VCN – Contributing over $US 1 billion for the export achievement of the whole country, the handicraft industry is considered as a potential sector. However, since its inception the Sector has struggled with exports
Decrease in exports
Present in nearly 30 markets, large markets (USA, EU, Japan) and small markets (United kingdom, South Korea, Canada) Vietnam Handicraft products are trusted for their distinction in comparison with Chinese and ASEAN markets. Export of handicraft products has brought $US 1,6 billion, and created jobs. Even, many companies are unable to manufacture enough to meet the needs of traditional customers from US, EU.
However, recently, this market seems to be saturated, consumption demand has decreased due to “shock” of the world economic crisis. Although this is not the peak of a difficult period, the economic crisis has made negative effect on the purchasing power of consumers in the world that leads to the reduction of export turnover of goods in the handicraft group.
The pottery group is the greatest contributor to the export turnover of Vietnam handicraft industry. However, in the first 9 months of 2016, export turnover of this product group only reached $US 312.56 million, reduced 11.4% compared with the same period of last year. This decrease rate is also probably similar to many other sectors upon the reduction of market demand due to the economic crisis. The rattan, bamboo, wicker, carpet products have also declined, the export turnover reached only $US 188.92 million, slightly increased 1.7% over the same period of last year.
Joining in the goods sector with special characteristic – Rattan, bamboo products for 15 years, but Mr. Tran Xuan Huy, Director of Thanh Nam Handicrafts Joint Stock Company also said that this year is a most difficult year of the company. Mr Huy said that our export turnover reached $US 3 million every year but almost half year, the export turnover has not reached one half of this number. Although the company has regular customers from the main export markets such as the US, EU, Canada, Mr. Huy has been worried about the export plan in 2016. He notified that: “the export for this year does not increase much, only maintenance is good” This may be the desire of many companies in the current difficult economic situation.
Outdated design
The demand is reduced while the market expansion is not easy. Mr. Huy said that “We have exported products to the South Korean market but the customer ordered one time only, because the purchasing power of consumers is not high, and market capacity is not big”. Some countries in the Middle East are considered as potential markets but we have not approached.
However, the current market is still not the most urgent problem for handicraft products of Vietnam. General Secretary of VIETCRAFT, Mr. Le Ba Ngoc said that the origin of the problem is the lack of creativity, new products. The mass production and lack of diversity of Vietnam handicrafts reduces the order value.
Many manufacturers also have admitted that handicraft products are manufactured on the basis of traditional experience and designs, lack of breakthrough in creativity; products are repetitive and outdated compared with the world trend. “Rushing to reduce prices, companies have their own self-inflicted difficulties; the profit is too low to develop new products, high quality goods. So, the Companies stay around in that vicious circle” Mr. Huy acknowledged. This also shows a lack of association between companies in the industry.
Handicrafts of Vietnam are identified to have a lot of markets for development because the consumers now are tended to love natural products. But how to take these advantages, according to Mr. Huy, breakthrough is really necessary, but with actual situation, the Companies are able to maintain, but to survive for long time. Accordingly, if companies want to develop the handicraft industry, they must overcome their lack of technical staff, design more attractive products. It will be very difficult if the manufacture is only based on traditional technology, made by hand or previous technology.
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Mr Huy also said that the company also has focused on the design, but the result has not achieved as expected because of lack of an appropriate technology. “With products made by bamboo material as we have been manufacturing, creating new design is harder than ceramic products, the basic shape is just round the square, not as diverse as ceramic products,
By Phan Thu/ Huyen Trang