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【Vietnam】Vietnam Jeweller Rattled After India-Hong Kong Diamond-Smuggling Ring Bust

Jul 15, 2026

Editor’s Note

**Editor’s Note:** This article examines the reputational fallout for Vietnam’s largest listed jeweller, PNJ, following the arrest of a former subsidiary director linked to an India-Hong Kong gem-smuggling ring. Analysts warn of significant risks to the company’s credibility.

Vietnam Jeweller Rattled by Ex-Official’s Arrest Over India-Hong Kong Gem-Smuggling Ring

Analysts say PNJ faces ‘significant’ reputational risk from the case involving the former director of its gem certification subsidiary.

“Phu Nhuan Jewellery, Vietnam’s largest listed jeweller, is facing a crisis of confidence after police detained the former head of its gem certification subsidiary over his alleged links to a transnational diamond-smuggling ring.”

Shares in PNJ, as the company is known, have plummeted more than 25 per cent since news of the investigation broke in early July.

Police accuse Dang Ngoc Thao, the former director of wholly owned unit PNJ Laboratory, of involvement in a criminal network that allegedly smuggled diamonds from India to Vietnam via Hong Kong, according to a Ministry of Public Security statement.

PNJ has said the allegations relate to Thao, not the company, adding that no smuggled diamonds entered its retail network and it is fully cooperating with authorities.

Still, the incident has rattled investors. A group of funds managed by VinaCapital have reduced stakes in PNJ and are no longer major shareholders, according to an exchange filing.

“PNJ must restore the confidence of both customers and investors in its corporate governance,” Chi Luong, an analyst at ACB Securities, wrote in a note. “Should the company fail to rebuild trust, or if the ongoing investigation uncovers more serious issues directly involving the company, the situation could become significantly more difficult to manage.”

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⏰ Published on: July 15, 2026