Raising up the fine art and handicraft industry

In Viet Nam there are more than 2,000 officially recognized occupational villages. The domestic fine art and handicraft industry has more than 1,000 businesses which employ about 1.4 million people. It is thought that the industry has potential for increased production, much of which could be exported.

The fine art and handicraft industry has grown in recent years to become one of the top 10 industries in terms of export earnings. Products have been shipped to 136 countries and territories and earnings have been increasing an average of 15 percent in value per year.

Fine art and handicraft businesses try to make use of local raw materials and for the most part they are still able to do so. Fine art and craft businesses usually make some 95-97% profit because the raw materials used are very inexpensive. Textile/garment, footwear and electronics producers make about 20% profit on their exports.

While a number of different kinds of Vietnamese fine art and handicraft articles are being made, producers rarely change the design of their products to attempt to attract more customers.

Most businesses involved in fine art and handicraft production are small to medium in size and most use simple and old technology. Workers cannot make a lot quickly and so companies are unable to fill large orders within short periods of time. If a business subcontracts production out to small producers in an attempt to fill a large order, the products made will be of varying quality and deliveries will invariably be late.

Most small businesses in this industry are not aware of market changes and trends, they have little working capital and they are unfamiliar with marketing and trade promotion. Many of these businesses make the same product again and again, year after year, and they wait for buyers to come to them, taking the best price that they are offered.

Some believe that these small fine art and handicraft businesses – these same businesses that wait for buyers to come to them – should join together to form large and strong production centers that would be able to diversify and improve product design, improve quality and make products which would be more competitive. If they were to do so more foreign buyers/importers would come to them.

If arts and crafts businesses were to learn what people in different markets want to buy and learn about laws that relate to potential markets they might be able to increase sales.

One suggestion was to hold ‘Creative Product’ contests to encourage businesses to make better quality and better looking products. It’s also been suggested that changes be made in handicraft production to increase productivity and make products which are cheaper.

The State should make loans available, carry out occupational development and expansion projects and help businesses promote their products and provide information, all of which would help fine art and handicraft businesses and occupational villages. (VEN)

Tags: Vietnam business news, Vietnam Handicraft