Around 30 diamond shops in Ho Chi Minh City have temporarily suspended operations, according to a preliminary survey by the Ho Chi Minh City Gold and Jewellery Association (SJA).
Closed shops in the diamond trading area along An Duong Vuong and Nguyen Duy Duong streets in Ho Chi Minh City (Photo: Nam Phong).
Nguyen Van Dung, chairman of the association, told Dantri/Dtinews on the evening of July 26 that the figure was based on an initial assessment conducted in recent days.
While the association has not identified a single cause for the closures, Dung said businesses in the diamond trade were facing severe financial strain as a sharp increase in customers selling back jewellery placed heavy pressure on cash flow. Some retailers were unable to maintain sufficient liquidity and were forced to close.
A visit by Dantri reporters found a growing number of shuttered shops and vacant premises along An Duong Vuong and Nguyen Duy Duong streets in An Dong Ward, an area widely regarded as Ho Chi Minh City's main hub for the diamond, gold and gemstone trade. Many of the vacant premises previously housed jewellery and gemstone businesses.
Vietnam's diamond market has been shaken in recent weeks after the owners of several gold shops were prosecuted, triggering a sharp rise in customers seeking to sell jewellery and gemstones back to retailers.
Responding to the situation, Tran Thi Ngoc Lien, deputy director of the State Bank of Vietnam's Region 2 branch, urged consumers and businesses to remain calm and comply with regulations when buying or selling gold, particularly jewellery.
The regional branch of the central bank said recent reports of alleged legal violations involving several diamond and gemstone businesses, which are under investigation by the authorities, had affected consumer confidence in transactions involving gold jewellery and gemstones.
Lien said investigations into suspected offences and the responsibilities of organisations and individuals involved fall within the jurisdiction of law enforcement and judicial authorities. Consumers and businesses should therefore rely on official and credible sources of information before making decisions.
She also warned against treating the alleged misconduct of a small number of individuals or businesses as representative of the entire jewellery manufacturing and trading sector, noting that many companies continue to operate legally under licensing requirements and regular inspections by state regulators.
To protect their interests and avoid unnecessary losses, the central bank advised consumers to consider transactions carefully and prioritise purchases and sales through licensed businesses that provide invoices and supporting documentation. Customers should also retain warranty certificates and gem authentication reports where available, review buy-back policies before making transactions, and report suspected violations to market surveillance authorities or the police.
Lien said the State Bank of Vietnam's Region 2 branch would continue monitoring market developments, assessing the impact on businesses under its supervision and proposing appropriate regulatory measures where necessary.