Latest news with #GemandJewelryInstituteofThailand
Bangkok Post
5 days ago
- Business
- Bangkok Post
Gem exporters eye 5% growth
Exports of gems and jewellery products are on track to achieve the nation's growth target of 5% this year, says the Gem and Jewelry Institute of Thailand (GIT). Sumed Prasongpongchai, director-general of GIT, said for the first half of 2025, total exports in this sector jumped by 82.3% year-on-year, totalling US$14 billion. Excluding unwrought gold, exports surged by 62.7% to $7.41 billion. Key export products included gold jewellery, silver jewellery, and coloured gemstones, with the major markets India, Hong Kong and the US. Mr Sumed said the 2025 export growth target of 5% remains achievable. In 2024, gems and jewellery exports excluding unwrought gold generated $9.6 billion, representing year-on-year growth of 11.5%. He said the substantial growth in the first half was driven by stockpiling before US tariff enforcement. Although the US is imposing a 19% tariff on Thai products, which gives Thailand a competitive edge over its competitors, it also increases costs for American consumers. Rough gems previously lacked an import tariff, while jewellery products faced a tariff of 5-10%. While the industry monitors purchase demand in the US and global markets, Mr Sumed said it remains concerned about baht appreciation from 33.50-34 per US dollar to 32 baht per dollar, translating to a loss of 6-7 billion baht in revenue with each rising baht. "Another concern is attracting and developing a new generation of workers for this industry," he said. This sector must explore new markets, including Southeast Asian countries such as the Philippines and Indonesia, along with the Middle East, said Mr Sumed. Sunanta Kangvalkulkij, director-general of the Department of International Trade Promotion (DITP), an organiser of the 72nd Bangkok Gems & Jewelry Fair, said the fair is recognised as one of the world's top four trade fairs in the industry. The fair plays a crucial role in positioning Thailand as a leading global hub for the gems and jewellery trade, noted the DITP. This year's event features 1,104 companies across 2,628 booths and is expected to welcome more than 40,000 visitors from around the world, generating at least $100 million in trade value. The fair is scheduled for Halls 1–8 at the Queen Sirikit National Convention Center from Sept 9-13.
Bangkok Post
06-08-2025
- Business
- Bangkok Post
Thailand's gem and jewelry industry moves to embrace sustainability
Thailand is stepping up efforts to integrate sustainability across its gem and jewelry industry, aiming to strengthen its position as a global leader amid growing international scrutiny over ethical sourcing, labor practices, and transparency. Sumet Prasongpongchai, Director of the Gem and Jewelry Institute of Thailand (GIT), said the shift was partly prompted by the global reckoning that followed the 'blood diamond' crisis in Africa, which drew attention to labor exploitation, particularly of women and children, and the seizure of community resources. That episode became a turning point, he said, pushing the industry worldwide to place sustainability at the heart of its business practices. Today, sustainable practices span the entire supply chain, encompassing traceable sourcing, fair labor compensation, the use of blockchain technology, and adherence to global standards such as those set by the Responsible Jewellery Council (RJC). Thailand adopted these standards in 2019, reinforcing its role as Asia's key processing hub for rubies and sapphires and a global centre for gem enhancement, cutting, trading, and auctions. To support this transformation, GIT has ramped up research, compliance mechanisms, and training programmes. This year, it aims to help at least 40 small and medium-sized enterprises (SMEs) meet international standards, including the RJC Code of Practices. In the long term, GIT is working toward Thailand being formally recognised as a Standard Development Organization (SDO). While sustainability standards remain voluntary in Thailand, GIT has proposed supportive government policies, including a revision of the tax structure. It is advocating for a flat 0.6% tax on sales—replacing the current 20% tax on profits—to ease cost burdens and improve access to raw materials. The gem and jewelry sector is a significant contributor to the Thai economy, comprising more than 13,000 businesses and employing over 800,000 people. In the first five months of 2025, exports surged by 90% year-on-year to more than 400 billion baht, driven largely by strong global demand for gold and accelerated stocking in anticipation of potential changes to U.S. import tariffs. Domestic retail sales, however, remain subdued. Looking ahead, export performance in the second half of the year will depend heavily on U.S. tariff policy. Competitive rates will be essential for sustaining momentum, particularly in original design manufacturing (ODM) and in expanding market share across ASEAN countries such as Indonesia and the Philippines, as demand from China slows. Currently, 90% of Thai production still relies on original equipment manufacturing (OEM), but the future lies in value-added products, brand building, and empowering local artisans and SMEs to meet global sustainability standards. A major step in that direction will be the 'GIT 2025: Responsible Gem & Jewelry Supply Chain' international seminar, to be held from September 8–9 at the Grand Hyatt Erawan Bangkok. The event will gather global experts, researchers, and stakeholders to exchange insights and promote Thailand's role in the global industry. The seminar will be followed by the Bangkok Gems & Jewelry Fair from September 9–13 at the Queen Sirikit National Convention Center, a key platform for business matching and driving export growth in the second half of the year. As the industry navigates a changing global landscape, Thailand is positioning itself to lead through responsible growth, with sustainability at the core of its strategy.
