The HCMC market has recently seen the overwhelming presence of imported jewelry products much cheaper than local items of the same kind, which is dealing a hard blow to the struggling jewelry processing industry at home.
Jewelry products imported from China, Hong Kong and Malaysia are favored by local buyers due to nice and diversified designs and cheap prices. Imported jewelry products have flooded the local market as up to 70% of nearly 3,000 gold jewelry production and trading companies in the city were already dead, according to Nguyen Van Dung, chairman of the city’s Fine Arts and Jewelry Association.
Dung ascribed the disappearance of many industry players to the fact that local banks are not allowed to provide loans to companies in need of gold purchase for jewelry production and processing. Dung’s association has asked for support from the city’s government to deal with the problem.