Thai industry leaders need to become more realistic about the country’s potential as a diamond center, according to members of a trade mission from Belgium’s Diamond High Council.

            A March seminar, which brought key members of Antwerp’s Diamond High Council and Thai industry leaders together in Bangkok, shed light on the bright prospects—as well as problems—for Thailand’s future as a diamond center.

            Abraham Fischler, president of the Diamond High Council (HRD), began by congratulating Thailand on its progress and prospects in the diamond trade. But he also cautioned that he detected an air of overconfidence among some local leaders that Thailand has already developed into a major diamond center.

            “They have too much illusion,” Mr. Fischler said. “They think they are already a diamond center, but they are really just at the beginning of becoming one. You need more than just polishing factories and cheap labor. It takes time, experience and financing. It’s okay to dream, but you have to attack the problems.”

            The first hurdle for the industry here is financing, he said. Thailand needs to become a member of the World Federation of Diamond Bourses (WFDB) before it can enjoy the same credibility of the established diamond centers.

            “The diamond business is done 90 percent on credit,” Mr. Fischler explained. “When you sell to a member in Johannesburg, Tel Aviv of Belgium, you have some claim through the rules of the Federation. If someone does not follow the rules, within 24 hours everybody around the world knows and this man has no more credit.”

            Thailand must also develop a special banking system to handle the unique needs of the diamond trade, Mr. Fischler added. The best way for Thailand to develop the necessary infrastructure is to visit other diamond centers and learn from them, he stressed.

            He offered Thailand the assistance of the HRD, which is backed by the five centuries of tradition which turned Belgium into the world’s largest diamond center, with a 1990 turnover of US$15.5 billion Mr. Fischler invited Thai industry leaders to come to Belgium and continue discussing strategies to speed development of the diamond industry here.

            Belgium has already played a significant role in the Thai diamond industry, and will continue to do so, he promised. “We’re a small country of only nine million people and we need the help of others. Improvements in the industry here will benefit us as well.”

            While it is unrealistic for Thailand to assume it can become one of the world’s top diamond centers within the next five years, Mr. Fischler said it is possible for it to catch up with, and perhaps replace, Hong Kong as the region’s leading center.

            “If everything goes as planned, Thailand has a big future. There is enough room for everybody,” he added. “The cake in the diamond business is very big and the piece that Thailand has now is still very small.”