Jewellery trade makes strong rise despite high gold price

Major gold jewellery makers have reported strong business in 2010 though high gold prices have dragged the local purchasing power.

Phu Nhuan Jewellery Co. (PNJ) said its 2010 revenue surged by one-third compared with its 2009 revenue of VND2.55 trillion, while its net profit also increased 19 percent. Jewellery trade made up more than 55 percent of the company’s revenue last year.

Nguyen Thi Cuc, deputy general director of PNJ, said higher gold prices discouraged buyers, so her company managed to design delicate jewellery items with little gold used. Therefore, the increased gold price affected the company’s profit just little.

In addition, Cuc said the expansion and upgrade of PNJ distribution system also helped spur revenue. Currently, PNJ operates 135 stores and 3,000 affiliated distributors.

Jewellery export was also a strong factor at PNJ in 2010, as the company’s jewellery exports went up 57 percent over 2009. In 2011, PNJ targets a 50 percent rise in export sales compared to 2010 now that many foreign buyers have placed orders with PNJ.

Other jewellery makers also are happy with last year’s business.

Nguyen Thi Ngoc Suong, deputy director of Saigon Jewellery Holding Company, said that SJC’s jewellery revenue increased 20 percent last year, especially towards the end of last year despite higher gold prices. Currently, many shops have placed orders for the Lunar New Year, or Tet.

Meanwhile, Sacombank-SBJ Jewellery Company saw its jewellery business expand five folds last year, said Nguyen Ngoc Que Chi, CEO of the company.

The steep increase is encouraging as SBJ only expanded business scope to jewellery since April 2009, she said, adding jewellery export last year brought high profit for the company. – Saigon Times

Tags: vietnam gold, Vietnam gold market, Vietnam gold prices