Vietnam investigates alleged diamond smuggling ring linked to jeweller

Vietnamese police are investigating an alleged international diamond smuggling ring accused of moving 28,000 gems worth nearly $11 million, with Vietnam's largest jeweller drawn into the probe.

The former head of Phu Nhuan Jewelry's gem certification subsidiary, PNJ Laboratory, was arrested earlier in July along with more than 30 other people accused of involvement in a syndicate said to have operated over several years.

Vietnam's public security ministry said police had raided more than 20 establishments, including jewellery stores and the homes of accused people, mostly in Ho Chi Minh City. State media reported that several establishments linked to the investigation had suddenly closed.

Dang Ngoc Thao, the former director of PNJ Laboratory, is accused of falsely certifying gems sourced in India for resale in Vietnam, removing laser inscriptions and replacing them with the company's own.

The ministry said police had seized 1,239 diamonds so far, as well as jewellery for which no invoices or documents proving origin could be produced. It said the suspects used highly sophisticated criminal methods to source diamonds from India and arrange their illegal transport through Hong Kong into Vietnam.

PNJ said it acknowledged the investigation into its former employee but claimed the matter concerned individual legal liability. The company also said diamond products certified by its subsidiary are fully traceable and of guaranteed quality.

Shares in PNJ, described in the source as Vietnam's largest listed jeweller, were down more than 25 percent since the first arrests were made in early July.