Inside Hanoi’s diamond market amid smuggling concerns

A survey of several diamond stores in Vietnam’s capital city on July 19 found limited buying interest, with only a small number of customers asking about products.

Sales terms and policies differed considerably among retailers.

Diamonds advertised as internationally certified

Jemmia Diamond, a Vietnamese jewelry brand on Kim Ma Street, is widely regarded by diamond enthusiasts as one of Hanoi’s reputable retailers.

At around noon, the 15-square-meter store had a range of diamond products on display, but no customers were browsing or making purchases.

Only two staff members and a security guard were present.

A salesperson said most of the diamonds were imported from India.

Each product was accompanied by documents, including a GIA grading report issued by the Gemological Institute of America and a value-added tax invoice.

“The grading report is not issued by our company. The diamond is independently assessed by the GIA and already comes with the report when it is imported,” a Jemmia Diamond employee explained.

One of the world’s leading diamond grading institutions, GIA evaluates characteristics including color, clarity, cut and fluorescence, with the detailed specifications listed in the report.

Each diamond measuring 3.6 millimeters or more carries a unique grading number that buyers can use for verification and comparison.

The number cannot be duplicated or falsified.

Each grading report also includes a scannable code containing the diamond’s full details, allowing buyers to cross-check the information on the GIA website.

The salesperson added that diamonds imported through legitimate channels and meeting required quality standards generally come with grading reports.

However, not all diamond products come with GIA reports.

Several retailers at a well-known shopping mall in Hanoi said GIA grading was generally available only for larger diamonds that met the institute’s assessment requirements.

A Thai jewelry brand said only some of the diamonds it distributed were accompanied by GIA reports, mainly stones measuring 3.6 millimeters or more.

Smaller diamonds were typically checked using a standard diamond tester instead of being sent for independent grading, and were sold with product warranty cards instead.

Concerns over inconsistent grading practices

Nearby, the Diamond World store operated by Vietnamese jewelry group DOJI also offered diamonds with GIA reports, generally for stones measuring 3.6 millimeters or more.

Some higher-end diamonds were graded by the International Gemological Institute, or IGI.

When a customer questioned whether a diamond’s quality could be guaranteed even with a grading report, a salesperson said buyers would receive a certificate bearing a QR code linked to the grading institution’s website, where they could verify the product’s specifications.

The diamond also carries an identification number engraved on its girdle, allowing customers to look up further information about the stone.

At a PNJ store in Hanoi, a salesperson said not all diamond products came with GIA reports.

Most were subject to PNJ’s own quality checks upon sourcing, while GIA grading was generally reserved for diamonds measuring 4.2 millimeters or more.

“All products are inspected by PNJ before being offered for sale, and we stand by the commitments made to customers,” the employee said.

“PNJ also provides support for independent grading.

“Recent reports have unsettled some buyers, but we continue to sell and repurchase products in line with the value and terms stated on the invoice. Customers may also request an examination of their diamond’s specifications.”

A survey of diamond retailers also found wide variations in buyback policies.

A common arrangement was to repurchase products at 80 percent of their original value, or offer 90 percent of the value when customers traded them in for new items.

Some brands, however, offered to buy back diamonds at 70 percent of the purchase price during the first three years and at 100 percent after that period.

A representative of the National Competition Commission said competition and consumer protection authorities had so far received no feedback or complaints related to diamond products.

The official acknowledged, however, that quality assessment remained a major challenge. Even competent authorities lacked sufficient equipment and machinery to examine diamonds in cases where consumers filed complaints.