The Ho Chi Minh City Stock Exchange witnessed a surprising surge in the share price of Phu Nhuan Jewelry Joint Stock Company (PNJ) on May 29th. PNJ shares rose sharply at the beginning of the trading session, accompanied by vigorous transactions.
Although the momentum cooled off slightly, PNJ still maintained a gain of approximately 5%. Compared to its long-term low confirmed in early April, PNJ’s share price has climbed by 33%, translating to a market capitalization of over VND 28 trillion.
This upward movement in PNJ shares followed the directives issued by General Secretary To Lam during a meeting with the Central Committee for Policies and Strategies on May 28th. The General Secretary called for an end to the monopoly on gold bullion, proposing that the state continues to manage the market while granting licenses to qualified enterprises for production.
Additionally, To Lam suggested expanding controlled gold imports to boost supply and narrow the gap with global prices, while also curbing smuggling across borders. He also encouraged the development of the jewelry market to establish Vietnam as a hub for high-quality jewelry manufacturing and processing, thereby transforming hoarded gold into value-added products.
These directives are considered positive for domestic gold and jewelry businesses amid a severe shortage of supply. Scarce raw materials, high gold prices, subdued demand, and a decline in the growth rate of the luxury retail industry have posed significant challenges for PNJ in recent times.
In the first quarter, retail jewelry sales, PNJ’s core business segment, grew by over 6% year-on-year to VND 6,677 billion. However, this growth rate was slower than the 10% increase witnessed in the fourth quarter of 2024, indicating that consumer demand has not shown significant improvement. In contrast, wholesale revenue rose by 22.3% compared to the same period last year, as the market increasingly emphasizes transparency and product traceability.
On the other hand, revenue from 24K gold in the first quarter plummeted by nearly 66% year-on-year due to challenges in sourcing raw materials and limited product availability since the second half of 2024. In response, PNJ strategically prioritized resource allocation for its retail jewelry business, the company’s core area of expertise. While this decision curbed the number of 24K gold products, market demand remained high.
PNJ boasts the largest gold and jewelry business network in Vietnam, with 429 stores covering 58 out of 63 provinces (as of the end of the first quarter of 2025). The company plans to expand its network by opening 12 to 25 new stores in 2025. However, the number of stores remained unchanged in the first quarter compared to the previous year, despite it typically being a peak business season.
According to a recent analysis by Agriseco, given the slow recovery and challenges in the retail jewelry market due to limited gold supply, PNJ is focusing its strategy on enhancing the efficiency of existing stores, strengthening its brand presence, and continuously innovating its collections to align with market preferences.
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