Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010another 1,300 people are employed in the industry, putting the total number at 8,000. There is prospect ofincreasing the production by 50 per cent. Increased market demand can be met either by attracting goldcraftsmen to silver work or by giving on-the-job training to incumbents in various districts outside Kathmanduvalley.Gender Impact: Buffing, polishing and finishing activities are mostly done by women. Although male workersdominate the industry, about 15-20 per cent of the total craftsmen are estimated to be women.Contribution to Skill Development: Traditional skills are passed on by adults to the younger generations. Skillsare developed from on-the-job training to apprentices. Formal training with improved tools and operationalsystems are required for waste reduction, quality improvement, and product diversification.Impact on Development of Disadvantaged Regions: Some of the exporters can immediately outsourceexportable silver jewelry from many other districts 67 outside Kathmandu valley. However, a number of issueshave to be addressed and constraints have to be cleared out. Initially, it is necessary to provide training underthe collaborative efforts of government, non-governmental institutions and export enterprises, establishgood linkages between exporters and craftsmen, etc.Energy and Water Constraints: Jewelry does not rely heavily on water and electricity.Environmental Impact: Adverse environmental impact is minimal.Market Attractiveness IndexSilver jewelry is a very heterogeneous product, so whether Nepal can supply certain markets also depends onwhether the types of jewelry produced in Nepal match with the trends in the export markets. Some of thecurrent export markets also rank high in the overall MAI (eg USA, France). Hong Kong appears to be a veryattractive market, but with no import from Nepal recorded in 2008. Tariff advantages play only a minor rolein the most attractive markets, with one exception being the USA. Silver jewelry is the main Nepalese productthat is exported under preferential rates (rather than MFN rates) to the US market.RankCountryTable 2.33Attractive Markets for Silver JewelryAttractive Markets for Silver Jewelry (HS 7113.11)Exports Nepal World market(2008) shareTop 10 - Weighted Market Attractiveness IndexGrowth rate(2004-2008)Tariff forNepalTariffadvantageMain competitors1 Hong Kong (SARC) 0 9.3% 20.7% 0% 0% China, USA, Italy2 USA 2708 31.7% 11.8% 0% 4% China, Thailand, India3 Germany 246 8.1% 12.8% 0% 2% Thailand, China, Denmark4 UK 57 6.0% 11.2% 0% 2% Thailand, Italy, China5 France 855 4.2% 17.5% 0% 1% Italy, Thailand, Germany6 Denmark 8 2.6% 47.2% 0% 2% Thailand, Germany, Italy7 Australia 42 2.8% 30.2% 0% 1% Thailand, USA, Italy8 Spain 0 3.0% 22.5% 0% 1% Italy, Denmark, Hong Kong SARC9 Netherlands 298 2.2% 39.5% 0% 2% Thailand, Denmark, Hong Kong S.10 Canada 857 2.2% 19.7% 0% 2% Thailand, USA, China67Some potential districts are Tansen, Dang, Banke, Rupandehi, Sunsari, Dhankuta, and Chainpur.72NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT