THEMED ‘gems and jewellery gateway to AEC’, the 52nd Bangkok Gems & Jewelry Fair (BGJF) held from 6 to 10 September 2013 continued its efforts in reinforcing Thailand’s position as a world’s gems and jewellery hub with huge government backup and novel trade incentives.
Impact of stimulus to be seen
The show was inaugurated by the deputy prime minister of commerce Nattawut Saikuar on 6 September at Impact Arena. At the opening ceremony, Saikuar announced the launch of a new tax-free initiative for show goers, which is a 20-percent tax exemption for imported gems and jewellery products that were sold at the show. Under the new tax policy, foreign exhibitors are allowed to bring in and sell gemstones and jewellery from other countries duty free, while local exhibitors can benefit from the lowered costs of imported goods and hence they can reduce their selling prices.
Commented on the duty-free privilege, show practitioners talked with Hong Kong Jewellery generally expressed that it might be too soon to see the actual effect at the fair. “The approval on duty free from the government arrived just shortly prior to the fair. Thus it may not bring about a full impact on this 52nd BGJF because of the limit of time for our awareness creation. Anyway, since we plan for the long-term effect, we are certain that the impact will come clearly on the 53rd BGJF,” admitted Suttipong Damrongsakul, CEO of the 52nd BGJF organizing committee.
ASEAN cooperation strengthened
To get the ASEAN countries prepared for the 2015 ASEAN Economic Community (AEC) where the regional gems and jewellery industry will be integrated, the Gems Jewelry and Precious Metal Confederation of Thailand (GJPCT) held the 2nd ASEAN+6 Gems & Jewelry Presidents’ Summit on 7 September.
The summit meeting was chaired by Somchai Phornchindarak, president of GJPCT and the Thai Gem and Jewelry Traders Association (TGJTA). Srirat Rastapana, director-general of the Department of International Trade Promotion (DITP) and Duangkamol Jiambutr, deputy director general of DITP were present as honourary witnesses to the proceedings.
Participating delegates were from ASEAN members including Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam, together with those from partner countries namely China, India, Japan, and Korea.
A working committee was successfully formed with members from seven countries and regions, Hong Kong, India, Korea, Malaysia, Singapore, Thailand and Vietnam. It will be responsible for taking action of various topics and agendas proposed and agreed upon during each annual summit.
The summit also agreed on giving support to gems and jewellery related activities and trade fairs organized by all members. A Hong Kong representative, King Li, advisor of the Hong Kong Jewellery & Jade Manufacturers Association (HKJJA), offered to allocate a booth at its exhibition METS 2014 to promote the gems and jewellery industry of the ASEAN+6 countries. METS 2014 is the first HKJJA machinery show for jewellery and watch making to be held from 25 to 28 June 2014 in Hong Kong.
The third presidents’ summit will again be hosted by Thailand during the 54th BGJF. And the next BGJF, the 53rd edition, will be held from 25 February to 1 March 2014.
Gold prices dip, deficit surges
Gems and jewellery was Thailand’s seventh largest export industry in the first half of 2013 with a total export value of US$4.25 billion, a 27 percent drop comparing to the same period in 2012. The decline was mainly due to a sharp reduction on gold export, from US$2.59 billion in January-June 2012 to US$898 million in the same period this year, according to TGJTA.
Besides unwrought gold, gold jewellery and fashion jewellery exports in January-June 2013 also recorded a respective downturn of 2.3 percent and 7.9 percent when compared with the same period of 2012. Nevertheless, the improving US market has contributed to the 3.37 percent growth in total silver jewellery exports.
Thailand’s gems and jewellery imports valued US$11 billion in the first two quarters of 2013, a 23.4 percent growth when compared with the same period in 2012, accounting for US$6.8 billion trade deficit. “It is an effect of gold price. In the first six months of 2013, the price had gone from US$1,650 per ounce in January to US$1,218 per ounce in the end of June,” reported a TGJTA paper.
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