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					                                                                                                                                     INFORMATION CENTER
                                                                                                                                            ISSUE 1 / 2012


The Gem and Jewelry Institute of Thailand (Public Organization)

                                                                     Thailands Gem and Jewelry
                                                              Import-Export erormane in 2011
                  	 Thai	gem	and	jewelry	export	value	grew	only	5.57	percent	while	the	import	value	soared	97.84	percent	with	
                                                                                                                                    	
                  unwrought	 or	 semi-manufactured	 gold	 as	 the	 main	 product	 for	 both	 export	 and	 import.	 If	 unwrought	 or	
                  semi-manufactured	gold	is	not	included,	the	increase	in	export	value	would	be	as	much	as	24.15	percent	from	
                  the	previous	year.	However,	the	export	value	in	2012	may	have	a	lower	growth	than	in	2011	due	to	the	threat	
                  of	economic	slowdown	and	possibly	a	new	round	of	recession.

                  	 In	2011,	Thailand’s	gem	and	jewelry	export	value	                    	 Meanwhile,	gem	and	jewelry	import	value	jumped	
                  under	Customs	Tariff	Schedule	Chapter	71*	increased	                   97.84	 percent	 from	 10,437.82	 million	 US	 dollars	 to	
                  by	 5.57	 percent,	 from	 11,652.06	 million	 US	 dollars	             20,650.47	million	US	dollars.
                  to	12,301.06	million	US	dollars.	As	the	fourth	major	    	
                  category	in	export	products,	gem	and	jewelry	accounted	                	 Considering	trade	balance	only	in	gem	and	jewelry	
                                                                           	
                  for	 5.38	 percent	 of	 Thailand’s	 total	 export	 value.	             category,	it	is	found	that	in	2011	Thailand	faced	a	trade
                  However,	 deducted	 by	 47.94	 percent	 share	 from	                   deficit	of	8,349.41	million	US	dollars	as	illustrated	in	
                  unwrought	gold	export,	the	remaining	value	would	be	                   Figure	1.	
                  6,403.71	million	US	dollars,	up	24.15	percent	from	the	                	
                  previous	year.	


                                           Figure 1: Thailand’s Gem and Jewelry Import-Export Value in 2002-2011

                            US$ Million
                                 25,000

                                 20,000
                                 15,000
                                 10,000
                                  5,000
                                      0
                                 -5,000
                                -10,000
                                              2002       2003       2004       2005       2006       2007       2008        2009          2010       2011
                           Import Value     2,080.92   2,180.95   2,945.93   4,080.74   3,995.49   4,223.40   9,398.72    5,998.49     10,437.82   20,650.47
                           Export Value     2,166.92   2,514.63   2,630.19   3,227.56   3,605.92   5,381.39   8,270.07    9,761.40     11,652.06   12,301.06
                           Trade Balance      86.00     333.68    -315.74    -853.18    -389.57    1,157.99   -1,128.65   3,762.91      1,214.24   -8,349.41



                      Source:	The	Customs	Department,	data	calculation	by	The	Gem	and	Jewelry	Institute	of	Thailand	(Public	Organization)

                                                                     Thailand’s Gem and Jewelry Import-Export Performance in 2011
    Export erormane

    	 In	2011,	unwrought or semi-manuatured gold                 gold	price,	diminished	Italy’s	import	demand	since	
    was	the	category	with	the	highest	export	value	at	             the	country	is	a	major	consumer	of	gold	jewelry	and	
    5,897.35	 million	 US	 dollars,	 despite	 9.19	 percent	 	     also	re-exports	it	to	the	European	market.	
    decline	in	growth	rate	compared	to	2010.	A	plunge	
    of	gold	export	value	in	the	second	and	the	fourth	             	 •	Silver	Jewelry	export	value	grew	18.05	percent.
    quarters	at	53.97	and	49.62	percent	year-on-year	sent	         Export	 to	 the	 United	 States	 as	 the	 top	 market	
    the	overall	gold	export	value	to	the	negative	territory,		     leaped	26.44	percent	while	export	to	other	following	
                                                             	
