Still facing many challenges
According to Department of Economic Cooperation and Rural Development (Ministry of Agriculture and Rural Development), Vietnam currently has 774,392 establishments producing and trading handicraft products, concentrated in group of wooden furniture, rattan and bamboo weaving, ceramics, embroidery, small mechanics; with 2,107 artisans, skilled workers; 571 provincial artisans and 1,322 skilled workers in the rural industry sector. Number of workers in craft villages is more than 1.4 million workers.
Ceramics is a traditional profession in Binh Duong. Mr. Vuong Sieu Tin - Vice President of Binh Duong Ceramics Association - shared that number of ceramic production establishments in Binh Duong has decreased by 70 - 80% compared to golden period of development, number of workers in each establishment has also decreased significantly. Production establishments are facing difficult problems in terms of consumer markets, labor and production materials.
“High international shipping rates, increased production costs and low market demand have caused ceramic sales at many establishments to decrease by 50% compared to the previous period,” Mr. Vuong Sieu Tin shared, adding that market demand may be more positive in coming time but without a fundamental solution regarding labor resources and long-term production materials, Binh Duong ceramic industry will find it difficult to maintain and compete in the market. Difficulties of craft villages in Binh Duong are also a common picture of handicraft production and business establishments across the country. Ms. Nguyen Thi Hoang Yen - Deputy Director of Department of Economic Cooperation and Rural Development - commented that handicraft industry is also facing many challenges such as: lack of industry linkage in production organization, lack of linkage between associations with enterprises, training schools, craft villages and artisans. Development of crafts and craft villages is still spontaneous, fragmented, unsustainable, with small-scale production, mainly taking advantage of labor and space in households. There is no comprehensive model for developing craft villages associated with infrastructure investment and technology application.
Although handicraft products have been improved in design, their aesthetic and artistic value is not high; use of raw materials that affect environment, of unknown origin, etc., makes it difficult to pass on craft to younger generation, causing many craft villages to be lost.
According to Ms. Nguyen Thi Hoang Yen, Vietnam's goal is to preserve and promote values and traditional cultural identities of craft villages; promote production development, improve competitiveness and add value to handicraft products, aiming for an export turnover of about 6 billion USD by 2030. To do so, it is necessary to synchronously implement solutions for production organization, training and human resource development in parallel with preserving and developing craft villages. Currently, Vietnamese handicrafts have been exported to 163 countries and territories, accounting for nearly 10% of global market demand. Export turnover of Vietnamese handicrafts in a period of 2015 - 2019 increased by an average of 9.5% per year, from 1.62 billion USD (2015) to 2.23 billion USD (2019) and strives to reach 4 billion USD by 2025.
Mr. Nguyen Minh Tien - Director of Agricultural Trade Promotion Center - said that for handicraft products, consumers prioritize sustainable and environmentally friendly products, which are unique and personalized and harmoniously combine tradition and modernity. A notable trend is online shopping and internationalization of the market. This is an opportunity for craft village products to reach beyond village, national borders and reach global customers.
“To effectively exploit market in a competitive context, craft villages and production facilities must ensure sustainable production practices, transparent origin and build attractive and unique stories for the products,” Mr. Nguyen Minh Tien recommended.
Expected to earn 2 billion USD in exports this year
According to Vietnam Craft Village Association, in 2024, global handicraft market is expected to reach 1,107 billion USD and is forecast to reach 2,394 billion USD by 2032. This shows that handicraft export market still has a lot of potential and is an opportunity for Vietnamese handicrafts to continue to expand export markets, increase value, improve quality and diversify products.
In a program of preserving and developing Vietnamese craft villages for a period of 2021-2030 approved by the Prime Minister in Decision No.801/QD-TTg dated July 7, 2022, a target is set for at least 30% of craft villages to have products protected by trademarks by 2025; increasing export turnover of handicrafts of craft villages to about 4 billion USD; 100% of establishments and households producing in craft villages must meet environmental protection regulations. By 2030, at least 50% of craft villages will have products protected by trademarks; increasing export turnover of handicrafts from craft villages to about 6 billion USD.
Mr. Tran Thanh Nam - Deputy Minister of Agriculture and Rural Development - commented that creativity of artisans and enterprises is abundant; many Vietnamese handicraft products are very diverse and can continue to expand their markets to other countries. However, to meet standards and tastes of consumers around the world, requirements for aesthetics and creativity in each handicraft product are very high. The products must serve life.
Also according to Deputy Minister Tran Thanh Nam, three issues in value chain of the handicraft industry must be connected and support each other, namely: raw material areas - artisans - enterprises. Along with that is support of the State with mechanisms and policies that will bring about efficiency in developing this industry in the coming time.
Therefore, it is necessary to have advice and suggestions from foreign experts on the market, new techniques and new technologies for artisans to improve their skills, grasp needs of international market to breathe life into the products. At the same time, businesses in need can order vocational training schools under Ministry of Agriculture and Rural Development to train skilled workers.
"We really hope that businesses will join forces through industry associations to have a common voice. Only then can we introduce handicraft products and OCOP products to international community," said Deputy Minister Tran Thanh Nam, suggesting that associations need to gather businesses, build catalogs introducing handicraft products so that they can be sent to Vietnamese embassies in other countries to help promote and introduce them to international friends.
"The Ministry wants to restore rural industries, which are crystallization of the cultural values of the nation. If we are united and act together, handicraft industry and OCOP products will continue to develop in the coming time," Mr. Tran Thanh Nam shared and commented: With the current difficult situation, export turnover of Vietnam's handicraft industry in 2024 is expected to reach about 2 billion USD. But if we try, next year we can still achieve the export turnover of 4 billion USD of handicrafts as the set target.

Source: Vitic/ congthuong.vn