Vietnam's death-row tycoon seeks Rothschild, UBS in S$46 billion rescue bid to save troubled local bank
[HO CHI MINH CITY] Facing death row for orchestrating Vietnam's biggest financial fraud, property mogul Truong My Lan is seeking government nod for a 12-year, 930 trillion dong (S$45.5 billion) restructuring plan that proposes the involvement of global financial heavyweights Rothschild, UBS, Alvarez & Marsal, and Singapore-based Greenmark Construction.
According to recent local media reports, the proposal – submitted separately by Lan from jail and by her real estate group Van Thinh Phat (VTP) to authorities – outlines a roadmap to mobilise capital for property projects and restructure Saigon Joint Stock Commercial Bank (SCB), from which she embezzled 304 trillion dong.
The roadmap includes asset recovery, project revenue generation, and strategic investor participation in a bid to remedy the losses and reduce Lan's sentence by repaying at least three-fourths of the embezzled money.
On Jun 18, Lan, currently detained at the T17 Detention Centre in Ho Chi Minh City, held a working session with representatives of her group and two German advisory firms that have agreed in principle to provide US$3 billion to fund the proposed plan.
In a May letter to authorities, she said her decades of real estate experience and deep knowledge of the 1,166 secured assets for loans from SCB put her in the best position to turn them into 'golden geese' – income-generating assets that could help the state recover its losses.
The latest 12-year plan reflects a last-ditch bid to secure leniency, as Vietnamese law allows a death sentence to be commuted if at least three-fourths of the embezzled funds are repaid.
A NEWSLETTER FOR YOU
Friday, 8.30 am Asean Business
Business insights centering on South-east Asia's fast-growing economies.
Sign Up
Sign Up
Rothschild, Alvarez & Marshal, and UBS were invited as strategic partners for international capital mobilisation, while Germania Helvetica Group AG and Milcon Gulf are being tapped for their expertise in corporate and bank restructuring, according to VTP's proposal cited by online outlet VnExpress.
Singapore-based Greenmark Construction also features among the invited partners, along with local property developers NovaGroup and Hung Thinh.
Lan was sentenced to death in 2024 for embezzling billions of dollars, bribery, bond fraud, and money laundering. She has been ordered to repay 674 trillion dong to SCB and an additional 30 trillion dong to bond investors.
The Business Times had reported that Lan's prior effort to secure foreign support saw Malaysian tycoon Vincent Tan, founder of the Berjaya Group, agree to acquire the Sterling Residence development. This was part of her broader asset recovery strategy but there has been no official announcement on the progress or outcome of that plan.
A three-thronged plan
Under the proposed remedy scheme, VTP and its group of investors will disburse an initial US$2 billion in capital immediately upon receiving government approval.
This first phase aims to stabilise SCB's operations, ensure liquidity for deposited funds, repay overdue debts, supplement working capital, and fund the completion of several large-scale, viable projects.
The second phase, spanning the next five years, will see investors deploy some US$8 billion raised from partners and investment funds to develop legally cleared projects, with the aim of generating revenue from these assets.
In the final phase, over the following seven years, investors plan to raise additional financing from domestic and international lenders to support major development projects, projected to yield around 680 trillion dong in revenue.
Key projects include prime real estate in Ho Chi Minh City, such as No. 87 Cong Quynh Street, No. 289 Tran Hung Dao Street, the Nguyen Hue-Amigo Quadrangle, and Mui Den Do (the Saigon Peninsula).
During this period, VTP expects to use the generated income from the three phases to repay the special loans from the State Bank of Vietnam - the country's central bank – and fulfill other financial obligations.
SCB had previously received a bailout of nearly US$26 billion from the central bank following a 2022 bank run, which was triggered by the arrest of Lan, the lender's de facto owner, Reuters reported in March.
No further rescue from central bank
VnExpress noted that under Lan's 12-year remedy plan, SCB would not require additional loans from the central bank.
This differs from the earlier proposal made by Sun Group, which was mandated by the central bank in Nov 2023 to assist SCB, Reuters report indicated.
In February this year, the developer submitted a 15-year rescue road map that would require special loans of up to 657 trillion dong from the central bank in the first year of restructuring the troubled lender, which could then start repaying the debts from year 14, subject to market conditions.
In April, Dau Tu newspaper reported that the central bank was also drafting a plan to restructure SCB and seeking suggestions from relevant bodies, though details of the plan and its submission timeline were not disclosed.
