GIT TRADE REVIEW
INFORMATION CENTER ISSUE 1 / 2010
The Gem and Jewelry Institute of Thailand (Public Organization)
Thailand’s Gems and Jewelry Import-Export Performance in 2009 Overview In 2009, the value of Thai gems and jewelry export expanded at the rate of 18 percent approximately, while the import value decreased by about 36 percent, causing Thailand to have a trade surplus of 3,762.91 million US dollars in the gem and jewelry category. Regarding Thailand’s gems and jewelry importexport under Customs Tariff Schedule Chapter 71*, it was found that in 2009 the export value increased by 18.03 percent from 8,270.07 million US dollars to 9,761.40 million US dollars. Gems and jewelry were the third important export products, accounting for 6.40
percent of Thailand’s total export value. Meanwhile, the import value of such products reduced by 36.18 percent from 9,398.72 million US dollars to 5,998.49 million US dollars. Gems and jewelry ranked eighth of Thailand’s highest import value, accounting for 4.48 percent of the total import value. If considering a trade balance of only gems and jewelry products, it was found that in 2009 Thailand earned a trade surplus of 3,762.91 million US dollars. This was the highest trade surplus in a decade since 2000, as illustrated in F igure 1.
F igure 1: Import-Export Value of Thailand’s Gems and Jewelry during 2000-2009 US$ Mil. 12,000 10,000 8,000 6,000 4,000 2,000 0 -2,000 Import Value Export Value Trade Balance
2000 1,716.51 1,739.24 22.73
2001 1,914.90 1,834.25 -80.65
2002 2,080.92 2,166.92 86.00
2003 2,180.95 2,514.63 333.68
2004 2,945.93 2,630.19 -315.74
2005 4,080.74 3,227.56 -853.18
2006 3,995.49 3,605.92 -389.57
2007 4,223.40 5,381.39 1,157.99
2008 9,398.72 8,270.07 -1,128.65
2009 5,998.49 9,761.40 3,762.91
Source: The Gem and Jewelry Institute of Thailand (Public Organization) Thailand’s Gems and Jewelry Import-Export Performance in 2009
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Export Performance The most important export product in this category was unwrought or semi-manufactured gold, which accounted for 58.06 percent of Thailand’s total gems and jewelry export value. In 2009, the export value of this product grew 67.49 percent due to a continuous increase in gold prices in the global market. The average gold price in December was 1,134.72 US dollars per ounce. This was the phenomenon in which gold prices increased by the highest rate in ten years, causing more unwrought or semi-manufactured gold to be exported in order to make prof its. The product with the second highest export value was jewelry. Its export value declined by 12.52 percent, accounting for 25.53 percent of
Thailand’s total gems and jewelry export value. When considering each type of products, it was found that the export of gold jewelry reduced by 24.46 percent and that of silver jewelry increased by 11.11 percent. As for platinum jewelry, the export dropped by 15.29 percent. The next important product was diamonds which accounted for 8.83 percent, decreasing by 25.85 percent. It was found that most diamonds exported were cut and polished diamonds which reduced by 15.99 percent. With respect to other important products, colored stones declined by 23.56 percent, imitation jewelry rose by 7.71 percent, and synthetic stones reduced by 15.33 percent, as shown in Table 1.
Table 1: Export Value of Thailand’s Gems and Jewelry from January to December 2008 & 2009 Value (Million US$) Share (Percent) Change Jan-Dec 08 Jan-Dec 09 Jan-Dec 08 Jan-Dec 09 (Percent) 1. Unwrought Gold or Semi-Manufactured Gold 3,383.67 5,667.46 40.91 58.06 67.49 2. Jewelry 2,848.80 2,492.06 34.45 25.53 -12.52 2.1 Silver jewelry 860.64 956.29 10.41 9.80 11.11 2.2 Gold jewelry 1,838.34 1,388.69 22.23 14.23 -24.46 2.3 Platinum jewelry 30.71 26.02 0.37 0.27 -15.29 Categories
2.4 Others 3. Diamonds 3.1 Rough 3.2 Polished 3.3 Others 4. Colored Stones 4.1 Rough 4.2 Polished precious stones 4.3 Polished semi-precious stones 5. Imitation Jewelry 6. Synthetic Stones 7. Others Total (1+2+3+4+5+6+7)
119.12
121.06
1.44
1.24
1.63
1,103.64 264.13 839.11 0.40 519.31 19.72 254.89 244.70 197.77 70.81 146.06 8,270.07
818.36 112.09 704.92 1.35 396.94 16.44 178.74 201.76 213.02 59.96 113.60 9,761.40
13.35 3.19 10.15 0.00 6.28 0.24 3.08 2.96 2.39 0.86 1.76 100.00
8.38 1.15 7.22 0.01 4.07 0.17 1.83 2.07 2.18 0.61 1.17 100.00
-25.85 -57.56 -15.99 234.70 -23.56 -16.60 -29.88 -17.55 7.71 -15.33 -22.22 18.03
Source: The Gem and Jewelry Institute of Thailand (Public Organization)
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Thailand’s Gems and Jewelry Import-Export Performance in 2009
The most important market for gems and jewelry exports in 2009 was Switzerland, with the export value of 27.01 percent which expanded 1.09 times. The major export product was unwrought or semimanufactured gold which accounted for about 94 percent of the total export value, growing 1.48 times from the previous year. Other major markets for exporting Thai gems and jewelry were Australia, Hong Kong, the United States and Belgium, with the export value of 21.05, 19.59, 8.61 and 2.70 percent respectively. The reason why the value of gems and jewelry exports
to Australia and Hong Kong increased by 44 and 25 percent was that most export products were unwrought or semi-manufactured gold which grew by 47 and 43 percent respectively. Meanwhile, the export value to the United States reduced by 21.86 percent. Jewelry, which accounted for 82 percent, remained the major product that Thailand exported to the United States. However, the export value decreased by 16.01 percent. The chief factor was that the export value of gold jewelry dropped by 43 percent, although the export value of silver jewelry could expand by about 25 percent.
F igure 2: Thailand’s Gems and Jewelry Export Markets in 2009 Australia 21.05%
Switzerland 27.01%
Hong Kong 19.59%
Others 11.01%
United State 8.61% Denmark Belgium 1.82% United Arab Germany Japan United Kingdom 2.70% Emirates 2.25% 1.99% 2.00% 1.97%
Source: The Gem and Jewelry Institute of Thailand (Public Organization)
Thailand’s Gems and Jewelry Import-Export Performance in 2009
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Export markets with growth potential include some countries in the Middle East, especially Qatar and Bahrain in which the export value increased by 142.70 and 35.10 percent respectively. The export product to these markets which had the high expansion rate was gold jewelry. As for Denmark, most export products were silver jewelry, expanding at the rate of 35.76 percent.
export value during 2007-2009. These markets also have a tendency to grow continuously. At the same time, Thailand’s major export markets including the United States, the European Union and Japan had the continually declining shares of the total export value, and the expansion rate in each year was rather low. Particularly in 2009, the export value apparently reduced. Moreover, all new markets such as China, India, Russia and CIS countries, Middle East countries as well as ASEAN had the decreasing shares of the total export value in 2009 due to the global economic crisis.
In addition, Table 2 shows that Pacif ic Island countries such as Australia and New Zealand were new markets with a continuous increase in the
Table 2: Export Value of Thailand’s Gems and Jewelry to Other Regions during 2007-2009
Country/Region
Value (Million US$)
Change (Percent)
Share (Percent)
2007
2008
United States
1,026.62
1,075.96
840.74
19.08
13.01
8.61
4.81
-21.86
European Union
1,150.67
1,500.48
1,234.21
21.38
18.14
12.64
30.40
-17.75
Japan
191.17
222.17
194.97
3.55
2.69
2.00
16.21
-12.24
China
13.94
12.01
11.60
0.26
0.15
0.12
-13.84
-3.41
India
93.72
155.37
139.12
1.74
1.88
1.43
65.78
-10.46
Russia and CIS countries
30.44
48.42
23.44
0.57
0.59
0.24
59.04
-51.59
587.07
668.10
407.77
10.91
8.08
4.18
13.80
-38.97
89.14
220.31
73.32
1.66
2.66
0.75
147.16
-66.72
607.67
1,436.52
2,059.63
11.29
17.37
21.10
136.40
43.38
1,590.93
2,930.73
4,776.60
29.56
35.44
48.93
84.21
62.98
5,381.39
8,270.07
9,761.40
100.00
100.00
100.00
53.68
18.03
Middle East countries ASEAN Pacif ic Island countries Others Total
2009
2007
2008
2009
Source: The Gem and Jewelry Institute of Thailand (Public Organization)
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Thailand’s Gems and Jewelry Import-Export Performance in 2009
08/07
09/08
Import Performance In 2009, the import value of gems and jewelry decreased by 36.18 percent. The product with the highest value remained unwrought or semimanufactured gold which accounted for 63.10 percent of the total gems and jewelry import value, followed by diamonds accounting for 12.91 percent. The product which ranked third was silver, with 8.68 percent share. The import value of unwrought gold, diamonds and silver reduced by 37.63, 50.11 and 5.89 percent respectively.