    although	 in	 the	 first	 and	 the	 third	 quarters,	 the	     markets	like	Denmark,	Germany,	Australia	and	the	
    export	value	grew	as	much	as	4	times	and	82.67	                United	 Kingdom	 increased	 by	 2.41,	 16.47,	 3.74	
    percent	respectively.	The	export	of	other	main	products,	      and	3.56	percent	respectively.	
    including	 jewelry,	 diamonds,	 colored	 stones	 and	
    costume	jewelry	is	explained	in	details	as	follows:            	 •	Platinum	 Jewelry	 achieved	 32.72	 percent	
                                                                   growth,	the	highest	in	jewelry	category,	although	the	
    	 Jewelry	 held	 the	 second	 position	 in	 terms	 of	         export	 value	 was	 still	 relatively	 small.	 This	 strong	
    export	value	after	unwrought	or	semi-manufactured	             growth	was	a	result	from	the	export	to	main	markets	
    gold,	accounting	for	30.02	percent	of	overall	gem	and	         like	Japan,	which	accounted	for	almost	60	percent	
    jewelry	export	value,	with	the	growth	rate	of	18.27	           of	the	total	export	value,	and	reached	51.57	percent	
    percent.	Details	of	each	product	in	this	category	are	         growth.	As	for	other	increasingly	important	markets	       	
    as	follow:	                                                    among	the	top	five,	which	were	Hong	Kong,	the	United	
                                                                   Kingdom	and	Italy,	the	growth	rates	were	at	41.49	
    	 •	Gold	 Jewelry	 grew	 21.52	 percent	 from	 the	            percent,	24.42	percent	and	1.43	times	respectively.	
    previous	year	as	a	result	from	a	rise	in	export	to	major       In	contrast,	the	export	value	to	the	United	States,	
    markets	like	the	United	States	and	Hong	Kong,	at	              the	second	major	market,	dropped	by	18.06	percent.
    8.84	and	32.24	percent	respectively,	as	well	as	export	
    to	the	high-potential	market	like	India,	with	the	growth	      	 Diamond was	 the	 third	 major	 export	 product,	
    rate	of	1.20	times.	Since	India	had	more	demand	in	            accounting	for	11.88	percent	of	the	overall	gem	and	
    gold	jewelry	import,	especially	in	the	first	and	the	          jewelry	 export	 value	 and	 having	 a	 high	 growth	 of	
    second	quarters,	of	which	the	import	value	expanded	           33.14	percent.	Polished	diamond	was	the	main	export	
    over	3.77	and	5.85	times	respectively,	to	cater	for	           product	in	this	category,	growing	38.19	percent	from	
    rising	consumption	in	the	wedding	season	from	April	           the	previous	year.	The	major	markets	included	Hong	
    to	May	and	from	December	to	January	each	year.	                Kong,	Belgium,	Israel,	India	and	the	United	States,	
    In	the	meantime,	export	to	UAE	as	the	fourth	major	            of	which	the	export	value	increased	by	42.14,	33.48,	
    market	increased	by	16.35	percent	while	export	to	             11.83,	74.20	and	92.62	percent	respectively.
    Italy,	the	fifth	major	market,	dropped	11.73	percent.	         	
    The	public	debt	crisis	in	Europe,	as	well	as	higher	




