Exports of handicraft products would likely reach 1.8 billion USD this year, up 12 percent over last year, said deputy chairman of the Vietnam Handicraft Exporters Association (Vietcraft) Le Ba Ngoc.

The Government has listed handicrafts as one of the country's export staples during the 2011-15 period, which benefit from the Government support to boost exports.

Handicrafts have been prioritised as key export items for the next five years because they have made significant contributions to increasing incomes and reducing poverty in rural areas.

According to the Ministry of Agriculture and Rural Development, more than 1,500 handicraft villages nationwide employ roughly 70,000 workers. Income earned by craftsmen triples or quadruples that of farmers.

Vietnam has high potential for handicrafts exports in comparison with other regional countries due to its natural resources and in fact, Vietnam has one of the region's highest numbers of craft villages, Ngoc said.

With these advantages, Vietnam is one of the largest exporters of fine art and handicraft items in Asia , with an annual average export growth of 13 percent in recent years.

Vietnamese fine art and handicraft products are currently being exported to 163 countries and territories. Europe, ASEAN, the US, Australia, China, India, Malaysia, Germany and Ukraine are some of the key export markets for Vietnamese handicraft exports such as handbags, umbrellas, hats, bamboo, porcelain, rattan, pottery and wooden goods.

To boost exports, Vietcraft has also planned to help domestic handicraft exporters gain better access to these markets this year by participating in international fairs and expos.

In April, Vietcraft will hold one of the largest home decor and gift fairs in Southeast Asia , LifeStyle Vietnam 2011. The event will feature more than 1,000 booths from Vietnamese and overseas exhibitors and is expected to attract roughly 2,000 importers, Ngoc said.

However, he admitted the industry still faces a number of difficulties such as a limited number of designs, poor corporate governance and small handicraft firms that might not have the capacity to win large contracts.

To help the industry develop more effectively, Vietcraft will set up a design centre to develop handicraft products, Ngoc said.

Besides offering credit at preferential interest rates to help craft villages, especially in production using natural materials, the agriculture ministry has also helped craftsmen upgrade their skills through training./.