PNJ Flags Record 2026 Loss as VNDiamond ETF Shrinks Below VND 11,000B

Overview

Phú Nhuận Jewelry (PNJ), the largest jewelry company listed on the Ho Chi Minh Stock Exchange (HOSE), expects a record loss in 2026 after provisioning for losses on buybacks of products from customers. The disclosure comes as PNJ shares face heavy foreign selling and the VNDiamond index and its largest tracking ETF lose appeal, with the DCVFM VNDiamond ETF shrinking from USD 1 billion to under VND 11,000 billion.

Key Facts

• PNJ is projected to post a record loss in 2026 after provisioning for losses on buybacks of products from customers.
• PNJ closed at VND 21,650 on 2026-10-05 on HOSE.
• The DCVFM VNDiamond ETF (FUEVFVND) has shrunk from USD 1 billion in 2021-2022 to under VND 11,000 billion.
• Thai investors’ DR FUEVFVND holdings fell to about 107.6 million units by early October, the lowest since the DR listed in 2022 and down more than 40% from the Q1 2023 peak.
• With a 1:1 conversion ratio, Thai investors have net sold roughly 77 million FUEVFVND fund certificates over three and a half years.
• Over the past year, both the VNDiamond index and FUEVFVND posted double-digit negative returns, while the VN-Index rose nearly 7%.
• The VNDiamond index was launched in late 2019, comprising stocks that are at or near their foreign-ownership limits.

What Happened

The article reports that a downturn in the diamond market has turned one of the most luxurious product categories into a burden for owners and long-standing traders. PNJ, described as the largest jewelry company on the stock exchange, expects a record loss in 2026 after setting aside provisions for losses incurred when buying back products from customers. Alongside the operating difficulties, PNJ shares have fallen sharply under foreign investors’ selling pressure, shifting from a stock foreigners once competed to buy into one they now queue to sell.

The report attributes the VNDiamond ETF’s shrinking scale to sustained outflows and weak performance. Launched in late 2019, the VNDiamond index attracted strong interest for a portfolio composed entirely of stocks at their foreign-ownership limits, and the DCVFM VNDiamond ETF became the largest fund tracking it. Flows reversed from 2023 after about three years of strong net inflows. Thai investors have been among the most persistent sellers of the ETF’s depositary receipts, with DR FUEVFVND holdings falling to about 107.6 million units by early October, the lowest since the product launched in 2022. The article does not disclose the exact size of PNJ’s provision or the timing of the 2026 loss guidance.

Market Context

PNJ trades on HOSE and closed at VND 21,650 on 2026-10-05. The article frames the stock’s decline as part of a broader retreat from VNDiamond constituents, which carry high foreign-ownership ratios and are therefore sensitive to foreign outflows. Over the past year, the VNDiamond index and FUEVFVND both delivered double-digit negative returns while the VN-Index gained nearly 7%, a performance gap that has made the ETF less attractive relative to the broad market. The VN-Index has held high ground on gains in a few blue chips with low foreign ownership, notably the Vingroup group, while heavy foreign net selling in several VNDiamond names has weighed on the index and its tracking ETFs.

Strategic Significance

For long-term investors, PNJ’s buyback provisioning raises a structural question about the jewelry retail model: the company’s willingness to repurchase products from customers exposes it to inventory and price risk when diamond values fall, turning a customer-service feature into a balance-sheet liability. The simultaneous erosion of the VNDiamond ETF matters because the index’s core premise, a portfolio of foreign-room-constrained stocks that foreign investors must buy on-market, depended on sustained foreign demand. As that demand reverses, the index’s scarcity premium weakens, and PNJ’s fate becomes tied less to its brand franchise than to the flow cycle of the foreign investors who once anchored its valuation.

What to Watch

• PNJ’s formal 2026 earnings guidance or filing, including the size of the buyback provision.
• Monthly foreign net buying/selling data for PNJ on HOSE.
• DCVFM VNDiamond ETF (FUEVFVND) fund size and creation/redemption flows.
• DR FUEVFVND holdings data for Thai investors in the next monthly update.
• VNDiamond index review and any constituent changes affecting PNJ’s weight.