【Ho Chi Minh 】PNJ to Engage International Firm for Diamond Quality Verification

On July 16, the Board of Directors of Phu Nhuan Jewelry Joint Stock Company (HoSE: PNJ) announced a resolution approving the policy of engaging reputable international organizations to conduct independent assessments of product quality and internal processes related to the company’s business operations.
Specifically, PNJ will engage an independent international inspection body to inspect and certify the quality of its products, including diamonds and jewelry. Simultaneously, the company will mandate an independent audit firm to review the entire process from diamond importation to manufacturing and sales, including diamond-set jewelry.
Additionally, the Board also approved the plan to engage a tax audit firm for 2025 and to provide tax consulting services to the company.

The Board has tasked PNJ’s General Director with implementing the above policies, including searching for, selecting, negotiating, signing, and executing contracts with independent evaluation and audit bodies. The Audit Committee is responsible for overseeing this entire process.

The decision to use an international company for product quality control and auditing of the entire diamond import, production, and commercialization process comes as authorities have prosecuted and placed in temporary detention Mr. Dang Ngoc Thao, former director of P-Lab (a PNJ subsidiary), in connection with an investigation into the smuggling of over 28,000 diamonds.
Furthermore, PNJ will also engage an independent and professional consulting firm to evaluate the company’s risk management system.

In addition to the above, PNJ’s Board also approved loan guarantee agreements for two subsidiaries. PNJ will guarantee a loan of VND 100 billion to CAO Fashion Co., Ltd. (CAF) from the Bank for Foreign Trade of Vietnam (Vietcombank) – Ho Chi Minh City branch. Simultaneously, the company also guaranteed a loan of VND 300 billion to PNJ Jewelry Manufacturing and Trading Company Limited (PNJP) from the Investment and Development Bank of Vietnam (BIDV) – Hoc Mon branch.

During a meeting with investors on issues related to the July 6 incident, Ms. Cao Thi Ngoc Dung, Chairwoman of PNJ’s Board, affirmed that all of the company’s diamonds are imported through official channels and repurchased according to commitments made to customers. PNJ also markets diamonds imported from Thailand and Hong Kong (China).

According to company management, P-Lab’s function is not to trade diamonds but only to conduct testing activities; therefore, no buying or selling activities take place in that unit. Between PNJ and P-Lab, there was only a service contract for diamond analysis, not a sales contract. On this basis, management affirmed that none of the over 28,000 diamonds allegedly involved in the smuggling case were sold through PNJ’s distribution channels.