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Vietnam jeweller rattled by ex-official’s arrest over India-Hong Kong gem-smuggling ring

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…

By Samantha Johnson / July 15, 2026
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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