Commerce Minister Krirk-krai said positive factors driving growth included high demand for luxury goods in world markets and the reputation of the annual Bangkok Gem and Jewellery Fair.

Recently, the Thai Gem and Jewellery Traders' Association and the Thai Chamber of Commerce's Gem and Jewellery Business Club agreed to cut the industry's export target in half. As a result, the Kingdom's total export value should grow only 10 per cent this year, to $4.1 billion.

Last year, the value of gem and jewellery exports grew 12.7 per cent to $3.6 billion.

The annual gem and jewellery fair kicked off yesterday at Muang Thong Thani's Impact Arena Exhibition Centre.

About 35,000 visitors, including international traders, are expected at the 37th exhibition, which runs to next Sunday.

Krirk-krai said recognition of the fair as one of the top five gem and jewellery exhibitions would draw many visitors.

However, the private sector is worried that this year, the fair will not achieve as much as previously, due to rising competition and a similar fair being organised in China.

Komson Opassathavorn, chairman of the Thai Chamber of Commerce's Jewellery and Ornaments Committee, said the Chinese exhibition would be an important factor in seizing customers away from Thailand.

"Unlike China, Thai organisers and exporters are differentiating themselves to draw visitors by promoting Thailand as a centre of high-quality gems and jewellery," he said. China's International Gold, Jewellery and Gem Fair will be held in Shenzhen in Guangdong province from today to next Sunday, the same period for the Bangkok Gem and Jewellery Fair.

Komson added that uncertainty regarding Thailand receiving Generalised System of Preferences (GSP) benefits from the United States in the second half of the year would create difficulties for gem exporters.

"Gem and jewellery exports will continue to grow in the first half, thanks to zero import tariffs to the US.

"However, exporters are worried about the loss of the privileges, due to the high market share of Thai jewellery in the US market," he said.

Gem and jewellery exports from other countries to the US are subject to a 5-per-sent tariff.

Exporters are trying to convince US trade representatives to maintain GSP benefits for Thai gem and jewellery exports for another two or three years,

to allow for the restructuring of the industry to be more competitive.

Otherwise, thousands of workers in the industry will lose their jobs, said Komson.

Petchanet Pratruangkrai

The Nation