Thinh Group, with a charter capital of VND13 trillion ($537.6 million), has Truong Hue Van, Lan's niece, as CEO. This group has four shareholders: Truong My Lan, who holds a 60% stake; Elizabeth Chu Yuet Han (or Chu Duyet Hang), daughter of Lan, 10%; Mary Chu Yuet Fan (or Chu Duyet Phan), another daughter, 10%; and Emerald JSC, represented by Truong Hue Van, 20%.

The board of directors consists of chairwoman Truong My Lan; vice chairwoman Ngo Thanh Nha; members Chu Duyet Hang, Chu Duyet Phan, Truong Lap Hung (Lan's nephew), and Truong Hue Van.

The Van Thinh Phat Investment Group JSC has a charter capital of VND12.8 trillion ($259.36 million) with Ngo Thanh Nha, Lan's sister-in-law, as CEO. The company’s four shareholders are Van Thinh Phat Group, owing a 49% stake; Chu Duyet Hang, 15.5%; Chu Duyet Phan, 15.5%; and Emerald JSC, 20%.

The board of directors comprises chairman Truong Chi Trung (Lan's younger brother), and Truong Lap Hung and Truong Hue Van as members.

Saigon Peninsula Group has a charter capital of VND18 trillion ($744.26 million) with 10 individual shareholders and 21 institutional ones. Its legal representative was CEO Nguyen Ngoc Duong (deceased). The board of directors includes chairman Truong Vincent Kinh and two members Kwok Hakman Oliver and Nguyen Phuong Anh.

Viet Vinh Phu Financial Investment Corporation, with a charter capital of VND2,868 billion ($118.68 million), has Truong Hue Van as its largest shareholder, owning a 50.50% stake.

There are a number of other companies generating revenue for Van Thinh Phat Group, including Windsor Property Management Group, An Dong Investment Group, Times Square Vietnam Investment JSC, Saigon Handicraft Import-Export JSC, Thien Phuc International Hotel Company Limited, and Vinametric Ltd.

Major projects

Van Thinh Phat Group has invested in the 56,293-square meter Bonville residential area in Ho Chi Minh City’s Binh Chanh district and many other projects.

The major project of Van Thinh Phat Investment Group JSC is the 264,633 square meter Sterling Residence residential area in HCMC’s Southern New Urban Area.

Saigon Peninsula Group plans to develop the Cape Red Light Park and an urban housing area in Phu Thuan ward, District 7, HCMC on an area of more than 1.17 million square meters. The project is in the process of completing investment procedures.

Ghostly inaction

The Ministry of Public Security’s investigative agency said that Lan had set up the ghost companies via accomplices to serve her personal purposes.

She directed the group of individuals at Van Thinh Phat Group to establish and use thousands of legal entities to get loans, transfer/receive money to/from abroad, issue bonds, register projects, restructure share ownership, and transfer shares and assets to individuals for personal purposes.

The investigative agency's conclusion also stated that a large number of "ghost" companies established by Lan did not engage in any business activities and were only used to register loans with SCB and make fake documents to withdraw money from the bank.

In addition, Lan also instructed her subordinates to hire thousands of individuals to register for loans at SCB; be legal representatives of the "ghost" companies; open accounts to receive money and withdraw cash for personal purposes.

As of October 2022, SCB had a charter capital of VND15.23 trillion ($630 million) with a total of 4,129 shareholders recognized by the State Bank of Vietnam. In particular, Lan owned nearly 91.536% of the bank’s charter capital in the names of 27 legal entities and individuals. She directly owned 4.982%.

Comments (0)
  • Read More
Vietnam's telco giant Viettel signs deal with France’s John Cockerill Defense

Vietnam's telco giant Viettel signs deal with France’s John Cockerill Defense

Viettel High Tech, the core military and civilian R&D arm of Vietnam’s military-run telecom giant Viettel, has signed a cooperation agreement with John Cockerill Defense, a leading weapon designer and manufacturer in France.

Companies - Thu, May 29, 2025 | 9:14 pm GMT+7

MB showcases comprehensive financial solution Biz MBBank at Digital Transformation Day event

MB showcases comprehensive financial solution Biz MBBank at Digital Transformation Day event

Vietnam's leading bank MB on Thursday introduced its latest digital technology solutions, notably the Biz MBBank digital financial platform, at the "Smart Digital Ecosystem in the New Era" event organized by the central bank.

Companies - Thu, May 29, 2025 | 8:02 pm GMT+7

Vietnam's auto distributor TMT to launch $3.8 mln charging station firm

Vietnam's auto distributor TMT to launch $3.8 mln charging station firm

Vietnamese auto distributor TMT Motors has announced the establishment of a charging station company with a charter capital of VND100 billion ($3.84 million).

Companies - Thu, May 29, 2025 | 4:45 pm GMT+7

US's Excelerate Energy affirms intention to turn Vietnam into LNG hub for ASEAN

US's Excelerate Energy affirms intention to turn Vietnam into LNG hub for ASEAN

Excelerate Energy wants to make Vietnam a center for LNG distribution to the ASEAN region, president and CEO Steven Kobos told Prime Minister Pham Minh Chinh at a meeting in Hanoi on Thursday.