Other import products including jewelry, colored stones and synthetic stones accounted for 8.45, 3.89 and 0.85 percent share respectively. The import value of these products dropped by 23.21, 34.43 and 33.15 percent respectively. However, about 90 percent of import products remained raw materials, as illustrated in Table 3.
Table 3: Import Value of Gems and Jewelry to Thailand from January to December 2008 & 2009 Categories 1. Unwrought or Semi-Manufactured Gold 2. Diamonds 2.1 Rough 2.2 Polished 2.3 Others 3. Silver 4. Jewelry 4.1 Silver jewelry 4.2 Gold jewelry 4.3 Platinum jewelry 4.4 Others 5. Colored Stones 5.1 Rough 5.2 Polished precious stones 5.3 Polished semi-precious stones 6. Synthetic Stones 7. Others Total (1+2+3+4+5+6+7)
Value (Million US$) Share (Percent) Change Jan-Dec 08 Jan-Dec 09 Jan-Dec 08 Jan-Dec 09 (Percent) 6,068.99 3,785.32 64.57 63.10 -37.63 1,551.70 774.16 16.51 12.91 -50.11 513.31 175.28 5.46 2.92 -65.85 1,022.42 590.22 10.88 9.84 -42.27 15.96 8.66 0.17 0.14 -45.76 553.24
520.66
5.89
8.68
-5.89
660.25 54.50 535.72 8.95 61.09 356.21 19.07 154.92 182.23 76.54 131.79 9,398.72
507.02 46.65 427.34 8.33 24.69 233.56 18.11 101.76 113.68 51.17 126.62 5,998.49
7.02 0.58 5.70 0.10 0.65 3.79 0.20 1.65 1.94 0.81 1.40 100.00
8.45 0.78 7.12 0.14 0.41 3.89 0.30 1.70 1.90 0.85 2.11 100.00
-23.21 -14.40 -20.23 -6.87 -59.58 -34.43 -5.01 -34.31 -37.62 -33.15 -3.92 -36.18
Source: The Gem and Jewelry Institute of Thailand (Public Organization)
Thailand’s Gems and Jewelry Import-Export Performance in 2009
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The most important import source was Switzerland with the import share of 27.29 percent, decreasing by 43.30 percent. Most of the products imported from Switzerland were unwrought or semimanufactured gold. Other major import sources were Australia, Hong Kong, Thailand and China with the import shares of 16.14, 13.27, 7.25 and
5.47 percent respectively. The main product which Thailand imported from Australia and Hong Kong was unwrought gold. China was Thailand’s important source for importing silver, while most of the products imported from Thailand were jewelry sent back after being exported to exhibit in gems and jewelry fairs in foreign countries.
