The Industry Ministry created Jarad to improve the sector's export competitiveness. The organisation is based at Srinakharinwirot University in Bangkok.

Kanjana Chookruvong, director of Jarad, said yesterday that the organisation's new plan aims to upgrade Thai products and has a target of exports worth Bt200 billion by 2009. Thailand exported Bt100 million worth of gems and jewellery last year.

Kanjana said Thailand can no longer compete with China and India in the mass production market due to their cheaper labour costs. She said the Kingdom should instead focus on skilled-labour manufacturing to capture more of the premium market.

The plan calls for an intensive training programme for local entrepreneurs. The programme will focus on modern technology and call in specialists from international institutes.

Thailand's major export markets for jewellery include the United States and Europe. The Middle East is also seen as a strong potential market because the people there have strong purchasing power.

Thailand faces tough export competition from Turkey and Hong Kong, which have skilled jewellery makers. The United Kingdom and Germany are also major competitors in the US.

Thailand imports almost 100 per cent of the raw materials needed to make jewellery. However, it has large supplies of black spinel, a black gem stone, which could be promoted for export. Kanchanaburi is a major source for this stone.

Kanjana said Srinakharinwirot University had decided to draw up Jarad II following the success of Jarad I, which was launched last year. The government had provided a budget of Bt89 million to support the programme.

Chalida Ekvitthayavechnukul

 The Nation