Ho Chi Minh City jewelry outlets shut down amid liquidity crunch, regulatory crackdown

Key trading hubs across the city remained unnaturally quiet this week. 

Major standalone retailers alongside stalls at prominent commercial centers—including An Dong Market and An Dong Plaza—have suspended operations, pulling down shutters and covering display cases.

The wave of closures accelerated following a July 14 announcement by local authorities launching criminal proceedings against the owners of three major jewelry brands Kim Ly, Ngoc Tam, and Ngoc Chau Au.

By late July, the disruption was widespread. 

Along Le Thanh Ton Street, historically the city’s primary strip for gold, silver, and gem trading, numerous storefronts remained locked without explanation. 

Prominent diamond retailers—including Hoang Thu, Chin Tam, Que Jewelry, and Nu Trang Kim Cuong—remained closed. 

A notice posted outside Chin Tam indicated it would not reopen until August 17, while Ngoc Chau Au Co. remained shut despite a prior announcement claiming it would reopen on July 24 following system upgrades.

Liquidity pressure, inspection fears

The turmoil originated in the diamond sector after police launched a major smuggling investigation involving former executives at PNJ-Lab, the gemological testing and certification arm of one of Vietnam’s largest and most well-known jewelry companies PNJ, and prosecuted several prominent shop owners. 

The news triggered a panic, sending waves of retail investors rushing to resell their gemstones to recoup cash.

That selling pressure quickly spilled over into the gold market as broader consumer confidence wavered. 

The sudden surge in buyback requests rapidly exhausted retailers' liquid capital, forcing many to suspend exchange services or close entirely.

The situation worsened after several shops that initially agreed to process buybacks abruptly halted operations. 

Panic deepened, prompting customers to demand immediate cash settlements rather than wait for multi-month payout schedules. 

Retailers reported being overwhelmed by a relentless barrage of calls, messages, and in-person demands.

Beyond cash flow pressures, business owners are bracing for a broad regulatory sweep. 

The Ministry of Industry and Trade recently announced targeted inspections across the precious metal and gemstone sector, acting on recommendations from the State Bank of Vietnam’s Anti-Money Laundering Department. 

Market surveillance officers are slated to inspect inventory origin, trade documentation, and compliance with price-listing regulations.

Nguyen Van Dung, chairman of the Saigon Jewelry Association (SJA), noted that local businesses are navigating unprecedented pressure. 

He highlighted a common industry vulnerability: many small-to-midsize retailers traditionally sourced inventory from wholesalers without securing full legal invoices or documentation.

Under the impending inspections, shop owners unable to verify the origin of their inventory risk severe penalties, including heavy fines and product seizures. 

Dung estimated that at least 30 diamond businesses in Ho Chi Minh City suspended operations in July alone to avoid scrutiny, a tactic frequently seen during past enforcement drives when shops routinely cleared display cases of unverified goods or counterfeit foreign designs.