【Ho Chi Minh 】PNJ to Hire International Company to Verify Diamond Quality

The Board of Directors of PNJ has just approved a policy to hire an international organization to inspect product quality, audit the entire diamond business process, and evaluate the risk management system.

On July 16, the Board of Directors of Phu Nhuan Jewelry Joint Stock Company (HoSE: PNJ) announced a resolution approving the policy of hiring renowned international organizations to conduct independent assessments of product quality and internal processes related to the company’s business operations.
Specifically, PNJ will hire an independent international analysis company to inspect and certify the quality of its products, including diamonds and jewelry. Additionally, the company will engage an independent audit firm to review the entire process, from import and manufacturing to the sale of diamonds, including diamond-set jewelry.
Furthermore, the Board also approved a plan to hire 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 these policies, including searching, selecting, negotiating, signing, and executing contracts with independent evaluation and audit entities. The Audit Committee is responsible for overseeing this entire process.

The decision to hire an international company to inspect product quality and audit the entire process of importing, producing, and trading diamonds comes amid authorities prosecuting and temporarily detaining Mr. Dang Ngoc Thao, former director of P-Lab, a PNJ subsidiary, for investigation related to the smuggling of over 28,000 diamonds.

Additionally, PNJ will hire a professional and independent consulting firm to evaluate the company’s risk management system.

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

In a meeting with investors to address issues related to the July 6 incident, Ms. Cao Thi Ngoc Dung, Chairwoman of PNJ’s Board of Directors, stated that all of the company’s diamonds are imported through official channels and repurchased according to commitments made to customers. PNJ also trades diamonds imported from Thailand and Hong Kong (China).
According to the company’s management, P-Lab does not have the function of trading diamonds but only performs analysis activities; therefore, no buying or selling activities take place in this unit. There was only a service agreement between PNJ and P-Lab for diamond analysis, not a sales contract. Based on this, management affirmed that none of the more than 28,000 diamonds allegedly involved in the smuggling case were sold through PNJ’s distribution channels.