Ho Chi Minh City’s jewelry district has grown unusually quiet following the discovery of what appears to be Vietnam’s largest diamond smuggling network. Investigators allege that over the past two years, more than 30,000 diamonds valued at over 1.5 trillion dong (US$57 million) were smuggled into the country. These stones were hidden in luggage, shoes, and clothing after being sourced from India and routed through Hong Kong.

Police reports indicate that in gem-certification laboratories, the diamonds were stripped of their original Gemological Institute of America laser inscriptions. They were then re-engraved and issued with certificates that overstated their quality, allowing the stones to be sold at significantly higher prices.

The scandal has caused widespread concern among consumers and retailers alike. Thanh Hang, an online clothing shop owner in Ho Chi Minh City who purchased a diamond ring graded by PNJ Laboratory—one of the entities under investigation—expressed her worry. She sought a refund but found the retailer’s branch closed.

Authorities continue to investigate the extent to which these smuggled diamonds have permeated the market. Meanwhile, dozens of jewelry shops have temporarily shut down. In Vietnam, jewelry stores commonly offer buy-back programs to assure customers of future resale options, a practice now under strain due to the scandal.

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