return icon Vietnamnet.vn

Vietnam’s jewelers struggle to penetrate ASEAN market

VietNamNet Bridge - Though the ASEAN jewelry market is large, Vietnamese companies are struggling to enter the market worth billions of dollars.
VietNamNet Bridge - Though the ASEAN jewelry market is large, Vietnamese companies are struggling to enter the market worth billions of dollars.


{keywords}

Cao Thi Ngoc Dung, general director of the Phu Nhuan Jewelry Company (PNJ), said the world jewelry market had a bad year, and PNJ’s export turnover fell.from products to ASEAN countries.

Bui Quang Tin, a lecturer of the HCM City Banking University, said the annual export turnover of hundreds of millions of dollars in recent years was too modest compared with export turnover of $3 billion in 2011. 

Meanwhile, it is estimated that about 50 percent of the figure went to foreign invested enterprises’ pockets.

Vietnam’s jewelers have to compete with strong rivals in the region such as Thailand and Indonesia, as companies can enjoy the preferential export tariff of zero percent.

“Their financial capability is good, while Vietnamese jewelry companies are small. There are about 10,000 Vietnamese businesses in the field, but the number of capable businesses is so small that it can be counted on one’s fingers,” Tin said

While Vietnam’s jewelry exports remain modest, other countries have been increasing exports. Thailand exports $3 billion worth of jewelry a year, and its products have begun penetrating the Vietnamese market. 

Though the ASEAN jewelry market is large, Vietnamese companies are struggling to enter the market worth billions of dollars.
Thai, Taiwanese and Hong Kong enterprises are seen participating in the domestic jewelry trade fairs to learn business opportunities.

Vietnamese companies complain that they cannot increase exports because of too many barriers.

According to the Vietnam Gold Business Association, the export tariff on jewelry with gold content of 95 percent and more has increased from zero percent to two percent since 2015. 

The tax rate makes Vietnam's products less competitive than those from China, Thailand and India which can enjoy a tax rate of zero percent, have plentiful domestic material sources, cheap labor costs and modern production lines.

Meanwhile, Vietnamese companies have to use imported gold materials, precious stones and other materials, while input material prices fluctuate.

However, Dung from PNJ believes that there is no need to worry about the competition in the domestic market. 

Vietnamese companies now can make jewelry with modern machines. Besides, Thailand mostly makes 22K jewelry, while Vietnamese favor 18K products. Imports will also be taxed 10 percent in VAT, which will make products more expensive.

It is still too early to say how the ASEAN Economic Community (AEC) has affected Vietnam's economy. In the last eight months, since the AEC took shape, Vietnam has encountered many difficulties. The import/export turnover to/from ASEAN market decreased in the last seven months, according to General Statics Office (GSO).


Kim Chi

MORE NEWS

Vietnamese, Singaporean PMs hold talks in Singapore

Prime Minister Pham Minh Chinh, now on an official visit to Singapore, held talks with his host counterpart Lee Hsien Loong following an official welcome ceremony chaired by the latter on February 9.

VIETNAM NEWS HEADLINES FEBRUARY 9/2023

PM offers flowers at Ho Chi Minh Statue in Singapore

Two Binh Duong vice chairs reprimanded

Two vice chairmen of the People’s Committee of Binh Duong Province in the 2021-2026 tenure have been reprimanded for their shortcomings while on duty, with effect from today, February 9.

Vietnamese exports to the Americas exceed US$8 billion in January

The nation’s exports to the Americas region reached US$8.21 billion in January, whilst it imported US$1.64 billion from the market, according to data released by the Ministry of Industry and Trade.

Daklak suspends elephant ride service tomorrow

The Buon Don Tourist Center in the Central Highlands province of Daklak will suspend elephant riding service starting tomorrow, February 10.

Phong Nha-Ke Bang among Asia’s most thrilling zip line experiences

Phong Nha – Ke Bang National Park in the central province of Quang Binh has been listed among the top eight most thrilling zip line experiences in Asia, as compiled by Hong Kong-based South China Morning Post newspaper (SCMP).

VIETNAM BUSINESS NEWS FEBRUARY 9/2023

Investors urged to restructure investment portfolio amid challenging environment

ChatGPT accounts sell cheaply as bowls of pho

People who want ChatGPT accounts can easily buy accounts online for only tens or hundreds of thousands of dong.

Revoking licenses of petrol distributors will not affect fuel supply

Although petrol distributors are allowed to buy products from more than one wholesaler, when supply interruptions occur, the distributor system has often not ensured a sufficient supply for filling stations.

Beauty contests heat up in first days of the Year of the Cat

Pham Kim Dung, a representative of the company that founded Hoa hau Quoc gia Vietnam (Miss National Vietnam) beauty pageant, said beauty queens need to make every effort to prove their talent as so many contests now exist.

Vietnam looks forward to catfish orders from China, the US

In January 2023, catfish exports brought $106.8 million to Vietnam, a 50 percent fall compared with the same period last year. However, Vietnamese farmers and exporters now see positive signs from the US and China.

High rates hurting businesses, hamper economic recovery

High interest rates have been hurting businesses' ability to invest in ramping up production capacity, said industry insiders and economists.

Chinese black-credit websites cheating Vietnamese out of money

Many websites have been created to trick people into transferring money to them.

Record number of Vietnamese runners qualify for Boston 2023

Nine of them are from Hanoi and HCM City, the two largest running communities in Vietnam, while the other is Dao Han, who currently lives in Florida, the US.

Vietnam’s transport sector seeking recovery and reboot

While making good recovery during 2022, Vietnam’s transport sector is betting on new policies and plans to increase private investment to obtain its ambitious goals.
back_to_top