Over the years, the traditional handicraft products of Vietnam have undergone a dramatic change thanks to the application of science and technology and technological innovation. With the current important position, the traditional craft villages have contributed significantly to the economic development of the locality as well as to help protecting national identity.

However, in the integration period, handicraft village products are facing fierce competition with products of the same type from other countries, especially from ASEAN countries in terms of designs, prices, quality, marketing methods, product promotion… If the products of the craft village cannot build up the brand name or make an impression on customers, the foreign products of the same type will encroach on the domestic market.

Currently, there are more than 5,400 craft villages nationwide, but the scale of production in craft village enterprises and production households in craft villages is very small and fragmented, causing many difficulties in building brands. Therefore, branding for traditional craft village products is vital for craft village enterprises and production households in both immediate and long term.

Hanoi strives that by 2020, the proportion of handicraft village production will account for about 8,5% of the total production value industrial and handicraft production; to handle for environmental pollution for 50 craft villages which are seriously polluted; to upgrade infrastructure for 50 craft villages; to create stable jobs from 800.000-1 million rural workers with average income from 35 million to 40 million per year.

To achieve this goal, the city has been implementing many policies to support craft villages,; at the same time strongly promoting connections with research institutes, universities to order research, apply and transfer new technologies; supporting investment capital, labor training, site expansion... for production households and craft village enterprises to have the best-operating conditions, contribute to the economic development of the Hanoi and ensure social security.