David Rising and Hau Dinh
HANOI, Vietnam — Trinh Van Quyet, the founder and former chairman of FLC Group, was sentenced to 21 years in prison on Monday after being convicted of defrauding stockholders of nearly US$150 million. Quyet, 48, was found guilty of inflating the value of his company by falsely reporting fictitious capital contributions, a crime that was exposed during the company’s initial public offering (IPO) in 2016.
The court proceedings in Hanoi involved 49 defendants, including Quyet’s family members and business associates, who were complicit in the fraudulent activities. Quyet’s sisters, Trinh Thi Minh Hue and Trinh Thi Thuy Nga, were sentenced to 14 and 8 years in prison, respectively. Other co-defendants, including key figures in FLC Group’s management and former officials of the Ho Chi Minh Stock Exchange, also faced prison sentences for their roles in approving the IPO and facilitating the fraud.
FLC Group, which owns Bamboo Airways, as well as various real estate assets such as hotels, resorts, and golf courses, became a major player in Vietnam’s rapidly growing private sector. However, Quyet’s fraudulent actions resulted in the loss of 3.6 trillion Vietnamese dong (approximately US$144 million) from about 30,000 investors who had purchased shares in the company’s IPO.
The case is part of a wider anti-corruption crackdown in Vietnam, spearheaded by the Communist Party’s campaign known as the “Blazing Furnace.” This initiative, which began in 2013, focuses on rooting out corruption within the private sector, particularly among influential business tycoons. In recent years, several high-profile business figures have been arrested for fraud and other financial crimes. Quyet’s arrest in 2022 followed the Party’s broader efforts to target wealthy elites with close ties to government power.
Quyet’s case also follows the conviction of other business leaders, including real estate magnate Truong My Lan, who was sentenced to death for orchestrating the country’s largest-ever financial fraud case. Quyet’s actions reflect the challenges facing Vietnam’s growing economy and the government’s determination to clean up corruption.
The Communist Party’s anti-corruption efforts have led to the ousting of several senior officials, including members of the Politburo. This crackdown is seen as a legacy of General Secretary Nguyen Phu Trong, who passed away just days before the trial began. He had long pledged to fight corruption as a threat to the Party’s legitimacy.
With Quyet now facing a lengthy prison term and other powerful figures convicted in similar scandals, Vietnam’s ongoing anti-corruption campaign continues to reshape its political and economic landscape.
