Vietnam Probes Diamond Smuggling Ring Linked to Major Jeweller

Vietnamese authorities are investigating a sophisticated international diamond smuggling ring suspected of trafficking approximately 28,000 gems valued at nearly $11 million. The probe has drawn in Phu Nhuan Jewelry (PNJ), Vietnam's largest listed jeweler, with the former head of its gem certification subsidiary among those arrested.

Earlier this month, police arrested over 30 individuals accused of involvement in the syndicate, which reportedly operated for several years. Raids were conducted on more than 20 locations, including jewelry stores and residences, primarily in Ho Chi Minh City. State media reported that several establishments linked to the investigation have abruptly closed.

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The matter involves individual legal liability.

Dang Ngoc Thao, the former director of PNJ Laboratory, is accused of falsely certifying gems sourced from India. Authorities allege that she replaced original laser inscriptions with the company's own markings before resale in Vietnam. To date, police have seized 1,239 diamonds and various jewelry items for which invoices or documents proving origin could not be produced.

The suspects are said to have employed "highly sophisticated criminal methods" to obtain diamonds from India and arrange their "illegal transport" through Hong Kong into Vietnam. In response, PNJ stated it "acknowledged" the investigation involving its former employee but asserted that the "matter involves individual legal liability." The company maintained that diamond products certified by its subsidiary are "fully traceable and of guaranteed quality." Shares in PNJ have seen a decline of over 25 percent since the initial arrests in early July.

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diamond products certified by its subsidiary are fully traceable and of guaranteed quality.