Vietnam’s jeweler PNJ spends over $265mn buying back gold, diamonds

According to PNJ’s update to shareholders and investors outlining its recent business performance, the company experienced unusually high demand from customers seeking to sell back diamond jewelry between July 1 and 20.

During that time, PNJ generated VND1.588 trillion ($60 million) in revenue while purchasing back products worth VND5.9 trillion ($224 million).

Following a comprehensive review of market conditions and operational indicators, the company adjusted its buyback process on July 21, encouraging customers to exchange their products for other items, including gold, instead of receiving cash.

After seven days under the revised policy, PNJ reported revenue of VND1.393 trillion ($53 million) and buybacks worth VND1.162 trillion ($44 million).

Up to 95 percent of its customers opted to exchange their products for gold rather than wait 120 days to receive cash payments.

PNJ said cash flow had improved compared with the first half of July, while consumer demand for jewelry remained stable, describing the trend as an encouraging sign despite ongoing challenges.

PNJ has tightened inventory management, optimized product turnover, and adjusted production to meet market demand.

It also maintains unused credit lines and is prioritizing resources for the year-end peak season.

PNJ CEO Phan Quoc Cong on July 21 acknowledged that the company was facing liquidity pressure.

As a result, PNJ introduced a nationwide payment policy that aligns buyback settlements with its actual financial capacity.

Under the new policy, customers selling gold or diamonds to PNJ receive payment over 120 days in five installments.

After products and required documentation are verified, customers receive 10 percent of the repurchase value immediately.

The company then pays 20 percent after 30 days, 25 percent after 60 days, another 25 percent after 90 days, and the remaining 10 percent after 120 days.

Customers may also exchange all or part of the value of their products for SJC gold bars, PNJ-branded gold products, plain gold rings, jewelry, collectible gifts or loose diamonds.

PNJ’s recent difficulties stem from the early July arrest of Dang Ngoc Thao, former director of PNJ’s wholly-owned gemstone certification subsidiary P-Lab, in a transnational diamond smuggling case.

Police alleged that Thao and 21 other suspects imported more than 28,000 diamonds into Vietnam in 141 shipments since 2024, generating an estimated VND280 billion ($10.65 million) in revenue.

Authorities seized about 1,100 diamonds during searches of 20 locations and said the investigation was continuing.

PNJ chairwoman Cao Thi Ngoc Dung assured investors during an online meeting on July 6 that 28,000 smuggled diamonds did not enter PNJ’s distribution system, stressing that PNJ only imports through official channels from Thailand and Hong Kong.

Despite reassurance, investor sentiment weakened, sending PNJ shares to four consecutive floor sessions from July 21 to 24.

On July 27, PNJ rebounded 6.99 percent to VND32,900 ($1.24) per share, with more than 10.2 million shares changing hands.

On July 28, PNJ briefly hit its ceiling price before closing at VND32,650 ($1.23), with 20.4 million shares traded.

Over the recent three trading sessions, more than 72 million PNJ shares were transacted.