Deputy chairman of the Vietnam Craft Village Association Luu Duy Dan says exports of handicrafts have recently increased by 20 percent per year. It’s meant products have found themselves among the top 10 items with the highest export growth rates.

 

The revenue from handicraft exports in 2008, when the global economic crisis first hit, reached one billion dollars. As the world’s economy recovers, leading to higher demand, Dan said that export revenue moving past one billion dollars is within reach.

 

Vietnam’s handicrafts are now available in 163 world markets with the US, Russia, Japan, South Korea and Taiwan the biggest customers. Vietnam and some ASEAN’s countries are negotiating free trade agreements with the EU which will pave the way for handicrafts to penetrate the market more easily.

 

Dan stresses it is worthwhile continuing to invest in handicrafts production. While he admits they are unable to bring as much export revenue as footwear or clothes exports – it remains big money. In addition, unlike other production products Vietnam handicrafts mainly use domestically sourced materials. It is estimated that imported materials for making handicrafts account for just 3-3.5 percent of the export value, while the figure is up to 20 percent for garment products.

 

There are some 1,400 craft villages nationwide creating jobs for 70,000 workers. The villages are making 300 different products including those made of bamboo, pottery, and products made of precious stones.

 

According to Dan, the biggest problem now for craft villages is the spontaneous and independent development of villages and production workshops.

 

This has meant many producers have not had access to new technology or have not been tempted to diversify. In addition, Vietnam’s handicrafts are being exported through third parties instead of going directly to importers.