In the course of the past year, Vietnam has been executing an aggressive anti-corruption strategy which has had a significant impact on the country’s legal approvals and deal flow. This campaign reached its zenith earlier this month with the sentencing of Truong My Lan, a former real estate mogul, to death for her involvement in the largest-ever financial fraud case in the country’s history.
Truong My Lan, a prominent businesswoman who led a widespread firm invested in luxury apartments, hotels, offices, and shopping centres, faced formal charges of fraud amounting to $12.5 billion. This figure is a staggering amount, accounting for nearly 3% of Vietnam’s 2022 Gross Domestic Product (GPD). The case, first filed in 2022, unveiled the involvement of more than 80 individuals, even including central bank officials – prompting a stringent crackdown on corruption.
The anti-corruption campaign has significantly slowed down legal approvals within Vietnam, adversely affecting deal flow. The cumulative effect of the caution exhibited both by investors and authorities has led to more lengthy due diligence processes. The campaign’s repercussions are being keenly felt within and beyond Vietnam’s borders, given the country’s strategic position in global commerce. For an in-depth analysis, please see this article.