Vietnam investigates alleged diamond smuggling network linked to leading jeweller

Wednesday 15 July 2026 - 09:01

By: Sahili Aya

Vietnam investigates alleged diamond smuggling network linked to leading jeweller

Vietnamese authorities have launched a major investigation into an alleged international diamond smuggling operation connected to the country's largest listed jewellery company, Phu Nhuan Jewelry (PNJ). The probe focuses on the suspected illegal importation of approximately 28,000 diamonds with an estimated value of nearly €10 million.

The investigation has already resulted in dozens of arrests and extensive searches as law enforcement agencies seek to dismantle what officials describe as a sophisticated cross-border trafficking network.

Police carry out nationwide raids

According to Vietnam's Ministry of Public Security, more than 20 locations, including jewellery stores, were searched, with most of the operations taking place in Ho Chi Minh City.

Authorities said the investigation led to the seizure of more than 1,200 diamonds, along with jewellery for which no invoices or documentation proving legal origin could be produced.

The operation follows the arrest earlier this month of a former executive responsible for certification activities within a PNJ subsidiary, alongside more than 30 other suspects believed to have participated in the scheme over several years.

Investigators examine alleged certification fraud

Prosecutors allege that the former certification executive fraudulently authenticated diamonds imported from India, using laser inscriptions intended to guarantee traceability before the stones were sold on the Vietnamese market.

Investigators believe the criminal network relied on complex methods to acquire the gemstones in India before routing them through Hong Kong and smuggling them into Vietnam.

Authorities described the operation as highly organized, with participants allegedly using sophisticated techniques to conceal the origin and movement of the diamonds.

PNJ distances itself from the investigation

Phu Nhuan Jewelry said it acknowledged the investigation involving its former employee but maintained that the case concerns individual criminal responsibility rather than corporate wrongdoing.

The company also stated that diamonds certified through its subsidiary remain fully traceable and that their quality assurance procedures continue to meet established standards.

Investor confidence has nevertheless been affected by the investigation. Since the first arrests were announced earlier this month, PNJ's share price has fallen by more than 25%, reflecting growing market concerns over the potential impact of the case on Vietnam's largest publicly listed jewellery retailer.