Gem and jewellery meet planned

“Amid the severe drop in exports this year mainly to the European Union, the strategy should help promote Asean’s competency to become a major supplier of jewellery and ornaments to the world market,” Somchai Phornchindarak, president of the Thai Gem and Jewellery Traders Association, said last week.
The event is part of gem traders’ plan to promote Thailand and Asean as the world’s gem and jewellery trading centre under the Asean Economic Community (AEC).
The summit will also strengthen cooperation for the supply of raw materials in the industry, as Asean countries are rich in gems, while Thailand has high efficiency in adding value to products.
The AEC will help strengthen many industries, including gems and jewellery. Hundreds of firms |in Asean should tighten cooperation in exchanging |raw materials, sharing know-how and strengthen-|ing marketing to ensure that sales of gems and jewellery will continue to grow amid the global economic crunch.
According to the association, exports of Thai gems and jewellery are expected to face flat growth this year at US$12.3 billion due to the impact from the Euro crisis and Thailand’s recent loss of export privileges to the United States for silver ornaments.
Shipments in the first five months of the year declined 17.4 per cent year-on-year to $4.57 billion.
Shipments to the US are expected to drop to only $1 billion this year from $1.3 billion last year. Sales to the EU will also drop gradually this year as demand follows the economic slowdown.
To increase export opportunities to the US in the future, the government should join the US-initiated Trans-Pacific Partnership negotiations so that Thailand will continue to enjoy low tariffs from the US and other TPP countries.
However, exports to new markets, mainly Asia including Asean, should increase this year due to their strong economies. Asian markets should help compensate for the decline in orders from Western countries.
The government should set up a free-trade zone at the Bangkok Gem and Jewellery Fair, which Thailand hosts twice a year. That would help stimulate sales to foreign buyers and create a positive image for Thailand.
The association also asked for the Foreign Ministry to open a consulate in Mozambique, which has plenty of raw materials. The consulate would help Thais to work in Mozambique and build closer cooperation between Thailand and Mozambique in the long run, he added.