Vietnam diamond smuggling scandal triggers market panic and shop closures

Police in Vietnam have uncovered what appears to be the country’s largest diamond smuggling network. Investigators say more than 30,000 stones worth over 1.5 trillion dong (about US$57‑73 million) were imported over the past two years, sourced in India and routed through Hong Kong. In certification labs the diamonds had their original Gemological Institute of America laser inscriptions removed, re‑engraved and issued inflated quality reports, allowing them to be sold at far higher prices.

The fallout has spread across the jewellery market. Dozens of shops in Ho Chi Minh City have temporarily closed, and major retailer Phu Nhuan Jewelry (PNJ) – the nation’s largest listed jeweller – is under scrutiny after the former head of its gem‑certification subsidiary was detained. PNJ’s chief executive called the episode a “crisis moment for the entire industry.” Consumers are hoarding receipts and certificates, seeking refunds, and many are turning to cheaper artificial diamonds and Moissanite as trust in natural stones erodes. The scandal has sparked calls for stricter regulation and consumer‑protection measures.

Legal experts advise buyers of smuggled gems to demand refunds or compensation under Vietnam’s consumer‑rights law.