Vietnam Jewelry

OPPORTUNITIES AND POTENTIALS OF THE
VIETNAMESE GOLD JEWELLERY INDUSTRY
Presented by: MR ĐỖ MINH PHÚ

Chairman of Board of Founders
DOJI Gold & Gems Group
Singapore, 5 June, 2018
Số hiệu Tài liệu:

DEVELOPMENT OF THE VIETNAM
I JEWELERY INDUSTRY OVER TIME
POTENTIAL OF THE JEWELLERY

II MARKET
CONTENTS
CHALLENGES AND LIMITATIONS OF
III
THE JEWELLERY MARKET
OPPORTUNITIES FOR THE JEWELLERY

IV MARKET AND FOREIGN INVESTORS
I - DEVELOPMENT OF THE VIETNAM
JEWELERY INDUSTRY OVER TIME
I THE DEVELOPMENT OF THE VIETNAM JEWELERY INDUSTRY OVER TIME
Period Period Period Period

1975-1988 1988-2001 2001-2012 2012-2018
Consumption output: 10 TEXT

Consumption output:TEXT
15 tons
Consumption tons / year Consumption
output: 5 tons / / year output: 20 tons /
Trading gold bars and gold Decree 174 / ND-CP promoted
year jewelry was formally re- year
Gold market the private sector of Gold & Decree 24 / NĐ-CP
established with Decree 33 / Jewellery to develop business
officially froze ND-CP along with the has brought
production in a typical way
after Liberation establishment of state- stability to the gold
with the establishment of
Day. Business owned Gold & Jewellery market and creates
DOJI Group and attracted
operations and companies from the central favorable
many foreign companies to
manipulation to local levels (VietGold, invest in manufacturing conditions for large
were SJC, PNJ ...) allowed to facilities in Vietnam (Design enterprises such as
completely import gold bars, gold raw International, Pranda, Tomei SJC, DOJI and PNJ
hidden and materials for production and ...). Many jewelry shops were to develop
limited in a trading on a large scale. opened nationwide such as production facilities
narrow scope Private businesses were still DOJI, PNJ ... Consumption and business
small businesses. was improved, quality and networks on a
gold content were guaranteed. national scale.
I THE DEVELOPMENT OF THE VIETNAM JEWELERY INDUSTRY OVER TIME
II - POTENTIAL OF THE MARKET
II POTENTIAL OF THE MARKET
1. Population and population structure in Vietnam
The current population of Viet Nam is over 96 million people with age structure:
from 15-64, accounting for 69% → Viet Nam has a golden population structure
2. GDP and average income of Vietnam from 2010 to 2017
Vietnam GDP from 2010- 2017 Vietnam Everage Income from

6.78% 6.68%6.21%6.81% 2010- 2017(USD)
5.89% 5.98% 2200 2385
5.03%5.42% 1960 2000 2109
1719
1517
1273
2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017
High and stable GDP growth rate from 2010 to 2017 is

6.1% on average. Growth will continue to hit 7% by 2025.
In the period 2010-2017, Vietnam's per capita income has grown steadily over the
years from $ 1,273 in 2010 to $ 2,385 in 2017 → rapidly growing middle class.
3. Taste and psychology of consumption for gold and jewelry

The total population of nearly 100 million is in the state of the golden population structure, the middle
class rising fast, people still carry the traditional psychology and gold hoarding preferences. However,
there has been a shift in the habit of buying gold bars to buy gold jewelry with 3 purposes Jewelry -
Investment - Storage.
4. Demand for gold in Vietnam

With 70% of the population aged 15-64, of which 51% are female →
Generate abundant shopping
According to calculations from the World Gold Council, the value of
gold per capita in Vietnam in 2015 is USD$6.2, equivalent to 60% of
Malaysia's consumption and 7% of Singapore. In addition, the
consumption of gold jewelry in Vietnam compared to total gold
consumption is only 25% while the rate in other countries in the
region is over 50% (except Thailand: 14%) → plenty of places to
grow in the future. Estimated gold jewelry consumption is expected
increase to an average of 40 tons per year by 2025
III - CHALLENGES AND LIMITATIONS OF
THE MARKET
III CHALLENGES AND LIMITATIONS OF THE MARKET
Jewelry production activities in

