The PNJ Diamond Scandal: A Failure of Government Oversight in Việt Nam 

Việt Nam’s jewelry and gemstone market has plunged into a crisis of confidence, sparked by questions raised during Nguyễn Phương Hằng’s live broadcasts and escalating into a smuggling case involving more than 28,000 diamonds. 

As consumers question the appraisal certificates for their high-value assets, responsibility falls not only on the involved businesses but also on the government agencies tasked with overseeing and inspecting the market.

The controversy began in late May 2026 when Nguyễn Phương Hằng, the former CEO of Đại Nam Joint Stock Co., repeatedly questioned the transparency of diamond sales at well-known stores in Hồ Chí Minh City. During her livestreams, she alleged that certain gemstone businesses sold diamonds with inscribed serial numbers that failed to match the data on their international certificates. [1] 

The first business she identified was Kim Lý Gold Shop, a prominent retailer in Hồ Chí Minh City directed by Lê Thị Ngọc Mỹ. [2]

Although no one had verified the accuracy of Hằng’s statements at the time, they triggered widespread market anxiety. [3] Customers reacted by taking their diamonds to independent appraisal laboratories for verification or attempting to resell their gemstones outright. [4] 

Facing this crisis, Lê Thị Ngọc Mỹ stated to the media, “Our gold shop is reputable and has always honored its commitments to customers.” [5]

While the market was still reacting to these social media allegations, a new development emerged. 

On July 2, police announced the dismantling of a smuggling ring responsible for bringing in more than 28,000 diamonds and generating over 280 billion đồng in illicit profits. [6] Đặng Ngọc Thảo, the former CEO of PNJ Appraisal Co. (P-Lab), was notably accused of “legitimizing” these smuggled diamonds. Authorities allege Thảo ground off the original GIA serial numbers from diamonds smuggled from India, replaced them with P-Lab numbers, and issued new certificates to sell the stones in Việt Nam. [7] [8]

On July 14, the investigation expanded as authorities charged four additional individuals with smuggling. Among those charged was Lê Thị Ngọc Mỹ. [9]

Việt Nam’s Diamond Market in Crisis

Phú Nhuận Jewelry Joint Stock Co. (PNJ) is Việt Nam’s largest jewelry company, with deep roots in the state sector. Its predecessor, the Phú Nhuận Gold and Silver Trading Store, was established in 1988 under the local People’s Committee. After several restructurings, the business was transferred to the Hồ Chí Minh City Party Committee’s Finance and Administration Board before its privatization in 2004. [10]

Following the charges against former P-Lab executive Đặng Ngọc Thảo, PNJ issued a statement on July 2, 2026, declaring the smuggling case “a matter of individual legal responsibility.” [11] The next day, on July 3, PNJ Chairwoman Cao Thị Ngọc Dung similarly asserted that PNJ sourced its diamonds exclusively from legal imports and repurchases from previous customers. [12] [13] Furthermore, PNJ CEO Phan Quốc Công stated that the company would honor all customer repurchase commitments. [14]

Despite these reassurances from leadership, PNJ faced a widening crisis of confidence across the market. In just over three weeks following the scandal, foreign investors sold approximately 35.5 million PNJ shares. [15] The company’s share price plummeted, losing more than half of its value compared to the start of the month.

P-Lab is not the sole appraisal provider in Việt Nam, but its ownership by PNJ and its control of around 70% of the diamond and gemstone testing market give it a unique position. [16] As a result, the P-Lab scandal severely undermined consumer confidence in appraisal certificates circulating throughout the entire industry.

Driven by panic, consumers recently rushed to sell their diamonds, which drained liquidity from many stores and forced them to suspend operations. These closures began with major brands like PJA and Cao Hùng Diamond, but they quickly created a domino effect that forced other diamond stores, as well as smaller gold and jewelry shops, across Hồ Chí Minh City to shut down. [17] [18] [19]

The Government’s Responsibility

Investigators have charged several individuals in the case, and the legal process will determine their criminal responsibility. However, many people have questioned whether accountability should end with the individuals directly involved. Yet, no government agency has publicly accepted responsibility in recent weeks.

The diamond market differs from markets for most ordinary goods. Because buyers lack the ability to independently assess a diamond’s quality or verify the accuracy of its appraisal certificate, they are forced to place their trust in appraisal systems, certificates, and government oversight.

In an interview with Luật Khoa, Nguyễn Quang A, an expert on economics and public policy and former chairman of VPBank’s board, stated: 

“This issue is certainly the responsibility of government agencies, including the police.” 

He noted that in economies where the government is the primary actor in licensing, certifying, and overseeing business activity, large-scale fraud reflects more than mere corporate wrongdoing; it also tests the effectiveness of the entire regulatory system. This assessment is particularly relevant to Việt Nam, where the government establishes strict economic rules and intervenes deeply in market organization. 

Businesses seeking to trade gold, silver, or gemstones, or to provide appraisal services, must meet legal requirements, obtain licenses, and undergo inspections by relevant authorities. Hence, consumers have reason to believe that licensed businesses have passed some level of government review. 

When serious failures or violations occur in these specialized industries, accountability must extend beyond individuals or companies. Only a thorough examination that holds every responsible party to account can fully identify the causes and address the consequences.

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The fallout from the P-Lab scandal extends beyond establishing criminal liability. It demands a reckoning from regulators, who must explain how vulnerabilities in the importation, appraisal, and circulation of diamonds went undetected for so long. 

Now that public faith in appraisal certificates has shattered, the burden of restoring market trust does not rest on the private sector alone. It falls on the government agencies that licensed, monitored, and failed to oversee the system. 

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Thúc Kháng wrote this article in Vietnamese and published it in Luật Khoa Magazine on August 12, 2026. The Vietnamese Magazine translated it into English.