Logo of Phnom Penh Post newspaper Phnom Penh Post - Thailand’s gem industry may move to Cambodia

Thailand’s gem industry may move to Cambodia

Thailand’s gem industry may move to Cambodia

120306_09

Cambodia could overtake Thailand’s gem export market to the United States within five years, officials said yesterday.

{jathumbnail}

Thailand’s growing economic status could soon disqualify it for tax exemption when exporting gems to the US market, but Cambodia’s standing as a Least Developed Country would allow it to continue trading tax free.

“US officials have told me it will likely happen within the next five years,” said Cham Prasidh, senior minister at the Ministry of Commerce, referring to Thailand’s gem trade being taxed.

He said that the move would likely attract Thai traders to move their businesses to Cambodia.

“I believe that some Thai traders may run to Cambodia to produce gems and jewellery, and then export from here because they would lose some customers if they were forced to increase their prices. They will have to come to Cambodia.”

Cham Prasidh added that the move would likely help Cambodian gem traders increase their own profits, as businessmen and Cambodian gem traders could form partnerships with Thais who already had business in the States.

Jiranun Wongmonkol, the ministry counselor at the Office of Commercial Affairs at the Royal Thai Embassy in Phnom Penh, confirmed that Thailand would lose its tax-exemption status when selling gems, but did not know exactly when the measure would be implemented.

She agreed that Thai traders would likely relocate business to Cambodia.

The Kingdom’s gem business also received a boost yesterday when Intertek, a London-based company providing gem-authentication services, opened a new laboratory in Phnom Penh.

Intertek’s director in Cambodia Khuth Sothy said the new laboratory would increase the confidence of potential buyers and investors, especially foreign tourists coming to buy gems in Cambodia.

“The lab and the standards it aims to ensure would “contribute to protecting tourists’ interests and will help them avoid fraudulent business made by dishonest traders”, Khuth Sothy said.

MOST VIEWED

  • Negotiations on EBA being held

    In an effort to defuse tensions, a senior government official said Cambodia is negotiating with the European Union (EU) on the Everything But Arms (EBA) trade deal, which allows the Kingdom to export goods to the 28-member bloc tariff-free. The EU notified Cambodia on October 5

  • Ministers to tackle sea pollutants

    Preah Sihanouk provincial authorities and members of local communities have collected 77 tonnes of water hyacinth at a Sihanoukville beach, Preah Sihanouk Provincial Hall spokesperson Or Saroeun said. He told The Post yesterday that the aquatic weeds had been floating along some of the province’s

  • Chinese police escort deported scam suspects

    Ninety-one Chinese nationals accused of extorting money from victims in a Voice over Internet Protocol (VoIP) scam were deported from Phnom Penh International Airport on Monday under the escort of 182 Chinese police personnel. General Department of Immigration head of investigations Ouk Hay Seila told reporters

  • Sam Rainsy, government group set to clash at IPU Geneva meet?

    Opposition figure Sam Rainsy has been invited to speak at the General Assembly of the Inter-Parliamentary Union (IPU) in Geneva, according to a former Cambodia National Rescue Party (CNRP) lawmaker. A government delegation is also set to attend the meeting, a National Assembly press release