09:57 | 11/05/2017 Industry
(VEN) - Hanoi will provide about VND25 billion to support handicraft facilities in 2017 in order to upgrade them and expand their growth.
|Craft villages are expected to turn over VND15 trillion this year, a 7.14 percent increase from 2016|
Hanoi has the largest number of craft villages when compared with other localities nationwide. The sector has greatly contributed to socio-economic development in the capital.
According to Tran Thi Phuong Lan, the deputy director of the Hanoi Department of Industry and Trade, craft villages in Hanoi export an average of US$175 million worth of goods per year, including pottery, rattan, bamboo and embroidered items, which account for a large percentage of municipal export earnings.
However, because most production facilities in craft villages are small-sized and super small-sized, they are unable to secure large orders, are vulnerable to changes in the market, are slow to update information and tend to pollute the environment. Due to insufficient capital, craft facilities have hardly invested in design renewal. This explains why most designs are outdated and have low added value.
To help craft businesses build capacity and develop craft villages, Hanoi has for years implemented incentive programs, such as planning craft villages. The Hanoi People’s Committee recently announced an Industry Promotion Plan for 2017 and set targets for activities to boost craft business.
Craft villages are expected to turn over VND15 trillion this year, a 7.14 percent increase from 2016. Handicraft exports are expected to reach US$185 million, a 5.1 percent increase. Industry promotion activities will hopefully benefit 500-600 craft facilities, 60 craftspeople and 3,000-4,000 managers of craft businesses in order for them to create 250-300 new designs. Hanoi will grant a maximum VND200 million per project in encouraging craft businesses to grow.
Specifically, the city will provide training in craft skills and business administration, connect sellers and buyers in the rattan and bamboo sector, organize a 2017 Hanoi handmade gift fair, and select outstanding rural industrial products of the year. In particular, the city intends to support five businesses to make it possible for them to use advanced machinery and equipment to increase productivity and quality of products, and reduce environmental pollution.
Hanoi will earmark about VND25 billion for implementation of this plan, and ask the Hanoi Department of Industry and Trade to examine and choose feasible projects.
Following the action plan for the Steering Committee on Craft and Craft Villages Development in 2017, the Hanoi People’s Committee has also required the Hanoi Department of Industry and Trade to resolve problems for craft villages and help businesses build brand names and apply new technology.
In terms of market development, rather than organizing workshops, which did not yield efficient results, last year Hanoi sent foreign importers a list of businesses and products with export potential. The city also linked craft village businesses with importers via Vietnamese embassies and trade offices abroad, as well as with other businesses nationwide. With last year’s good results, the Hanoi Department of Industry and Trade will continue on this course in 2017.