2   Thailand’s Gem and Jewelry Import-Export Performance in 2011
	 Colored Stone	 accounted	 for	 4.91	 percent	 of	 increased	by	37.85	and	5.74	times	respectively,	and	
overall	 gem	 and	 jewelry	 export	 value,	 with	 27.79	 the	 fifth	 export	 market,	 Switzerland,	 had	 a	 slight	
percent	growth.	This	category	can	be	divided	into	 growth	at	only	0.05	percent.
following	products:
                                                            	 It	should	be	noted	that	colored	stone	export	to	
	 •	Polished	 Precious	 Stone	 (ruby,	 sapphire	 and	 China	 was	 growing	 significantly	 in	 terms	 of	 value,	  	
emerald)	 grew	 44.47	 percent	 from	 the	 previous	 with	 the	 growth	 rate	 of	 polished	 precious	 and	
year.	 Almost	 half	 of	 exported	 polished	 precious	 semi-precious	stones	at	over	2.46	times	and	5.74	
stones	 were	 sapphire,	 growing	 as	 much	 as	 52.16	 times	respectively,	indicating	increasing	consumption	
percent,	 while	 ruby	 gained	 37	 percent	 share	 and	 demand	for	colored	stones	in	the	Chinese	market.	
39.93	percent	growth.	The	increase	in	export	value This	 is	 a	 good	 sign	 and	 a	 crucial	 opportunity	 for	
was	a	result	from	export	to	major	markets	like	Hong	 Thai	entrepreneurs	to	start	developing	strategies	for	
Kong,	 which	 contributed	 almost	 half	 of	 the	 total	 their	business	expansion	into	China.
export	 value,	 as	 well	 as	 the	 United	 States,	 India,	
Switzerland	 and	 Japan;	 these	 top	 five	 export	 	 Costume Jewelry	was	the	fifth	export	product,	
markets	 achieved	 strong	 growth	 rates	 of	 51.35,	 accounting	for	2.88	percent	of	total	gem	and	jewelry	
14.58,	15.25,	29.59	and	49.69	percent	respectively. export	value,	with	22.82	percent	growth	compared	
                                                            to	 the	 previous	 year.	 Liechtenstein	 was	 the	 top	
	 •	Polished	Semi-Precious	Stone	expanded	11.66	 market,	 gaining	 the	 share	 of	 over	 45	 percent	 and	
percent	due	to	a	decline	in	export	value	to	major	 the	growth	rate	of	37.19	percent,	while	the	export	
markets	such	as	Hong	Kong	and	the	United	States	 value	to	the	United	States,	Germany	and	the	United	
at	 2.82	 and	 5.97	 percent	 respectively.	 Meanwhile,	 Kingdom	grew	56.48	percent,	2.01	times	and	37.33	
the	export	to	India	and	China	as	the	third	and	the	 percent	respectively.	However,	the	export	to	France,	
fourth	 major	 markets	 with	 growing	 significance	 which	was	the	fourth	major	market,	moved	down	by	
                                                            1.07	percent.

Tale 1: Thailands Gem and Jewelry Export Value rom January to Deemer 2010 and 2011

                                                    
                                               Value (Million US dollars)                          
                       
                                                                            
                                                     
                                                                                  
    2.1 Silver jewelry                                                                     
    2.2 Gold jewelry                                                                       
    2.3 Platinum jewelry                                                                           
    2.4 Others                                                                                  
                                                                                  
    3.1 Rough Diamond                                                                             
    3.2 Polished Diamond                                                                      
    3.3 Others                                                                                       




                                                                   Thailand’s Gem and Jewelry Import-Export Performance in 2011   3
    Tale 1: Thailands Gem and Jewelry Export Value rom January to Deemer 2010 and 2011 (ont.)

                                                                   
                                                              Value (Million US dollars)                        
                            
                                                                                         
                                                                                             
          4.1 Rough Stone                                                                                     
          4.2 Polished Precious Stone                                                                       
          4.3 Polished Semi-Precious Stone                                                                  
                                                                                            
                                                                                             
                                                                                                     
                                                                               

    Source: The Customs Department, data calculation by The Gem and Jewelry Institute of Thailand (Public Organization)


