Bamboo products are sold at a trade fair in Hanoi (Source: VNA) Hanoi (VNS/VNA) - Handicrafts are identified as one of the product groupswith great export potential and high-profit margin that Vietnam needs to boostin the future.
According tothe Vietnam Handicraft Exporters Association (VHEA), demand for handicrafts inthe world is huge with a market value of up to 100 billion USD but Vietnam hasyet to tap into this opportunity to develop this industry and boost exports.
Data from theMinistry of Industry and Trade revealed export turnover of Vietnam’s handicraftproducts grew by an average of around 10 percent per year in the past fiveyears, from 1.62 billion USD in 2015 to 2.23 billion USD last year.
Vietnam’shandicraft products include five groups such as bags, purses, suitcases, hatsand umbrellas; toys, sports equipment and parts; ceramics; rattan, bamboo,sedge products; and art wood products. In addition, many fashion items andgifts have been on-spot exporting through sales to foreign visitors in Vietnamwhich currently account for about 15 percent of their spending (15 USD/person).
Manyproducts are highly valued by foreign markets including ceramic, rattan andbamboo products, handmade embroidery and textile products. These are also itemswith the highest export turnover of several hundred million of US dollar eachyear.
Thehandicraft industry has a higher profit margin of between five and 10 timescompared to several industries such as mining, creating thousands of jobs andhelping restructure rural labour from low-income agricultural jobs tohigher-income workers.
Despite theCOVID-19 pandemic, Vietnam’s export of handmade products maintained positivegrowth. Shipments of rattan, bamboo, sedge products rose 25 percent year-on-yearto reach 542 million USD in the last 11 months. Export of ceramics alsoincreased by 7 percent to 517 million USD.
The US isstill the largest consumption market for Vietnamese handicraft products withsales accounting for 35 percent of annual export turnover. Japan, the EuropeanUnion, Australia and the Republic of Korea are also among the country’s keyexporting markets.
Need fora national exporting strategy
Vietnam’shandicraft export is forecast to grow more than12 percent per year withturnover reaching 5 billion USD by 2025.
Greateropportunities are also opening up from the important free trade deals that thecountry has joined or signed recently such as CPTPP and EU-Vietnam Free TradeAgreement (EVFTA). In addition, Vietnam is emerging as a safe destination afterthe Government has successfully controlled the disease.
However,despite huge potential, the domestic handicraft industry still faces many problems,including fragmented production, a weak link between actors in the value chain,limited technology and poor innovative design idea and new product development.
According toFilip Graovac, deputy chief representative of Asia Fund in Vietnam, Vietnam hasgreat potential to export handicrafts and agricultural products but the keyissue is how Vietnamese handicraft manufacturers present their good productsand prove they are responsible manufacturers to foreign customers.
Consumersare increasingly concerned about environmental and social issues, especiallyissues related to the origin and legality of raw materials used, labourpractices, clean and green production and fair trade market.
Graovac saidVietnamese enterprises had not applied well the traceability of their goods.
Le Ba Ngoc, ViceChairman of the Vietnam Handicraft Exporters Association, admitted traceabilitywas one challenge to the growth of the industry. He recommended localbusinesses learn more about the basic business and market requirements,including traceability.
To reach theworld further, Ngoc said the handicraft industry needed to build the exportstrategy for the next five years.
The Ministryof Industry and Trade said in the future, it would focus on improving thevalue chain of Vietnam's handicrafts, prioritising the products with highcompetitive advantages, increasing product value and standards to meetdifferent market segments, especially middle and high-end market segments./.
VNA
