Editor’s Note
PNJ has fully exited Golden Friend JSC, citing overlapping business lines after the latter expanded into jewelry and diamond trading.
Vietnam’s listed jewelry maker Phu Nhuan Jewelry JSC (PNJ) has divested its entire stake in Golden Friend JSC, the parent company of diamond retailing chain Cashion, citing overlapping business activities after Golden Friend expanded into jewelry and diamond trading, according to PNJ’s press release on Monday.
On February 12 last year, Golden Friend launched Cashion, a brand dealing in diamonds, jewelry, and luxury goods. The jewelry maker added that its divestment followed principles ensuring the transfer price was not lower than the book value of the investment, estimated at VND3.98 billion (US$151,000).
Vietnam’s diamond market is experiencing a transparency crisis, following the prosecution of the owners of three jewelry businesses, namely Kim Ly, Ngoc Chau Au, and Ngoc Tam, in connection with a transnational diamond smuggling network allegedly operated by Indian nationals from Hong Kong. The prosecution led to temporary closures or reduced operations of many jewelry stores under those brands, making customers unable to resell diamonds purchased from those retailers.
PNJ previously held a 19.9-percent stake in Golden Friend as part of a financial investment strategy to diversify its business portfolio, including asset pawn services for customers. During the partnership, PNJ leased retail space to Golden Friend at selected PNJ stores and provided loans under commercial terms. PNJ said this expansion overlapped with its core business, making the partnership no longer aligned with initial goals.
To avoid market confusion, PNJ clarified in January this year that Cashion is not a subsidiary, affiliate, or partner within its ecosystem. PNJ stressed that the clarification was intended to help customers accurately identify business entities, reduce potential misunderstandings during transactions, and protect consumers’ interests. The company confirmed compliance with legal and internal regulations while safeguarding investment capital.
As of now, PNJ has ended all cooperation with Golden Friend at its stores and has no business or management ties with Cashion. PNJ stressed that Cashion operates independently in the same industry.
The announcement comes after Cashion, located in Tan Son Nhat Ward, Ho Chi Minh City, said on Sunday it would suspend operations for two months to restructure amid ongoing turbulence in the diamond sector. In a letter to customers, Cashion admitted market volatility had made its current model unsustainable but expressed hope to return with a new approach.
Early this month, police in Thanh Hoa Province, north-central Vietnam pressed charges against Dang Ngoc Thao, former director of PNJ’s wholly-owned gemstone certification subsidiary P-Lab, and 21 other suspects for their alleged involvement in a transnational diamond smuggling case. Investigators alleged that the suspects imported more than 28,000 diamonds into Vietnam in 141 shipments since 2024, generating an estimated VND280 billion ($10.65 million) in revenue. Authorities seized about 1,100 diamonds during searches of 20 locations and said the investigation was continuing.
According to officers, the network was allegedly directed by an Indian national based in Hong Kong, with diamonds sourced in India, consolidated in Hong Kong, and smuggled into Vietnam for distribution nationwide. Investigators said Thao, 52, colluded with other suspects to purchase smuggled diamonds whose characteristics did not match their original Gemological Institute of America (GIA) certificates. He removed the engraved GIA identification numbers, replaced them with P-Lab identification numbers, and issued new P-Lab grading certificates before the diamonds were sold for profit.
PNJ chairwoman Cao Thi Ngoc Dung told investors on July 6 that 28,000 smuggled diamonds under investigation never entered PNJ’s distribution system. Dung emphasized that PNJ had no involvement with the 28,000 smuggled diamonds under investigation.
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