Developing Sustainable Input Sources for Handicraft Industry

Hanoi aims to export 6-10 groups of handicraft products directly to foreign markets by 2030. Achieving this goal requires not only product development and trade promotion, but also sustainable input sourcing.

The shortage of raw materials presents a difficulty to the handicraft industry

Short supply

To develop traditional handicraft products, not only in Hanoi but also in other provinces and cities across the country, input sources always play a very important role. Especially when craft villages have built their brands and expanded their markets, the demand for handicrafts will increase and the demand for input materials will rise accordingly.

According to the latest survey data from the Industrial Promotion and Development Consultancy Center (under the Hanoi Department of Industry and Trade), Hanoi's bamboo and rattan villages need about 6,800 tons of various raw materials a year on average, with a business using about 50 tons of inputs a month and a household using about 20 tons. Ceramic villages consume about 620,000 tons of raw materials, mainly clay and kaolin. Lacquerware villages need about 4,000 tons. Wooden furniture villages require over 1 million cubic meters of timber.

The above data shows that inputs play an important role in the sustainable development of craft villages. Mr. Vuong Dinh Thanh, Deputy Director of the Industrial Promotion and Development Consultancy Center, Hanoi, said: In reality, input sources for handicraft production such as rattan, reed, bamboo, wood, sedge, kaolin and horn in Vietnam are currently in serious shortage. Many companies, cooperatives or craft villages have confronted numerous hardships in seeking input sources. "The shrinkage of input areas is attributed to insufficient land for planting while the demand for products in the domestic market and for export is increasing. Wood materials must be imported most because manufacturers of exported wooden products are seriously lacking domestic inputs," he added.

Inadequate input supply in Hanoi craft villages has left many traditional craft villages dependent on external input sources, resulting in passive business responses. Although some provinces and cities have planned raw material areas in recent years, these plans have not yet decided specific raw material areas. The plans are only individually carried out by provinces and localities rather than together to form regional linkages to maximize their advantages.

Sharing about this difficulty, artisan Nguyen Van Trung, who has devoted his life to preserving and developing the Phu Vinh bamboo and rattan weaving (Phu Nghia commune, Chuong My district), said that the current raw bamboo and rattan supply in Hanoi meets only 20% of the demand. Therefore, producers have sought out material areas to purchase and provided technical guidance on production, processing and preservation of raw materials to ensure the production process.

Building an input supply chain

To tackle input difficulties, in the coming time, Hanoi City will continue to encourage companies, cooperatives and individuals to lease land and accumulate land to form concentrated material areas. Moreover, the city will build stable input supply chains with other provinces and cities across the country to enhance the value for both sides. The city also encourages companies to process bamboo and rattan products, upgrade technological lines to diversify processed products, especially bamboo and rattan inputs of Hanoi craft villages, and obtain product chain of custody certificates.

To sustainably develop the handicraft industry and achieve the city’s goals in the action plan for implementation of the merchandise import-export strategy to 2030, in addition to product development and trade promotion, developing sustainable material areas is decisive. Highlighting recommendations on this issue, handicraft expert Vu Huy Thieu said: While input sources for handicraft production in Vietnam are seriously insufficient due to shrinking material areas, the domestic and export demand for products is increasing. Meanwhile, Laos has great potential in developing material areas due to its large land fund, which is very convenient for large-scale agricultural and industrial production.

Agreeing with Thieu’s viewpoints, Mr. Nguyen Van Chi, Director of the Hanoi Sub-Department of Rural Development, said: Hanoi always has a very high demand for raw materials. Therefore, the city is always interested in connecting material areas with provinces and cities across the country to boost production. To tackle difficulties in supplying raw materials for developing craft villages, the government needs to improve policies on land and material areas like encouraging enterprises, cooperatives and individuals to lease land and accumulate land to develop concentrated raw material areas for production, developing concentrated and stable material areas to supply inputs for craft villages, and creating supply chains for product development and consumption. At the same time, the government needs to invest in developing concentrated and stable material areas to supply raw materials for craft villages and prioritize some key products such as rattan, bamboo, ceramics, embroidery and medicinal herbs in localities with suitable natural conditions.

By Ngoc Dan, Vietnam Business Forum