PNJ Shares Crash Below April Tariff Bottom After Diamond Smuggling Indictment

Overview

Phu Nhuan Jewelry (PNJ) shares plunged to 40,600 VND on July 16, 2026, hitting a new low below the April 2025 tariff-driven bottom. The sell-off intensified after former P-Lab director Dang Ngoc Thao was indicted for diamond smuggling, with the company now seeking shareholder approval for a share buyback to stabilize the market.

Key Facts

• PNJ shares fell to 40,600 VND on July 16, 2026, down 6.99% in a single session, with volume of 8.47 million shares.
• The stock has lost more than 50% of its value from its all-time high.
• Former P-Lab director Dang Ngoc Thao was indicted for allegedly buying smuggled diamonds, removing GIA certification codes, and reissuing P-Lab certificates to legitimize the stones.
• PNJ stated Thao was dismissed immediately after the incident and that the violation was personal, not corporate.
• On July 12, 2026, authorities indicted another P-Lab employee, Tran Tien Nhu Nghi, on smuggling charges as the investigation expanded.
• PNJ is seeking shareholder approval for a share buyback plan to support the stock price.
• Foreign investors were net sellers in the July 16 session, adding to selling pressure.

What Happened

PNJ shares broke below the April 2025 tariff-driven low on July 16, 2026, reaching 40,600 VND. The decline accelerated after news that Dang Ngoc Thao, former director of PNJ’s subsidiary P-Lab, was indicted for diamond smuggling. According to authorities, Thao allegedly purchased smuggled diamonds, removed their GIA certification codes, and replaced them with P-Lab codes to sell them as legitimate.

PNJ has publicly stated that Thao was removed from his position as soon as the issue was discovered and that the alleged actions were personal. The company said it is cooperating with authorities and that the case does not materially affect core operations. To calm investor concerns, PNJ is seeking shareholder approval for a share buyback, though details of the plan have not been disclosed.

Market Context

PNJ shares have lost over half their value from their all-time high, with the latest drop breaking through the April 2025 tariff-driven low of around 41,000 VND. The stock closed at 41,000 VND on July 16 with heavy volume of 8.47 million shares, well above average. Foreign investors were net sellers, adding to the downward pressure. PNJ trades on HOSE and is the largest jewelry retailer in Vietnam by market share.

Strategic Significance

The smuggling indictment raises reputational risk for PNJ, which has built its brand on trust and quality certification. While the company has distanced itself from the alleged actions, the involvement of a former subsidiary director could erode consumer confidence and attract regulatory scrutiny. The share buyback plan signals management’s intent to support the stock, but the effectiveness will depend on the scale and execution. Long-term investors will watch for any further legal developments and the impact on PNJ’s jewelry certification business.

What to Watch

• Outcome of the shareholder vote on the share buyback plan and its details (size, price, timeline).
• Any additional indictments or legal actions related to the smuggling ring.
• PNJ’s Q2 2026 earnings release for signs of impact on revenue or margins.
• Changes in foreign ownership limits or foreign investor sentiment.
• Regulatory actions by the State Securities Commission or other authorities regarding PNJ’s disclosure and governance.