Vietnam are mainly of small scale, so
it is difficult to make breakthroughs in
product development
The 4.0 technology is taking place

strongly in many fields, but due to the
specificity of the gold industry, with
small and handicraft production bases,
most small enterprises and not having
access to modern and synchronous
technology → to low labor
productivity, uneven jewelry quality.
III CHALLENGES AND LIMITATIONS OF THE MARKET
The policy on gold market has many positive points, however, there are some shortcomings
which make it difficult for the development of the gold industry: the domestic gold price and
the world market are quite different as the Gold producers are not allowed to import gold,
and at the same time make it difficult for enterprises to actively source raw materials →the
competitiveness of enterprises are reduced and more difficult for export. 2010 : 61tons;
2011 : 38tons , 2012 & 2013 : 0 tons , 2014: 0.7tons, 2015 : 0.3tons, 2016 : 8tons, 2017 :
0.8 tons
IV - OPPORTUNITIES FOR THE MARKET
AND FOREIGN INVESTORS
IV OPPORTUNITIES FOR THE MARKET AND FOREIGN INVESTORS
1. Opportunities for the market
Tectonic government has been creating favorable conditions and timely

solutions to many difficulties for the operation and development of enterprises.
Decree 24 is being revised to create more favorable conditions for businesses

and promote the development of the gold market in the future.
The State Bank of Vietnam is considering allowing gold companies to import

raw material to manufacture jewelry and abolish unnecessary licenses.
The habits of gold storage and high demand of jewelry in Vietnam \ bring
great opportunities for the market.
2. Opportunities for investors
The policy of opening the economy is a consistent

policy and implemented in a synchronous manner to
create an attractive investment environment for
foreign investors.
Vietnam is a member of the WTO, has signed many

bilateral trade agreements with economic powers
and important partner countries of Vietnam.
2. Opportunities for investors
Import tax policies are implemented in favor of enterprises, and

Vietnam imposes zero tariffs for jewelry on those countries that have
trade agreements( currently China and the ASEAN)
Vietnam has strengths with young and skilled workers who are creative and quick to
adapt to scientific and technological advances to create more sophisticated products,
unique models → Vietnam Jewellery Industry will be able to reach the level of the
country in the area.
4.0 technology is a trend that gold companies can not stand outside to avoid falling behind in
technology.Vietnam has 10,000 enterprises engaged in jewelry production and trading, but
only a few large enterprises have the ability to invest in technology. However, when the policy
is amended, the business environment is more favorable, a lot of companies will invest
trongly in production and import of many modern machines and equipments.

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What are the stages of development of Vietnam's jewelry industry over time?

What are the stages of development of Vietnam's jewelry industry over time?

What are the potentials of Vietnam's jewelry market?

What are the potentials of Vietnam's jewelry market?

OPPORTUNITIES AND POTENTIALS OF THE

VIETNAMESE GOLD JEWELLERY INDUSTRY

Presented by: MR ĐỖ MINH PHÚ

Singapore, 5 June, 2018

Số hiệu Tài liệu:

POTENTIAL OF THE JEWELLERY

OPPORTUNITIES FOR THE JEWELLERY

Period Period Period Period

Consumption output: 10 TEXT

1. Population and population structure in Vietnam

2. GDP and average income of Vietnam from 2010 to 2017

Vietnam GDP from 2010- 2017 Vietnam Everage Income from

High and stable GDP growth rate from 2010 to 2017 is

3. Taste and psychology of consumption for gold and jewelry

4. Demand for gold in Vietnam

Jewelry production activities in

The 4.0 technology is taking place

1. Opportunities for the market

Tectonic government has been creating favorable conditions and timely

Decree 24 is being revised to create more favorable conditions for businesses

The State Bank of Vietnam is considering allowing gold companies to import

2. Opportunities for investors

The policy of opening the economy is a consistent

Vietnam is a member of the WTO, has signed many

2. Opportunities for investors

Import tax policies are implemented in favor of enterprises, and

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