Despite its relatively short rough diamond history, Vietnam could become an upcoming diamond center that will quickly become an important center for the trade in the Asian region. Especially since the entire Asian region has no official diamond office and since Vietnam does not have any religious restrictions which cause issues for the bigger players in the market, it could become one of the leading diamond trade centers in the world.
The PHI Asia Diamond Exchange Fund will establish a modern bourse and an affiliation with the World Federation of Diamond Bourses (WFDB) and fully compliant with the Kimberley attestation process. Negotiations thereto have commenced by the PHI commissioned diamond task force. Within a convenient location near an airport and located within a newly established AMCC (Asian Multiple Commodity Center), Vietnam will become a vital rough diamond trading center.
Vietnam, due to its strategic central location, is a country where pioneering in the diamond sector will make the country a world player. It definitely will become a new pass-through and a key player for the regional rough diamond trade, local polishing and export to its neighboring countries (Singapore, Cambodia, Malaysia, Thailand, and China, not to mention the close access to the Indian market) and having access to huge export facilities.
Offering a tax amnesty within the AMCC, the ADE (Asia Diamond Exchange – Vietnam) will become an attractive option for diamond firms worldwide, particularly for manufacturers looking for a way to improve their slim bottom- lines. Companies headquartered in India and Belgium, Dubai and Israel, as well as other countries, will be able to open offices in the ADE and start trading in 2019.
A key component for establishing this trade will be the securing of a Diamond Building, where all diamond activities will be grouped within the AMCC, preferable close to an international airport. This Diamond Building will be established under the model of the Israel Diamond Exchange (IDE), the Bharat Diamond Bourse (BDB) and the Antwerp Diamond Exchange. It provides a secure and closed environment that houses everything a diamond trader needs under one roof.
It has the ADE:
Strong geographic advantage
The geographic location of VIETNAM adds to its allure as a diamond-trading center. For the first time, there is a major diamond center in the heart of an important consumer diamond market – the Asian region. As such, it will serve consumers in China and all major surrounding countries as listed above, and will increase and streamline the already existing $3.2 billion worth of diamond jewelry in 2016.
VIETNAM is also a good mid-point stop between Africa, the leading rough diamond supplier, and India, the leading rough diamond polisher. This central location proves to be another attractive trait for Indian companies, which will quickly establish a presence in the ADE.
Finally, in response to the recent decline in availability of financing in the veteran diamond centers, local banks will be introduced as booking centers for offering an increasing level of financing to diamond companies in VIETNAM. This additional financing and booking of funds locally in the AMCC will prove to be the icing on the cake, especially after Antwerp Diamond Bank announced its closure and ABN Amro announced that it was toughening financing approval requirements. The PHI diamond task force will provide the establishing of local branches in the AMCC.
The combination of a secure and modern trading facility, a very convenient geographic location, and a growing availability of financing, will transform VIETNAM into an important trading center, especially for rough diamonds.
The rising role of Vietnam as a diamond center will come mostly at the expense of Antwerp’s diamond trade and the one in Tel Aviv. The Belgian center suffered at the time from high taxation and a regime that made taxation costs unclear until the end of the year.
Furthermore, a series of Belgian police and tax authority raids on many of Antwerp’s diamonds firms. This caused fear and unpleasant environment for doing business.
Compared to the economic climate in Vietnam, Antwerp seemed less favorable, leading to a shift in trade from the traditional center to the new one.
The ADE Membership is acquired automatically for all Vietnam AMCC (AMCC) licensed members that are trading in jewelry, pearls & precious stones; manufacturing precious jewelry and cutting & polishing precious stones. Under the ADE umbrella, AMCC precious stones traders and service providers come together as one globally accepted framework for governance and trade practices. ADE members assume greater trust and access to new markets. The ADE membership is linked to the company’s licensing period, without any additional documentation required.
As a trade regulator and market maker for diamond and colored stones businesses, the ADE will be the only bourse in the Asian Region affiliated with the World Federation of Diamond Bourses (WFDB). The ADE brings together several large-scale initiatives, such as rough and polished diamond tenders and trade benefits for pearls and colored stones.
ADE membership serves as a mark of distinction, opening doors and allowing access to those active in the diamond trade. The ADE ensures its members have the safety of trading only with reputable companies who adhere to its compliance guidelines and are bound by a strict code of good business practices and ethics.
The ADE will have exceptional facilities, providing fully equipped trading halls for its members and a complete service environment for everyone in the diamond pipeline.
The ADE, in addition to providing a full range of services to support members in their daily transactions, will also house all ancillary service providers related to the diamond industry. Our PHI task force is in the process of negotiating all the facilities as stated. A dedicated team will be located in the exchange and committed to assisting members and their guests:
The ADE’s tender and auction services will play an important role in the Vietnam diamond trade, matching the right goods from seller to buyer. The ADE has the optimal infrastructure to host diamond tenders, using state of the art facilities, equipment and personnel to ensure secure, transparent tenders for the benefit of the seller and buyer.
The ADE vault will combine a unique location with the highest global security standards for short and long term storage of precious gems and other valuable assets. Designed with security and accessibility in mind, it will be housed within the ADE floor, with high-tech security and ultimate convenience. Traders can deposit or withdraw goods using a fully automated robotic vault in complete privacy and comfort.
Diamonds will play an illustrious role in Vietnam’s heritage as a gateway for global trade. The AMCC will be committed to setting the standard for the secure diamond trading in line with the highest quality standards. Our investments in world-class infrastructure and services include the government-backed Asia Diamond Exchange – Vietnam (ADE), ADE Vault and commitment to the Kimberley Process.
Trade through the ADE will rapidly expand by building on strong connections with producers in Africa, cutting centers in Asia and consumers in Europe, the US and China. Consequently, our members and global trading partners can trade with complete confidence while accessing new markets.
The Asia Diamond Exchange (ADE) will be a unique platform that gives you access to a trusted framework for all aspects of diamond trading. As the region’s only trading exchange for diamonds and colored stones, it will be home to some of the world’s most renowned jewelry manufacturers, retailers and traders, with which the PHI task force has commenced negotiations.
The ADE vault is a state of the art storage facility giving you access to short and long-term storage of diamonds, gold, designer jewelry and other precious items. Adhering to the highest global security standards, one can deposit or withdraw goods using a fully automated robotic system in comfort and privacy, at the AMCC member’s convenience.
World-class features include:
Vietnam is conveniently situated on the world map to connect the growing precious metals and stones trade flows to and from the Indian subcontinent, South East Asia, Europe and Africa. The ADE Vault will represent a key cog in Vietnam’s logistics infrastructure as valuables kept here can be efficiently re-distributed to major consuming hubs globally.
The Company has been working with the Chu Lai Open Economic Zone Authority, Quang Nam Province, Vietnam since March 2018 in order to develop and establish the Asia Diamond Exchange – Vietnam in the Free-Trade Zone near the Chu Lai Airport. We expect to expedite the process after the activation of the Asia Diamond Exchange Fund and implement this plan as soon as possible.