    	 Thailands	 first	 two	 gem	 and	 jewelry	 export	                       much	as	50.51	percent,	due	to	a	decline	in	unwrought	
    markets	in	terms	of	value	in	2011	were	Switzerland	                        or	semi-manufactured	gold	export.	However,	the	export	
    and	Hong Kong	with	the	share	of	31.67	and	20.20	                         of	jewelry,	which	was	one	of	the	main	products,	still	
    percent	respectively.	The	export	value	to	Switzerland	                     maintained	its	strength	by	growing	at	3.74	percent	
    increased	by	13.01	percent,	with	unwrought	or	semi-                        for	silver	jewelry	and	6.03	percent	for	gold	jewelry.	
    manufactured	gold	accounting	for	nearly	all	export	
    products.	The	export	to	Hong	Kong	dropped	by	3.87	                         	 Thailands	fifth	export	market	was	India gaining	
    percent	due	to	declining	export	of	unwrought	gold,	                        the	share	of	3.59	percent	and	the	growth	of	87.04	
    which	was	the	main	product	at	the	share	of	47	percent.	                    percent	in	terms	of	export	value,	being	supported	
    As	 for	 other	 main	 product	 categories,	 polished	 	                    by	the	export	of	main	products	such	as	gold	jewelry	
    diamond	and	jewelry	(especially	gold	jewelry)	both	                        and	 polished	 diamond,	 which	 grew	 by	 1.20	 times	
    had	 equal	 shares	 at	 around	 19	 percent	 and	 were	                    and	75.78	percent	respectively.		
    growing	in	terms	of	export	value.
                                                                               	 Other	important	markets	which	still	maintained	
       The United States	was	the	third	major	export	                           steady	growth	include	Belgium Japan Denmark
    market	for	gem	and	jewelry,	with	10.90	percent	share	                      Germany and	the United Kingdom at	the	rate	of	
    and	22.41	percent	growth.	Over	80	percent	of	the	                          34.90,	11.35,	0.29,	22.72	and	20.41	percent	respectively.	
    export	products	were	silver	jewelry	and	gold	jewelry,	                     The	main	product	for	Belgium	was	polished	diamond,	
    growing	by	26.44	and	8.84	percent	respectively.                            while	 for	 Japan,	 the	 main	 products	 were	 jewelry,	
                                                                               including	gold,	silver	and	platinum	jewelry,	as	well	
        Australia	held	the	fourth	position	in	the	list	of	                     as	 unwrought	 or	 semi-manufactured	 gold.	 As	 for	
    major	export	markets,	accounting	for	6.14	percent,	                        Denmark,	Germany	and	the	United	Kingdom,	silver	
    but	 the	 growth	 rate	 in	 this	 market	 decreased	 as	                   jewelry	and	gold	jewelry	were	at	the	top	of	the	list.	
                                                                               	




4   Thailand’s Gem and Jewelry Import-Export Performance in 2011
                           Figure 2: Thailands Gem and Jewelry Export Markets in 2011

                                                                               Hong Kong
                  Switzerland                                                   20.20%
                   31.67%




                                                                                                          United States
                                                                                                              10.90%




                                                                                                  Australia
                  Others                                                                          6.14%
                  14.33%                                                               India
                                                                          Belgium     3.59%
                                 United Kingdom Germany Denmark Japan      3.15%
                                      2.22%      2.33% 2.63% 2.84%


   Source:	The	Customs	Department,	data	calculation	by	The	Gem	and	Jewelry	Institute	of	Thailand	(Public	Organization)


	 Considering	Thai	gem	and	jewelry	export	value	              	 Hong	Kong	was	another	export	market	gaining	
(excluding	gold)	during	2008-2011	as	in	Table	2,	it	is	       a	 high	 share	 and	 a	 growth	 rate	 of	 36.02	 percent	
found	that	the	export	value	was	on	the	rise	in	every	         from	 rising	 export	 in	 main	 products	 like	 polished	
region,	 especially	 in	 emerging	 markets	 like	 China	      diamond,	gold	jewelry	and	silver	jewelry.	
and	 India,	 of	 which	 the	 shares	 rapidly	 increased	
with	the	growth	rate	of	over	1.76	times	and	80.39	     	      	 In	recent	years,	the	share	of	Thailands	gem	and	
percent.		Main	export	products	to	China	were	polished	        jewelry	export	(excluding	gold)	to	the	existing/main	
precious	and	semi-precious	stones,	as	well	as	gold	           markets,	such	as	the	United	States,	the	European	
and	silver	jewelry,	while	for	India	main	products	with	       Union	and	Japan	declined	from	55.59	percent	in	2008
strong	growth	rates	were	gold	jewelry	and	polished	           to	 50.50	 percent	 in	 2011,	 due	 to	 the	 economic	  	
diamonds.                                                     slowdown	 in	 these	 markets.	 On	 the	 other	 hand,	
                                                              emerging	markets,	such	as	China,	India,	Russia	and	
	 In	spite	of	comparatively	small	share,	the	export	          the	Commonwealth	of	Independent	States,	the	Middle	
value	from	ASEAN	countries	achieved	a	high	growth	            East,	 the	 ASEAN,	 and	 the	 Pacific	 Island	 countries	
rate	of	68.94	percent,	being	mainly	driven	by	a	rise	         gained	 increasing	 shares	 and	 steady	 growth	 in	
                                                      	
in	 gold	 and	 silver	 jewelry	 export	 to	 Singapore,	       terms	of	export	value,	and	should	be	considered	as	
Malaysia,	Brunei	Darussalam	and	Indonesia.	                   high	potential	markets	with	increasing	importance.	




