Vietnam Cuts Reserve Price by 44% for Truong My Lan Luxury Yacht
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Vietnamese auctioneers have cut the reserve price on Truong My Lan’s luxury yacht to VND29.2 billion. Six consecutive auctions failed to draw a single bidder.
That is a 44.3 per cent drop from its original VND52.4 billion price tag when state liquidators first offered it in January. The Ho Chi Minh City Asset Auction Service Center will run the seventh auction on Oct. 28. Interested buyers must deposit 20 per cent of the reserve price, or VND5.84 billion, before bidding begins.
The Reverie Saigon and the Fleet
The 2018 French-built yacht sits moored at the Tam Son Swan Bay Marina in Dong Nai Province. It was named The Reverie Saigon after Lan’s flagship luxury hotel in downtown Ho Chi Minh City. State investigators seized the vessel in late 2023 alongside two smaller passenger craft, Thalia and Electra. Both companion boats were built in 2017 and are also heading into their seventh auction attempt.
Liquidators slashed opening bids for Thalia and Electra from an initial VND5.1 billion each to roughly VND2.3 billion per hull. That brings the combined starting price for all three vessels to just under VND34 billion. Bidders must participate in person. Under national asset disposal rules, the auction uses an ascending verbal bid structure.
“State investigators seized the vessel in late 2023 alongside two smaller passenger craft, Thalia and Electra.”
Discounting Seized Luxury Assets
Distressed luxury vessels pose a steep liquidity challenge for Vietnamese judicial enforcement agencies. Prime commercial real estate still attracts institutional interest despite legal encumbrances. Bespoke superyachts do not. They carry high berthing fees and rapid depreciation. Very few domestic buyers are willing to risk an association with criminal proceedings.
Secondary buyers know enforcement agencies face statutory pressure to liquidate seized holdings for court-mandated restitution. Bidders simply wait out early rounds. That forces recurring price cuts until valuations fall well below global charter and resale benchmarks. Watercraft from Van Thinh Phat follow a familiar regional pattern. Specialized lifestyle assets across Southeast Asia routinely sit through half a dozen public tenders before finding clearing prices.
Asset Recovery in the Van Thinh Phat Fallout
Lan, the former chairwoman of property conglomerate Van Thinh Phat, received a death sentence in 2024. She was convicted of embezzling funds from Saigon Commercial Bank and causing losses calculated at VND677 trillion. An appeals court upheld that verdict. In a separate second-phase trial, the court ordered her to pay more than VND30,081 billion in compensation to 43,108 bondholders.
Authorities froze more than 1,200 real estate properties and seized hundreds of luxury personal items across Lan’s business network to service those claims. Courts rejected Lan’s appeals to retain personal items like the yacht and luxury fashion pieces. Other auctions have found buyers. Liquidators previously cleared a Maybach luxury vehicle for VND16.6 billion, a diamond jewelry collection for nearly VND25 billion, and two rare Hermes crocodile handbags for over VND13 billion.
Next Steps at the Auction Center
Registration dossiers and mandatory deposits are due at the Ho Chi Minh City Asset Auction Service Center before the Oct. 28 morning session. Live bidding will determine whether this 44 per cent reduction clears the three hulls or forces an eighth round of mandated valuation cuts.
Questions & Answers
Q.Why has the reserve price for Truong My Lan's yacht been reduced so significantly?
Why has the reserve price for Truong My Lan's yacht been reduced so significantly?
Six consecutive auctions for the yacht failed to attract a single bidder, leading to the reserve price being cut. Distressed luxury vessels pose liquidity challenges for enforcement agencies, often requiring repeated price reductions.
Q.What assets, besides the yacht, have also been put up for auction?
What assets, besides the yacht, have also been put up for auction?
Two smaller passenger craft, Thalia and Electra, are also heading into their seventh auction attempt. Also, liquidators previously sold a Maybach car, a diamond collection, and Hermes handbags.
Q.Why are buyers reluctant to bid on luxury assets seized in these proceedings?
Why are buyers reluctant to bid on luxury assets seized in these proceedings?
Luxury yachts incur high berthing fees and rapid depreciation. Very few domestic buyers want to risk an association with criminal proceedings, and they know agencies face pressure to liquidate seized holdings.
Q.When is the next auction for the yacht and its companion boats scheduled to take place?
When is the next auction for the yacht and its companion boats scheduled to take place?
The Ho Chi Minh City Asset Auction Service Center will hold the seventh auction for the yacht and two companion boats on October 28. Interested buyers must submit a 20 per cent deposit beforehand.