Vietnamese authorities are accelerating reforms to regulate the diamond market after dismantling a cross-border diamond smuggling network, importing over 28,000 diamonds worth more than US$10.6 million. The Ministry of Industry and Trade is scheduled to conduct random inspections of documents and taxes of five major businesses next month and is proposing a digital tracking model to assign unique codes to each diamond to combat illegal diamonds. Analysts warn consumers to distinguish diamonds from gold, emphasizing that diamonds are not a reserve asset like gold.
30 July 2569 – The Office of International Trade Promotion (OITP) in Ho Chi Minh City, Vietnam. reported that Vietnam is accelerating the upgrading of its entire diamond market regulatory system. To restore consumer confidence and raise industry standards, following the discovery of a cross-border diamond smuggling network from the Hong Kong Special Administrative Region involving over 28,000 diamonds worth approximately 280,000 billion Vietnamese dong, or about US$10.6 million.
This incident has had a significant impact on market confidence and reflects structural limitations in transparency, liquidity, and the credibility of gem certifications. Many consumers have had their diamonds inspected or offered to sell them back to retailers, putting financial pressure on those stores.
To address the short-term problem, Vietnam's Ministry of Industry and Trade is preparing to launch inspections of five diamond and jewelry businesses next month under the National Anti-Money Laundering Programme. The inspections will focus on checking tax documents, invoices, certificates of origin (C/O), labeling, and strict compliance with trade laws.
Difficulty in inspection, lack of a dealer database, and the government's handling of the situation are more complex than dealing with gold.
Mr. Tran Viet Hung, Head of Market Surveillance Operations, Market Surveillance Agency, Ministry of Industry and Trade of Vietnam. It was revealed that the inspection of the five businesses was a routine operation aimed at identifying loopholes in the regulatory system and improving compliance with the law. Advance notice would be sent.
However, Mr. Tran Viet Hung acknowledged that regulating the diamond business is significantly more complex than the gold business, as diamonds cannot be assessed visually. Specialized equipment and gemologists are required to verify characteristics such as carat weight and quality. Furthermore, the process for storing seized diamonds must follow specific procedures.
Furthermore, Vietnamese law does not classify diamonds as a conditional business sector like gold, meaning government agencies lack in-depth databases or statistics on the number of diamond businesses nationwide.
“This inspection is a routine operation aimed at identifying gaps in the regulatory system and improving compliance with the law by businesses, rather than focusing on taking action against businesses suspected of wrongdoing.” — Tran Viet Hung
Financial experts warn that diamonds are not "gold"; they are a luxury item with no fixed price.
In the dimensions of investment and saving. Mr. Tran Trong Duc, founder and CEO of the wealth management company Virtus Prosperity. From an economic perspective, while many consumers view diamonds as an investment asset similar to gold, due to retailers' buyback commitments, the two assets are actually fundamentally different.
Gold has a uniform standard worldwide, high liquidity, and is recognized as an "international reserve asset" held by central banks. It can also be traded through ETFs or futures contracts.
Conversely, each diamond is unique according to the 4Cs (carat, color, clarity, cut), making it impossible to establish a standard market price and therefore impossible to develop it into a diamond-backed financial product. Valuation must be done on a per-diamond basis, resulting in much lower liquidity in the secondary market compared to gold.
“Consumers should view diamonds as a luxury item, valued for their craftsmanship, sentimental value, and ability to be passed down as a family heirloom, rather than as an investment asset.” — Tran Trong Duc
Caution advised regarding sales contracts; Consumer Protection Association recommends avoiding panic.
sideVietnam Consumer Protection Association The statement issued a warning to consumers to exercise increased caution in online transactions, particularly regarding the risk of businesses closing down while products are being repaired. It emphasized the importance of buyers carefully inspecting and retaining all contract documents, invoices, and warranties as evidence to exercise their right to claim compensation if the seller fails to comply with the agreement.
Furthermore, the association stated that amidst the news and anxieties in the market, diamond holders should not rush to panic and sell their assets at prices below their true value, as the buyback contracts and terms vary from store to store, and consumer rights are protected according to the specific contractual agreements on a case-by-case basis.
Proposing a unique legal model to link "Unique Digital Identifiers" for traceability.
The volatility has led industry experts to suggest that Vietnam accelerate structural reforms, by: Ms. Nguyen Thi Thu Huong, Head of Wealth Management at FIDT. It was pointed out that Vietnam currently lacks an independent certification system, with most quality control laboratories still tied to retailers, giving sellers an information advantage and leaving buyers to bear the risk.
while Mr. Le Ba Chi Nhan, an economist. It is proposed that the government establish a "Dedicated Regulatory Framework for Diamonds," similar to that for the gold market. This framework should include the development of a digital ecosystem to connect data between Customs, Taxation, the Department of Market Supervision, and certification bodies.
This new structure proposes assigning a unique digital identifier to each diamond to record its import history, origin, quality control results, and ownership transfer history. This will help close loopholes in diamond laundering, increase transparency, and build long-term trust.
Imports for the first six months exceeded $121 million; Thai exporters are warned to adapt quickly.
Data from the Vietnam Customs Department indicates that in the first six months of 2026, Vietnam imported diamonds worth a total of over US$121.5 million. The main sources of imports were India, Belgium, and Israel, demonstrating the continued growth of the market.
The tightening of regulations by the Vietnamese authorities will directly impact Thai diamond and jewelry exporters. These companies will need to review their supply chain management systems, and ensure that trade documents, certificates of origin, and gemstone quality certificates meet international standards to cope with the stricter inspections.
However, the crisis of confidence in Vietnam presents a significant opportunity for Thai businesses with internationally standardized, transparent, and traceable quality certification systems. These businesses can leverage their strengths in good governance and trustworthiness to differentiate themselves and sustainably expand their market share in Vietnam in the long term.
Read all news related to the situation around ASEAN here.
