PNJ Laboratory

Phu Nhuan Jewellery (PNJ), Vietnam's largest listed jeweller, is currently experiencing a significant crisis of confidence. This situation stems from the arrest of Dang Ngoc Thao, the former head of PNJ's gem certification subsidiary. He is alleged to have links to a major transnational diamond-smuggling ring that operated between India and Hong Kong. The news has had a substantial impact on the company, with its shares plummeting over 25% following the investigation's disclosure in early July. This event has cast a shadow over the entire Vietnamese jewellery industry, leading to a general distrust among consumers regarding diamonds. The bustling jewellery quarter in Ho Chi Minh City has reportedly become unusually quiet as customers are now focused on selling existing diamonds rather than purchasing new ones, clutching old receipts and certificates. The investigation into what appears to be Vietnam's largest-ever diamond smuggling network has therefore made PNJ a central figure in a developing industry-wide scandal.