Thai jewellery producers and exporters should shift their focus to more high-value and design products and aggressively penetrate the Chinese luxury market due to huge demand and rising purchasing power.
Students learn the basic knowledge about gems at the AIGS in Silom, Bangkok.
Thai jewellery can no longer compete with Chinese products in the mass export markets now due to China's cheaper labour.
"All the labour costs are so much cheaper in China, from polishing and cutting precious stones to setting gems," said Kennedy Ho, chief executive of the Asian Institute of Gemological Sciences (AIGS).
"Our prices cannot compete in the mass export market, so we should create unique designs that are hard to copy or find value for Thai jewellery."
Thailand has been an Asian jewellery production and export hub for years, exporting US$1.23 trillion worth last year, up from only $10 million 40 years ago.
The Ho family has run a jewellery business in Thailand for many decades and owns the Jewelry Trade Centre on Silom Road.
Mr Ho suggests the government organise international fairs in Thailand and offer more trade incentives.
While the US and European markets are shrinking due to lingering economic problems, the Chinese market is burgeoning and should be a focal point of local exporters.
Some Thai jewellers set up production lines in China to benefit from low labour costs.
Myanmar is also piquing the interest of Thai jewellers.
The Bangkok-based AIGS plans to open a jewellery design school and test lab in Yangon to certify diamonds, gemstones and jewellery sold in Myanmar.
"Tourists to Myanmar often want to buy some jewellery but are not sure about genuine quality. There is potential to have a certified body verify the gems in that country," said Mr Ho.