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[HO CHI MINH CITY] Condemned Vietnamese real estate tycoon Truong My Lan may find an unlikely lifeline in Malaysian tycoon Vincent Tan of Berjaya Corporation and other foreign investors, as she seeks to repay hefty debts in a last-ditch effort to avoid execution.

One of Malaysia’s wealthiest men, Tan, 72, has agreed to purchase a key asset, the Sterling Residence development – also known as the 6A project – from Lan, who is willing to sell at a discount to raise funds to repay the victims in Vietnam’s largest fraud case.

Lan’s defence lawyers disclosed this during the debate in her appeal hearing, which concluded on Tuesday (Nov 26), as the distraught tycoon sought to avoid the death penalty and obtain a reassessment of the embezzlement charge against her, state media reported.

The 68-year-old could retain a net 20 trillion dong (S$1.1 billion) from the deal with Tan to compensate defrauded bondholders and Saigon Commercial Bank (SCB), the private lender from which Lan appropriated 304 trillion dong from 2012 to 2022.

The 6A project, which some investors had valued at about 40 trillion dong before Lan’s arrest in 2022, spans 26 hectares in Binh Chanh district in the southern metropolis of Ho Chi Minh City. It has not been confiscated or used to secure any loans. 

Besides being the founder of Berjaya – a conglomerate with diverse interests in telecommunications, hospitality, food and beverage, gaming and lottery management, property and financial services – Tan is also the owner of Cardiff City Football Club.

In Vietnam, Berjaya has been involved in a few notable deals, including the acquisitions of InterContinental and Sheraton hotels in Hanoi. In 2016, Berjaya was awarded the exclusive 18-year right to invest in, and operate, nationwide computerised lotto games in Vietnam with a local partner.

Tan’s net worth stands at US$730 million, making him the 29th wealthiest individual in Malaysia, Forbes’ Malaysia’s 50 Richest List showed.

Facing death

Following a verdict handed in April, Lan – the former chairwoman of real estate empire Van Thinh Phat Group – faces execution by lethal injection after being found guilty of bribery, violations of banking regulations and embezzlement.

At the conclusion of the appeal trial, prosecutors recommended that the death penalty be upheld, citing the “unprecedented” losses caused by Lan’s crimes. SCB suffered damages of 677 trillion dong, equivalent to about 6 per cent of Vietnam’s gross domestic product in 2022.

Prosecutors said Lan needs to return three-quarters of the embezzled money, or 280 trillion dong, to be considered for commutation under Vietnamese law. 

Though underlining that Lan had not met the conditions, prosecutors highlighted the need for her to collaborate with the authorities as a basis for the review of the punishment. 

“If Lan collaborates extensively with SCB and legal agencies to sell her assets, the president of the country may consider commuting her sentence,” prosecutors said.

During the appeal, Lan also asked for a “special mechanism” for the case and permission to participate in the handling of assets, so that she could remedy the repercussions and pay back the money. 

“I am both an accused and a victim in this case,” Lan was quoted as saying by VnExpress in her final remark. She also noted that she had made numerous personal sacrifices to help restructure the distressed SCB during the 10-year period.

Repay “at all costs”

The court ruled in April that Lan must compensate the bank a total of 674 trillion dong – an amount Lan appealed against but still committed to repay “at all costs”. 

Her defence noted that her substantial wealth, comprising undervalued assets confiscated by authorities, could cover her obligation, if given the opportunity to liquidate her holdings.

The tycoon is also willing to execute her financial penalty by tapping her 658 distrained assets that have not been utilised to secure any loans. Lan believes that with a fair valuation, she could fulfil the compensation with just 10 per cent of her wealth.

Prosecutors argued that many of her assets still lack legal approvals, resulting in uncertain valuation.

Foreign investor interest

Foreign investors are also eyeing Lan’s other prized properties, including the Capital Place building in Hanoi, which she intended to sell for US$1 billion.

According to her lawyers, a group of investors sought permission from the State Bank of Vietnam to provide Lan with US$400 million to settle debts and release the mortgaged building.

Capital Place was used as collateral for loans totalling US$230 million, taken by another subsidiary of Lan’s Van Thinh Phat Group, at HSBC and OCBC Bank Singapore.

Additionally, South Korean company APM Luxe submitted a letter to the court expressing interest in investing in three projects linked to Lan – the Capital Place building, and two other distrained properties located in Districts 7 and 4 of Ho Chi Minh City.

“If Lan is sentenced to death, she will not be able to collaborate with these foreign investors to repay SCB,” the tycoon’s lawyers said.

At the same hearing, 47 other defendants appealed against their sentences, with the court’s final ruling set to be delivered next week on Dec 3.

Last month, in a separate trial, Lan received a life sentence for additional charges of fraudulent appropriation of assets through bond issuances, moving money across borders illegally and money laundering.