Editor’s Note
**Editor’s Note:** This article examines recent closures of multiple jewelry stores in Ho Chi Minh City, which have cited “renovation” or restructuring amid market challenges. We provide an overview of the situation and its implications for the local retail sector.
On July 19, Cashion Diamond at Vincom Cong Hoa, Tan Son Nhat District, Ho Chi Minh City, announced a two-month business suspension for restructuring. In a letter to partners and customers posted on its fan page, the company stated that due to significant market fluctuations, it could no longer secure the funds to maintain its current business model.
On July 18, the official fan page of Cao Hung Diamond (Cho Quan District, Ho Chi Minh City) announced that while the business would not close, it would temporarily suspend exchange services for two weeks to stabilize the system due to liquidity pressure.
According to the company, many customers had recently scheduled exchanges, and some had agreed to extend payment terms from one month to eight months to ease the company’s cash flow. However, following recent market volatility, many customers simultaneously changed their minds and demanded immediate payment, overwhelming the exchange operations.
The company reported a surge in phone and message inquiries, with employees constantly facing payment demands. Some customers demanded expedited processing, significantly disrupting store operations.
On many streets in Ho Chi Minh City dealing in gold, silver, and gems, numerous stores have closed or posted temporary closure notices. On Le Thanh Ton Street (Saigon District), where diamond stores line the street, three to four shops closed simultaneously.
Hoang Tu’s store was locked, with a sign outside reading: “Closed today. Sorry for the inconvenience.” Two other large stores nearby also ceased operations without notifying customers. Meanwhile, Kim Kiet An Dong store (An Dong District) posted a sign indicating it was temporarily closed for repairs.
On An Duong Vuong Street (An Dong District), many goldsmith shops were open but had empty display cases.
In response to market fluctuations, the Ho Chi Minh City Market Management Force has intensified inspections of jewelry businesses in the area.
In coordination with the Economic Police Department and trademark protection agencies, Market Management Team No. 14 inspected a jewelry store in Tan Son Nhi Ward. There, the team discovered a store selling numerous jewelry items made of gold or white metals, with or without gemstones, bearing famous brands such as Cartier, Van Cleef & Arpels (VCA), Bulgari, Hermes, and Louis Vuitton.
According to authorities, the items lacked required product labels and the store could not present official invoices, documents, or certificates of origin. All items were unused and showed signs of counterfeiting trademarks protected in Vietnam.
The inspection team temporarily seized 70 products, including bracelets, necklaces, bangles, earrings, and rings, with a total value exceeding VND 1.3 billion, for further verification and clarification of counterfeiting signs, and to handle the case according to regulations.
According to the Ho Chi Minh City Market Management Department, this is the largest case discovered by Market Management Team No. 14 since the implementation of the Prime Minister’s Directive No. 38 on strengthening the crackdown and prevention of intellectual property rights violations, and the peak plan of the Ho Chi Minh City Market Management Department.
Going forward, the market management force will continue to coordinate with functional departments to strengthen monitoring, inspection, and crackdown on smuggling, trade fraud, counterfeit goods trading, and intellectual property rights violations in Ho Chi Minh City.
According to experts, these trends highlight several shortcomings in the current diamond market. The majority of consumers lack sufficient knowledge to distinguish between natural diamonds and treated gemstones, or to understand the criteria determining product value. Furthermore, unlike gold, there is still no unified management system for diamond and gemstone inspection and certification.
Experts also argue that promises regarding product buybacks are currently primarily civil agreements between businesses and customers, not legal obligations. Therefore, when many customers simultaneously resell products, businesses may face cash flow problems, and buyers’ rights depend mainly on the company’s financial strength and ability to fulfill promises.
