Editor’s Note
Vietnamese authorities are probing a major diamond smuggling operation involving 28,000 gemstones valued at nearly $11 million, with leading jeweler PNJ under scrutiny. The arrest of a former subsidiary head and charges against over 30 individuals highlight the scale of the alleged multi-year scheme.
Vietnam police are investigating an international diamond smuggling ring accused of trafficking 28,000 gemstones worth nearly $11 million (approximately 44.81 million ringgit), with the country’s largest jeweler, Phu Nhuan Jewelry (PNJ), implicated in the case.
The former head of PNJ’s gem certification subsidiary was arrested earlier this month, and over 30 others have been charged for their involvement in the criminal ring, which had been operating for several years.
In a statement late Tuesday evening, Vietnam’s Ministry of Public Security said police had searched over 20 locations, including jewelry stores and suspects’ residences, most of which are in Ho Chi Minh City.
State media reported Wednesday that several shops linked to the investigation had suddenly closed.
Dang Ngoc Thao, former director of the PNJ laboratory, is accused of issuing false certifications for gemstones sourced from India and resold in Vietnam, removing laser inscriptions and replacing them with the company’s own markings.
The Ministry said that, as of now, police have seized 1,239 diamonds during the investigation, along with jewelry items that “could not provide invoices or documents proving their origin.”
The statement said the suspects employed “highly sophisticated criminal methods,” sourcing diamonds from India and “illegally transporting” them into Vietnam via Hong Kong.
In a statement, PNJ said it was “aware” of the investigation into its former employee but stated that “this matter involves personal legal liability.” The company claimed that the diamond products certified by its subsidiary are “fully traceable and quality-assured.”
Since the first arrests in early July, shares of PNJ, Vietnam’s largest listed jeweler, have fallen more than 25%.
