Editor’s Note
This article highlights Thailand’s growing appeal as a gemstone sourcing destination, particularly the key province of Chanthaburi. It reflects a broader trend of recovery and growth in the country’s jewelry export sector, as indicated by recent economic data.
“For people in the jewelry industry, Thailand is a paradise for ‘treasure hunting’,” said Ma Yu, a 35-year-old Chinese jeweler who recently embarked on her first overseas trip to source gemstones, with Chanthaburi Province in Thailand as her first stop.
A recent report from Thailand’s Kasikorn Research Center stated that in September 2023, Thailand’s total export value increased by 2.1% year-on-year, with the export value of gems and jewelry (including gold) showing a significant surge of 40.1%. So, how has Thai jewelry won favor in the international market?
Located on the border between Thailand and Myanmar, Chanthaburi, meaning “City of the Moon” in Thai, is not only famous for its durians but also renowned as a gemstone-producing region. The history of ruby and sapphire mining in Chanthaburi dates back to the 16th century. Five hundred years later, although the clanging scenes of mining with water pumps and shovels are gradually fading, Chanthaburi has developed into a world-class gemstone cutting and polishing center.
said Li Jiachun, former China advisor to the Thai Gem and Jewelry Traders Association and Chairman of Yongtai Jewelry Company. Since the 1960s, due to ongoing turmoil in several Southeast Asian countries, Thailand, situated at the regional center, has welcomed many jewelry industry practitioners from neighboring countries.
Li Jiachun noted that Chanthaburi’s ruby mines are nearly depleted, with some sapphire mines still in operation. However, over the years, processing teams and trading markets formed around the jewelry industry have been established in Thailand, developing a complete supply chain and infrastructure from upstream to downstream.
Currently, over 700,000 of Thailand’s more than 70 million population are engaged in jewelry-related work, with approximately 12,000 registered entrepreneurs. This skilled professional workforce continuously drives the industry’s development.
According to Sumed Prasongpongchai, Director of the Gem and Jewelry Institute of Thailand (GIT), the Thai jewelry industry not only possesses world-renowned craftsmanship in cutting and polishing but has also developed core technologies such as heat treatment processes that enhance the quality of colored gemstones, making Thailand a manufacturing base for many global jewelry brands.
Simultaneously, Thailand is also a crucial trading location for numerous international gemstone mining companies and jewelers.
Li Jiachun explained.
For small and medium-sized jewelers, the gemstone street in Chanthaburi or jewelry trading centers in Bangkok are more “down-to-earth” trading venues. Ma Yu told the Global Magazine reporter that shops on the gemstone street are somewhat like “street stalls,” bustling with people and abundant goods, and finding good-quality, affordable rough stones truly tests a practitioner’s discerning eye.
Yaowarat Road’s gold, Charoen Krung Road’s silverware, and Silom Road’s gemstones are the three landmarks of Bangkok’s jewelry industry, witnessing Bangkok’s coronation as the “Jewelry Capital.”
According to GIT statistics, Thailand has now become the world’s third-largest exporter of colored gemstones, with major export markets including the United States, ASEAN, India, and the Middle East. A report from the Federation of Thai Industries shows that Thailand’s jewelry export value in 2022 exceeded $15 billion, a year-on-year increase of nearly 50%. With international travel gradually recovering to pre-pandemic levels and consumers regaining confidence, GIT expects Thailand’s jewelry exports to grow by 10% to 15% in 2023.
Long a pillar of the Thai economy, the jewelry industry ranks among the top five export sectors, following automobiles and parts, computers and components, rubber products, and plastic. Sumed stated that over 80% of the world’s rubies must be sent to Thailand for processing before being re-exported to other countries, making Thailand one of the veritable “world jewelry centers.”
In addition to its superior geographical location, unique natural resource endowment, long-standing craft heritage, and skilled processing teams, the Thai government is also vigorously supporting the development of its domestic jewelry industry. As jewelry is a complex fusion of science and art, difficult to easily achieve through AI or automation systems, this industry plays a unique and crucial role in Thailand’s future economic development. To this end, the Thai government not only closely cooperates with the private sector in taxation, finance, laws, and regulations but also actively organizes related events to promote the globalization of the Thai jewelry industry.
At the recently concluded 68th Bangkok Gems & Jewelry Fair, over 1,100 jewelers from 21 countries participated, attracting nearly 40,000 visitors from 117 countries, with a cumulative transaction value of 3.3 billion Thai baht (approximately 1 Thai baht = 0.20 Chinese yuan), making it one of the world’s most important jewelry exhibitions.
To enhance global jewelers’ confidence in Thai jewelry inspection and consolidate Bangkok’s position in the jewelry trade industry, during the fair, GIT also held a cooperation ceremony with China’s National Gemstone Testing Center, aiming to strengthen the standardization procedures for Thai gemstone inspection and explore jointly establishing global inspection standards.
Having entered the Thai jewelry industry at the age of 17, Li Jiachun has now been in the business for over 30 years. As a firsthand witness, he has observed the development and glory of Thailand’s jewelry industry and is also aware of the opportunities and challenges ahead.
In Li Jiachun’s view, on one hand, the shift in gemstone origins is undoubtedly one of the biggest uncertainties facing the Thai jewelry industry.
Li Jiachun said. He noted that current gemstone-producing areas are mainly concentrated in Africa, as well as Sri Lanka, Afghanistan, Myanmar, and other places.
These regions, constrained by security factors and socio-economic development levels, have not yet established a complete jewelry industry chain compared to Thailand, but their future development potential is enormous and may pose a challenge to Thailand’s industry position.
On the other hand, thanks to years of accumulation and cultivation, Thailand’s jewelry processing industry and craftsmanship have a lead of 5 to 10 years compared to other countries, but the development speed of rising stars should not be underestimated.
Li Jiachun, who recently attended the Shanghai China International Import Expo, was deeply impressed by the development of China’s jewelry industry in recent years.
Li Jiachun said.
However, Thailand’s jewelry processing practitioners are facing a “gap between generations.”
Li Jiachun said. Due to the heavy and monotonous nature of the work, the new generation of Thai youth is unwilling to enter the jewelry processing industry, resulting in a situation of “no successors” in the field.
Li Jiachun stated that the future development of the jewelry processing industry requires both continuous guidance from the government and resonance from enterprises.
he said.
Whether the dazzling “Jewelry Capital” will continue to radiate new vitality in the future is a new question left for Thai jewelry professionals, including Li Jiachun, awaiting their search for answers.