As one of the primary industry associations in Thailand, Thai Gem and Jewelry Traders Association (TGJTA) is dedicated to promoting and reinforcing Thailand’s position as the world’s gemstone and jewellery trading hub and a gateway to the regional market. With almost 30 years of experience in organising trade shows, TGJTA has built strong relationships with trade associations worldwide especially those in ASEAN countries.
In 2012, TGJTA initiated ASEAN+6 Gems & Jewelry Presidents’ Summit which since then has become an important platform for the exchange and cooperation amongst the leading industry associations in the Asia-Pacific region, and will debut the Thailand Gems & Jewelry Fair (TGJF), the first mid-year fair in the country, from 15 to 18 June 2017 at Impact Challenger 2, Bangkok. Suttipong Damrongsakul, president of TGJTA talked to Hong Kong Jewellery about the new show, the Thai gemstone and jewellery industry, and the association’s plans.
HKJM: Hong Kong Jewellery
SD: Suttipong Damrongsakul
HKJM: There are many trade fairs held in the region every year, what are the positioning and focus of TGJF?
SD: As a new fair, TGJF will house 1,000 booths occupying around 20,000 square meters, which is smaller than the Bangkok Gems & Jewelry Fair (BGJF). Supported by ASEAN+6 countries and regions, the show will focus on the market of the ASEAN Economic Community (AEC) and the whole Asia-Pacific region. The proportion of B2B in TGJF will be about 70 percent and the remaining 30 percent will be cash & carry and retail. We have partnered with the Jeweller Association of Thailand, one of the oldest industry associations in Thailand and most of their members are jewellery retailers.
Feedbacks from our members and TGJF exhibitors showed that BGJF mainly targeted at the global market, and a new fair should be organised to attract more local consumers. We want to deliver the message to the Thai people that if you want to buy quality Thai gemstones and jewellery at reasonable prices, come to TGJF.
HKJM: What are the initiatives TGJF will take to draw visitors and boost sales?
SD: The Thai government has been highly supportive of the gemstone and jewellery industry, and has granted tax incentives to facilitate trading. Exhibitors and buyers can enjoy zero import duty on all jewellery, silver and gold chain coils and rolls, technology, machinery and tools, and zero VAT (value-added tax) for rough stones, and finished diamonds and gemstones.
In March 2017, Ministry of Tourism and Sports of Thailand announced that they will highlight and promote Thailand as a shopping destination of gemstones and jewellery to overseas tourists. In this context, TGJF will feature the ‘Four District of Gems and Jewellery’ zone to showcase the landmarks in Bangkok which are the sources of different types of jewellery from Mahesak Road, Yaowarat Road, Charoenkrung Road, Khaosan Road, Silom Road, Surawongse Road, and Baan Mor Area, and to draw more visitors.
HKJM: What do you expect from the first TGJF?
SD: We have built strong relationships with international trade associations including those in ASEASN countries, mainland China, Hong Kong, Europe and the United States, and obtained positive responses to the show from them. The optimal timing of TGJF will allow major overseas buyers to visit TGJF and conduct business with quality exhibitors. With the support from the government and the industry, I do believe TGJF will represent the Thai gemstone and jewellery industry and manifest that Thailand is still one of the best destinations for gemstone and jewellery manufacturing and trading.
HKJM: What are the difficulties the Thai gems and jewellery industry is facing?
SD: Thailand is a major manufacturer and exporter of gemstones and jewellery in the world. Even in economic downturn, we were still able to maintain the overall export value of gemstones and jewellery between US$13-15 billion. In the past five years, the annual growth for the exports of gemstones and jewellery was around three percentage points. However, we still have the shortage of labour and raw materials, and need to transform from OEM to ODM.
HKJM: What are TGJTA’s plans to tackle these issues?
SD: We have been continuously expressing the industry’s needs to the Thai government. Lately, the government announced a long-term plan to train more skilled labours for our industry. We are now talking to them to eliminate the seven-percent VAT on polished stones. If that happens, Thailand will be more or less like Hong Kong as a free trading hub.
Thailand has been a manufacturing base of gemstone and jewellery in the past 50 years. It is foreseeable that other ASEAN countries will engage in the midstream of jewellery making in the next five years. In view of this, we are in the position to transform from manufacturing to trading and servicing. TGJTA plans to promote Thai jewellery brands to the world with a special focus on the AEC market in the future.
← Back