Following a period of temporary closures for restructuring, several diamond and gemstone stores in HCMC have reopened. However, experts note that this does not signal a recovery in purchasing power.

A nationwide retail network and decades of brand building give Vietnamese jeweler PNJ a foundation for recovery. But a projected $240 million loss has made restoring confidence its biggest challenge.

Vietnamese jeweler Phu Nhuan Jewelry Joint Stock Company (PNJ) is moving to shorten payment times for customer buybacks as its chairwoman’s family mobilizes fresh capital, while large provisions and weaker profits continue to weigh on the business.

Two global investment groups bought millions of PNJ shares while the jeweler was still reeling from a diamond scandal. Weeks later, the stock has surged more than 40% from its low.

More than a month after scores of diamond retailers in Ho Chi Minh City shut their doors amid a liquidity crisis, many remain closed. A handful have reopened, but customers are scarce and trading remains subdued.

In contrast to the market in Hanoi, gold dealers in Ho Chi Minh City saw a sharp increase in customer traffic on July 23. Most customers came to sell gold bars, gold rings and diamonds despite a steep decline in gold prices.

Phu Nhuan Jewelry Joint Stock Company, or PNJ, has approved plans to hire reputable international firms to independently assess the quality of its products, including diamonds and jewelry.

Confidence in Vietnam's diamond trade has weakened after a series of investigations and temporary business closures, leaving buyers increasingly cautious.