Over the past 10–15 years, Vietnam has developed one of the largest anti-corruption initiatives in Asia, called “Blazing Furnace”. The General Secretary of the Communist Party, Nguyễn Phú Trọng, initiated this campaign, during which thousands of officials and dozens of the most influential businessmen were held accountable. (Deutsche Welle)
This article provides an overview of the most high-profile corruption and financial crime cases involving Vietnamese businessmen.
1. Vạn Thịnh Phát corruption case
Key figure:
- Trương Mỹ Lan — founder of Vạn Thịnh Phát Group
Scheme description
- control over Saigon Commercial Bank through shell companies;
- issuing fictitious loans for her companies;
- withdrawal of funds from the bank.
Scale
- the damage amounted to about $27 billion, making this case one of the largest in the history of financial scandals in Asia. (Wikipedia)
Outcome
- 86 defendants;
- dozens of high-profile officials and bankers;
- Lan herself 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 businessman Trịnh Văn Quyết
Business
- owner of FLC Group
- founder of Bamboo Airways
Charges
- manipulations in the stock market;
- artificially inflating the value of the company FLC Faros before the IPO.
Scale
- the damage to investors amounted to $144–171 million. (Deutsche Welle)
Outcome
- 21 years in prison;
- about 50 accomplices, including stock exchange employees.
📊 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 debt repayment, the collateral was not returned;
- assets were effectively embezzled.
Scale
- fraud amounting to about $40 million. (Al Jazeera)
Outcome
- 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 amounted to over $5 million;
- illegal profit — $44–45 million. (RTL Today)
Outcome
- 30 years in prison;
- several officials were also convicted.
5. The OceanBank scandal
Main figure
- Ha Van Tham
Essence
- illegal payments to officials and clients;
- financial machinations at OceanBank.
Outcome
- life imprisonment;
- one of the bank's senior managers was sentenced to death. (Wikipedia)
6. Corruption schemes in public procurement and energy
The anti-corruption initiative also affected private companies working with the government.
For example, the case involves:
- solar energy
- infrastructure tenders
- COVID medical tests.
In these schemes, businessmen bribed officials to obtain government contracts, which led to criminal cases against ministers and leaders of large corporations. (RTL Today)
Common features of corruption in business in Vietnam
1. Key sectors
Corruption scandals most often occur in the following areas:
- real estate
- banking sector
- infrastructure projects
- stock market
- government procurement.
2. Standard schemes
1️⃣ control over banks through shell companies
2️⃣ manipulations with IPOs and stocks
3️⃣ bribes to officials for obtaining contracts
4️⃣ fictitious loans
5️⃣ withdrawal of funds through subsidiaries.
3. Scale of the campaign
- thousands of officials and businessmen have been punished;
- several Politburo members and ministers have been removed from office. (Deutsche Welle)
Political context
The anti-corruption campaign has several goals:
cleansing the party elite
strengthening the party's control over large capital
increasing investor confidence
intra-party struggle within the CPV
Many experts view it as:
- a real fight against corruption
- a tool for political centralization of power.
✅ Conclusion
Vietnam has developed a unique model:
- the state allows private capital,
- but maintains strict political control over business.
Thus, large entrepreneurs often become subjects of show trials, especially if their influence begins to threaten party structures.
Below are the 10 largest corruption and financial scandals in Vietnam that have had a significant impact on the country's economy and politics. These cases have become key moments in the anti-corruption campaign “Blazing Furnace”, initiated by General Secretary of the Communist Party Nguyễn Phú Trọng.
