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Opportunities for handicraft products
12/08/2015

According to 2006 statistics, exports of handicrafts products (handicrafts) of Vietnam is estimated at USD 630.4 million. Many suggested that the contribution of this sector is too low, only reaching less than 3% of total national exports.

According to 2006 statistics, exports of handicrafts products (handicrafts) of Vietnam is estimated at USD 630.4 million. Many suggested that the contribution of this sector is too low, only reaching less than 3% of total national exports.

However, if looking at the value actually collected contributions from crafts sector is small compared to many other industrial goods.

Sectors like textiles, footwear, electronics …, but high turnover but statistically lower net foreign currency, accounting for about 20% of export value, mainly due to raw material imports from countries exterior. In which electronics, computer parts, net worth was lower, about 5-10%.

Create jobs and major contributor to export

Handicraft goods produced mainly by raw materials available in the country, importing raw materials accounted for a very small percentage of the products, about 3-5% of export value. So net worth exporting handicrafts in fact very high, ranging from 95-97%. Can compare a simile, with exports of $ 235 million in 2000, net value handicraft products in Vietnam is equivalent to 1 billion export value of USD 143 million garments, approximately 10 % of total national exports.

This can also be understood as, if added value of $ 1 million export handicraft products, will be equivalent to increasing the export value of USD 4.7 million garment. That is not including investment costs for handicraft products is much lower because this product does not require much investment machinery, equipment and mainly handmade … Boosting production and export handicrafts exports will create jobs and income for local labor.

According to statistics, as of now, there are about 2,017 villages with various types such as household production, production groups, cooperative groups, cooperatives, private enterprises, attracting … million workers, including workers idle. In another sense, the maintenance and development of the traditional village with many skilled craftsmen and artisans, skilled as well as maintaining the national cultural heritage from generation to generation.

According to the International Cooperation Agency JICA (Japan), handicraft industry in Vietnam has trained more jobs for 1.35 million people; of which, 342 thousand people weaving bamboo and rattan, woven mats made 233 thousand, compares knitting, embroidery 129 thousand weavers, with 60% of employees were women. Average income of trades workers, according to JICA is 366,000 VND / person / month. (The average income in the country was 295,000 VND and 225,000 VND rural / person / month).

Traditional market and target market

The golden age of the arts and crafts line period 1975 to 1986. The share of exports reached an average of 40%, peak 53.4% (1979). Period before 1990, mainly mass market of Eastern Europe, the Soviet Union under the bilateral agreement. After 1990, the market decline by political upheaval (in 2000 only 40 million USD). After 2000, the main export markets are the US, EU, Japan, Russia and the ASEAN countries, due to the efforts to find markets. In particular, the EU accounted for 50% of exports, Japan is considered key markets in Asia, with 5% weight. The US market is promising. Importers of crafts, from 50 in 1996, increased to 133 countries in 2005; and now, the handicrafts of Vietnam were present almost all the countries in the world.

According to recent statistics, the export value of handicraft products primarily through the years from 2000 to 2006 as follows: 2000 was 235 (million), reaching 235 in 2001, 2002 was 331, 2003 was 367, 2004, amounting to 450, 560 and 2005 reached 630.4 in 2006. The average growth rate during this period was 17.87% .With our EU exports are wood, which Germany, France, the Netherlands, accounting for 10% of total imports.

The rate of growth in total exports was 21.28%, but the value of exports reached 2.8%. Japan: exports to this market was 3.79 million in 2004 (up 16.6% compared with 2003). Japanese customers are preferred wood items and number of tourists also increased. There are many companies in Vietnam produced and exported to the Japanese market.

In addition, the South African market with promising growth when many Vietnam Company is conducting numerous trade promotion activities in the Republic of South Africa.

According to Dr. Nguyen Van Sanh, Deputy Director, Institute of Development Studies, the Mekong Delta: “Vietnamese people have the habit of using capital goods crafts long time. Therefore, while higher income, consumer behavior will follow the trend using the commodity is derived from natural ingredients from traditional and “. However, although there has been a positive contribution to exports, restructuring the rural economy, as well as many social and economic benefits other, handicraft industry and craft villages system still faces many difficulties in developing and expanding markets.

TS. Nguyen Van Sanh showed that the simultaneous existence of these challenges. First is the current barriers in the market, such as costs for delivery procedures is high (30 USD / m3), monotonous designs and products so heterogeneous. Transportation costs per unit high m3 leads to competitive disadvantage when exporting goods to the EU and US. Another difficulty is the Vietnam of the pressure of high competition with Chinese goods, Thailand and ASEAN countries in terms of both price and design; not to mention pressure from knockoffs, fakes …

The domestic market demand was weak, while experienced international market of Vietnam enterprises are limited. On the other hand, handicraft industry and traditional craft villages in Vietnam currently lacks the link between science and art school for the manufacture, production.

Doctor Nguyen Van Sanh, added: “We though had the support policy for the sector, there is no comprehensive strategy for this sector in the development of production, from brood stock, the raw materials for the organization of production, processing and consumption

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