Vu Thi Thu Nhung, 49, the former deputy director of the Export-Import Bank of Vietnam (Eximbank)'s Ba Dinh branch in Hanoi, appeared in the Hanoi People's Court from July 8th-9th, facing charges of fraud. She is accused of defrauding over 100 victims of more than 2.7 trillion VND (approximately $115 million USD).

The case had been scheduled for trial several times in 2024 but was postponed due to the absence of many victims and related individuals. The court also requested further investigation due to insufficient evidence.

In this latest trial, the court again returned the case for further investigation for similar reasons. The court also indicated there was reason to believe Nhung had accomplices.

The court requested further verification regarding the amount of money embezzled and the amount received by related parties to determine the restitution obligations.

Defendant Vu Thi Thu Nhung at the court opening in June 2024. Photo: Danh Lam

The Vietnam Supreme People's Procuracy (VKS) determined that in 2014, a year after becoming deputy director of Eximbank's Ba Dinh branch, Nhung fabricated information about preferential deposit programs. These programs, she claimed, offered annual interest rates of 12-32% exclusively to individuals with internal connections.

Nhung stated these programs were managed separately within an internal account system, not publicly available, and exclusive to the Ba Dinh branch. She assured clients she would personally secure approval from higher-ups and instructed them to transfer funds to her personal account, promising to then transfer the money to Eximbank Ba Dinh's "internal account."

This information was false. Nhung is accused of forging documents confirming receipt of funds, complete with counterfeit Eximbank Ba Dinh stamps.

Authorities identified most of Nhung's victims as acquaintances, friends, and long-term clients. Among them was Ms. Hong, an accountant at a securities company who had known Nhung since 2020 through transactions at Eximbank Ba Dinh.

Based on Nhung's promises, Ms. Hong deposited 5 billion VND. To help Nhung meet performance targets, Ms. Hong referred seven more individuals: her sister, another sister, her sister-in-law, a close friend, her husband's colleague, and her sister's friend. These individuals deposited amounts ranging from 400 million VND to over 3 billion VND, totaling 15 billion VND.

Upon receiving the funds, Nhung provided Ms. Hong with deposit certificates with flexible withdrawal terms for preferred customers. Nhung signed these certificates in place of the director and affixed a counterfeit Eximbank Ba Dinh stamp.

When Nhung failed to return the principal and interest as promised, Ms. Hong suspected fraud. In May 2022, she presented the certificates to the director of Eximbank Ba Dinh and was informed they were forgeries, not recorded in the bank's system.

On June 12, 2022, Ms. Hong reported the incident to the police, leading to Nhung's arrest three days later. Eximbank Ba Dinh confirmed to investigators that Nhung had been suspended from her position since May 24, 2022.

During the investigation, Nhung admitted to receiving large sums of money directly and through intermediaries over an extended period. However, she claimed she did not keep records and therefore could not recall the exact amounts or details of those who transferred funds.

Nhung confessed to fabricating the counterfeit Eximbank documents independently. She maintained that Ms. Hong acted solely as an intermediary, collecting money from relatives for deposit and unaware of Nhung's fraudulent intentions. Nhung denied any collaboration or profit-sharing with Ms. Hong. Authorities subsequently classified Ms. Hong as a victim.

During the ongoing investigation, more individuals came forward, alleging they were defrauded by Nhung using similar tactics. The VKS has identified 35 victims who transferred nearly 200 billion VND to Nhung, with the highest individual loss reaching 99 billion VND.

To further her scheme, Nhung also fabricated stories about Eximbank Ba Dinh auctioning off non-performing assets. She established Vietnam Asset Management and Investment Consulting Company Limited (QLTS), where she served as chairwoman of the board of directors.

According to the indictment, Nhung presented QLTS to clients as an "internal company" connected to bank leadership, partnering with Eximbank Ba Dinh to auction off bank assets. She promised clients who deposited funds into QLTS's account for auction participation a full return of their principal plus 10-14% profit.

Nhung found images of land plots and land-use right certificates online, falsely presenting them as non-performing assets being liquidated by the bank. To avoid detection, she instructed clients to maintain secrecy, claiming the preferential program was exclusive and limited.

Eleven clients, believing her claims, entrusted Nhung with a total of 117 billion VND for deposits and auction participation.

Through these schemes, between 2014 and May 2022, Nhung is accused of defrauding approximately 100 victims of over 2.7 trillion VND. To date, authorities have identified 46 individuals with total losses of 788 billion VND, of which Nhung repaid 477 billion VND in interest, leaving a net loss of 311 billion VND. The interest payments were essentially a Ponzi scheme, using funds from later investors to pay earlier ones. Nhung allegedly spent the remaining funds.

Thanh Lam