Driving Sustainable Growth in Hanoi's Craft Industry

Vietnam's participation in new-generation free trade agreements (FTAs) has opened up opportunities to expand export markets, allowing craft village products, including handicrafts, to enter high potential markets. However, this also presents challenges, pushing craft enterprises to strengthen collaboration, scale up production and enhance product competitiveness.

Foreign tourists show strong interest in Hanoi's craft products

Hanoi currently boasts 1,350 craft villages, with 292 officially recognized, representing 47 out of 52 traditional craft industries nationwide. These include lacquer, mother-of-pearl inlay, embroidery, silk weaving, ceramics and rattan weaving. Hanoi's handicraft products are not just items for trade, but stories told by artisans, preserving the cultural identity and traditions of each craft throughout history.

According to Hanoi's Action Plan for the Import-Export Strategy through 2030, the city aims for export growth of 4.4%-5% annually from 2023 to 2025, and 5.1%-5.5% annually from 2026 to 2030. By 2030, Hanoi plans to directly export 6-10 categories of handicraft products from its craft villages and increase the proportion of handicraft exports to 3%-5% of the city's total exports.

However, traditional craft villages face many challenges in integrating into global markets, especially in meeting the criteria of new-generation FTAs. Typical difficulties include limited space for concentrated production, a shortage of skilled labor, inadequate capital for technological upgrades, unstable raw material supply and the lack of strong product branding.

Hanoi's handicrafts are gaining popularity both domestically and internationally. However, for sustainable growth, businesses and craft villages need solutions to ensure better connectivity and secure reliable sources of input materials. Addressing these issues is a strategic approach to boosting production and exports of these traditional products.

Additionally, developing craft village tourism and linking handicraft products with the tourism market is a focus for Hanoi city. Local authorities actively encourage travel businesses to create programs and tours that showcase the potential and strengths of Hanoi's traditional craft villages. Through many cooperation programs and policies supporting the integration of craft villages with tourism, villages like Van Phuc Silk (Ha Dong district) and Bat Trang Ceramics (Gia Lam district) have successfully attracted much attention from tourists.

Hanoi's traditional craft villages face several challenges in integrating into the global market, particularly in meeting the criteria of new-generation FTAs. Many craft enterprises struggle with issues such as limited space for concentrated production and a shortage of highly skilled labor.

Hanoi's handicrafts are more than trade items; they embody stories and preserve the cultural identity and traditions of each craft

According to Mr. Nguyen Van Chi, Standing Deputy Chief of the Hanoi Coordination Office for New Rural Development, Hanoi's traditional craft villages lack comprehensive infrastructure investment to support the growth of cultural industries. This includes essential facilities for tourism, such as product display areas, parking lots, waste collection systems, restaurants, hotels and lighting. Additionally, tour guides and interpreters in these villages are not sufficiently trained in professional skills, expertise or foreign languages.

For Vietnamese handicraft products to gain a strong position in the global market, it is important to focus on not only socio-economic, environmental and institutional solutions, but also a comprehensive industry development plan. Key actions include promoting the application of scientific and technological advancements in design and production, strengthening trade promotion efforts, and building strong consumption and export networks. Additionally, providing regular market information, updates on product quality standards, design trends and consumer preferences will help craft village enterprises align their production with export needs and market demands.

By Dinh Bao, Vietnam Business Forum