                                                                      Thailand’s Gem and Jewelry Import-Export Performance in 2011   5
    Tale 2: Thailands Gem and Jewelry Export Value (Exluding Gold) y Market Regions in 2008-2011


                                                   
                                              Value (Million US dollars)                       
          
                                                                            
                                                         
                                                      
                                                                          
                                                                            
                                                                   
                                                                           
                                                              
                                                           
                                                                               
                                                           
                                                                          
                                                     



    Source: The Customs Department, data calculation by The Gem and Jewelry Institute of Thailand (Public Organization)
    Note: * Important countries in Others category include Switzerland, Liechtenstein and South Africa.



    Import erormane

    	 Gem	 and	 jewelry	 import	 in	 2011	 was	 valued	                       concern	over	global	economic	crisis	under	the	looming	
    at	 20,650.47	 million	 US	 dollars,	 up	 97.84	 percent	                 threat	of	recession.	As	a	result,	the	import	of	unwrought	
    from	the	previous	year,	with unwrought or semi-                           or	semi-manufactured	gold	was	steadily	increasing.
    manuatured gold as	 the	 highest-value	 product,	     	
    growing	1.09	times.	This	was	partly	due	to	a	dramatic                     	 The	next	import	product	was	diamonds	with	a	
    increase	 of	 gold	 import	 in	 the	 second	 and	 the	                    high	growth	of	1.39	times,	most	of	which	were	polished	
    fourth	quarters	at	3.29	and	2.89	times	year-on-year.	                     diamond,	 growing	 by	 over	 1.43	 times.	 Other	 main	
    Although	gold	price	in	the	global	market	was	rising	                      import	products	included	silver jewelry	and	olored
    unpredictably	all	through	the	previous	year,	unwrought	                   stones with	the	increase	of	31.43,	32.23	and	14.94	
    or	semi-manufactured	gold	was	still	in	demand	in	                         percent	respectively	in	terms	of	import	value.	Over	
    the	 domestic	 market.	 Investors	 have	 shifted	 their                   95	percent	of	import	products	were	raw	materials.
    attention	towards	gold	as	reliable	asset	due	to	their	                    	




6   Thailand’s Gem and Jewelry Import-Export Performance in 2011
Tale : Thailands Gem and Jewelry Import Value rom January to Deemer 2010 and 2011

                                                      
                                                 Value (Million US dollars)                            
                    
                                                                                
                                                          
                                                                                       
                                                                                    
                                                                               
                                                                                                 
                                                                                            
                                                                                           
                                                                                       
                                                                                       
                                                                                    
                                                                                              
                                                                                      
                                                                                           
                                                                             
                                                                        
                                                                                      
                                                                                             
                                                                      


Source:	The	Customs	Department,	data	calculation	by	The	Gem	and	Jewelry	Institute	of	Thailand	(Public	Organization)


	 The	most	important	source	for	gem	and	jewelry	                accounting	for	13.68,	9.16,	8.68	and	5.07	percent,	
import	was Switzerland with	36.40	percent	share	              and	growing	at	76.01	percent,	4.46	times,	1.85	times		
and	 84.39	 percent	 growth	 in	 import	 value.	 Other	         and	 72	 percent	 respectively	 in	 terms	 of	 value.	
major	 sources	 with	 high	 import	 value	 included	            Products	from	these	top	five	sources	were	mostly	
Australia the United States	Japan and	Hong Kong	          unwrought	or	semi-manufactured	gold.	
                                                                		




                                                                       Thailand’s Gem and Jewelry Import-Export Performance in 2011   7
                                     Figure : Thailands Gem and Jewelry Import Soures in 2011

                                       Switzerland
                                        36.40%                                                                Australia
                                                                                                               13.68%



