PNJ, a leading Vietnamese jeweler, is experiencing its most severe crisis in four decades. Understanding the reasons helps investors and employees see how rapid buybacks and weak demand can threaten a company.

In July 2026, customer buybacks of diamond jewellery rose to almost VND6 trillion, about ten times the usual amount, according to CEO Phan Quoc Cong. This sudden inflow strained the company’s cash.

CEO Phan Quoc Cong presented preliminary figures showing that net revenue in the third quarter of 2026 fell 14% year‑on‑year. Gross profit dropped 62% and the after‑tax loss was VND258 billion, compared with a profit of VND496 billion a year earlier.

By the end of Q3, diamonds and diamond jewellery accounted for about 52% of total inventory, indicating a sharp rise in stock, according to CEO Phan Quoc Cong. He also said the company needs up to VND150 billion each month to sustain operations.

To meet its cash‑flow gap, PNJ’s board plans to raise roughly VND8 trillion through a private placement of up to 550 million new shares, as outlined in the proposal to shareholders. The funds would mainly support a conversion programme for customers, with the rest used for working capital and loan repayment.

The crisis stems from an unprecedented surge in diamond buybacks, falling sales and mounting inventory, which together created a severe cash‑flow shortfall. Without the planned capital raise, PNJ’s ability to recover remains uncertain.