A stash of Hermès Birkin bags once belonging to a jailed Vietnamese property magnate has sold for £430,000 at a London auction, documents obtained by this newsroom confirm. The sale, hosted by a prestigious West End auction house, has reignited questions about how UK institutions handle assets tied to corruption.
The handbags, 15 in total, were part of the collection of Truong My Lan, the real estate mogul behind Van Thinh Phat Holdings. Lan was sentenced to life in prison last year after a Hanoi court found her guilty of embezzling £11 billion from Saigon Commercial Bank. Her prosecution was part of Vietnam’s sweeping anti-corruption campaign.
Sources familiar with the auction say the bags were sold by a third party, a shell company registered in the British Virgin Islands. The identity of the ultimate beneficiary remains unclear. The auction house, which declined to be named for this report, stated that it conducted due diligence and found no legal impediment to the sale.
But critics argue that the auction is a glaring example of how the UK’s luxury market can be used to launder illicit wealth. ‘When you see Birkin bags hitting the block for half a million, you have to ask where the money came from,’ said a former Metropolitan Police detective who now investigates financial crime. ‘These bags are not just accessories. They are stored value, easily transportable and hard to trace.’
The UK’s anti-money laundering regulations require auction houses to identify the source of funds for high-value transactions. However, enforcement has been patchy. A 2023 review by the Treasury found that the art and antiques sector remains vulnerable to abuse.
Lan’s case is emblematic. Her conviction in April 2024 was a landmark for Vietnam, a country where the Communist Party has waged a relentless war on graft. Yet the proceeds of her alleged crimes continue to circulate in global markets. The Birkin sale is just the latest.
Documents uncovered by this newsroom show that the bags were shipped from Vietnam to a warehouse in Singapore before arriving in London. The chain of custody is opaque. ‘We have no way of knowing if these bags were purchased with stolen money,’ said a spokesperson for the auction house. ‘Our legal team cleared the transaction.’
Meanwhile, Vietnamese authorities have expressed dismay. A diplomatic note from Hanoi, seen by our sources, requests UK cooperation in tracing assets linked to Lan’s empire. The response from the Foreign Office has been cautious, stressing the independence of the UK’s auction industry.
The sale underscores a broader pattern. Luxury goods, from yachts to jewellery, have long been a conduit for hidden wealth. The UK, with its concentration of high-end auction houses, is a favoured destination. A 2022 report by Transparency International ranked Britain among the worst jurisdictions for preventing illicit financial flows.
‘The system is broken,’ said Marcus Stone, a veteran investigative journalist. ‘We sell the spoils of corruption while the victims languish. It’s a disgrace.’
The identity of the buyer remains unknown. The auction house has refused to disclose details, citing client confidentiality. What is known is that the sale attracted bidders from Dubai, Hong Kong and Switzerland.
For Truong My Lan, the auction is a postscript to a tragedy. Her conviction sent shockwaves through Vietnam’s business elite. Dozens of officials and bankers were also jailed. But her family is believed to have moved vast sums offshore. The Birkin sale may be just the tip of the iceberg.
As the bidding hammer fell, one source present at the auction described the scene: ‘It was like a feeding frenzy. No one asked where the bags came from. They just wanted to own a piece of the story.’
