A Vietnamese court has upheld the death penalty for property tycoon Truong My Lan in a multi-billion dollar fraud case, but offered her a chance to avoid execution if she repays three quarters of the embezzled assets.

Truong My Lan, 68, was earlier convicted of defrauding Saigon Commercial Bank (SCB), which prosecutors claimed she controlled, and was sentenced to death for fraud amounting to $27 billion. She appealed the verdict during a month-long trial, but the court in Ho Chi Minh City ruled that there was 'no basis' to reduce the death sentence.

However, the court stated that if Lan returns three quarters of the stolen assets, her sentence could be reduced to life imprisonment. This decision comes after tens of thousands of people who invested in SCB lost their savings, leading to shock and rare protests in the communist nation.

Lan, the founder of real estate development group Van Thinh Phat, suggested in court that the fastest way to repay the stolen funds would be to liquidate SCB and sell assets to repay the State Bank of Vietnam (SBV) and the public. She expressed deep regret over the waste of national resources and felt 'very embarrassed' to be charged with such a crime.

Although Lan owned just five per cent of SCB shares on paper, the court found that she effectively controlled over 90 per cent through family, friends, and staff. The State Bank injected funds into SCB to stabilize it in April, without disclosing the amount.

Lan and Van Thinh Phat own various assets, including a shopping mall, a harbor, and luxurious housing complexes in Ho Chi Minh City. During her initial trial in April, she was found guilty of embezzling $12.5 billion, but prosecutors estimated the total damage at $27 billion, equivalent to about six per cent of Vietnam's 2023 GDP.

Lan and dozens of other defendants, including senior central bank officials, were arrested as part of a national corruption crackdown known as the 'burning furnace,' which has ensnared numerous officials and business elites. A total of 47 other defendants have requested sentence reductions at the appeal. Last month, Lan was also convicted of money laundering and sentenced to life imprisonment in a separate case.

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