Mixed Blessing for Hanoi Handicrafts

The Vietnamese capital of Hanoi now has 1,350 cottage industry villages, of which over 60 percent are handicraft villages, with 244 traditional villages and 272 recognised villages. Annual handicraft production value is estimated at trillions of Vietnamese dong and export turnover tops US$100 million. Handicraft villages in Hanoi are creating permanent jobs for hundreds of thousands of workers and creating nearly 1 million seasonal jobs. Average monthly income of a handicraft worker is over VND1.5 million, about 1.5 - 2 times higher than incomes of farmers.

 

However, the current economic integration is posing plenty of risks and challenges to the handicraft industry of Hanoi in particular and Vietnam in general. A rise in input costs lead to a drop in incomes, forcing many companies and labourers to shift to other businesses. Worse, Hanoi and Vietnamese handicrafts are products of poor creativeness because of limited knowledge of market, poor product designing, slow introduction of products, unproductive technology, and limited governance.

 

According to a survey by the United States Agency for International Development (USAID) in 2010, the presence of more large international retailers with low prices has engendered the fiercer competition against local manufacturers. Product life cycle is shortened and manufacturers are forced to renovate technologies and competency to create new ones. Notably, competition from Chinese and Indian products - global powerhouses of handicrafts - is also stiffened. Sustainable business and production is more demanding.

 

In a bid to support handicraft producers in Hanoi and some surrounding provinces to promote and introduce products, seek partners and expand markets, the Hanoi People's Committee has assigned the Department of Industry and Trade to host the Hanoi Craft Show 2011 from November 08 to 12, 2011 at the Vietnam Exhibition and Convention Centre, Giang Vo, Hanoi. With more than 400 booths, exhibitors will display eight main groups of products: ceramic and pottery; bamboo and rattan; furniture; lacquer ware; mother-of-pearl inlaying; embroidery; silk; stone ware; horn, and others. Conferences will also be organised together with the exhibition to introduce potentials of Scandinavian and American countries and highlight designing of handicrafts.

 

Mr Le Ba Ngoc, President of Handicraft Import and Export Association, said the Hanoi Craft Show 2011 features five distinct elements: Exhibitors with new products; display space arranged in a friendly open space; careful preparation by exhibitors; professional advertisement and invitation; and standard services. In particular, exhibitors will be financially supported by the Hanoi People's Committee: Exhibitors of recognised handicraft villages will be granted expenses for four booths and other exhibitors are funded a half of fees for standard booths.

 

Hanoi Craft Show 2011 is a prerequisite for the capital city to expand the scale in following years, aiming to make it an international fair. This will be an annual event for manufacturers, exporters and consumers to seek cooperation and business opportunities.

 

H.M