Restructuring in Vietnam: The Case of Van Thinh Phat

06/12/2023 18:00


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The case of Van Thinh Phat is one of the most significant legal matters in Vietnam in the past decade, involving Van Thinh Phat Group Joint Stock Company along with other entities. The Police Investigation Agency of the Ministry of Public Security in Vietnam concluded its investigation and recommended the prosecution of 85 defendants associated with this case.

Central to this case is Madam Truong My Lan, the "chairwoman" of Van Thinh Phat Group, who was allegedly found to have embezzled significant amounts of money. Apparently, the total value of damages caused by her embezzlement during the period spanning from 2012 to 2022 is VND1,066 trillion (approximately US$43.8 billion). Specifically, she is accused of orchestrating operations at the Saigon Joint Stock Commercial Bank (SCB) to withdraw from it over VND304 trillion (approximately US$12 billion) from February 2018 to October 2022. The latter amount represents approximately 6% of Vietnam's current GDP and constitutes 11% of the nation's total outstanding property loans. This amount surpasses the market capitalisation of the majority of banks in Vietnam.

This case is part of a broader anti-corruption effort in Vietnam, with Van Thinh Phat being among the biggest targets in this effort. The case sheds light on corporate fraud, bribery and embezzlement within the country's business and banking sectors. 

Given the significant amount and the profiles of the parties involved, the case presents major implications for other corporations and businesses in the country. The expected increase in security and regulatory oversight in corporate financial activities and corporate governance reforms, is expected to influence strategy and decision-making for investors in Vietnam. 

We invite you to our upcoming webinar as we discuss key insights into restructurings in Vietnam, particularly in light of the Van Thinh Phat case. In this webinar, we will provide an analysis of the case, discuss practical insights with respect to voluntary and mandatory restructurings in Vietnam, and present risks and opportunities with respect to the liquidation of assets. There will also be an opportunity to ask questions. You may click here to register for the webinar.