Vietnam-based jeweler PNJ is undergoing a significant restructuring effort, which involves opening around 10 new locations. This move is aimed at optimizing the company’s retail network, rather than simply reducing its physical presence. As of the end of August, PNJ’s retail network consisted of 432 business units, including 424 PNJ stores, three Style by PNJ stores, four CAO Fine Jewellery stores, and one wholesale business center, covering 31 out of 34 provinces and cities in Vietnam.
Financial Projections and Restructuring Plans
PNJ anticipates a loss of approximately VND6.3 trillion (US$243.3 million) for the current year, largely due to provisions of over VND7 trillion ($272.4 million) related to its diamond buyback policy. To strengthen its financial position, the company plans to raise up to VND8 trillion ($308.1 million) through various financing channels. In October, PNJ’s board of directors will seek shareholder approval for an adjusted consolidated business plan for 2026, which forecasts revenue of VND39.1 trillion ($1.5 billion), representing a 10% increase from 2025.
The board will also propose reducing the 2025 dividend from 20% to 10% of par value, resulting in a decrease in cash payment from VND853 billion ($32.8 million) to VND341 billion ($13.1 million). Earlier this year, PNJ made an interim cash dividend payment of 10% to shareholders on the shareholder record date of January 12, 2026. According to the proposal, the company has therefore completed payment of the 2025 dividend, while the undistributed portion of profit will remain in retained earnings. PNJ said the adjustment is intended to balance its cash resources amid increased pressure on cash flows arising from the repurchase of products under its commitments to customers.
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Recent Challenges and Operational Developments
PNJ’s recent difficulties began with the arrest of Dang Ngoc Thao, former director of PNJ’s gemstone certification subsidiary P-Lab, in connection with a transnational diamond smuggling case in early July. The investigation revealed that Thao and 21 other suspects had imported over 28,000 diamonds into Vietnam since 2024, generating an estimated VND280 billion ($10.8 million) in revenue. Authorities seized approximately 1,100 diamonds during searches of 20 locations, and the investigation is ongoing. Despite reassurances from PNJ chairwoman Cao Thi Ngoc Dung that the smuggled diamonds did not enter the company’s distribution system, investor sentiment weakened, leading to four consecutive floor sessions for PNJ shares from July 21 to 24.
Between July 1 and 20, PNJ experienced an unusually high demand from customers seeking to sell back diamond jewelry. In response, the company adjusted its buyback process on July 21, encouraging customers to exchange their products for other items, including gold, rather than receiving cash. Following this adjustment, PNJ’s shares fell to VND30,700 ($1.18) on Monday morning.