Convicted Vietnamese tycoon seeks to resume long-delayed $256 mln urban project in HCMC

Truong My Lan, chairwoman of Van Thinh Phat Group who is currently in detention, has sought approval to resume the construction of a long-stalled urban project in Ho Chi Minh City.

According to the municipal Department of Construction, the HCMC People’s Committee of has forwarded Lan’s petition to relevant departments for review and assessment in accordance with legal procedures.

Located in downtown District 1, the project, IFC One Saigon, is among the city’s most prominent unfinished real estate developments and has long been tied to bad debts.

The 42-storey, 185-meter mixed-use tower, initially valued at $256 million, began construction in 2008 but was halted in 2012 after about 80% completion.

It was later mortgaged with debts exceeding VND7 trillion ($265.65 million) and seized in 2017, though an attempted auction failed.

In 2021, the property became part of Viva Land, a company linked to Van Thinh Phat, and was renamed IFC One Saigon. However, construction has remained on hold since.

Meanwhile, in the second phase of the Van Thinh Phat legal case, local authorities said they had recovered VND8.6 trillion ($326.31 million) and repaid VND8.3 trillion ($314.93 million) to more than 41,000 bondholders.

In April, the HCMC court reduced the life sentence to 20 years imprisonment for Truong My Lan at the appeal trial for the second phase of a major financial crime case involving the conglomerate and the Saigon Commercial Joint Stock Bank (SCB).

Previously, on October 17, 2024, the first-instance trial of the second phase sentenced Lan to life imprisonment for "fraudulent appropriation of assets", 12 years for "money laundering", and eight years for "illegal cross-border money transfers", with a total sentence of life imprisonment.

On April 3, prosecutors informed the court that authorities have so far collected over VND8 trillion ($303.84 million) worth of assets from Lan. Additional funds amounting to approximately VND15 trillion ($569.15 million) will be collected from other organizations and individuals in the coming time.

Citing this development, prosecutors proposed a reduction of her sentence for fraudulent appropriation, noting her remorse and voluntary efforts to repay the damage.

Accepting the recommendation, the appellate court lowered Lan’s sentence for fraud from life to 20 years in prison, while maintaining her sentences for money laundering and illegal cross-border money transfers. However, as the death penalty issued in the first phase has already taken legal effect, Lan is still subject to the death sentence.