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-Singapore ties set for elevation to comprehensive strategic partnership

Vietnam-Singapore ties set for elevation to comprehensive strategic partnership

Vietnam and Singapore will elevate bilateral ties to a comprehensive strategic partnership and Singaporean Prime Minister Lawrence Wong will visit Vietnam next year.

Politics - Wed, November 20, 2024 | 8:16 pm GMT+7

Vietnam’s Vingroup establishes robotics firms, with co-founder’s 2 sons as major shareholders

Vietnam’s Vingroup establishes robotics firms, with co-founder’s 2 sons as major shareholders

Vingroup, Vietnam’s largest private conglomerate by ecosystem, has set up a robotics unit as it moves to ramp up its industrial-high technology ecosystem.

Companies - Wed, November 20, 2024 | 6:17 pm GMT+7

E-commerce, digital platforms likely to pay taxes on behalf of their sellers in Vietnam

E-commerce, digital platforms likely to pay taxes on behalf of their sellers in Vietnam

E-commerce and digital platforms will have to declare and pay taxes on behalf of their sellers starting January 1, 2025, according to a draft amendment to the Law on Tax Administration.

Finance - Wed, November 20, 2024 | 5:37 pm GMT+7

Flexibility, adaptability key to effective leadership: PepsiCo Vietnam exec

Flexibility, adaptability key to effective leadership: PepsiCo Vietnam exec

In a rapidly changing world, leaders need to develop the skill of being “as flexible as seaweed,” says Nguyen Viet Ha, general director of PepsiCo Foods Vietnam.

Companies - Wed, November 20, 2024 | 3:52 pm GMT+7

Central Vietnam province okays $88 mln automobile part project

Central Vietnam province okays $88 mln automobile part project

Binh Thuan province's industrial zone authority on Tuesday granted an investment registration certificate to a $88 million project invested by Taiwan’s NeoSCM Limited.

Industries - Wed, November 20, 2024 | 3:44 pm GMT+7

Thai packaging firm Thantawan Industry makes inroad into Vietnam

Thai packaging firm Thantawan Industry makes inroad into Vietnam

Thantawan Industry Public Company Limited, a leading Thai manufacturer of premium plastic packaging, has inked a deal for a 30-year factory lease, marking its inaugural investment in Vietnam.

Industries - Wed, November 20, 2024 | 3:34 pm GMT+7

Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC

Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC

Major property developer Novoland has had legal obstacles for its Aqua City project cleared after Dong Nai Chairman Vo Tan Duc approved Tuesday a critical adjustment to the southern province’s urban development plan.

Companies - Wed, November 20, 2024 | 2:29 pm GMT+7

Pegatron to quadruple workforce at $800 mln project in Vietnam

Pegatron to quadruple workforce at $800 mln project in Vietnam

Pegatron Vietnam, a subsidiary of Taiwanese electronics manufacturer Pegatron Corporation, is set to soon quadruple the company's workforce for its $800-million project in Vietnam.

Industries - Wed, November 20, 2024 | 2:03 pm GMT+7

Thailand’s WHA greenlighted to invest $55 mln in central Vietnam industrial park

Thailand’s WHA greenlighted to invest $55 mln in central Vietnam industrial park

WHA Group, a leading Thai provider of fully integrated logistics and industrial facilities solutions, has secured in-principle approval from the Vietnamese government to invest in an industrial park in central Vietnam.

Industrial real estate - Wed, November 20, 2024 | 12:01 pm GMT+7

Indonesia, Brazil sign cooperation deals worth $2.65 bln

Indonesia, Brazil sign cooperation deals worth $2.65 bln

Indonesia and Brazil on Monday sealed cooperation agreements worth $2.65 billion in the areas of renewable energy, sustainable agriculture and technology at the Indonesia-Brazil Business Forum held in Rio De Janeiro, Brazil, on the sidelines of the G20 Summit.

Southeast Asia - Wed, November 20, 2024 | 11:57 am GMT+7

Nusantara not yet feasible as Indonesia’s capital city: authorities

Nusantara not yet feasible as Indonesia’s capital city: authorities

Indonesian Minister of Home Affairs Tito Karnavian said Jakarta still holds the capital status despite the enactment of State Capital Law No. 3 of 2022, adding that the capital city will officially be relocated after the president issues a presidential decree.

Southeast Asia - Wed, November 20, 2024 | 11:55 am GMT+7

Malaysia’s Halal industry to make up 10.8% of GDP by 2030

Malaysia’s Halal industry to make up 10.8% of GDP by 2030

Malaysia’s Halal industry is projected to account for 10.8% of the country's GDP by 2030, with an estimated value of RM231.1 billion ($51.7 billion).

Southeast Asia - Wed, November 20, 2024 | 11:48 am GMT+7

Thailand takes more fiscal measures to sustain growth momentum

Thailand takes more fiscal measures to sustain growth momentum

The Thai government is working on a raft of fresh fiscal measures to sustain an economic recovery, foster new foreign investment, and lower the near-record household debt, says Thai Prime Minister Paetongtarn Shinawatra's top aide.

Southeast Asia - Wed, November 20, 2024 | 11:46 am GMT+7

Indonesia named world's most generous country in 2024

Indonesia named world's most generous country in 2024

Indonesia has been the world's most generous country for the seventh consecutive year since 2017, reported local weekly magazine Tempo.

Southeast Asia - Wed, November 20, 2024 | 11:41 am GMT+7

Work begins on Mitsubishi Estate’s $55 mln logistics facility in northern Vietnam

Work begins on Mitsubishi Estate’s $55 mln logistics facility in northern Vietnam

Logistics facility brand Logicross, under Japan’s Mitsubishi Estate, kicked off the construction of its Logicross Hai Phong ready-built warehouse in Vietnam’s northern city of Hai Phong on Tuesday.

Industrial real estate - Wed, November 20, 2024 | 10:58 am GMT+7

French logistics giant eyes to launch electric barges on inland waterways in Vietnam

French logistics giant eyes to launch electric barges on inland waterways in Vietnam

CMA-CGM Group, a French shipping and logistics company, has plans to deploy electric barges, initially on inland waterways in Vietnam.

Companies - Wed, November 20, 2024 | 10:43 am GMT+7