The wave of diamond sell-offs has spread to the domestic gold market, as many people have rushed to sell gold over the past two days, pushing prices down sharply and widening the spread between buying and selling prices to an unprecedented level.
Diamond sellers wait four months for full payment
The domestic gold market has experienced several sharp downward adjustments in recent days. Within just three days, gold prices fell by about VND8.5 million (US$323) per tael, with SJC and PNJ gold bars posting the steepest declines.
The downturn followed authorities' announcement that they had uncovered and dismantled a large-scale diamond smuggling ring. Investigators said the case involved former executives of P-Lab, a subsidiary of PNJ, and the head of the business department at SJC.
In addition to selling diamonds, many customers have also sold PNJ- and SJC-branded gold. Based on gold prices on July 24, those who purchased gold earlier could incur losses of around VND13.5 million to VND14.5 million per tael if they sold. Experts said domestic gold prices fell much more sharply than global gold prices mainly because of a sudden surge in selling pressure. In response to market volatility, gold traders widened the gap between buying and selling prices.
On the afternoon of July 24, customer traffic at SJC's headquarters on Nguyen Thi Minh Khai Street in Ban Co Ward, Ho Chi Minh City, was lower than the previous day. The long queues of people waiting to sell gold seen on July 23 had disappeared, with transactions now balanced between buyers and sellers.
Employees at the store said around 30 customers sold diamonds on July 23, while the number of gold sellers was several times higher. Customer applications were processed quickly, with all transactions completed the same day. However, the time required for customers to receive payment still depends largely on appraisal procedures and interbank transfer limits.
"For gold and jewelry transactions, customers who complete procedures before 3:00-4:00 p.m. receive payment the same day. Transactions after that time, or those exceeding VND500 million, must wait until the following day because of bank transfer authorization procedures. Diamond transactions require more complex technical assessments, so processing must take several days," an SJC employee said.
After nearly three weeks of paying customers immediately for repurchased diamonds, PNJ has changed its payment policy.
On the afternoon of July 24, about a dozen customers came to a PNJ store on Hai Ba Trung Street in Tan Dinh Ward, Ho Chi Minh City, to sell diamonds. Store staff said that starting July 24, diamond buybacks would only be accepted between 3:00 p.m. and 5:00 p.m. each day.
PNJ has also narrowed the scale of its buyback program. The company now repurchases diamonds and pays cash at only about 110 locations nationwide, including around 25 in Ho Chi Minh City, compared with more than 500 stores previously. Dealers will only allow customers to exchange old products for new ones. The company is encouraging customers to swap diamonds for other products instead of receiving cash.
Customers choosing cash payments will receive installments over four months, or 120 days. According to a PNJ employee, customers will receive 10 percent of the payment in the first month, 20 percent in the second month, and the full amount by the fourth month.
VGJA warns of payment delays as diamond firms suspend operations
Speaking to Sai Gon Giai Phong newspaper on July 24, Chairman Nguyen Van Dung of the Vietnam Gemstone Jewelry Art Craft Association (VGJA) confirmed that some major companies are buying products immediately but delaying payments.
Aside from delayed payments at a few large companies, gold trading across the broader market remains normal. Customers are willing to leave their diamonds and wait four months for payment largely because of these brands' long-established reputations. However, such lengthy waiting periods naturally raise concerns about financial risks. Consumers who need immediate liquidity can choose reputable smaller jewelry stores instead, Chairman Nguyen Van Dung said.
The chairman of the Vietnam Gemstone Jewelry Art Craft Association (VGJA) added that since early July 2026, around 30 diamond trading companies have temporarily suspended operations. The gold, silver and gemstone market is undergoing a severe consolidation, he said. Only businesses that operate transparently, respond appropriately to market challenges, and protect customers' interests will be able to maintain public trust and survive.
In countries with well-developed jewelry industries and major exports, such as India, Singapore, the United Arab Emirates, China, Thailand and Indonesia, jewelry gold is regulated as a consumer goods industry, similar to the garment and footwear sectors, and falls under the authority of the Government's trade or industry ministries. Meanwhile, central banks focus solely on regulating monetary issues related to gold bullion and investment gold.
The Government has just issued Decree 292/2026/ND-CP, effective from September 5, 2026, adding 23 groups of goods to the list of prohibited imports, including diamonds, in order to prevent products of unknown origin. Recently, the Ministry of Industry and Trade issued a plan for specialized inspections of 5 diamond and gemstone businesses randomly selected at the request of the Anti-Money Laundering Department. It is expected that in August, the inspection team will review compliance with regulations on invoices, documents proving origin, product labeling, price listing, and the legality of loose diamonds and gemstone jewelry.
