In 2014, the export value of Vietnamese handicrafts jumped 8 percenton-year to 1.6 billion USD, accounting for one-fifth of world marketshare, radio The Voice of Vietnam (VOV) reported.
However, Vietnam’s handicraft exports have just targeted the low-end markets and have not matched their full potential.
Thiswas recently announced by the Department of Processing and Trade forAgro-Forestry-Fisheries Products under the Ministry of Agriculture andRural Development (MARD).
The MARD had approved a plan to exporthandicraft products for the period 2010-2015, which set an export targetof 1.6 billion USD. However, the sector fulfilled the target a yearahead of schedule, the Ministry reported.
Last year, Vietnam’sbamboo and rattan exports grossed 530 million USD while the turnover forceramic, weaving, wood sculpture and household products was 480 millionUSD, 270 million USD, and 130 million USD, respectively.
Other ancillary products in the handicraft industry fetched an export turnover of some 190 million USD.
TheUS, Europe and Japan have historically been the traditional markets forVietnam’s handicrafts, making up a huge proportion of the sector’stotal exports. However, handicraft exporters have shifted their focus tonew markets within BRICS including Brazil, Russia, India, China andSouth Africa.
Vietnam Handicraft Exporters Association(Vietcraft) General Secretary Le Ba Ngoc said last year, an inflow ofhandicraft orders from Japan and China dramatically improved the marketin Vietnam. The move was primarily attributable to policy changes inChina that increased minimum wage for workers and in turn led to higherproduction costs.
However, Vietnam’s handicraft exports are stillfar from matching potential, according to Vietcraft. At present, theworld market consumes handicraft products estimated at 100 billion USDeach year while Vietnam has just 1.5 percent of world market share.
Vietnam’s export value of 1.6 billion USD has been too low compared to the number of 2,790 craft villages.
VietcraftVice President Do Van Khoi said due to lack of investment in productiontechnologies and product design, several craft villages and businesseshave opted to make low-cost products instead of higher added valueitems.
Targeting mid and high-end markets
Ba Ngocwarned that to promote advantages and increase export turnover,Vietnamese enterprises should focus on mid-end markets in line withtheir production capacity, material source and working skills and putoff targeting higher end markets until later years. Especially, theyshould also apply for trademark protection.
The MARD has alsodevised concrete solutions to accelerate the development of craftvillages and boost exports. At the same time, the ministry should takemeasures to build sustainable material zones with a priority given tospecialised cultivation areas.
In addition, the Ministry urgedenterprises to develop traditional handicrafts with lower investmentcapital, high job creation and focus on training human resources tospeed up the export of highly added value and creative handicrafts andseek highly lucrative markets.-VNA
However, Vietnam’s handicraft exports have just targeted the low-end markets and have not matched their full potential.
Thiswas recently announced by the Department of Processing and Trade forAgro-Forestry-Fisheries Products under the Ministry of Agriculture andRural Development (MARD).
The MARD had approved a plan to exporthandicraft products for the period 2010-2015, which set an export targetof 1.6 billion USD. However, the sector fulfilled the target a yearahead of schedule, the Ministry reported.
Last year, Vietnam’sbamboo and rattan exports grossed 530 million USD while the turnover forceramic, weaving, wood sculpture and household products was 480 millionUSD, 270 million USD, and 130 million USD, respectively.
Other ancillary products in the handicraft industry fetched an export turnover of some 190 million USD.
TheUS, Europe and Japan have historically been the traditional markets forVietnam’s handicrafts, making up a huge proportion of the sector’stotal exports. However, handicraft exporters have shifted their focus tonew markets within BRICS including Brazil, Russia, India, China andSouth Africa.
Vietnam Handicraft Exporters Association(Vietcraft) General Secretary Le Ba Ngoc said last year, an inflow ofhandicraft orders from Japan and China dramatically improved the marketin Vietnam. The move was primarily attributable to policy changes inChina that increased minimum wage for workers and in turn led to higherproduction costs.
However, Vietnam’s handicraft exports are stillfar from matching potential, according to Vietcraft. At present, theworld market consumes handicraft products estimated at 100 billion USDeach year while Vietnam has just 1.5 percent of world market share.
Vietnam’s export value of 1.6 billion USD has been too low compared to the number of 2,790 craft villages.
VietcraftVice President Do Van Khoi said due to lack of investment in productiontechnologies and product design, several craft villages and businesseshave opted to make low-cost products instead of higher added valueitems.
Targeting mid and high-end markets
Ba Ngocwarned that to promote advantages and increase export turnover,Vietnamese enterprises should focus on mid-end markets in line withtheir production capacity, material source and working skills and putoff targeting higher end markets until later years. Especially, theyshould also apply for trademark protection.
The MARD has alsodevised concrete solutions to accelerate the development of craftvillages and boost exports. At the same time, the ministry should takemeasures to build sustainable material zones with a priority given tospecialised cultivation areas.
In addition, the Ministry urgedenterprises to develop traditional handicrafts with lower investmentcapital, high job creation and focus on training human resources tospeed up the export of highly added value and creative handicrafts andseek highly lucrative markets.-VNA
