HCM CITY — Chairwoman of Phú Nhuận Jewelry Joint Stock Company, Cao Thị Ngọc Dung, has claimed that the 28,000 diamonds involved in a cross-border smuggling case linked to the company's subsidiary, PNJ Laboratory Co., Ltd., never entered PNJ's retail system.

She was speaking at an online meeting with investors on July 6, held after authorities detained and prosecuted Đặng Ngọc Thảo, director of P-Lab, for alleged diamond smuggling.

Dung said PNJ had "no connection whatsoever" with the 28,000 smuggled diamonds, and sources diamonds only through official import channels with full import documentation.

"P-Lab operates as an independent certification service provider rather than a trading entity. PNJ has never had diamond trading transactions with P-Lab, and the smuggled diamonds mentioned in the case did not enter PNJ's retail distribution system."

The company said customers started to sell back diamonds immediately after news of the investigation became public on July 2, but the increase was short-lived and transactions quickly returned to normal levels.

It temporarily increased diamond inventories, but they remain manageable and the company continues to record sales of new jewellery products, it said.

It has promised to honour all customer repurchase agreements.

PNJ said the investigation concerns individual legal responsibility and it is fully cooperating with investigators, and P-Lab continues to operate normally as an independent certification laboratory.

SSI lowers 2026 earnings forecast

SSI Securities Corporation said the information available so far comes primarily from PNJ and does not represent the authorities' official conclusions.

The brokerage said the short-term impact on PNJ's liquidity and business operations appears manageable, but warned that greater risks lie in consumer confidence, brand reputation, and corporate governance.

SSI cut its forecast for PNJ's 2026 net profit to VNĐ3.333 trillion (18 per cent rise year-on-year), from VNĐ3.569 trillion previously.

"Due to insufficient grounds to determine the final impact of the incident on valuation and market sentiment, we are placing our recommendation and target price under review. We will wait for further information from the authorities before issuing a new rating."

Diamond products account for 33 per cent of PNJ's jewellery sales, 10 per cent from loose diamonds and 23 per cent from diamond jewellery.

A prolonged decline in consumer confidence could therefore weigh on future revenue growth.

SSI said reputational risks may be partly mitigated by the fact that recent investigations have involved multiple participants across the jewelry industry, though PNJ's market leadership exposes it to greater scrutiny. 

It said transparent communication, reinforced certification standards and proactive customer engagement would be crucial to maintaining consumer confidence.

While loose diamond sales may face greater pressure, demand for diamond jewelry is likely to be more resilient, supported by wedding-related demand, PNJ's established craftsmanship, and the limited availability of alternative trusted brands as regulatory oversight across the industry increases, it added.

The incident has increased investor focus on PNJ's governance framework and internal control environment, it warned.

PNJ maintains internal controls over P-Lab's certification activities.

But certificates validate product specifications at the point of inspection and not product origin.

The ongoing investigation suggests that, while control systems were in place, investors may expect stronger oversight and safeguards around this important certification function. — VNS