Handicrafts help in world recession

Art and handicraft products are contributing strongly to the nation’s economic development, with total export value of these products reaching nearly US$1 billion last year.

Exported art and handicraft articles have a higher profit margin than exported garments, wood products and footwear, because most arts and crafts are made from local raw materials as opposed to imported materials.

Almost all art and handicraft products were made from domestic materials, which were superfluous agriculture products, said Dang Quoc Hung, deputy chairman of the Handicraft and Wood Industry Association of HCM City.

This industry also employs about 13 million labourers from 1.4 million families.

This number is about three to four times bigger than the number of labourers working in the agriculture sector, with many of the jobs going to rural labourers and helping to improve the economic situation of people in those areas, Hung said.

Despite the contribution it brings to the country and its potential, the industry has some areas needing improvement. Designs of the arts and crafts have not been improved or updated to take into account new trends, product quality is not what it could be, and poor infrastructure and lack of management does not allow for large-scale orders to be filled in a timely fashion.

These handicraft enterprises also lack capital and access to trade promotion activities.

Now is a good time for the industry to be re-structured to improve its competitiveness, said Hung. The association proposes the State make it a priority to create policies to help the industry, such as re-structuring craft villages in rural areas. The State is also being encouraged to host activities to promote Vietnamese handicraft products, as well as supply information about the international market to domestic companies.

According to the Viet Nam Association of Craft Villages, the country has about 2,000 craft villages, which indirectly and directly join in making art and handicraft products.

Currently, about 1,000 companies nation-wide specialise in producing and trading art and handicraft items. (VNS)

Tags: Vietnam business news, Vietnam Handicraft