A wave of diamond jewellery stores in Ho Chi Minh City has temporarily closed or suspended key services after mounting consumer concerns triggered a sharp increase in customers seeking to sell back their jewellery, putting severe pressure on retailers' cash flow.
A shop posts a closure notice (Photo: Tri Tuc).
Cao Hung Diamond, one of the city's major diamond jewellery retailers, recently informed customers that it would remain in business but suspend its buy-back service for two weeks while it stabilised operations amid growing liquidity pressures.
The company said it had previously reached agreements with many customers to defer buy-back payments for between one and eight months, giving it time to manage its cash flow.
However, following recent market developments, many customers reversed their decisions and demanded immediate payment, overwhelming the business.
"The number of phone calls and messages has exceeded our capacity to respond," the company said in a statement, adding that some customers had placed considerable pressure on staff and management to accelerate repayments.
The retailer said it would resume its buy-back programme once operations had stabilised and would announce the reopening date through its official communication channels.
The move comes as Vietnam's domestic diamond market faces growing disruption.
Over the past week, a number of diamond jewellery shops across Ho Chi Minh City have closed after authorities launched criminal proceedings against the owners of Kim Ly, Ngoc Tam and Ngoc Chau Au jewellery stores in connection with a major diamond smuggling investigation.
Initially, only the three businesses directly linked to the investigation ceased operations. Since then, several other diamond retailers have also shut their doors.
Most recently, PJA Diamond & Jewelry announced it would close after nearly a decade in business. The company said more than 90 per cent of its customers had simultaneously sought to sell back their diamonds, effectively exhausting its liquidity. PJA said it had spent 45 days attempting to process buy-back requests before deciding to cease operations.
A survey by Dantri/Dtinews found numerous closures in districts traditionally known for diamond trading. In An Dong Ward, jewellery stores including Kim Ly, Ngoc Tam, Thai My and Kim Khiet An Dong were closed, with some displaying notices stating they were temporarily shut for renovations.
On Tran Hung Dao Street in Cho Quan Ward, Ngoc Chau Au Diamond (NCA) also suspended operations. The company said it would remain closed from July 11 until July 24 while reviewing internal procedures, upgrading its operating systems and improving service quality before reopening.
The surge in buy-back requests is widely attributed to consumer concerns following the discovery of an alleged diamond smuggling network involving more than 28,000 diamonds. Police have charged multiple suspects and said the investigation also involves a former director of PNJ Laboratory (P-Lab).
Following the investigation, PNJ said all diamonds sold through its retail network had been legally imported and that none were connected to the alleged smuggling case. The company also acknowledged a sharp increase in customers seeking to resell diamonds in the days after the investigation became public.
As the investigation has expanded, police in Thanh Hoa Province have charged four additional suspects, including the owners of Kim Ly, Ngoc Chau Au and Ngoc Tam jewellery stores, as well as an employee of P-Lab.