                                                                                                                               United States
                                                                                                                                   9.16%




                            Others
                            12.50%                                                                                   Japan
                                                                                                                     8.68%
                                       China
                                       2.33%                                                        Hong Kong
                                               United Arab
                                                           Thailand India         South Africa       5.07%
                                                Emirates 2.54% 3.25%                3.90%
                                                  2.49%


        Source:	The	Customs	Department,	data	calculation	by	The	Gem	and	Jewelry	Institute	of	Thailand	(Public	Organization)



    Conlusion

    	 Thailands	 gem	 and	 jewelry	 export	 in	 2011	      	                  products	sent	back	from	international	trade	fairs	are	
    increased	only	by	5.57	percent.	However,	if	unwrought	  	                  excluded,	the	growth	of	net	export	value	would	be	
    or	semi-manufactured	gold	is	excluded,	the	growth	of	                      25.29	percent	as	shown	in	Table	4.	This	is	a	proof	of	
    export	 value	 would	 be	 24.15	 percent,	 and	 if	 both	                  real	potential	in	Thailands	gem	and	jewelry	export,	
    unwrought	or	semi-manufactured	gold	and	Thailands	                        which	has	consistently	maintained	a	strong	growth.
                                                                               	
    Tale : Thailands Gem and Jewelry et Export Value rom January to Deemer 2010 and 2011


                                                                 
                                                            Value (Million US dollars)                                  
                          
                                                                                                 
                                                                                    
          
                                                                                                                 
          
                                                                                         
                                                                                       
           
                                                                                                   


    Source:	The	Customs	Department,	data	calculation	by	The	Gem	and	Jewelry	Institute	of	Thailand	(Public	Organization)




8   Thailand’s Gem and Jewelry Import-Export Performance in 2011
	 Although	Thailands	net	export	value	of	gem	and	                 materials	 was	 also	 a	 driving	 factor	 for	 the	 overall	
jewelry	 (excluding	 gold)	 in	 2011	 achieved	 a	 good	           increase	of	gem	and	jewelry	export	value.	
expansion	rate,	this	was	partly	caused	by	the	rise	in	
product	price	per	unit,	which	followed	the	trend	of	               	 Moreover,	considering	the	relationship	between	
increasing	price	in	raw	materials.	This	can	be	seen	in	            volume	and	value	of	main	product	export	as	shown	
the	fluctuation	of	gold	price,	moving	in	the	high	level	           in	Table	5,	it	is	found	that	in	2011	the	growth	rate	
all	 through	 the	 year.	 In	 December,	 the	 gold	 price	         of	gold	export	volume	decreased	by	almost	1	time	
was	 at	 1,652.31	 US	 dollars	 per	 ounce,	 up	 21.82	            compared	 to	 the	 previous	 year	 while	 the	 export	 	
percent	from	January	the	same	year.	Meanwhile,	the	                value	just	slightly	decreased.	This	is	different	from	
prices	of	other	gem	and	precious	metal	materials	for	              silver,	of	which	the	export	volume	had	a	small	growth	
jewelry	production	were	also	on	the	rise;	for	example,             while	the	export	value	grew	to	more	than	double.	As	
silver	price	was	at	30.41	US	dollars	per	ounce	in	                 for	gold	and	silver	jewelry,	the	export	volume	was	in	
December,	up	7.07	percent	from	January	2011,	while	                decline	while	the	export	value	was	on	the	rise.	This	
diamond	 price	 increased	 over	 15-20	 percent	 from	             is	the	result	from	Thai	entrepreneurs	new	strategies	
January	2011.	As	for	colored	stones,	blue	sapphire	                to	 address	 the	 increasing	 cost	 of	 raw	 materials	
price	increased	around	35	percent,	yellow	sapphire	                by	reducing	the	amount	of	precious	metal	used	in	
50	percent	and	fancy	sapphire	10-15	percent	from	                                                                         	
                                                                   each	jewelry	piece,	or	shifting	to	low-cost	alternative	
the	 previous	 year.	 The	 price	 hike	 in	 these	 raw	  	         materials	and	focusing	on	modern	designs	instead.	
                                                                   	