F igure 3: Thailand’s Gems and Jewelry Import Sources in 2009 Australia 16.14%
Switzerland 27.29%
Hong Kong 13.27%
Thailand 7.25%
Others 13.08%
Malaysia 2.40% United States Republic of 2.71% Korea 3.74%
China 5.47% Japan 3.85%
India 4.81%
Source: The Gem and Jewelry Institute of Thailand (Public Organization)
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Thailand’s Gems and Jewelry Import-Export Performance in 2009
Conclusion Overall, the export value of Thailand’s gems and jewelry throughout the year 2009 expanded by 18.03 percent. Nevertheless, if considering the export value of gems and jewelry products under various criteria in order to know real potential of Thai gems and jewelry products, it was found that • The export value of Thailand’s major products including diamonds, colored stones, synthetic stones, jewelry and imitation jewelry decreased by 16.03 percent. • The export value of Thailand’s gems and jewelry, excluding that of unwrought or semimanufactured gold, reduced by 16.22 percent. • The export value of Thailand’s gems and jewelry, excluding that of unwrought or semimanufactured gold and the import value of products sent back after being exported to exhibit in gems and jewelry fairs in foreign countries, dropped by 13.00 percent. According to the above information, it was found that the export value of gems and jewelry products, which had the relatively high rate of expansion, resulted from the export of unwrought or semi-manufactured gold. On the contrary, the export value of other major products declined due to trading partners’ economic downturn. However, GIT Gem and Jewelry Information Center expects that in 2010 the export value of Thai gems and jewelry (excluding unwrought gold) will increase about 3-5 percent. The product which has considerable export potential is silver jewelry.
A major factor which will affect the export value of Thai gems and jewelry is economic growth in the major markets including the United States, Japan and the European Union. It is expected that economic growth in these markets will be positive in 2010, causing consumption demands to gradually rise. Meanwhile, consumer markets which have had the increasing importance such as China, India, Russia, Australia and the Middle East still have good economic performance. Furthermore, Thailand’s GSP eligibility for gems and jewelry products has been renewed for one more year. Therefore, Thai gems and jewelry products, particularly silver jewelry, have still gained a competitive advantage in the United States. However, there are some risks from negative factors including f luctuations in exchange rates and the value of the baht which tends to be stronger compared to the US dollar. These may reduce Thai product’s competitive advantage. Moreover, there has been more f ierce competition from rival countries to grab shares in the global market. Therefore, Thai exporters have to focus on differentiating their products through design skills and modern production technology. In addition, they should penetrate new markets with high potential such as China, India, Russia and Middle East countries, together with Australia which has Free Trade Agreement with Thailand. Even though the export value to these markets is still low compared to the total gems and jewelry export value, there is a tendency of continuous growth. Moreover, competition in these markets has not been extremely f ierce. Thus, Thai exporters should not overlook these alternative markets.
* Chapter 71 Natural or cultured pearls, precious or semi-precious stones, precious metals, metal clad with precious metal and article thereof; imitation jewelry; coin
Thailand’s Gems and Jewelry Import-Export Performance in 2009
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Service Provider on Information of Gem and Jewelry Trade on the Basis of Update, Reliance and Accuracy The online gem and jewelry database system serves as one of the essential tools of GIT information center in facilitating the dissemination of in-depth data in several aspects about the gem and jewelry industry to the public widely and eff iciently so that the data can be utilized by Thai entrepreneurs in planning the appropriate production and marketing strategies, developing the product style to correspond with the demand of consumers, adapting the strategies to keep pace with the changes in business environment, as well as avoiding the trade disadvantages. The online data covers such aspects as gems and jewelry marketing, import-export statistics, trade regulations, taxation structure, as well as international gems and jewelry trade fairs and seminars, importer lists in major markets and Thai exporter lists. Interested parties may use the gem and jewelry online database system without any costs incurred by logging on to http://gemandjewelrydb.git.or.th/gem
Published by The Gem and Jewelry Institute of Thailand (Public Organization), Gemmological Research and Testing Building in Faculty of Science, Chulalongkorn University, Phayathai Road, Patumwan, Bangkok 10330, THAILAND Tel: (662) 218-5470-4 Fax: (662) 218-5474 Website: http://www.git.or.th E-mail: jewelry@git.or.th Disclaimer This publication has been provided by the Gem and Jewelry Institute of Thailand (Public Organization). All rights reserved. All copyright in this publication and related work is own by the Gem and Jewelry Institute of Thailand (Public Organization). The same may not be reproduced, wholly or in part in any material form, modif ied or in any manner communicated to any third party except with the written approval of the Gem and Jewelry Institute of Thailand (Public Organization).
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Thailand’s Gems and Jewelry Import-Export Performance in 2009