Key points
- According to this Bangkok Gems News report, Thailand’s gem export growth has slowed in recent quarters, while newer players—particularly Vietnam’s burgeoning cutting industry and India’s high-tech processing and marketing infrastructure—are not only closing the gap but in some cases overtaking Thai exports in value and volume.
- Thailand has long been regarded as the jewel of Asia’s gemstone trade, with Bangkok and Chanthaburi serving as epicenters for the cutting, trading, and exporting of some of the world’s finest rubies, sapphires, and colored stones.
- But the kingdom’s dominance is facing an unprecedented challenge as Vietnam and India aggressively ramp up their gem and jewelry sectors, capturing global market share and raising concerns among Thai traders, exporters, and policymakers.
Bangkok Gems News: Historic Reputation Under Pressure as New Players Rise
Thailand has long been regarded as the jewel of Asia’s gemstone trade, with Bangkok and Chanthaburi serving as epicenters for the cutting, trading, and exporting of some of the world’s finest rubies, sapphires, and colored stones. But the kingdom’s dominance is facing an unprecedented challenge as Vietnam and India aggressively ramp up their gem and jewelry sectors, capturing global market share and raising concerns among Thai traders, exporters, and policymakers.
Thailand is losing its stronghold as the Regional Gems and Jewellery Hub
Image Credit: StockShots
According to this Bangkok Gems News report, Thailand’s gem export growth has slowed in recent quarters, while newer players—particularly Vietnam’s burgeoning cutting industry and India’s high-tech processing and marketing infrastructure—are not only closing the gap but in some cases overtaking Thai exports in value and volume. This shift is triggering alarm bells within the industry, with many insiders fearing that Thailand is on the verge of losing its status as Southeast Asia’s leading gemstone hub.
Vietnam and India Capitalizing on Modernization
Vietnam’s emergence as a gemstone player has been swift and strategic. Backed by government initiatives and international investors, Vietnam has poured resources into modern gem-cutting facilities in cities like Hanoi and Ho Chi Minh City. These state-of-the-art operations are attracting orders from international buyers seeking competitive prices, while still demanding top-tier finishing quality.
Meanwhile, India—already a leader in the global diamond cutting and polishing trade—is leveraging its infrastructure, skilled labor, and logistics networks to encroach into colored gemstone territories historically dominated by Thailand. Surat and Jaipur are now exporting large volumes of rubies, sapphires, and emeralds at prices that Thai traders are struggling to match, particularly in bulk commercial-grade stones.
“Thailand has been too reliant on legacy systems and reputation,” said Dr. Sirin Tharasai, a gemstone industry consultant based in Bangkok. “But Vietnam and India are adapting faster to modern demands—tech integration, traceability, and price competitiveness.”
Domestic Issues Slowing Thailand Down
Thailand’s own bureaucratic hurdles, aging labor force, and a lack of substantial government investment have further weakened its position. Many of the traditional gemstone cutters and traders in Bangkok and Chanthaburi are family-run businesses with limited ability to scale or modernize. As global buyers demand faster turnaround, digital catalogs, and verified ethical sourcing, some Thai firms have struggled to keep up.
In addition, the rising cost of raw materials and a reliance on imported rough stones—particularly from Africa and Myanmar—have eroded Thailand’s profit margins. “We’re paying more for rough and losing buyers to places that can offer the same stones at better prices and with better traceability,” said Anucha Metharattanakul, a second-generation gem trader in Silom.
Compounding the issue is the brain drain within the industry. Young Thais are increasingly turning away from the gem trade, leaving a skills gap that threatens long-term sustainability. “It’s no longer seen as a glamorous or profitable career path,” Anucha added.
Can Thailand Reclaim Its Crown
Industry leaders and trade groups are urging the Thai government to take swift action. Proposed solutions include increased funding for gemological education, subsidies for equipment upgrades, and tax incentives for exporters who invest in innovation and ethical sourcing practices.
Some have also called for the creation of a national gem certification body that can rival global labs, helping Thailand re-establish itself as a leader in gemstone authentication and credibility. Others are promoting more aggressive marketing campaigns targeting emerging markets like the Middle East and Eastern Europe.
There are glimmers of hope. Thailand still retains deep expertise, a rich network of experienced traders, and a globally recognized gemological reputation.
Bangkok remains a key stop for international buyers looking for fine-quality rubies and sapphires. But without urgent transformation, that reputation may soon become a thing of the past.
The battle is no longer just about beauty or tradition. It’s about agility, innovation, and adapting to a new global trade reality.
For the latest on the Gems and Jewellery industry in Asia, keep on logging to Bangkok Gems News.