Tale 5: Export Volume and Value o Thailands Main roduts in Gem and Jewelry Category
January-Deemer 2010 and 2011


                                                                                          
                                                                                                           
                                                                          
                                                                                 
                                                                                     
                                                                             
                                                                                     
                                                                            
                                                               
                                                         
                                                                          
                                                                  


Source:	The	Customs	Department,	data	calculation	by	The	Gem	and	Jewelry	Institute	of	Thailand	(Public	Organization)


	 Due	to	the	situation	in	current	global	economy,	 Thailands	gem	and	jewelry	industry	is	facing	several	
which	produces	indirect	effects	on	Thai	economy,	 negative	factors	as	follow:
                                                   	




                                                                              Thailand’s Gem and Jewelry Import-Export Performance in 2011   9
     	      	 Baht urreny lutuation Although	now	               European	Union,	and	Japan,	all	of	which	have	suffered	
     baht	currency	is	depreciating	at	the	range	of	31.00-           from	 economic	 slowdown	 in	 recent	 years,	 leaving	
     31.90	baht	to	US	dollars	(www.bot.or.th),	it	is	still	         effects	on	consumers	purchasing	power	and	changing	
     stronger	than	the	currencies	of	Vietnam	and	especially         consumption	patterns	in	gem	and	jewelry	category.	
     India,	 which	 is	 Thailands	 major	 competitor	 in	 the	     Although	 currently	 the	 US	 economy	 is	 growing	 at	
     main	 markets.	 Commercial	 banks	 predict	 that	 in	          a	 better	 rate,	 it	 remains	 unconfirmed	 whether	 this	
     2012	 baht	 currency	 will	 still	 have	 high	 fluctuation,	   slow	progress	is	a	sustainable	recovery.	The	United	
     moving	in	the	range	of	29.50-33.00	baht,	as	a	result	          States	has	just	announced	the	minimum	interest	rate	
     from	 prolonged	 economic	 problems	 in	 the	 United	          at	0-0.25	percent	until	the	end	of	2014,	and	is	ready	
     States	 and	 the	 European	 Union.	 	 Apart	 from	 its	    	   to	stimulate	its	economy	by	implementing	the	third	
     consequence	 on	 Thailands	 competitiveness	 in	              quantitative	easing	(QE3).	The	World	Bank	predicts	
     terms	 of	 product	 pricing,	 the	 conversion	 rate	 will	     that	 the	 US	 economic	 growth	 in	 2012	 will	 be	 at	
     directly	affect	the	exporters	turnover,	and	probably	         around	2.2	percent,	slightly	higher	than	the	previous
     the	 raw	 material	 cost	 from	 imported	 gem	 and	        	   year.		
     precious	metal.
                                                                                                                          	
