Three diamond brands Kim Ly, Ngoc Tam, Ngoc Chau simultaneously closed

Noted by VnExpress On the afternoon of July 14, many diamond stores in Ho Chi Minh City simultaneously closed or posted signs to temporarily suspend operations. These stores all belong to and are related to the brands of three store owners who were recently prosecuted in a case of smuggling nearly 30,000 diamonds.

On An Duong Vuong street (Cho Quan ward), two stores, Kim Ly and Kim Chau, closed at about 3:00 p.m., earlier than usual. People living around the area said these stores are usually open until after 5:00 p.m.

Ms. Dung (District 5) brought a 9mm diamond bought at Kim Ly to resell but was surprised when the store was closed.

“I read that the owner was arrested so she sold it for money, but I didn’t expect the store to close. Even the Kim Chau store opposite – which the owner said was a relative’s store – also closed,” she said.

In the same area, Ngoc Tam Jewelry and Jewelry brand posted a notice of temporary suspension of operations for two weeks.

About 2 km away, the European Pearl Diamond store on Tran Hung Dao street (Cho Quan ward) is also closed.

On the evening of July 14, Diamond and Jade Europe announced that the business is coordinating with the authorities according to regulations. “We confirm that all diamond products sold are of the same quality as announced. We recommend that customers follow information from official sources,” the company informed.

Previously, from July 11, this brand announced on its fanpage that it would temporarily suspend operations until July 24 to “rearrange work in the most stable and thoughtful way”.

“Faced with market fluctuations, although we always strive to maintain operations and service, we realize that there is a need for a short period of time to rearrange internal work, operating systems and perfect operating processes,” the announcement stated.

Ngoc Chau is the unit that has crafted crowns for many beauty contests such as Miss Universe Vietnam, Miss World Vietnam and Miss Grand Vietnam.

The store’s actions take place in the context of continuous fluctuations in the diamond market.

The diamond market is facing many difficulties, starting with rumors about diamond quality spreading on social networks since early June, followed by the case of PNJ Lab’s leader being investigated in a smuggling ring of nearly 30,000 diamonds.

Representatives of a number of business enterprises and inspection units shared with VnExpress, The number of customers coming for consultation and re-inspection of diamonds has increased sharply in recent times.

Since mid-June, Long Ngoc – a brand operating for many years in Ho Chi Minh City – announced it was completely closed due to loss of liquidity after customers simultaneously brought diamonds to resell.

In Vietnam, most diamond businesses have buyback policies to create peace of mind for customers. The purchasing rate for loose diamonds is usually from 80% to 95% depending on quality, size and product condition.

Currently, secondary transactions of diamonds mainly take place with the unit that sold the product or some specialized stores with appraisal experience.

According to Mr. Nguyen Viet Hao, an expert with nearly 12 years of experience in the diamond market, unlike 24K gold, which has almost uniform content standards, making it easy to trade between stores, each diamond is almost a separate product.

The value of a stone is not only determined by weight, color, purity or cut, but also depends on the appraisal certificate, traceability, buyback policy and reputation of the selling business. Therefore, it is almost impossible for buyers to evaluate the quality of the stone themselves and must rely on the inspection results and the reliability of the business unit.

“Because of the nature of the market operating based on trust, every fluctuation can have a strong impact on buyer psychology,” Mr. Hao said.

In the current context, the repurchase policy according to Mr. Hao will become a test for the financial capacity and reputation of diamond businesses.