**Vietnam Court Sentences Former Gold Executive Amid Trading Reforms**
A Vietnamese court has convicted a former high-ranking gold executive, Le Thuy Hang, along with 15 others, highlighting significant flaws in the state’s monopoly on gold trading, which is now being dismantled in favor of a more market-driven approach. Hang, the former CEO of Saigon Jewelry Co. (SJC), received a 25-year prison sentence for embezzlement and abuse of power, as reported by VnExpress, referencing court proceedings.
At the time of the offenses, SJC was the sole legal producer of gold bars in Vietnam. Prosecutors identified Hang as the mastermind behind a scheme involving the reprocessing of gold bars and the production of jewelry, exploiting a central bank program intended to stabilize gold prices. The group was accused of profiting from the price differences by diverting state-supplied bullion to private buyers at inflated rates, resulting in losses exceeding 107 billion dong (approximately $4 million) for SJC, according to state-run Nguoi Lao Dong.
These convictions were announced just a day after the central bank unveiled draft regulations aimed at restructuring the gold market, which seeks to reduce state control over gold trading. The reforms are designed to eliminate price distortions that have caused local gold prices to trade at a significant premium compared to international levels, contributing to smuggling and economic pressure on the Vietnamese dong.
This case is part of a broader anti-corruption campaign that has led to the prosecution of numerous officials and executives, including property mogul Truong My Lan, who received a death sentence. The ongoing “blazing furnace” campaign has also resulted in the resignations of two former presidents and three deputy prime ministers. It remains unclear whether the convicted individuals will appeal their sentences.
**FAQ**
**What were the charges against Le Thuy Hang and the other defendants?**
Le Thuy Hang and 15 others were charged with embezzlement and abuse of power, involving a scheme that diverted state-supplied gold to private buyers, resulting in significant financial losses for Saigon Jewelry Co.