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Vietnamese court has upheld the death sentence against real estate tycoon Truong My Lan in a high-profile financial fraud case, but offered a glimmer of hope by allowing her to commute the sentence to life imprisonment if she repays $11 billion. The massive scale of her embezzlement and bribery, amounting to $12.5 billion or 3% of Vietnam's GDP, has shocked the nation and raised questions about potential similar cases involving other banks and businesses.

    Lan, chairperson of Van Thinh Phat real estate firm, was convicted in April of controlling Saigon Joint Stock Commercial Bank between 2012 and 2022 and allowing 2,500 loans that cost the bank $27 billion in losses. Her lawyers argued she had repaid some of the money but the court disagreed due to legal issues with seized properties.

    The court rejected Lan's appeal but noted mitigating circumstances such as her admission of guilt, remorse, and partial repayment. However, it emphasized that her actions negatively impacted banking, caused public disorder, and eroded trust in institutions. Under Vietnamese law, death sentences are not immediately carried out, allowing for further review or a presidential pardon.

    Lan's arrest was part of Vietnam's anti-corruption drive, which intensified after 2022. Her company grew into one of the country's richest real estate firms, with luxury properties and significant influence in the financial industry. The case has dampened Vietnam's economic outlook and made foreign investors cautious at a time when the country is trying to attract businesses shifting supply chains away from China.

    Vietnam has handed down over 2,000 death sentences in the past decade, but Lan's sentence could be commuted if she meets the repayment condition. Her lawyers plan to seek another review or a presidential pardon, and experts note that repaying at least three-quarters of the misappropriated funds may lead to a reduced sentence.