| IN BRIEF
|
Vietnamese authorities have launched an investigation into a international network involving the country’s largest listed jeweler, following the discovery of a precious stone trafficking operation. According to a statement released Tuesday evening by the Ministry of Public Security, authorities raided more than 20 establishments, mainly to Ho Chi Minh City, in the context of this case.
Investigators suspect the illegal importation of approximately 28,000 diamonds of a value close to and the arrest in early July of the former head of the certification subsidiary, Dang Ngoc Thao, as well as more than thirty other people. More than 1,200 diamonds Jewelry without receipts was seized; authorities say the suspects used sophisticated methods, including laser engraving and routes via Hong Kong, to conceal the origin of the stones.
The house in question, NPC[He] indicated that he was taking note of the investigation, stating that the shortcomings stemmed from a individual criminal responsibility and that the diamonds certified by its subsidiary remain traceable and guaranteed quality. Since the first arrests, the group’s shares have fallen by more than 25%.
An investigation by Vietnamese police has uncovered a vast gemstone trafficking network linked to the country’s largest listed jeweler. Authorities suspect the smuggling of 28,000 diamonds — of a value close to 10 million euros — and conducted searches in more than 20 establishments, mainly to Ho Chi Minh CityThe case involves the former head of a certification subsidiary and has already led to arrests and the seizure of hundreds of diamonds and jewelry without documentation of origin.
Context and discovery
The Ministry of Public Security announced that the investigation targets an international network allegedly organizing the clandestine importation of diamonds from India, via transit points such as Hong Kong, to Vietnam. Authorities released evidence demonstrating the sophistication of the methods used by the group and the presumed duration of the operations.
For a media overview and initial reports, see the Figaro report: Vietnam: Investigation launched into diamond trafficking network.
Searches and seizures
Law enforcement officers searched more than 20 establishments, including several jewelry stores mostly located in Ho Chi Minh CityDuring the operations, investigators seized more than 1,200 diamonds as well as jewelry for which no documentation of origin could be presented.
Authorities have highlighted the absence of invoices and other documentation justifying the origin of many of the recovered shipments, fueling suspicions of large-scale fraud and smuggling. A more detailed public account of the searches has been reported by several media outlets, including here: Vietnam is investigating a diamond trafficking network.
The role of the former certification manager
Among those arrested is Dang Ngoc Thao, former head of the group’s certification subsidiary Phu Nhuan Jewelry (NPC)His arrest, which occurred at the beginning of the month, is part of a wave of indictments affecting more than thirty individuals suspected of having participated in the network for several years.
Investigators accuse this former employee of fraudulently certifying imported diamonds, notably by using laser markings intended to guarantee their alleged authenticity. traceabilityA more detailed account of the findings of the investigation is available on the Vietnamese website, which reports the official reaction from NPC: NPC: What the company said.
Network methods and international circuit
Authorities describe the network’s “highly sophisticated” methods for procuring diamonds in India and organizing their clandestine transport towards Vietnam. According to published information, the smuggling network used several intermediaries and stratagems to conceal the origin of the stones, thus complicating any attempt at customs control or legitimate traceability.
The use of laser markings to mark stones and simulate a legitimate supply chain is one of the methods highlighted by investigators. The role of transit hubs like Hong Kong is also emphasized in the press releases, reinforcing the international nature of the case.
NPC reactions and financial consequences
PNJ, Vietnam’s largest listed jeweler, issued a statement acknowledging the investigation into a former employee and emphasizing that the matter falls under “individual criminal responsibility.” The company further stated that diamonds certified by its subsidiary are “fully traceable” and that their quality remains guaranteed according to its internal procedures.
On the market, the announcement of the arrests and the publication of the first measures were poorly received: the group’s shares fell by more than 25% since the revelations began in early July, reflecting a loss of confidence among some investors.
Legal proceedings and international scope of the investigation
In total, more than thirty people have been arrested so far, and around twenty-two suspects are facing charges, according to local and international sources. The investigation is being conducted by Vietnamese authorities in collaboration with potential partners abroad, given the transit routes and origins of the stones.
For an overview of the legal developments and possible outcomes, several articles detail the progress of the investigation and the implications for the sector: Le Figaro – investigation and details And VietnamPlus – legal proceedings initiated.
Q What is the nature of the ongoing investigation in Vietnam? R Vietnamese authorities are investigating an international network suspected of smuggling diamonds and organizing their sale through fraudulent channels, a case involving a major name in the national jewelry industry. Q How many diamonds would be involved and what is their estimated value? R Investigators are talking about approximately 28,000 diamonds whose overall value is estimated at nearly 10 million euros. Q Where did the searches take place and which structures were targeted? R : More than 20 establishments, mainly jewelry stores in Ho Chi Minh City, were searched as part of the investigation, according to the Ministry of Public Security. Q Who was arrested and what are the charges? R A former manager of the certification subsidiary of a major jewelry group was arrested earlier this month, along with more than 30 other people, suspected of participating in fraudulent practices. fraudulent certification and stone smuggling. Q What role would the certification subsidiary have played in this arrangement? R Investigators accuse officials of having affixed certificates and markings — including inscriptions to the laser — supposed to ensure traceability, whereas these markings were allegedly used deceptively to resell stones imported clandestinely. Q What physical evidence was seized by the police? R Police said they had seized more than 1,200 diamonds as well as jewelry for which no invoice or document of origin could be provided. Q How did the network obtain and transport the stones? R According to the investigation, the suspects used sophisticated methods to acquire diamonds in India and organize their clandestine transport to Vietnam, transiting through Hong Kong. Q What was the reaction of the jeweler targeted by the case? R The group in question indicated that it acknowledges the investigation, emphasizing that the matter falls under the jurisdiction of the individual criminal responsibility and asserting that the diamonds certified by its subsidiary remained, in its view, fully traceable and compliant in terms of quality. Q What financial consequences did the revelation of the affair have for the jeweller? R Since the first arrests in early July, the actions of the listed jeweler, the country’s largest, experienced a significant drop, on the order of more than 25%. Q Is the investigation over and what are the next steps to expect? R The investigation is ongoing. Authorities are continuing their investigations, hearings, and analysis of seized evidence to determine criminal responsibility and the exact extent of the network.Frequently Asked Questions — Investigation into a diamond trafficking network linked to a jeweler