Following its recent revision to the payment policy for diamond jewelry buybacks, Phu Nhuan Jewelry Joint Stock Company (PNJ) has also applied a new payment scheme to the repurchase of PNJ-branded 9999 gold.
Under the new policy, once the company receives the product and verifies all required documents, the buyback amount will be paid in five installments over 120 days. Customers will receive 10 percent in the first payment, 20 percent in the second, 25 percent each in the third and fourth installments, and the remaining 20 percent in the final payment. If a scheduled payment falls on a weekend or public holiday, it will be made on the next business day.
The extended payment period has prompted concerns among customers, as they are required to surrender their gold or diamond products before receiving the full payment.
PNJ said that it has introduced a contract appendix detailing the payment schedule, payment methods, confirmation procedures and commitments from sellers to protect the interests of both parties and minimize potential disputes.
Speaking at a press briefing on July 21, PNJ CEO Phan Quoc Cong explained that repurchased diamond jewelry cannot be resold immediately. The products must undergo various processes, including appraisal, refurbishment, polishing, stone removal, and gold melting or material recycling. Depending on the product type, the process can take several months, making it difficult for the company to maintain cash flow when buyback volumes surge.
Following the policy change for 9999 gold buybacks, the spread between PNJ's buying and selling prices for its branded 9999 gold widened to VND5 million (US$191) per tael, compared with VND3 million-VND3.5 million (US$115-134) per tael at major gold traders such as SJC, DOJI, Phu Quy and Bao Tin Minh Chau.
As of the morning of July 21, PNJ listed its branded 9999 gold bars and rings at VND140.2 million (US$5,350) per tael for buying and VND145.2 million (US$5,540) per tael for selling.
