In the last 10-15 years, Vietnam has become the arena for one of the most extensive anti-corruption initiatives in Asia, called “Blazing Furnace”. This campaign, initiated by the General Secretary of the Communist Party Nguyễn Phú Trọng, has led to investigations of thousands of officials and many influential businessmen. (Deutsche Welle)
This review presents the most resonant corruption and financial cases involving Vietnamese businessmen.
1. The corruption case of Vạn Thịnh Phát
Key figure:
- Trương Mỹ Lan — founder of Vạn Thịnh Phát Group
Essence of the scheme
- controlled Saigon Commercial Bank through numerous shell companies;
- issued fictitious loans for her companies;
- conducted fund withdrawals from the bank.
Scale
- the damage amounted to about $27 billion, making this case one of the largest financial scandals in Asia. (Wikipedia)
Outcome
- charges were brought against 86 individuals;
- dozens of officials and bankers were sentenced;
- Lan herself received a death sentence (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 aviation entrepreneur Trịnh Văn Quyết
Business
- owner of FLC Group
- founder of the airline 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 officials.
? This case became one of the most high-profile scandals in the Vietnamese stock market.
3. The case of beverage businessman Tran Qui Thanh
Business
- head of Tan Hiep Phat
Scheme
- issuing loans secured by real estate;
- after the debt was repaid, the collateral was not returned;
- assets were embezzled.
Scale
- fraud amounting to about $40 million. (Al Jazeera)
Outcome
- 8 years in prison;
- his daughters also received sentences.
4. The case of infrastructure entrepreneur Nguyễn Văn Hậu
Business
- chairman of Phuc Son Group
Scheme
- regular bribes to officials;
- obtaining contracts for infrastructure projects.
Details
- more than $5 million in bribes;
- illegal profit amounted to $44–45 million. (RTL Today)
Outcome
- 30 years in prison;
- dozens of officials were also convicted.
5. The OceanBank scandal
Figure
- Ha Van Tham
Essence
- illegal payments to officials and clients;
- financial machinations at OceanBank.
Outcome
- life imprisonment;
- one of the bank's top managers received the death penalty. (Wikipedia)
6. Corruption in public procurement and the energy sector
The anti-corruption initiative also covered private companies working with the government.
For example, the case is related to:
- solar energy
- infrastructure tenders
- COVID medical tests.
In these schemes, businessmen bribed officials for government contracts, leading to criminal cases against ministers and heads of corporations. (RTL Today)
General characteristics of corruption practices in Vietnamese business
1. Key sectors
The most frequent corruption scandals occur in:
- real estate
- banking sector
- infrastructure projects
- stock market
- public procurement.
2. Typical schemes
1️⃣ control of banks through shell companies
2️⃣ stock and IPO manipulations
3️⃣ bribing officials to obtain contracts
4️⃣ fictitious loans
5️⃣ fund withdrawals through subsidiaries.
3. Scale of the anti-corruption campaign
- thousands of officials and businessmen have been punished;
- several Politburo members and ministers have been removed from their positions. (Deutsche Welle)
Political context
The anti-corruption initiative has several goals:
purification of the party elite
strengthening the party's control over large capital
increasing investor confidence
internal political struggle within the CPV
Many analysts view it as:
- a genuine fight against corruption
- a tool for political centralization.
✅ Conclusion
A unique model has emerged in Vietnam:
- the state allows private capital,
- but maintains strict political control over business elites.
Thus, large businessmen periodically become figures in show trials, especially when their influence begins to oppose party interests.
Below are the 10 largest corruption and financial scandals in Vietnam involving businessmen that have had a significant impact on the economy and politics of the country. These cases have become key moments in the anti-corruption campaign “Blazing Furnace”, initiated by the General Secretary of the Communist Party Nguyễn Phú Trọng.
