PNJ, a leading jewelry company in Vietnam, has recently adjusted its payment terms for diamond purchases. After nearly three weeks of providing immediate payment upon buying back diamonds, the company will now implement a staggered payment system. This decision aims to encourage customers to exchange their diamonds for other products amid a surge in demand for selling jewelry, particularly diamonds, which has created liquidity challenges for many businesses in the industry.

During a press conference led by CEO Phan Quốc Công, along with Chairwoman Cao Thị Ngọc Dung, the company committed to fulfilling its obligation to buy back all customer transactions. However, for customers selling diamonds for cash, PNJ will now set a maximum daily payment limit based on its actual capacity for all transactions nationwide. The new plan stipulates that payments will be made after the completion of product valuation and liquidity arrangements, rather than on the same day as before.

In the past two months, the gold and jewelry market has experienced significant fluctuations, leading to a fivefold increase in the volume of buyback transactions at PNJ since the announcement of issues related to the P-Lab testing company. Despite the changes, PNJ has maintained its policy of same-day buyback and payment until now. CEO Công highlighted the substantial short-term cash flow pressure facing the company, especially since diamonds take longer to re-enter the market compared to other products.

To ensure smooth business operations and protect customer interests, PNJ is prioritizing cash flow management. The company aims to maintain its position as the leading provider of diamond buyback services in the market. "PNJ will not go anywhere; we are here to operate effectively and uphold our commitments to customers," Công emphasized.

If customers wish to exchange their diamonds for other products, the process will be expedited. Additionally, PNJ plans to introduce discount programs to encourage this option. For loose diamonds, customers can choose to exchange them for other loose diamonds or receive cash, but cannot convert them into jewelry or gold bars in compliance with Decree 232. For other product lines, customers can opt to convert all or part of their buyback value into products available at PNJ's system, including SJC gold bars, PNJ fortune gold, plain rings, diamond jewelry, collectibles, and loose diamonds.

The flexible conversion option allows customers to partially exchange their buyback value for PNJ products while receiving cash for the remaining amount. The portion converted to products will come with corresponding discounts, while the cash portion will be paid according to the announced schedule.

Recently, the Thanh Hóa Provincial Police, in collaboration with Ho Chi Minh City Police, prosecuted Đặng Ngọc Thảo, former Director of PNJ's P-Lab, due to involvement in a diamond smuggling case. During an investor meeting on July 6, Chairwoman Dung confirmed that the diamonds linked to the smuggling ring did not enter PNJ's system. She assured that all diamonds imported by the company were sourced through legitimate channels, primarily from suppliers in Thailand and Hong Kong (China), with proper documentation and transparency.

Following these events, PNJ's stock has seen a significant decline, dropping to 38,150 VND, a nearly 40% decrease in market value, which has resulted in a loss of around 12.8 trillion VND in the company's market capitalization, pushing PNJ out of the billion-dollar company status.