The largest diamond smuggling scandal in Vietnam’s history has thrown Ho Chi Minh City’s jewelry district into turmoil. Customers are flooding jewelry stores—not to make purchases, but to demand refunds while carrying receipts and diamond certificates. Two of the country’s largest jewelry brands have become central to the investigation, and the market value of Vietnam’s leading listed jewelry retailer has nearly been cut in half.
According to investigators, more than 30,000 diamonds worth over VND 1.5 trillion (approximately US$57 million) were illegally imported into Vietnam over a two-year period. The stones were purchased in India, routed through Hong Kong, and smuggled into the country without proper customs declarations. Authorities allege that the diamonds’ original laser inscriptions from the Gemological Institute of America (GIA) were removed before new engravings were added and fresh grading reports issued with inflated quality characteristics. The difference between the stones’ actual value and their upgraded certifications reportedly generated substantial illicit profits.
One of the companies affected is Phu Nhuan Jewelry (PNJ), Vietnam’s largest publicly traded jewelry retailer. The company’s market capitalization has nearly halved following the arrest of the former head of one of its affiliated gemological laboratories. CEO Phan Quoc Cong acknowledged that the case has become an industry-wide crisis, although the company maintains that the fraudulently certified diamonds never entered its retail network.
Another major retailer, Saigon Jewelry Co. (SJC), has also been drawn into the investigation. Police have arrested four additional suspects in a separate case involving the supply of more than 3,400 low-quality diamonds to the company’s stores between 2022 and 2024.
Consumers, meanwhile, continue to seek refunds. The manager of Tam Luxury Diamond said that on some days as many as 100 customers visit the store requesting buybacks. While buyback programs have long been a standard marketing feature among Vietnamese jewelers, they have now become a significant financial burden. One customer, online clothing retailer Thanh Hang, purchased a diamond ring certified by a PNJ laboratory. When she later attempted to return it, she found the store closed. She was subsequently informed that reimbursement would not be available until next year.
Huynh Trung Khanh, Vice Chairman of the Vietnam Gold Traders Association, has called on the government to establish an independent gemological certification authority and introduce comprehensive regulations for the country’s diamond market. The Ministry of Industry and Trade is scheduled to begin a month-long inspection of gemstone and precious metal origin and labeling procedures in August.
For many Vietnamese consumers, diamonds and gold serve not only as luxury goods but also as stores of wealth. Decades of war, inflation, and a centrally planned economy encouraged households to preserve savings in tangible assets that could be passed down through generations. During the first half of 2026, Vietnam imported US$122 million worth of diamonds, primarily from India and Belgium.
Experts believe the issue may extend beyond diamonds. Kenneth Scarratt, Vice President of the World Jewellery Confederation (CIBJO), suggested that if diamonds were being smuggled into the country, other gemstones—including rubies, sapphires, and emeralds—may have entered through similar channels. He also urged Vietnamese customs authorities to strengthen border inspection procedures. The rapid global growth of laboratory-grown diamonds has added another layer of complexity, as synthetic and natural stones have become increasingly difficult to distinguish without advanced testing.
Vietnam’s diamond industry is now facing a crisis of confidence comparable to a financial shock. Restoring consumer trust will likely require stricter regulation, independent certification, and greater transparency—areas where the sector has long been criticized for falling short.
Source: MINING.COM
Image: Phu Nhuan Jewelry
