Vietnam's Jewellery Giant PNJ Rocked by $179 Billion Diamond Smuggling Scandal
A scandal has now engulfed Vietnam’s largest jewellery “giant”, Phu Nhuan Jewelry JSC (PNJ). Authorities have uncovered an international diamond smuggling network suspected of bringing tens of thousands of illegal gemstones into the country.
Quoting Japan Times and Channel News Asia (CNA) on Wednesday (16/7/2026), Vietnamese police are investigating a syndicate suspected of smuggling more than 28,000 diamonds worth nearly US11million, oraroundRp179billion(atanexchangerateofRp16, 300/US), since 2024. In developing the case, authorities have arrested Dang Ngoc Thao, former Director of PNJ Laboratory, a PNJ subsidiary operating in gemstone certification.
In addition, more than 30 people have been arrested for alleged involvement in the smuggling network, which has operated for several years. Vietnam’s Ministry of Public Security said police have raided more than 20 locations, including jewellery shops and the homes of suspects, most of them in Ho Chi Minh City.
Vietnamese state media also reported that several shops linked to the investigation suddenly closed after the law enforcement operation. According to investigators, the syndicate used a highly organised method.
It was described how diamonds were brought in from India, then shipped to Vietnam via Hong Kong illegally. Dang Ngoc Thao is suspected of playing a role in legitimising the smuggled diamonds by removing the laser markings of the Gemological Institute of America (GIA), which serve as the stones’ original identity.
Afterwards, the diamonds were given new identification codes belonging to PNJ Laboratory and new certificates were issued before they were resold to the market. To date, police have seized 1,239 diamonds along with a number of jewellery pieces lacking documents or legitimate proof of origin.
PNJ denies involvement
Although its subsidiary has been implicated, PNJ affirmed that the company is not a suspect in the case. In its official statement, PNJ said the investigation only relates to alleged misconduct by individuals among its former employees.
The company also stressed that all diamond products certified by PNJ Laboratory have a traceable chain of origin. Management guaranteed that its jewellery meets quality standards.
“This case concerns individual legal responsibility,” the company stated.
Nevertheless, the case has still shaken investor confidence. Several VinaCapital-managed funds have reduced their shareholdings in PNJ and are no longer recorded as major shareholders.
“If the company fails to rebuild trust, or the investigation finds direct corporate involvement, the situation could become far more difficult,” wrote ACB Securities analyst Chi Luong in a research note.
In an effort to quell market panic, PNJ Chief Executive Officer Phan Quoc Cong registered a plan to buy 1 million company shares on 11 July. PNJ also plans to carry out a share buyback next month.
PNJ Chairwoman Cao Thi Ngoc Dung assured that the company’s financial condition remains strong. The company, she said, has sufficient cash reserves to weather the current situation.