Truong My Lan, a prominent Vietnamese businesswoman, has lost her appeal to overturn the death sentence handed down for her role in a $12.5 billion fraud scandal, the largest financial crime in Vietnams history. The court did, however, offer a conditional reprieve: her sentence could be commuted to life imprisonment if she repays one-third of the funds she embezzledapproximately $11 billion.

Lan, the chairwoman of Van Thinh Phat Holdings Group, was convicted in April of embezzlement and bribery after orchestrating a massive fraud that secretly siphoned funds from Saigon Joint Stock Commercial Bank (SCB). Her actions, spanning over a decade, resulted in $44 billion in losses and significantly damaged Vietnam’s banking sector.

Rare Use of the Death Penalty in Economic Crimes

While capital punishment is enshrined in Vietnamese law for 22 offensesincluding drug trafficking, murder, and corruptionthe death penalty for financial crimes like embezzlement is unusual, particularly for women. Lan’s sentencing marks one of the rare instances where a high-profile economic offender has faced the ultimate punishment.

Vietnam is among the countries that still impose the death penalty for non-violent crimes, including fraud and corruption. Human rights organizations have criticized its application, citing concerns over fairness and transparency. The Human Rights Measurement Initiative scores Vietnam 4.4 out of 10 in the freedom from the death penalty category, reflecting ongoing concerns about the country’s legal framework and secrecy surrounding execution practices.

Despite being classified as a state secret, it is known that Vietnam continues to sentence individuals to death, particularly for drug-related and economic crimes. Of the 18 offenses currently punishable by death, more than half are non-violent. The former chairman of PetroVietnam, Nguyen Xuan Son, was sentenced to death in 2017 for embezzlement and abuse of power.

A Landmark Case in Anti-Corruption Campaign

Lans conviction was a dramatic moment in Vietnam’s sweeping “Blazing Furnaces” anti-corruption drive, led by former Communist Party Secretary-General Nguyen Phu Trong. The campaign has targeted high-ranking officials and business elites, sending a message that no one is above the law.

Prosecutors described Lan’s crimes as unprecedented, emphasizing the devastating financial and social impact of her actions. “The consequences Lan caused are unprecedented in the history of litigation, and the amount of money embezzled is unprecedentedly large and unrecoverable, prosecutors argued during her appeal, according to VietnamNet.

While her death sentence could be averted, the conditions are stringent. Lan must reimburse one-third of the embezzled funds, amounting to $11 billionan immense sum that raises questions about her ability to comply.

Her defense team pointed to mitigating factors, including her cooperation with authorities, admission of guilt, and partial repayment of the embezzled funds. However, prosecutors maintained that the severity of her actions and the widespread damage to Vietnams financial system outweighed any leniency.

Rise and Fall of a Business Mogul

Born into a Sino-Vietnamese family in Ho Chi Minh City, Lans story is one of meteoric rise and dramatic fall. From selling cosmetics with her mother, she capitalized on Vietnams economic reforms in the 1980s to build a vast real estate empire, including high-end hotels and restaurants.

By the 1990s, Lan had established herself as one of Vietnams most influential business figures. However, her secretive control over SCB and the fraudulent loans approved under her watch ultimately led to her downfall.

Lans case underscores the Vietnamese governments zero-tolerance approach to corruption but also reignites debate over the use of the death penalty. Critics argue that capital punishment for economic crimes is disproportionate and undermines efforts to align with international human rights standards.

As Lan faces the daunting task of repaying billions to avoid execution, her case remains a defining moment in Vietnams fight against corruptionand a stark reminder of the high stakes for those at the center of the country’s economic and political scandals.