The Key Player in the VietinBank Scandal: A Tale of Massive Bad Debt and Super Luxury Villas in Thủ Thiêm

VietinBank offers a distressed asset opportunity with a significant loan balance of nearly VND 149.5 billion as of May 31, 2024. The loan is secured by a luxurious eco-friendly villa in the prestigious Saroma Villa project, located in the new urban area of Thu Thiem, Thu Duc City, Ho Chi Minh City. With a market rental rate ranging from VND 150 to 250 million per month, this villa is an exceptional opportunity for investors.

The loan’s principal balance stands at VND 125.2 billion, with interest and overdue penalty amounting to VND 24.1 billion and VND 255.8 million, respectively. VietinBank Branch 7 in Ho Chi Minh City is auctioning this non-performing loan, associated with an individual customer, Mr. Duong Tan Truoc.

Mr. Duong Tan Truoc is a key figure and one of the 86 defendants in a case involving Van Thinh Phat Group, SCB, and related entities. According to the indictment, Mr. Truoc, the former CEO of Tuong Viet Company, became acquainted with Ms. Truong My Lan in late 2020. In April 2021, Ms. Lan and Truong Khanh Hoang agreed to transfer the Thanh Yen project to Tuong Viet Company for VND 2,500 billion. Mr. Truoc was not required to make any payments but instead arranged for a loan from SCB totaling VND 3,500 billion, including VND 2,500 billion for the project transfer and VND 1,000 billion for Ms. Lan’s personal use, which she was responsible for repaying to SCB.

To facilitate this loan, Mr. Truoc instructed Tuong Viet Company employees to collaborate with SCB and establish two companies, Thuan Tien and Khanh Minh, to act as borrowers. On May 19, 2021, SCB signed an agreement to lend these two companies VND 1,700 billion and VND 1,800 billion, respectively. The stated purpose of the loan was to “supplement capital for the acquisition of contributed capital” in the company that owned the Thanh Yen project. The collateral for the loan included over 7,000 square meters of land and attached assets of the project.

However, after the disbursement, the funds were circulated through the accounts of various individuals and companies associated with the Van Thinh Phat Group for Ms. Lan’s personal use. The indictment revealed that Mr. Truoc aided Ms. Lan in embezzling VND 4,750 billion from SCB, causing a loss of VND 605 billion in interest. Mr. Truoc received VND 1,498 billion from Ms. Lan, which he used for personal purposes.

Additionally, Mr. Duong Tan Truoc assisted Ms. Lan in obtaining a construction permit for the first phase of the Mui Den Do project and adjusting its building coefficient.

Following the investigation and prosecution of the case, Mr. Truoc made efforts to rectify the situation. He returned VND 813 billion to SCB, covering two loans of Tuong Viet Company and Viet Duc Company. Furthermore, Mr. Truoc offered to return the entire amount of VND 2,200 billion received from Ms. Lan to resolve the consequences of the case.

On April 11, the Ho Chi Minh City People’s Court sentenced Mr. Truoc to 11 years in prison for embezzlement, with Ms. Lan as the principal offender. The court acknowledged Mr. Truoc’s charitable activities, including a letter of appreciation from the Cuban Ambassador for supporting victims of a chemical explosion. His sincere confession, remorse, and efforts to compensate for the damage were also taken into account. The court ordered Mr. Truoc to further compensate SCB with nearly VND 693 billion. In case his and his wife’s assets are insufficient, the enforcement agency will utilize all of Mr. Cao Viet Dung’s assets currently under seal to ensure Mr. Truoc’s compensation obligation is fulfilled.