10 largest corruption scandals in Vietnamese business
1. The case of the developer Vạn Thịnh Phát
Key figure
- Trương Mỹ Lan
Business
- Vạn Thịnh Phát Group
Scheme
- control over the bank through shell companies
- fictitious loans
- fund withdrawals
Scale
- about 27 billion dollars
Outcome
- the largest financial fraud 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
Figure
- Trịnh Văn Quyết
Business
- FLC Group
- Bamboo Airways
Scheme
- stock manipulations
- fictitious capitalization increase before the IPO
Scale
- about 170 million dollars in damage
Outcome
- 21 years in prison
3. The scandal involving the beverage magnate
Figure
- 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
Figure
- Nguyễn Văn Hậu
Company
- Phúc Sơn Group
Scheme
- systematic bribes to officials
- obtaining government contracts
Scale
- bribes of more than 5 million dollars
Outcome
- 30 years in prison
5. The OceanBank banking scandal
Figure
- Hà Văn Thắm
Bank
- OceanBank
Scheme
- illegal payments to officials
- financial machinations
Outcome
- life imprisonment
6. Energy giant PetroVietnam
Figure
- 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
Figure
- Phạm Công Danh
Bank
- Vietnam Construction Bank
Scheme
- fictitious loans
- fund withdrawals
Scale
- more than 400 million dollars
Outcome
- 30 years in prison
8. The COVID medical scandal
Company
- Việt Á Technology Corporation
Scheme
- inflating the price of COVID tests
- bribes to officials
Scale
- tens of millions of dollars
Consequences
- ministers and governors arrested
9. The ACB banking conglomerate scandal
Figure
- 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
Figure
- 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. Key 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. Fictitious 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
This campaign is considered one of the largest in the world among single-party states.
Important political conclusion
In Vietnam, a unique model of interaction between the state and business has developed:
private capital is actively developing
but the party maintains strict control
large business cannot be independent of the political system.
Interesting fact:
in the last 5 years, several billionaires in Vietnam have effectively lost their empires, significantly changing the structure of the country's business.
In the next section, a systematic analysis of the 7 main corruption schemes in Vietnam used by businessmen and officials is presented. These mechanisms have been regularly discovered in cases against large entrepreneurs during the anti-corruption campaign initiated by the 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
This is 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 stock exchange boom in Vietnam.
Mechanism
the company artificially inflates profits
an IPO is conducted
the shares are actively promoted
owners sell shares at inflated prices.
Example
- Trịnh Văn Quyết
- the company FLC Group
? damage to investors — about 170 million dollars.
3. Buying government contracts
This is one of the oldest schemes in Vietnam.
Mechanism
- the businessman pays the official
- receives an infrastructure contract
- inflates the project cost
- the profit is shared.
Example
- Nguyễn Văn Hậu
- the company Phúc Sơn Group
? bribes — more than 5 million dollars.
4. Manipulations with state-owned enterprises
In Vietnam, there are thousands of state enterprises.
How it works
officials transfer assets to private companies
undervalue the assets
the business gains control over the enterprises.
Example
- the scandal surrounding the oil corporation
- PetroVietnam
5. Land corruption
In Vietnam, all land belongs to the state, which is why huge corruption arises here.
Scheme
officials convert land to commercial category
sell it to developers at undervalued prices
the developer builds housing and sells it at market prices.
? This is one of the most profitable schemes in the country.
6. Corruption in public procurement
This issue has become particularly acute during the pandemic.
Example
- the company Việt Á Technology Corporation
Scheme
- inflating the cost of 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 became financial pyramids.
Mechanism
deposits are attracted
money is issued to the owner's companies
artificial profits are created.
Example
- the case of banker
- Phạm Công Danh
- the bank Vietnam Construction Bank
Why corruption has existed for so long
Experts identify several reasons.
1. Rapid economic growth
Vietnam grew at 6-7% per year, creating huge cash flows.
2. Semi-state economy
Many businesses have close ties to the government.
3. Weak bank control
Private banks have long been poorly registered.
Why a tough fight has begun now
The anti-corruption initiative has several tasks:
strengthening the party's power
fighting financial bubbles
increasing investor confidence
controlling oligarchs.
This policy is carried out under the leadership of Nguyễn Phú Trọng.
Main conclusion
A model has developed in Vietnam:
economic liberalization + strict political control.
Business can grow rapidly, but if:
- it breaks the rules
- becomes too influential
- or gets into a political conflict,
the state can quickly dismantle the business empire.
The record How corruption works in Vietnam: main schemes of business and officials first appeared on K-News.
