Vietnam’s handicraft sector lacks competitiveness though full of potential, according to a recent survey by the Vietnam Chamber of Commerce and Industry (VCCI).
VCCI reported that the industry is small and “disconnected”, and enterprises have difficulty landing contracts overseas, pushing potential foreign partners to turn to China, Japan and Thailand.
“We have lost some big contracts with foreign partners because our capacity is small, though our products satisfy them,” said Han Hanh, winner of the Vietnam Handicraft Contest 2005, at the launch of the 2006 contest.
Business owners said the industry has put scant investment into market research and many products have no visible uses.
“Because many kinds of these products are domestically called “fine art and craft and household products” as a common name, and remain unchanged in samples, it is difficult for them to be distinguished and attract overseas markets,” said Le Xuan Duong, director of a trade promotion centre in New York.
To compete with China, Japan and Thailand and to penetrate the US, France and the EU, he said, producers need to classify products seasonally and use words like “gift” and “souvenir”.
An expert from the Vietnam Agriculture Fair and Exhibition Center agreed that Chinese products are always oriented towards customers’ tastes and affordability, adding that is why Chinese products are everywhere in Vietnam, even in the EU market.
“There is a need to produce novel craft products that cannot be found in any overseas markets,” he said.
Market analysts say producers should put more money into traditional designs, boost registration and stop copying.
“Our products need to be trade-marked; otherwise we will find it hard to expand our outlets for the time to come,” especially when the country joins the WTO,” said Hanh.
Analysts also say that few new items are being exported, and those that are shipped are Chinese copies. They attribute the slump to the fact that as many as 90% of Vietnam’s exports are custom products, which retrains handicraft makers.
“Domestic handicraft enterprises need to streamline their distribution agencies in foreign markets to supply goods for retailers and to take a firm footing in the world market,” Duong said.
There are currently 1,120 handicraft enterprises and more than 2,000 handicraft villages employing 1.35 million artisans in Vietnam. According to the Ministry of Trade (MoT), craft export turnover hit $565 million in 2005, a 9.6% more than 2004. The industry is targeted to hit $1.5 billion by 2010.
MoT also said that 10-29% of handicraft export turnover comes from Japan, 20-25% from the US and 10% from the EU.
VIR
Vietnamese