The central bank and government have consistently appealed to the private sector, particularly foreign investors, to support the troubled lender. Vietnam's standard foreign ownership cap in commercial banks is 30 per cent, recently extended to 49 per cent for selected lenders that have taken over struggling peers.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
an hour ago
- Straits Times
Holger Rune hopes to turn smashed rackets into charity gold
Denmark's Holger Rune has set up a new online store which he hopes will help charitable causes. PHOTO: REUTERS COPENHAGEN – Holger Rune has put the mangled rackets that have borne the brunt of his frustration in matches over the years up for sale, among a collection of items in his new online store which he hopes will help charitable causes. The world No. 8 from Denmark launched the website over the weekend, giving fans the chance to buy items such as books, posters and playing cards, as well as match-worn clothing. While many of the items sold out in a flash, several used rackets were on sale for close to US$6,000 (S$7,700), while two that were bent and smashed beyond repair during the Dane's rare moments of rage on court were priced at more than US$7,000. 'I've been working behind the scenes with my sister Alma to create a space where you can get closer to my world,' Rune said on social media. 'To everyone who follows my journey, watches my matches, sends messages, and supports me – this is for you. Your support means everything. 'Launching this shop is my way of sharing a bit more of my journey with you.' Part of the profits will support select charities close to Rune's heart, the website added, and the 22-year-old said that he will put more items on sale soon. Rune is next in action at Wimbledon, the third Grand Slam of the year which begins on June 30. Meanwhile, Australia's forgotten bad boy Bernard Tomic earned his first ATP main-draw victory since 2021 as he hit back from a set down to beat Rinky Hijikata at the Mallorca Open on June 24. The 32-year-old, once ranked 17th in the world but now languishing down at 248, battled to a 3-6, 7-5, 6-2 to set up a clash against Spaniard Roberto Bautista Agut – the result was unavailable at press time. Tomic's questionable attitude has attracted plenty of criticism throughout his career, often bragging about his party lifestyle and earnings and having numerous run-ins with authority over his penchant for speeding in sports cars. But he appears to be giving tennis one last throw of the dice and skipped trying to qualify for Wimbledon in preference of trying to earn some ranking points by qualifying in Mallorca and boosting his hopes of a top-100 return. REUTERS, AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
an hour ago
- Business Times
Australia cashes in on record sheep prices as meat exports surge
[CANBERRA] Australian sheep farmers are cashing in on record-high sheep prices, as rising global demand for lamb and mutton fuels a boom in exports from the world's top sheep meat supplier. Prices are likely to rise further in the coming years as production in New Zealand, Australia's biggest sheep meat export rival, stagnates, analysts said. 'We've seen waves of higher and higher pricing as export demand and our market share has grown,' said Matt Dalgleish, a livestock and meat analyst at consultants Episode 3. While there will be seasonal price volatility, he said, 'until the underlying pressure of limited supply and strong growth in demand changes, there should be more good times ahead for Australian producers.' Australia last year exported 702,000 metric tons of lamb, mutton and goat meat worth US$3.6 billion, almost 200,000 tons more than in 2019, previously the biggest export year. Shipments in the first four months of this year were 10 per cent higher than during the same period in 2024, Australian trade data show. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Processors' need for animals pushed the price of heavy lambs to record highs of nearly US$7.14 a kilogram last week, up 50 per cent from the same time last year, according to a national price indicator compiled by industry body Meat & Livestock Australia (MLA). China is the biggest importer of sheep meat. Other major buyers include the United States, Britain, the European Union and the Middle East. Rising incomes and populations are fuelling demand for sheep meat, and high beef prices, especially in the United States, are encouraging people to switch to lamb and mutton, Dalgleish said. Helping Australia take advantage of that growth is an ongoing decline in New Zealand's sheep industry. The two countries account for more than 80 per cent of global sheep meat exports, according to MLA. The number of sheep in Australia grew in recent years, allowing farmers to better supply processors, but New Zealand's flock has shrunk every year since 2012, according to the country's statistics agency – something New Zealand farmers say is partly due to the conversion of grazing land to pine forests that earn carbon credits. 'New Zealand is the other major global exporter,' said Angus Gidley-Baird, an analyst at Rabobank. 'Its production is stagnating or retracting. So any growth in global demand is Australia's opportunity for the taking.' REUTERS
Straits Times
an hour ago
- Straits Times
Tearful former Malaysian minister Syed Saddiq thankful after corruption charges quashed
Asked about his future plans, Mr Syed Saddiq (left) said he would take some time to spend with his family. PHOTO: THE STAR/ASIA NEWS NETWORK PUTRAJAYA - Mr Syed Saddiq Syed Abdul Rahman breathed a sigh of relief after five challenging years as his conviction and sentence concerning multiple corruption charges came to an end on June 25. The tearful Muar MP, accompanied by his parents and family members, performed prayers of gratitude after emerging from the Court of Appeal. He said that after enduring years of adversity, blackmail, and bribery, he felt a deep sense of gratitude and reaffirmed his commitment to serving the public and staying true to his principles. 'I don't regret anything and I am not afraid to go through it all again. In the end, it is worth it,' he said. Asked about his future plans, Mr Syed Saddiq said he would take some time to spend with his family. On whether he would rejoin the leadership of his youth-based party, the Malaysian United Democratic Alliance (Muda), Mr Syed Saddiq said it was up to the party to decide. Meanwhile, speaking on behalf of Mr Syed Saddiq's legal team, lawyer Hisyam Teh Poh Teik said they were grateful to the learned judges for the verdict and appreciated the court's consideration of their arguments. 'We canvassed two points: first, that there was no prima facie case, and second, that the High Court judge did not appreciate the advanced defence by YB (Syed Saddiq). The Court accepted and appreciated our submissions. 'On the first charge, the Court found no evidence of dishonest intention on the part of YB. The RM1 million (S$301,600) was channelled for party programmes, and not a single sen went into his pocket. 'As for the second charge, the Court accepted that the money belonged to YB, so there was no criminal misappropriation. The charges did not stand.' 'Alhamdulillah for the decision by the Court of Appeal — justice has been served. There were many appealable errors in terms of facts and law, and the Court went through the various errors present during the course of the proceedings and in the judgments,' he said. Datuk Hisyam also expressed appreciation to Digital Minister Gobind Singh Deo and prominent Malaysian lawyer and human rights advocate Ambiga Sreenevasan, who were part of the legal team representing Mr Syed Saddiq at the High Court. The Court of Appeal has acquitted Mr Syed Saddiq in the RM1.2 million graft case involving funds from Armada Bersatu. A three-judge panel chaired by Justice Ahmad Zaidi Ibrahim unanimously allowed his appeal after finding that the trial judge had committed errors warranting appellate intervention. The other judges on the panel were Justices Azman Abdullah and Noorin Badaruddin. THE STAR/ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.
