Vietnamese police are investigating an international diamond smuggling ring accused of trafficking 28,000 gems valued at nearly US$11 million, with Phu Nhuan Jewelry (PNJ), Vietnam's largest jeweller, caught up in the probe.

The former head of PNJ's gem certification subsidiary, Dang Ngoc Thao, was arrested earlier in July along with more than 30 others accused of involvement in a syndicate operating over several years. Authorities raided over 20 locations, including jewellery stores and residences mostly in Ho Chi Minh City, according to a statement by the Ministry of Public Security on Tuesday, July 14th.

Dang Ngoc Thao is accused of falsely certifying gems sourced from India for resale in Vietnam by removing original laser inscriptions and replacing them with PNJ's own. Police have seized 1,239 diamonds and jewellery items lacking invoices or documents proving their origin. The suspects reportedly used sophisticated methods to source diamonds from India and illegally transport them via Hong Kong into Vietnam.

PNJ acknowledged the investigation involving its former employee but stated that the matter concerns individual legal liability. The company affirmed that diamond products certified by its subsidiary are fully traceable and of guaranteed quality.

Since the arrests in early July, PNJ's shares have fallen by more than 25 percent. State media reported on July 15th that several establishments linked to the investigation had suddenly closed.

Sources