Energy - Thu, May 29, 2025 | 4:33 pm GMT+7

Bourse shifts to heat up Vietnam's banking stocks

Bourse shifts to heat up Vietnam's banking stocks

Several Vietnamese banks are planning to move their shares from the Unlisted Public Companies Market (UPCoM) to the Ho Chi Minh Stock Exchange (HoSE) this year, creating new momentum for banking stocks, long dubbed the “king” group.

Finance - Thu, May 29, 2025 | 2:48 pm GMT+7

Dairy giant TH Group proposes 5 projects in southern Vietnam

Dairy giant TH Group proposes 5 projects in southern Vietnam

TH Group, one of Vietnam’s leading dairy producers, has proposed five major projects in the southern province of Binh Phuoc, in the fields of industrial production and urban area, golf course and high-tech agricultural production zone developments.

Industries - Thu, May 29, 2025 | 12:02 pm GMT+7

2024 cyberattack 'a blessing in disguise' for Vietnam's leading broker VNDirect: chairwoman

2024 cyberattack 'a blessing in disguise' for Vietnam's leading broker VNDirect: chairwoman

The cybersecurity breach that major Vietnamese brokerage VNDirect Securities encountered in 2024 was "an unfortunate incident, but also a lucky chance", chairwoman Pham Minh Huong said on Wednesday.

Finance - Thu, May 29, 2025 | 9:48 am GMT+7

Vietnam prioritizes smart, green seaport projects: Deputy PM

Vietnam prioritizes smart, green seaport projects: Deputy PM

Vietnam encourages smart and green seaport investments, as technical barriers related to CO2 emissions and CO2 taxes begin to be tightened up globally.

Infrastructure - Wed, May 28, 2025 | 10:07 pm GMT+7

New Zealand, Vietnam expand timber trade partnership

New Zealand, Vietnam expand timber trade partnership

New Zealand Forestry and Trade Minister Todd McClay on Tuesday unveiled a new bilateral agreement with Vietnam designed to boost timber exports and remove potential trade barriers in the two countries' forestry sectors.

Companies - Wed, May 28, 2025 | 8:53 pm GMT+7

Norway vows to support Vietnam's energy transition

Norway vows to support Vietnam's energy transition

Norway is committed to supporting Vietnam’s energy transition, Norwegian Ambassador to Vietnam Hilde Solbakken said at a technical seminar held in Hanoi on Wednesday.

Companies - Wed, May 28, 2025 | 8:49 pm GMT+7

Thailand expected to become regional luxury retail hub

Thailand expected to become regional luxury retail hub

Thailand's luxury retail market is valued at $4.4 billion and projected to grow by approximately 5% annually through 2028, placing the country at the forefront of luxury retail in Southeast Asia and seventh in Asia-Pacific, according to property consultant CBRE Thailand.

Southeast Asia - Wed, May 28, 2025 | 8:44 pm GMT+7

Indonesia affirms role as leading global maritime hub

Indonesia affirms role as leading global maritime hub

The Indonesia Maritime Expo, held as part of Indonesia Maritime Week 2025 on May 26-28, is the first large-scale maritime event in the country, aiming to affirm its role as a global maritime hub and promote the sustainable development of the region’s maritime industry.

Southeast Asia - Wed, May 28, 2025 | 8:41 pm GMT+7

Vietnam benchmark VN-Index hits 3-year high

Vietnam benchmark VN-Index hits 3-year high

The VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), recorded a four-day gaining streak on Wednesday, rising 2.06 points, or 0.15%, to 1,341.87 points - the highest since May 2022.

Finance - Wed, May 28, 2025 | 6:37 pm GMT+7

HSBC launches sustainability improvement loan in Vietnam

HSBC launches sustainability improvement loan in Vietnam

HSBC has introduced its Sustainability Improvement Loan, a new financing solution tailored for businesses with annual turnover less than $550 million, in Vietnam, after launching it in 12 markets including the UK, Middle East, Hong Kong and Singapore last year.

Banking - Wed, May 28, 2025 | 6:15 pm GMT+7

CMA CGM, Saigon Newport to jointly develop deep-sea terminal in northern Vietnam

CMA CGM, Saigon Newport to jointly develop deep-sea terminal in northern Vietnam

France's CMA CGM Group, a global player in sea, land, air, and logistics solutions, has signed a partnership agreement with Vietnam's Saigon Newport Corporation (SNP) to develop a deep-water terminal in Hai Phong city, northern Vietnam.

Infrastructure - Wed, May 28, 2025 | 5:01 pm GMT+7

Japan’s chipmaker Rapidus pledges semiconductor workforce training for Vietnam

Japan’s chipmaker Rapidus pledges semiconductor workforce training for Vietnam

Rapidus Corporation, a semiconductor manufacturer of Japan, has affirmed its readiness to train semiconductor workforce for Vietnam.

Economy - Wed, May 28, 2025 | 3:21 pm GMT+7