Despite an anticipated global economic slowdown and an elevated trade row between the US and China, Thailand's gems and jewellery exports are expected to manage healthy growth of 5-10% this year, as the market is focused on the high-end and mid-market segments.
Boonkij Jitngamlang, president of the Thai Gem and Jewelry Traders Association, said last year's shipments, excluding gold, are estimated at nearly US$8 billion (254 billion baht).
If gold is included, exports are expected to top $12-13 billion in 2018.
Thailand's gems and jewellery (excluding gold) posted 2.3% growth in 2017 to $7.12 billion, the first growth in three years. The country's overall gems and jewellery shipments, including gold, contracted 9.9% in 2017 to $12.8 billion.
He said Thailand ranks No.1 in global silver jewellery shipments, with the US the biggest market for Thailand.
In addition, Thailand is the one of the biggest exporters of coloured stone products to China and a leading gold jewellery exporter.
"Thailand's gems and jewellery exports have seen little impact from the escalating trade war and Brexit," said Mr Boonkij.
He said Thailand's gems and jewellery exports could fetch more than 10% growth every year if local manufacturers upgrade innovation, marketing, and branding, as import tariffs on most raw materials are near zero.
"A major threat for shipments this year is the strong baht," he said.
"Higher wages are yet another concern."
Duangkamol Jiambutr, director of the Gem and Jewelry Institute of Thailand, said the shipment prospects for gems and jewellery are promising this year.
She said the domestic market, worth more than 300 billion baht, is thriving, driven by higher consumer purchasing power and increasing foreign tourist arrivals.
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