One of the most extensive anti-corruption initiatives in Vietnam in the last 10-15 years, known as “Blazing Furnace”, was led by the General Secretary of the Communist Party Nguyễn Phú Trọng. Thousands of officials and dozens of major businessmen have come under investigation during this campaign. (Deutsche Welle)
This review presents the most high-profile corruption and financial cases involving Vietnamese businessmen.
1. The Vạn Thịnh Phát case
Key figure:
- Trương Mỹ Lan — founder of Vạn Thịnh Phát Group
Essence of the criminal scheme
- controlled Saigon Commercial Bank through a series of shell companies;
- secured fake loans for her companies;
- withdrew funds from the bank.
Scale of damage
- about $27 billion, making this case one of the largest financial scandals in Asia. (Wikipedia)
Results
- 86 people were charged;
- including dozens of officials and bankers;
- Lan was sentenced to death (later commuted to life imprisonment). (Wikipedia)
📊 This case is often compared to:
- the Malaysian 1MDB
- the largest banking frauds in the USA.
2. The case of Trịnh Văn Quyết and his airline
Business
- owner of FLC Group
- founder of Bamboo Airways
Charges
- stock market manipulation;
- artificially inflating the value of the company FLC Faros before the IPO.
Scale of damage
- investors lost between $144 to $171 million. (Deutsche Welle)
Outcome
- sentence — 21 years in prison;
- about 50 accomplices, including stock exchange officials.
📊 This case became the largest scandal in the Vietnamese stock market.
3. The case of beverage magnate Tran Qui Thanh
Business
- head of Tan Hiep Phat
Scheme
- issuing loans secured by real estate;
- after repaying the debt, the collateral was not returned;
- assets were misappropriated.
Scale of fraud
- damage amounted to about $40 million. (Al Jazeera)
Outcome
- sentence — 8 years in prison;
- his daughters were also convicted.
4. The case of infrastructure businessman Nguyễn Văn Hậu
Business
- chairman of Phuc Son Group
Scheme
- regular bribes to officials;
- obtaining contracts for infrastructure projects.
Details
- bribes exceeded $5 million;
- illegal profits amounted to about $44-45 million. (RTL Today)
Outcome
- sentence — 30 years in prison;
- dozens of officials were also convicted.
5. The OceanBank scandal
Defendant
- Ha Van Tham
Essence
- illegal payments to officials and clients;
- financial machinations at OceanBank.
Outcome
- sentence — life imprisonment;
- one of the bank's high-profile managers received the death penalty. (Wikipedia)
6. Corruption schemes in public procurement and energy
The anti-corruption campaign also covered private companies working with government structures.
Examples include cases in:
- solar energy
- infrastructure tenders
- COVID medical tests.
In these schemes, businessmen paid bribes to officials to obtain government contracts, leading to criminal cases against ministers and corporate leaders. (RTL Today)
Common features of corruption in business in Vietnam
1. Main sectors
Corruption most often manifests in the following areas:
- real estate
- banking
- infrastructure projects
- stock market
- public procurement.
2. Typical schemes
1️⃣ bank control through shell companies
2️⃣ IPO and stock manipulation
3️⃣ bribing officials to obtain contracts
4️⃣ fake loans
5️⃣ fund withdrawal through subsidiaries.
3. Scale of the campaign
- thousands of officials and businessmen have been punished;
- several Politburo members and ministers were dismissed. (Deutsche Welle)
Political background
The anti-corruption campaign aims at several goals:
cleansing the party elite
strengthening the party's control over large capital
increasing investor confidence
internal political struggle within the CPV
Many experts believe that this campaign is simultaneously:
- a genuine fight against corruption
- a tool for political centralization of power.
✅ Conclusion
A unique model has formed in Vietnam:
- the state allows private capital,
- but maintains strict political control over business elites.
As a result, large entrepreneurs often become figures in high-profile trials, especially if their influence begins to compete with party structures.
In the next section, we present the 10 largest corruption and financial scandals in Vietnam that have had a serious impact on the country's economy and politics. These cases have become emblematic within the anti-corruption campaign “Blazing Furnace”, initiated by General Secretary of the Communist Party Nguyễn Phú Trọng.
10 largest corruption scandals in business in Vietnam
1. The case of the Vạn Thịnh Phát development empire
Key figure
- Trương Mỹ Lan
Business
- Vạn Thịnh Phát Group
Scheme
- control over the bank through a network of companies
- fake loans
- fund withdrawal.
Scale
- about 27 billion dollars
Outcome
- the largest financial fraud in Vietnam's history
- dozens of bankers and officials convicted
- the businesswoman received a death sentence (later commuted)
2. Stock market manipulations of FLC
Defendant
- Trịnh Văn Quyết
Business
- FLC Group
- Bamboo Airways
Scheme
- stock manipulations
- fake capitalization increase before the IPO.
Scale
- about 170 million dollars in damage
Outcome
- 21 years in prison
3. The scandal with the beverage magnate
Defendant
- Trần Quí Thanh
Company
- Tân Hiệp Phát
Scheme
- loans secured by real estate;
- misappropriation of assets after debt repayment.
Scale
- about 40 million dollars
Outcome
- 8 years in prison
4. Corruption in infrastructure
Defendant
- Nguyễn Văn Hậu
Company
- Phúc Sơn Group
Scheme
- systematic bribes to officials;
- obtaining government contracts.
