Confidence in Vietnam's diamond trade has weakened after a series of investigations and temporary business closures, leaving buyers increasingly cautious.
Vietnam's diamond market has come under increasing pressure as several jewelry stores in Ho Chi Minh City temporarily suspend operations, criminal investigations expand and consumers grow more concerned about product authenticity, transparency and resale value.
Diamond stores temporarily shut their doors
After following discussions on social media, Nguyen Thu Huyen, a resident of An Hoi Tay Ward in Ho Chi Minh City, decided to sell her diamond ring despite facing no financial difficulties.
Huyen said she purchased the ring two years ago at An Dong Market for more than VND210 million (US$8,000) with a gemological certificate. However, amid growing public debate over diamond transparency and her own limited expertise in evaluating gemstones, she decided to sell both the diamond and the ring even though the resale price is around 20% lower than what she originally paid.
Ngoc Chau Au Diamond announced a temporary business suspension. Photo: Thu Ha.
"Compared with buying gold at the same time, I've lost much more money on this diamond ring," she said.
Huyen is not alone. Across social media groups dedicated to buying and selling diamonds, many consumers have expressed concerns about certification standards and market liquidity, particularly after several well-known diamond retailers unexpectedly announced temporary business suspensions.
For years, Vietnam's diamond market has faced persistent questions over pricing transparency, valuation standards and the wide gap between retail prices and resale values.
Concerns intensified in mid-May 2026 following a livestream on social media discussing the diamond business of Kim Ly Jewelry, a long-established retailer in Ho Chi Minh City. Since then, trading activity - particularly in the secondary diamond market - has experienced significant disruption.
At the height of the uncertainty, several diamond retailers in Ho Chi Minh City temporarily closed their stores. Many customers rushed to verify information or sell back their diamonds at prices well below expectations in an effort to recover part of their investment.
In early June, Long Ngoc Luxury announced it would close for two days, from June 6 to June 7, to renovate its store. However, on June 8, company representatives acknowledged that the market turmoil had become "beyond our control," forcing the business to suspend operations indefinitely.
More recently, police in Thanh Hoa Province, working with Ho Chi Minh City authorities, announced criminal charges against Dang Ngoc Thao, former director of PNJ Lab Co., Ltd. (P-Lab), in connection with an alleged diamond smuggling case.
Although PNJ's management subsequently stated that the company had no connection with the alleged smuggling of 28,000 diamonds and that all of its diamonds are imported legally from suppliers in Thailand and Hong Kong with complete documentation, consumer and investor concerns have persisted.
On July 14, authorities also announced criminal charges against the owners of Kim Ly, Ngoc Tam and Ngoc Chau Au jewelry businesses, along with a gemological appraiser, in connection with the same cross-border diamond smuggling investigation.
Following the announcement, photos circulated on social media appearing to show Kim Ly and Ngoc Tam stores closed, although both had reportedly been operating normally earlier that morning.
Ngoc Chau Au had already announced on July 11 that it would suspend operations for two weeks, from July 11 to July 24, to reorganize its operations and improve internal procedures.
A notice displayed at the store and signed by founder and CEO Hoang Thanh Nga stated that the temporary closure was intended to review internal operations, upgrade management systems and improve service quality before reopening.
A visit by VietNamNet reporters on the afternoon of July 14 found that while some businesses remained closed, most diamond retailers along An Duong Vuong Street in An Dong Ward and Ly Thuong Kiet Street had reopened and resumed normal operations.
Long-established brands including Tierra Diamond, GIV, The Gioi Kim Cuong (World Diamond), Uy Diamond and Quyen Diamond continued to receive customers.
Even so, industry observers believe the recent events are likely to make consumers more cautious when purchasing diamond jewelry.
How can consumers reduce risks?
Several diamond stores continue operating normally.
Speaking with VietNamNet, Dr. Huynh Thanh Dien, a lecturer at Nguyen Tat Thanh University, said Vietnam's diamond market is currently being driven largely by consumer sentiment.
According to Dien, the biggest risk lies in the information gap between buyers and sellers. Information about a diamond's origin, quality, pricing and certification is typically controlled by sellers, leaving buyers dependent on information provided by businesses. This creates potential risks, including the possibility that certification documents could be falsified.
He also noted that a gemological certificate is not the same as proof of a diamond's origin. To strengthen consumer confidence, businesses should establish legally binding buyback and sales policies, particularly to protect customers if a company suspends operations.
Dien added that the future of Vietnam's diamond market will largely depend on how businesses and regulators respond to the current situation.
From a regulatory perspective, he recommended establishing a dedicated oversight framework for diamonds and gemstones, including standards for independent gemological laboratories, certification systems and origin traceability.
Financial expert Nguyen Tri Hieu offered a similar assessment, noting that unlike gold, diamonds are less effective as a store of value and generally have much lower liquidity.
He therefore advised consumers to avoid purchasing diamonds through informal markets or speculative social media trading groups.
Vietnamnet.vn
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