10 largest business corruption scandals in Vietnam
1. The case of the developer Vạn Thịnh Phát
Key figure
- Trương Mỹ Lan
Company
- Vạn Thịnh Phát Group
Scheme
- control over the bank through shell companies
- issuing fictitious loans
- withdrawal of funds from the bank
Scale
- about 27 billion dollars
Outcome
- one of the largest financial scandals in the history of Vietnam
- dozens of bankers and officials convicted
- the businesswoman received a death sentence (later commuted)
2. Stock market manipulations of FLC
Defendant
- Trịnh Văn Quyết
Company
- FLC Group
- Bamboo Airways
Scheme
- manipulations with stocks
- artificially inflating the value before the IPO
Scale
- the damage amounted to about 170 million dollars
Outcome
- 21 years in prison
3. Scandal with the beverage magnate
Defendant
- Trần Quí Thanh
Company
- Tân Hiệp Phát
Scheme
- loans secured by real estate
- embezzlement 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
- regular bribes to officials
- obtaining government contracts
Scale
- bribes amounted to over 5 million dollars
Outcome
- 30 years in prison
5. OceanBank scandal
Defendant
- Hà Văn Thắm
Bank
- OceanBank
Scheme
- illegal payments to officials
- financial machinations
Outcome
- life imprisonment
6. Energy company 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. Financial crisis of Vietnam Construction Bank
Defendant
- Phạm Công Danh
Bank
- Vietnam Construction Bank
Scheme
- fictitious loans
- withdrawal of funds
Scale
- over 400 million dollars
Outcome
- 30 years in prison
8. COVID testing scandal
Company
- Việt Á Technology Corporation
Scheme
- inflating prices for COVID tests
- bribes to officials
Scale
- tens of millions of dollars
Consequences
- arrest of ministers and governors
9. ACB scandal
Defendant
- Nguyễn Đức Kiên
Bank
- Asia Commercial Bank
Scheme
- illegal investments
- financial machinations
Outcome
- 30 years in prison
10. 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
Common features of all these cases
1. Key sectors of corruption
Scandals most often occur in the following areas:
- real estate
- banking sector
- energy
- infrastructure
- government procurement
- stock market
2. Standard corruption schemes
1. Shell companies for obtaining bank loans
2. Stock manipulations
3. Bribes for government contracts
4. Fictitious investments
5. Inflated prices for government 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
This campaign is considered one of the largest in the world among one-party states.
Key political conclusion
A unique model of state-business relations has developed in Vietnam:
private capital is actively developing
but the party maintains strict control
big 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 conclusion, a systematic analysis of the 7 main corruption schemes in Vietnam used by businessmen and officials is presented. These mechanisms were regularly uncovered in cases against large entrepreneurs within the framework of the anti-corruption campaign initiated by General Secretary of the Communist Party Nguyễn Phú Trọng.
Corruption schemes in Vietnam: 7 key mechanisms of business and power
1. Control of banks through shell companies
One of the most common schemes.
How it works
businessmen create numerous affiliated companies
through them gain control over the bank
the bank issues loans to these same companies
the funds are withdrawn and disappear.
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 profits
an IPO is conducted
the stocks are actively promoted
the owners sell stocks at inflated prices.
Example
- Trịnh Văn Quyết
- the company FLC Group
📊 Losses for investors amounted to about 170 million dollars.
3. Purchasing government contracts
This is one of the oldest schemes in Vietnam.
Mechanism
- the businessman pays a bribe to the official
- receives a government contract for an infrastructure project
- inflates the cost of the project
- the profit is shared.
Example
- Nguyễn Văn Hậu
- the company Phúc Sơn Group
📊 Bribes amounted to over 5 million dollars.
4. Manipulations with state enterprises
There are many state enterprises in Vietnam.
How it works
officials transfer assets to private companies
undervalue the assets
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 leads to significant corruption.
Scheme
officials reclassify land to commercial categories
sell it to developers at undervalued prices
developers build housing and sell it at market prices.
📊 This is one of the most profitable schemes in the country.
6. Corruption in public procurement
This scheme was particularly evident during the pandemic.
Example
- the company Việt Á Technology Corporation
Scheme
- inflating prices for medical tests
- bribes to officials.
📊 The scandal led to the resignation of ministers and governors.
7. Financial pyramids through banks
Some banks in Vietnam effectively turned into financial pyramids.
Mechanism
deposits are attracted from clients
money is lent to the owner's companies
artificial profits are created.
Example
- the case of banker
- Phạm Công Danh
- Vietnam Construction Bank
Why corruption has existed for a long time
Experts highlight several reasons.
1. Rapid economic growth
Vietnam has demonstrated growth of 6–7% per year, creating significant cash flows.
2. Semi-state economy
Many businesses are closely linked to the state.
3. Weak bank control
Private banks have long been poorly regulated.
Why a tough fight has begun now
The anti-corruption campaign targets several tasks:
strengthening the party's power
fighting financial bubbles
increasing investor confidence
controlling oligarchs.
This policy is implemented under the leadership of Nguyễn Phú Trọng.
Key conclusion
A model has been developed in Vietnam:
economic liberalization with strict political control.
Business can quickly become wealthy, but if:
- it breaks the rules
- becomes too influential
- or enters into political conflict,
the state can instantly destroy the business empire.
The post Corruption schemes in Vietnam: key aspects of business and power interaction first appeared on K-News.
