Rows of jewellery shops in Ho Chi Minh City's long-established diamond trading streets are standing empty, with many premises now displaying "For Lease" signs as business activity slows.
Many shops along An Duong Vuong and Nguyen Duy Duong roads in Ho Chi Minh City’s diamond district have closed their doors (Photo: Nam Phong).
Along An Duong Vuong Street in An Dong Ward, widely regarded as one of the city's main centres for trading diamonds, gold and gemstones, a growing number of shops have remained closed for extended periods, while vacant retail space has become increasingly common.
Most of the premises previously housed jewellery or gemstone businesses. According to property website Batdongsan.com.vn, asking rents in the area have fallen by nearly 70 per cent compared with the same period last year, prompting landlords to cut prices and offer more flexible lease terms.
Ngoc Phuong, who owns a property on An Duong Vuong Street, said the ground floor of her building, measuring about 3.6 metres wide and 20 metres deep, is being offered for VND 40 million (USD 1,530) a month, with the price open to negotiation.
The premises, formerly occupied by a jewellery business, have been vacant for some time.
"The property is empty, so tenants can renovate it to suit their needs. I would prefer a long-term tenant and I'm willing to negotiate the rent with serious applicants," she said.
Nearby, another former jewellery showroom with a frontage of 4.3 metres and four storeys is being advertised for lease at nearly VND 90 million (USD 3,440) a month, according to a property broker identified as Bich Ha. The asking price is negotiable after a viewing.
The slowdown extends beyond An Duong Vuong Street. Several shops along neighbouring Nguyen Duy Duong Street, another hub for gold and gemstone retailers, have also closed, with many premises left vacant.
Many premises in the area are waiting for tenants (Photo: Nam Phong).
Market analysts said the downturn reflects recent upheaval in Vietnam's diamond trade.
Nguyen Tuan Anh, a finance lecturer at RMIT University Vietnam, said the domestic diamond market was undergoing what he described as a painful but necessary correction.
Earlier this month, authorities dismantled an alleged transnational diamond smuggling network involving more than 30,000 diamonds with an estimated value of VND 1.5 trillion (USD 57.3 million) that were allegedly brought into the domestic market illegally.
The investigation led to criminal charges against several executives of diamond companies as well as employees of P-Lab, a gemstone certification organisation.
The case has triggered a ripple effect across the industry. Many diamond retailers have temporarily closed while assessing the situation or restructuring their businesses, while some consumers have rushed to sell their stones or seek fresh certification over concerns that they may have unknowingly purchased smuggled diamonds or gems accompanied by fraudulent GIA certificates.
"This is effectively a major restructuring of the market," Nguyen Tuan Anh said. "In the longer term, stricter enforcement should improve transparency, create a fairer business environment for legitimate companies and gradually restore confidence in natural diamonds. But businesses will also face much stricter legal and compliance requirements."