Vietnam widens probe into developer’s 30 trillion dong of bond sales

VIETNAMESE authorities widened a probe into scandal-hit developer Van Thinh Phat Holdings Group over possible irregularities in bond sales, in a case that is emerging as a spotlight on the nation’s crackdown on corruption.

The Ministry of Public Security is investigating the group and its related entities for allegedly appropriating assets linked to the issuance of bonds worth over 30 trillion dong (S$1.6 billion). The notes were sold by four companies between 2018 and 2020, according to a statement on the ministry’s website, following an official briefing on Wednesday (Dec 27). 

A representative for Van Thinh Phat did not respond to an e-mail seeking comment.

The bond-sale probe was announced after the government’s appeal to investors in October for their cooperation in the investigation. The real estate firm’s chairwoman Truong My Lan is already facing trial after being charged with fraud, causing trillions of dong in losses to local lender, Saigon Commercial Bank.

The case is among a slew of legal actions that have followed Vietnam’s crackdown on corruption since 2021. Lan’s detention in October 2022 prompted a week-long bank run on Saigon Commercial Bank because of its perceived ties with the group. BLOOMBERG