Key points
- This Gems and Jewelry News report examines how Vietnamese investigators uncovered the complex smuggling network, the international connections behind the operation, and why the case is expected to have far-reaching implications for the regional gemstone trade and customs enforcement.
- One of the principal defendants is Indian national Shaileshkumar Hareshbhai Prajapati (Sunny), 29, who is scheduled to stand trial before the Ho Chi Minh City People’s Court on July 30 on charges of smuggling.
- Authorities are continuing to examine the nature of those commercial relationships to determine whether they formed part of the wider supply chain or were legitimate business transactions unrelated to the alleged smuggling activities.
Gems and Jewelry News: Major Cross-Border Diamond Smuggling Network Exposed
Vietnamese authorities have dismantled a sophisticated transnational diamond smuggling network that allegedly brought more than 28,000 diamonds into the country, with the gems valued at approximately US$10.6 million (around VND280 billion). The investigation has uncovered an extensive operation stretching from India through Hong Kong before the diamonds were secretly transported into Vietnam, exposing what officials describe as one of the country’s largest gemstone smuggling cases in recent years.
Image Credit: Bangkok Gems News
The investigation has attracted significant attention throughout the international jewelry industry because of the scale of the operation and the number of individuals allegedly involved. This Gems and Jewelry News report examines how Vietnamese investigators uncovered the complex smuggling network, the international connections behind the operation, and why the case is expected to have far-reaching implications for the regional gemstone trade and customs enforcement.
India-Hong Kong-Vietnam Supply Route
According to Vietnamese prosecutors, the alleged smuggling syndicate sourced both natural diamonds and laboratory-grown CVD diamonds in India before consolidating shipments through Hong Kong. From there, the gemstones were reportedly transported into Vietnam without being declared to customs authorities and were subsequently distributed within the domestic market.
Investigators allege that the operation was coordinated by Shah Hemantkumar Sureshkumar, who operates the Indian company Nsh & Co. Authorities claim the company played a key role in organizing the sourcing and international movement of the diamonds. However, legal proceedings involving Sureshkumar have been separated from the current trial while Vietnamese authorities await judicial cooperation from overseas agencies to verify aspects of his corporate and legal background.
Courier Arrest Led to Wider Investigation
One of the principal defendants is Indian national Shaileshkumar Hareshbhai Prajapati (Sunny), 29, who is scheduled to stand trial before the Ho Chi Minh City People’s Court on July 30 on charges of smuggling.
According to the indictment, Prajapati allegedly entered Vietnam on five occasions between August 2023 and October 2024, carrying a total of 1,477 undeclared diamonds during those trips. Authorities say his final journey proved to be the breakthrough in the investigation.
On October 23, 2024, customs officers at Tan Son Nhat International Airport inspected his luggage and reportedly discovered 715 diamonds concealed inside a box of sweets. The seizure prompted investigators to widen their inquiry, ultimately uncovering an extensive international network involving numerous participants.
Distribution Network Inside Vietnam
Vietnamese prosecutors have also identified Indian national Abhishek Deepak Patel as another key figure in the operation. Authorities allege that Patel managed the local distribution of the smuggled diamonds inside Vietnam while overseeing the movement of sales proceeds.
The broader investigation has identified 22 suspects within Vietnam, with charges extending beyond smuggling to include allegations of bribery and fraud. Officials believe the organization relied on carefully coordinated logistics and multiple intermediaries to move high-value gemstones across international borders while avoiding customs detection.
Links to Bangkok’s Indian Jewelry Trade Under Investigation
Vietnamese investigators have also revealed that some of the accused were found to have had business dealings with Indian-based gemstone and jewelry companies operating in Bangkok. Authorities are continuing to examine the nature of those commercial relationships to determine whether they formed part of the wider supply chain or were legitimate business transactions unrelated to the alleged smuggling activities.
At this stage, Vietnamese investigators have not publicly alleged that the Bangkok-based companies themselves were involved in any criminal wrongdoing.
Nevertheless, the reported business connections underscore the highly international nature of today’s gemstone trade and the complexity of tracing the movement of high-value diamonds across multiple regional markets.
Gem Certification Comes Under the Spotlight
The investigation took an even more dramatic turn when authorities arrested the director of P-Lab, a gemstone certification laboratory that is wholly owned by Phu Nhuan Jewelry JSC (PNJ), Vietnam’s largest listed jewelry retailer.
The arrest immediately sparked concern throughout Vietnam’s jewelry industry regarding whether illegally imported diamonds may have entered legitimate retail channels. However, PNJ Chairwoman Cao Thi Ngoc Dung has publicly stated that none of the smuggled diamonds entered the company’s retail network and emphasized that the allegations concern individuals rather than PNJ’s commercial operations.
The case has nevertheless intensified scrutiny of gemstone certification laboratories, whose role in verifying diamond authenticity, grading, and origin remains critical to maintaining confidence throughout the international jewelry trade.
Regional Cooperation Becomes Increasingly Important
Industry experts say the investigation demonstrates how organized smuggling groups are becoming increasingly sophisticated by combining shipments of natural and laboratory-grown diamonds, utilizing transit hubs such as Hong Kong, and relying on trusted couriers to move gemstones across borders.
The case also highlights the importance of greater cooperation among customs authorities, financial investigators, and law enforcement agencies across Asia. As gemstone trading continues to expand throughout the region, governments are placing greater emphasis on intelligence sharing, tighter customs inspections, and enhanced oversight of certification procedures to combat illicit trade.
Vietnamese authorities are expected to continue pursuing additional leads as international cooperation progresses. The forthcoming court proceedings may also provide further insight into the full extent of the network and whether additional individuals or businesses could become subjects of the ongoing investigation.
The investigation serves as a powerful reminder that transparency, regulatory compliance, and robust supply chain oversight remain fundamental to protecting the integrity of the global gemstone and jewelry industry. With both natural and laboratory-grown diamonds now moving rapidly through international markets, authorities across the region are expected to strengthen enforcement measures and increase cooperation to prevent similar schemes from undermining legitimate trade. The outcome of this landmark case will be watched closely by governments, customs agencies, gemstone traders, manufacturers, retailers, and the wider jewelry industry.
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