Phu Nhuan Jewelry JSC (PNJ) received official clearance in Vietnam’s diamond smuggling investigation, with police verifying that its import and distribution records met all regulatory requirements. Authorities in Thanh Hoa confirmed the company’s documentation for diamond shipments was complete and that distribution controls were strictly enforced during the two-year probe into illegal imports.
The investigation uncovered a smuggling operation involving over 30,000 diamonds valued at approximately 1.5 trillion dong ($57 million), disrupting Vietnam’s jewelry market. Multiple retailers have temporarily halted operations due to doubts about stone authenticity, while some buyers have demanded refunds or sold their diamonds at reduced prices.
PNJ’s stock price jumped by 7% in a single trading session, the maximum permitted increase in Hanoi, after the clearance, reaching its highest closing level in nearly a month. Even with the rise, the company’s shares still trade 37% below their pre-investigation value from early July.
Yet the probe exposed misconduct at PNJ’s gem-certification unit, PNJ Laboratory Co. Two staff members, former executive Dang Ngoc Thao and Tran Tien Nhu Nghi, are accused of working with Indian nationals to smuggle diamonds from Hong Kong. Investigators allege Thao removed GIA laser markings from stones, then re-engraved them with counterfeit P-Lab identification codes before issuing false certification documents for resale. The illicit diamonds were never part of PNJ’s legitimate retail activities, and proceeds were allegedly funneled to Thao.
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The case has laid bare vulnerabilities in Vietnam’s diamond certification process, leading to demands for stronger regulatory measures. A one-month review of the country’s gemstone and precious-metals markets is scheduled to reinforce oversight on stone origins and compliance standards.
While PNJ’s clearance has eased some investor and consumer worries, law enforcement continues examining other individuals and businesses tied to the smuggling scheme.
For investors, PNJ’s stock rebound signals short-term relief, but the jewelry sector’s future hinges on whether authorities introduce lasting reforms.
