A Brief Guide In Vietnamese Handicraft Industry

The Vietnamese handicraft industry is one of the oldest traditional enterprises, as well as a source of export value. In addition to these triumphs, the industry is experiencing challenges.

Vietnamese Handicraft Industry Overview

The handicrafts industry in Vietnam begins in the village and finishes with export markets, which include craftsmen, craft workers, handicraft export corporations, and the Vietnamese government.

Product manufacturers are artisans and craftworkers. Artisans manufacture handicrafts and furniture in the hamlet where they reside, using local materials, and have done so for over a thousand years. 

Furniture is typically created by a village. People who do not often perform manual labor in fields either directly or indirectly support the manufacture of handicrafts by gathering materials, transporting raw materials or finished products.

Then, with the assistance of the Vietnamese government, companies export handicrafts and are responsible for product promotion globally. The Vietnamese government, along with export rules for handicrafts, can be regarded to play an essential role. As a result, the distribution must collaborate in order to succeed.

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Current Situation Of Exports Handicrafts In Vietnam

Vietnam is one of Asia’s largest exporters of furniture, art, and handicrafts, with an annual average export rate of 13% in recent years. Vietnam exports handicrafts to 163 nations and territories. Europe, ASEAN, the Americas, Australia, India, Malaysia, Germany, and Ukraine are key export markets for Vietnamese crafts such as bags, umbrellas, hats, bamboo, pottery, rattan, bamboo, and wood items.

Read more: Vietnamese Handicraft – Environmentally Sustainable Products

Handicraft item export sales Vietnam’s population increased from 274 million in 2000 to 880 million in 2009. Revenues fell in 2009 as a result of the global economic crisis.

The first quarter of 2010 saw export sales of $ 180 million. In the first quarter of 2010, export markets included the United States, Japan, France, Germany, and Taiwan.

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The Reason Behind The Success And Difficulties

The industry’s recent success can be attributed to a variety of causes, including:

First, the handicraft industry’s expansion has been hampered by the economic change from a centrally planned to a market economy. The liberalization of the Vietnamese economy calls for Vietnam to enter the international market.

As a result, the Vietnamese government has begun to engage in export activities. Furthermore, the handicraft industry does not necessitate high production expenses, allowing for low-cost business development.

Second, the Vietnamese government encouraged and supported the development of handicrafts as cottage industries in the worldwide market.

The incentive here is in the form of tax breaks, additional land opportunities, and opportunity for ethnic minorities to learn and flourish.

Third, the popularity of crafts in the West contributed to the success of Vietnamese handicrafts. Globalization and tourism have also attracted visitors and global users to Vietnamese handicrafts. These items are ideal for foreigners looking at merchandise since they may relate to the crafts done by villagers.

However, the sector faces other challenges, such as a limited number of designs, and tiny craft companies cannot afford to secure large contracts. It is difficult for the brand’s artisans to extend its market size.

China and India appear to have a competitive advantage in this market. Furthermore, the market approach to estimate market channels and weak amateurs did not reach export sales targets.

To help this sector flourish, the government must first invest in upgrading production technologies. Furthermore, the villagers must collaborate to promote the brand, increase production capacity, and increase export earnings.

Read more: 4 Ways to Find Vietnamese Home Decor Manufacturers

To Wrap Up

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