In ten short years, the Thai diamond industry has developed a unique identity as the fastest-growing and most organized in the world. More than 30 cutting factories have sprung up, employing 7,000 cutters with a combined annual cutting capacity of 500,000 carats. The workforce is expected to double within the next five years, and the industry has set a goal of one million carats by 1995.

            Not surprisingly, the rapid growth—combined with the current depressed world market for diamond jewelry—has caused some growing pains. Thai manufacturers have mastered the cutting of small, round brilliants—mostly 15 pointers and under—and have created an international demand for the “Bangkok Cut.”

            They now want to expand into larger sixes and more varied shapes, but are unable to obtain enough rough from the De Beers Central Selling Organization (CSO), which controls 85 percent of the world market for rough diamonds.

            The CSO cites the recessive economy as the main reason for not fulfilling the requests of Thai manufacturers. While the powerful diamond cartel is with holding larger rough, it is also acknowledging the impressive gains of the Thai industry.

             In April, Michael Grantham, director of the CSO, met for the first time with the Thai Diamond Manufacturers’ Association. He said he wants to start holding regular meetings with the TDMA, now that Thailand has developed into “a fledgling diamond center.”

            During the past six months, inaugural trade missions from three of the four major diamond centers—Belgium, New York, and India—have all acknowledged Thailand’s place in the world diamond community.

            The fourth center, Israel, cancelled its planned mission due to the Gulf War, but is expected to reschedule it soon.

            As the World Federation of Diamond Bourses noted in a recent newsletter: “With Israel’s diamond exports to Thailand increasing by 34 percent to nearly US$51 million during the past 12 months, Israel is determined to expand this market.”

            But while as the industry continues to rapidly grow in Thailand, more problems loom. Inadequate infrastructure, the lack of a bourse and a banking system unprepared for the specialized needs of the diamond industry are just a few of the hurdles which must be overcome.

            The following articles provide an overview of the current state of the Thai diamond industry—including the problems and some possible solutions.