Ha Noi to Develop Craft Villages for Sustainable Growth

Vietnam’s participation in new-generation FTAs, especially the signing of the EU-Vietnam Free Trade Agreement (EVFTA), has created favorable conditions for expanding export markets. This opens opportunities for traditional craft village products, including handicrafts, to access promising international markets. However, this also presents numerous challenges, requiring craft village businesses to strengthen partnerships, scale up production, and enhance the competitiveness of each product.

Natural materials for traditional Hanoi crafts

Currently, Hanoi has 1,350 craft villages, with 292 officially recognized. The city is home to 47 of the 52 traditional handicraft sectors in Vietnam, including lacquerware, mother-of-pearl inlay, embroidery, silk weaving, ceramics, and bamboo weaving. Hanoi’s handicrafts are a means for artisans to share the stories of their craft, preserving the cultural identity and traditions that each craft embodies across generations.

According to the city’s Action Plan for Export-Import Strategy Implementation through 2030, the goal for 2023-2025 is to achieve export growth of 4.4%-5% annually, and for 2026-2030, 5.1%-5.5% annually. By 2030, the aim is for 6-10 categories of handicraft products from Hanoi’s craft villages to be exported directly to international markets, and to increase the share of handicraft exports to 3%-5% of the city’s total exports.

However, Hanoi’s traditional craft villages face many challenges in joining global markets, especially in meeting new-generation FTA standards. Most craft village enterprises encounter obstacles such as a lack of centralized production space, a shortage of skilled labor, limited capital for investing in new technology and machinery to boost product quality and quantity, unstable raw material supplies, and difficulties in establishing recognizable product brands.

With the promotion of scientific and technological applications and improved product quality and designs, Hanoi’s handicrafts have increasingly won the favor of domestic and international consumers. However, for handicraft businesses and villages to achieve sustainable growth, it is essential to ensure supply chain connections, particularly by securing sources of raw materials. This is regarded as a strategic solution to drive the production and export of traditional handicraft products.

Additionally, developing craft village tourism and linking handicraft products with the tourism market is a key direction for Hanoi. The city’s departments and industries regularly instruct tour operators to develop tourism programs and tours that highlight the potential and strengths of Hanoi’s traditional craft village tourism. Collaborative tourism development programs are also being implemented with districts, towns, and other localities across the country to improve service quality, connect destinations, and create high-quality tour products. With these supportive policies, several craft villages have become popular tourist attractions, such as Van Phuc Silk Village (Ha Dong District) and Bat Trang Pottery Village (Gia Lam District).

Hanoi handicraft products

However, Hanoi’s traditional craft villages also face significant challenges in integrating with global markets, especially in meeting the standards of new-generation FTAs. Currently, most craft village businesses face difficulties such as a lack of centralized production space, a shortage of skilled labor, limited capital for technology and equipment upgrades to increase production capacity and product quality, unstable raw material supplies, and insufficient brand development.

According to Mr. Nguyen Van Chi, Head of the Hanoi Rural Development Sub-Department, Hanoi’s traditional craft villages still lack consistent infrastructure investment to support the development of cultural industries. This includes facilities for tourists to visit and shop, product exhibition spaces, parking lots, waste collection areas, restaurants, hotels, lighting systems, and trained guides or narrators with the necessary professional skills and foreign language proficiency.

To elevate Vietnamese handicrafts in the global market, in addition to addressing socio-economic, environmental, and institutional aspects, and establishing a comprehensive industry development plan, it is essential to promote the application of scientific and technological advancements in product design, production, trade promotion, and the development of distribution and export networks. Additionally, providing regular information on market trends, product quality standards, designs, and consumer preferences will help craft village producers align their production and export strategies more effectively.

By Dinh Bao, Vietnam Business Forum

The page in collaboration with Hanoi Rural Development Department