Vietnam to remove death penalty for embezzlement, sparing tycoon’s life

Vietnam will eliminate the death penalty for eight offenses starting July 1. This major legal shift spares the life of several convicts, including a real estate tycoon involved in a $12 billion fraud.

The National Assembly, Vietnam’s top legislative body, unanimously approved amendments to the Criminal Code on Wednesday. The changes will replace capital punishment with life imprisonment for specific crimes.

The Vietnam News Agency confirmed the list of crimes that will no longer qualify for the death penalty. These include:

• Embezzlement
  
  
• Vandalizing state property
  
  
• Manufacturing fake medicine
  
  
• Espionage
  
  
• Activities aimed at overthrowing the government
  
  
• Jeopardizing peace
  
  
• Triggering invasive wars
  
  
• Carrying drugs
  
  

Those already sentenced to death for these crimes but not yet executed will have their sentences commuted. They will now serve life imprisonment instead, starting July 1.

Among the high-profile beneficiaries of the change is Truong My Lan, chairwoman of Van Thinh Phat Holdings Group. A Vietnamese court sentenced her to death in April 2024 for embezzling more than $12 billion from Saigon Commercial Bank. Her case became one of Vietnam’s largest financial fraud scandals.

Lan's legal team has not issued a statement on the new developments. But independent lawyer Ngo Anh Tuan, who is not part of her defense, confirmed her sentence will change. “According to the amendment of the Criminal Code, her sentence will automatically be reduced to life imprisonment,” Tuan told Reuters.

Experts see the decision as part of a broader legal reform effort. “Vietnam has been moving slowly toward narrowing its use of the death penalty,” said Phil Robertson, Deputy Asia Director at Human Rights Watch. “This is a step forward, especially for non-violent crimes.”

Vietnam still retains the death penalty for 10 crimes, including murder, treason, terrorism, and child sexual abuse. Drug trafficking, despite the softened stance on carrying drugs, remains a capital offense.

Though the country continues to apply capital punishment, it shares little about the process. The exact number of prisoners on death row remains unknown. Vietnam considers capital punishment data a state secret. The government switched from firing squads to lethal injections in 2011.

According to Amnesty International, Vietnam is among the world’s top five executioners, although exact figures remain uncertain due to secrecy.

The reform comes amid mounting criticism from human rights groups. Critics argue that Vietnam uses capital punishment too broadly, even for non-violent or economic crimes. “Commuting these sentences reflects a necessary recognition that the death penalty is both irreversible and inhumane,” said a local legal analyst who requested anonymity.

Observers also note the amendment’s political implications. Some believe the reform may help reduce international pressure on Vietnam’s legal system. Others see it as a bid to maintain public trust amid corruption scandals.

Still, serious crimes such as murder and high-level drug trafficking will keep their place under the capital crimes list. Authorities insist on maintaining deterrents against the most dangerous offenses.

Vietnam last amended its criminal law in 2015, when it reduced the number of capital offenses from 22 to 18. The latest changes cut that number further, showing a continued shift away from executions.

As July 1 approaches, lawyers and rights advocates are watching closely. The change in sentencing for dozens possibly hundreds of inmates could redefine Vietnam’s approach to justice.