Vietnam has been on an aggressive path against corruption over the past year, culminating with the sentencing of Truong My Lan, a 67-year-old former real estate tycoon, who has been charged with the country’s most significant financial fraud case. Lan, a high-profile businesswoman, was sentenced to death for her involvement in a massive fraud case worth $12.5 billion. This amount stands close to 3% of the country’s total GDP for 2022. The case, which was initiated in 2022, has also implicated more than 80 individuals, including key officials from the central bank. This intense crackdown on corruption appears to have slowed legal approvals, leading to an unfavorable impact on deal flow in the world of finance.
Though the anti-corruption measures were perceived positively, they have prompted investors and authorities to adopt a more calculated approach, resulting in elongated due diligence processes. The thorough checks and balances are slowing down deal approvals and consequently affecting business operations adversely. Therefore, Vietnam’s rigorous approach to combating corruption, while commendable, appears to be causing unintended negative implications for business transactions in the country.
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