                                                                    	 Meanwhile,	 the	 EU	 public	 debt	 crisis	 is	 still	
     	       	 Inreasing prie o gem and preious                 unsolved	and	accompanied	by	a	threat	of	Europes	
     metal	 These	 raw	 materials,	 especially	 gold	 and	      	   new	round	of	recession.	Since	the	debt	problem	is	
     silver,	 tend	 to	 move	 erratically	 in	 the	 high	 range.	   spreading	 into	 other	 major	 economies	 like	 Spain,	
     In	January	2012,	gold	price	moved	up	to	1,656.12	              Italy	and	France,	of	which	the	credit	rating	has	been	
     US	dollars	per	ounce	while	silver	price	increased	to	          cut	 down,	 it	 is	 expected	 that	 European	 economy	
     30.77	US	dollars	per	ounce.	The	main	factor	is	the	            will	shrink	by	around	0.7	percent	in	2012.	The	only	
     global	economic	problem,	as	seen	in	the	unrecovered	           exception	is	Japan,	which	is	steadily	recovering	after	
     US	 economic	 crisis,	 the	 EU	 public	 debt	 crisis,	 as	     the	 earthquake	 and	 the	 tsunami,	 and	 is	 expected	
     well	as	inflation	in	many	countries	around	the	world.	         grow	by	around	1.9	percent.	These	situations	are	still	
     Low	policy	interest	rate,	global	demand	in	gold	for	           risk	factors	for	Thailands	gem	and	jewelry	export.	
     investment	 and	 for	 the	 jewelry	 sector,	 as	 well	 as	
     Indias	 and	 Chinas	 increasing	 demand	 in	 gold	  		 	 Eonomi slowdown in emerging
     consumption,	 are	 supporting	 analysts	 predictions	markets	 including	China,	India,	Brazil	and	Russia.	
     that	in	2012	gold	price	may	step	up	to	over	2,000	    Recently,	 entrepreneurs	 around	 the	 world	 were	   	
     US	dollars	per	ounce.	Therefore,	if	the	raw	material	 seeking	new	opportunities	in	these	emerging	markets	
                                                           to	compensate	for	stagnant	trading	value	from	the	
     price	is	still	fluctuating	and	rising	continually,	it	will	
     affect	the	global	demand	for	jewelry	consumption,	    existing	ones,	leading	to	a	high	level	of	competition.	
                                                           However,	 due	 to	 the	 prolonged	 global	 economic	
     and	 finally	 to	 Thailands	 gem	 and	 jewelry	 export	
     value.                                                slowdown,	the	stability	of	these	emerging	markets,	
                                                           especially	 China,	 tends	 to	 drop	 down	 gradually,	
     		 	 Unstale eonomi reovery o major in	 spite	 of	 the	 projected	 8.4	 percent	 growth	 for	          	
     trading partners	 including	the	United	States,	the	 Chinese	economy	in	2012,	compared	to	9.2	percent	
                                                           growth	in	the	previous	year.




10   Thailand’s Gem and Jewelry Import-Export Performance in 2011
Similarly,	 Brazil	 economy	 has	 slowed	 down	 since	     purchasing	 power	 and	 gem	 and	 jewelry	 demand.	
                                                       	
last	 year,	 and	 is	 expected	 to	 grow	 only	 by	 3.5	   At	the	same	time,	entrepreneurs	need	to	maintain	
percent	in	2012,	while	India	is	also	facing	a	slow	        good	 relationship	 with	 trading	 partners	 in	 major	
economic	 growth.	 As	 a	 result,	 gem	 and	 jewelry	  	   existing	 markets.	 They	 should	 also	 adapt	 their	
consumption	demand	may	be	weakened	in	emerging	            strategies	 by	 focusing	 on	 adding	 product	 value,	
markets	in	line	with	their	economic	situations.            concentrating	on	quality	standard	and	new	creative
                                                           designs	 to	 respond	 consumers	 demand	 in	 each	
	 To	reduce	effects	from	the	above	factors,	Thai	          market,	as	well	as	considering	factors	which	influence	
entrepreneurs	should	implement	proactive	marketing	        consumers buying	 decisions	 like	 corporate	 social	
in	2012.	Apart	from	emerging	markets,	they	should	         and	 environmental	 responsibility	 and	 fair	 trade.	
also	focus	on	penetrating	other	high	potential	markets,	   Above	all,	they	should	prevent	the	risk	from	conversion	
such	as	ASEAN	market	and	Australian	market,	taking	        rate	 by	 implementing	 forward	 contracts,	 as	 well	
advantages	from	reduced	import	duty	in	all	product         as	choosing	suitable	strategies	in	production	cost	      	
items	 according	 to	 the	 Free	 Trade	 Agreement.	        management.	These	approaches	will	be	much	helpful	
Another	 interesting	 market	 is	 the	 Middle	 East	       for	 Thai	 gem	 and	 jewelry	 industry	 to	 maintain	 its	
countries,	 of	 which	 consumers	 still	 have	 high        strong,	sustainable	growth	in	the	future.
                                                           	



*	 Customs	 Tariff	 Schedule	 Chapter	 71	 for	 Natural or cultured pearls, precious or semi-precious	
stones, precious metals, metal clad with precious metal and article thereof; imitation jewelry; coin




                                                                   Thailand’s Gem and Jewelry Import-Export Performance in 2011   11
                
             
       
                                
                      
                        
                  
                    
            

                           
                     
                    
         




                                                
                            –          
                                          


      
                         
                            
                            
                


12   Thailand’s Gem and Jewelry Import-Export Performance in 2011

				
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posted:6/14/2012
language:English
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