Scale
- bribes over 5 million dollars
Outcome
- 30 years in prison
5. The OceanBank banking scandal
Defendant
- Hà Văn Thắm
Bank
- OceanBank
Scheme
- illegal payments to officials;
- financial machinations.
Outcome
- life imprisonment
6. The energy giant PetroVietnam
Defendant
- Đinh La Thăng
Company
- PetroVietnam
Scheme
- illegal investments;
- loss of hundreds of millions of dollars.
Outcome
- the former minister received 13 years in prison
7. The banking crisis of Vietnam Construction Bank
Defendant
- Phạm Công Danh
Bank
- Vietnam Construction Bank
Scheme
- fake loans;
- fund withdrawal.
Scale
- over 400 million dollars
Outcome
- 30 years in prison
8. The COVID medical scandal
Company
- Việt Á Technology Corporation
Scheme
- inflated prices for COVID tests;
- bribes to officials.
Scale
- tens of millions of dollars
Consequences
- ministers and governors arrested.
9. The ACB banking conglomerate scandal
Defendant
- Nguyễn Đức Kiên
Bank
- Asia Commercial Bank
Scheme
- illegal investments;
- financial machinations.
Outcome
- 30 years in prison
10. The land project scheme in Ho Chi Minh City
Defendant
- Tất Thành Cang
Scheme
- illegal transfer of land to developers;
- damage to the state.
Outcome
- 10 years in prison
What unites all these cases
1. Main sectors of corruption
Scandals most often occur in:
- real estate
- banking sector
- energy
- infrastructure
- public procurement
- stock market
2. Typical corruption schemes
1. Bank loans to shell companies
2. Stock manipulations
3. Bribes for government contracts
4. Fake investments
5. Price inflation in public procurement.
Scale of the anti-corruption campaign
Since 2016:
- investigated thousands of cases
- punished hundreds of high-ranking officials
- convicted dozens of billionaires and top managers
The campaign is considered one of the largest in the world among one-party states.
Important political conclusion
A unique model of state-business relations has formed in Vietnam:
private capital is actively developing
but the party maintains strict control
large business cannot be independent of the political system.
Interesting fact:
over the past 5 years, several billionaires in Vietnam have effectively lost their empires, significantly changing the structure of the country's business.
In the next section, we present a systematic analysis of the 7 main corruption schemes in Vietnam used by businessmen and officials. These mechanisms have regularly been identified in cases against large entrepreneurs within the framework of the anti-corruption campaign initiated by General Secretary of the Communist Party Nguyễn Phú Trọng.
How corruption works in Vietnam: 7 main schemes of business and officials
1. Bank control through a network of shell companies
One of the most common schemes.
How it works
the businessman creates numerous affiliated companies;
through them, gains control over the bank;
the bank issues loans to these same companies;
the money is withdrawn and disappears.
Example
- the case of Trương Mỹ Lan
- her company Vạn Thịnh Phát Group
- effectively controlled Saigon Commercial Bank.
📊 Scale — about 27 billion dollars.
2. Stock market manipulations
This scheme was actively used during the rapid growth of the stock market in Vietnam.
Mechanism
the company artificially inflates its profits;
conducts an IPO;
the stocks are actively promoted;
the owners sell their shares at inflated prices.
Example
- Trịnh Văn Quyết
- FLC Group.
📊 The damage to investors is about 170 million dollars.
3. Buying government contracts
This scheme is one of the oldest in Vietnam.
Mechanism
- the businessman pays a bribe to an official;
- obtains a contract for infrastructure work;
- inflates the project cost;
- the profit is shared between them.
Example
- Nguyễn Văn Hậu
- Phúc Sơn Group.
📊 Bribes amounted to over 5 million dollars.
4. Manipulations with state enterprises
There are many state-owned companies in Vietnam.
How it works
officials transfer assets to private companies;
undervalue them;
the business gains control over these enterprises.
Example
- the scandal surrounding the oil corporation
- PetroVietnam.
5. Land corruption
In Vietnam, all land belongs to the state, which creates favorable conditions for corruption.
Scheme
officials convert land plots to commercial category;
sell them to developers at undervalued prices;
the developer builds properties and sells them at market prices.
📊 This is one of the most profitable schemes in the country.
6. Corruption in public procurement
This scheme particularly manifested during the pandemic.
Example
- the company Việt Á Technology Corporation.
Scheme
- inflated prices for medical tests;
- bribes to officials.
📊 The scandal led to the arrest of ministers and governors.
7. Financial pyramids through banks
Some banks in Vietnam turned into financial pyramids.
Mechanism
attracting deposits;
issuing loans to companies owned by the owner;
creating artificial profits.
Example
- the case of banker
- Phạm Công Danh;
- Vietnam Construction Bank.
Why corruption has existed for so long
Experts highlight several reasons.
1. Rapid economic growth
The Vietnamese economy grew by 6–7% per year, creating significant cash flows.
2. Semi-state economy
Many businesses are closely linked to government structures.
3. Weak bank oversight
Private banks were inadequately regulated for a long time.
Why a tough fight has begun now
The anti-corruption campaign aims at several goals:
strengthening the party's power;
fighting financial bubbles;
increasing investor confidence;
controlling oligarchs.
This policy is implemented under the leadership of Nguyễn Phú Trọng.
Main conclusion
A model has developed in Vietnam:
economic liberalization + strict political control.
Business can develop rapidly, but if:
- it violates the rules;
- becomes too influential;
- or comes into conflict with the political system,
the state can very quickly dismantle a business empire.
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