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PNJ shares tumble as ex-official linked to diamond smuggling probe detained
Vietnam’s largest listed jeweller says no smuggled diamonds entered its retail network and it is fully cooperating, even as investors cut stakes.
Phu Nhuan Jewellery, Vietnam’s largest listed jeweller, has come under pressure after police detained the former head of its gem certification unit, citing alleged links to a transnational diamond-smuggling network.
According to a Ministry of Public Security statement cited by SCMP Economy, the investigation alleges diamonds were smuggled from India to Vietnam via Hong Kong, with Dang Ngoc Thao accused of involvement. PNJ said the allegations relate to Thao, not the company, adding that no smuggled diamonds entered its retail network and that it is cooperating with authorities.
SCMP Economy reports that PNJ shares have fallen more than 25.0% since the probe was disclosed in early July, reflecting a broader loss of investor confidence.
The outlet also notes that funds managed by VinaCapital have trimmed their positions and are no longer major shareholders. An analyst at ACB Securities warned PNJ must restore confidence through corporate governance, adding that outcomes could worsen if the investigation uncovers more serious issues directly involving the company.