Foreclosure Auction: Seized Assets from the Van Thinh Phat Case

Vietinbank Chi Nhánh 7 TPHCM Offers Distressed Asset for Sale

Vietinbank – Vietnam Commercial Joint Stock Bank, Ho Chi Minh City Branch 7 (Vietinbank – stock code: CTG) has announced the sale of a distressed asset.

The asset in question is a loan facility extended to Mr. Duong Tan Truoc, aged 41, who is the CEO of Tuong Viet Company. The loan, originally agreed upon in a credit contract dated March 10, 2022, and its subsequent amendments, has a total value of VND 150.8 billion as of June 23, with a principal amount of over VND 125 billion and interest amounting to over VND 25 billion. The loan is secured by a villa located in the Saroma Villa project, Sala Urban Area, in the new Thu Thiem Urban Area, Thu Duc City, Ho Chi Minh City.

Vietinbank Branch 7 has set the starting price for the loan sale at VND 150.8 billion. The loan is being sold on an “as-is” basis, and prospective buyers are responsible for conducting due diligence on the legal documents and assuming all risks associated with the purchase. In addition, buyers are expected to review and ascertain the legal status of the loan independently.

Notably, Mr. Duong Tan Truoc was previously implicated in a case involving Van Thinh Phat and SCB Bank (SCB – stock code: SCB). Per the investigation conclusions of the Ministry of Public Security, the aforementioned villa served as Mr. Truoc’s residence before his arrest.

Mr. Duong Tan Truoc, along with ten others, was indicted on charges of embezzlement in connection with Ms. Truong My Lan, the Chairperson of the Van Thinh Phat Group’s Board of Directors. Mr. Truoc became acquainted with Ms. Lan in late 2020, and in April 2021, they agreed on the transfer of the Thanh Yen project to Tuong Viet Company for VND 2,500 billion. However, Mr. Truoc did not have to make any payments but instead arranged for a loan facility from SCB Bank for VND 3,500 billion, of which VND 2,500 billion was for the project transfer and VND 1,000 billion was for Ms. Lan’s use, with the understanding that she would repay the loan to SCB.

Mr. Truoc instructed his employees to liaise with Truong Khanh Hoang and Tran Thi My Dung, the former deputy general director of SCB Bank, to facilitate the loan by establishing two companies, Thuan Tien and Khanh Minh, as borrowers. On May 19, 2021, SCB Bank signed an agreement to lend Thuan Tien and Khanh Minh VND 1,700 billion and VND 1,800 billion, respectively. The purpose of these loans was to supplement the capital for the acquisition of shares in Song Han Investment, Construction, and Trading Company Ltd. (the parent company of Hermes Power, which owns the Thanh Yen project). Over 7,000 square meters of land in the Thanh Yen project served as collateral for these loans.

Following the disbursement, the funds were transferred through multiple accounts of individuals and companies associated with the Van Thinh Phat Group, per Ms. Lan’s instructions. Additionally, due to Mr. Truoc’s assistance in obtaining construction permits for the first phase of the Mui Den Do project and increasing its build factor, Ms. Lan directed Ms. Dung to process a VND 1,500 billion loan for Tuong Viet Company, effectively withdrawing funds from SCB Bank to benefit Mr. Truoc. This loan was disbursed in 18 installments, totaling VND 1,498 billion.

Excluding the value of the secured assets, the investigating agency determined that Mr. Truoc aided Ms. Lan in embezzling VND 4,700 billion from SCB Bank, resulting in additional interest losses of VND 605 billion. Following the investigation, Mr. Truoc returned VND 813 billion to SCB Bank and offered to repay an additional VND 2,200 billion to rectify the situation.