The land of smiles has so many specialities in its name, one of them being the hub of Wholesale Jewelry and gems trade in the world. History, and nature, both have been in favour of Thai gems and jewellery products. Due to ruby mines, and sapphire mines, and trained/skilled artisans, the Thai gem and jewellery industry has seen growth throughout history and continue to do so. Gem &Jewellery is an industry that has developed over hundreds of years, and it has an edge over other countries as well.
Let us know the current situation and understand why it is poised to grow further in the trade of gems and Wholesale Jewelry.
The trading situation
Thailand excels in both trading and manufacturing of gems &jewellery and related products.
Due to a lineage of excellence, Thai craftspersons are known for export-oriented jewellery making and gemstone polishing. Key export markets of Thai Wholesale Jewelry and gems include European Union, Middle East Countries, ASEAN countries, Hong Kong, The USA, and Japan. Chiang Mai and Phuket in Bangkok have all kinds of Jewelry shops that serve the need of the domestic market. The top exports of Thailand are unwrought gold, fine jewellery such as silver jewellery( 2nd in the world), polished precious stones (4th in the world), and polished semi-precious stones (2nd in the world).
The manufacturing situation
Thai Wholesale Jewelry is a wholesome industry in itself. All Upstream, middle stream and downstream industries are there in Thailand. It can satisfy both domestic and international demands of Wholesale Jewelry and gems.
Components of Thai gems and jewellery structure
Jewellery Manufacturing: Thailand ranks in the top two positions throughout the world as a silver Wholesale Jewelry exporter for more than a decade. Production methods of most of the operators in this industry are a combination of handmade and highly advanced technology. Generally, the manufacturing is based on subcontracting, which means one can get Wholesale Jewelry as per their orders. Skilled workers are trained to follow these orders and give accurate results.
Coloured Stone Polishing: The investment requirement here is not high due to the use of uncomplicated production machines. An estimation says that 20,000 workers have been employed in the coloured stone polishing industry. Thai craftspersons are globally recognised for their skill and expertise in coloured stone polishing, and Wholesale Jewelry.
Diamond Polishing: Countries are investing in Thailand due to skilled and cheaply available labour. Diamond polishing equipment is complex and expensive, and training new employees is costly as well. Countries are saving huge costs here and gaining international results as well in the Wholesale Jewelry business along with diamond polishing.
Why Thailand may become the world’s trading hub in gems and jewellery?
Thailand’s Wholesale Jewelry is poised to grow as it is a big part of its economics. Following are the reasons why it will continue to grow.
Highly Skilled Workers: The importance of a trained workforce can not be undermined. Large overseas companies establish their manufacturing bases in Thailand because of Wholesale Jewelry makers and gem polishers with globally recognised talent. Companies from Belgium, UK, Israeletc are choosing Thailand for designing, manufacturing, and distributing gold, silver and diamond-related jewellery.
Supportive Infrastructure: Thailand’s location works in its favour because it is situated on one of the busiest trading routes in the world. It has a solid infrastructure to support the manufacturing and transportation of Wholesale Jewelry. There is an extensive network of roads, railways, and air travel as well. All of this makes Thailand business-friendly as well.
Specialized Agency: Gem and Jewellery Institute of Thailand (GIT) is a public organization. It especially promotes the Wholesale Jewelry and gem industry internationally. It carries out activities that strengthen the industry, conducts collaborations, builds confidence with overseas buyers/sellers, and assures product quality as per global standards.
Heat Treatment of Gemstones: Even though many of its gem resources have depleted, it still enjoys an edge in this industry. Thailand is the origin of the heat treatment technique of coloured stones, therefore, almost 80% of the world’s global rough gemstones get shipped here to enhance quality. So, the import of rough gemstones never stops.
Adaptiveness is the business environment: Thai gem industry is highly business competitive. The businesspeople here nurture good customer relations by diligent business operations, capacity expansion, seeking raw materials etc. The land of smiles proverb for Thailand reflects in their business environment as well.
Trading Areas across the country: The business of Wholesale Jewelry is not fixed to a district or region of Thailand. Many internationally known districts are there, such as Chanthaburi, Mae Sot, Silom Road, Yaorawat Road, etc. There are many duty-free jewellery trading centres as well. It also holds Gems and Jewellery fairs twice a year.
The government’s unending support is also making this dream come true
The government is also providing various incentives to make Thailand the world’s trading hub of gems and jewellery.
Product Standardization: To attract international buyers, the product also has to meet international standards. Keeping this in mind, the Thailand government is determining hallmarks to certify precious metal standards.
Financial Measures: The government extends SME loans for efficiency enhancement, machinery replacement, and other packages.
Investment Promotion: Foreign investors and Thai businesspersons are eligible to apply for incentives for Wholesale Jewelry and Gem business from the Industrial Estate Authority of Thailand and the Board of Investment of Thailand (BOI).
Taxation Measure: Ever since 2017, import duty for gems and jewellery products has been completely exempted. VAT has been eliminated to bring versatility in the business market of Thailand.
Craftsperson’s skill measurement: Measures have been taken to retain skilled workers and make new workers. These include setting appropriate wages for gem setters & polishers, and Jewelry casters & finishers. It will ease the shortage of skilled workers as well.
Marketing promotion measures: The tourism industry of Thailand is well-known to many. By organizing trade fairs, grand sales, and promoting gems and jewellery of Thailand, the promotion has tried to merge both industries.