Crafting strategy to develop Vietnam’s trade villages

06:29 | 29/06/2020 Industry

(VEN)-  The development of Vietnam’s trade villages is hampered by small production scale, low competitiveness, labor shortages and management overlap.

crafting strategy to develop vietnams trade villages
Lack of labor is one of the barriers for trade villages

The Bac Giang People's Committee has recognized 39 handicraft villages ranging in focus from rattan, bamboo and pottery to rice noodles and household carpentry. Although some products have achieved prestige, many villages find themselves in difficulties. Production facilities are often small in scale, weak in competition, and limited in consumer market. In particular, due to the low-income level and the lure of higher pay in industrial parks and clusters, many handicraft villages in the province lack human resources, especially young workers capable of learning.

The situation of the trade villages in Bac Giang Province reflects a nationwide problem. A recent report by the Agency for Regional Industry and Trade under the Ministry of Industry and Trade also shows that many trade villages are hampered by small-scale production and lack of export markets, with some forced to go out of business.

The majority of production and business establishments in trade villages are households with manual and semi-mechanical production equipment, outdated product models, leading to low competitiveness, degradation in environmental protection infrastructure and increased pollution. In addition, the overlap in the general management of trade villages also reveals many conflicts and inadequacies in sustainable development.

The Agency for Regional Industry and Trade has proposed various solutions to address the problems and provide direction for trade villages’ sustainable development.

Accordingly, the industry and trade sector will integrate policies to support trade villages into national target programs in order to prioritize investment in trade village infrastructure, especially recognized trade villages and those earmarked for conservation. For trade villages with traditional culture that are unable to develop independently, the municipal and provincial budgets will support infrastructure investment. For traditional trade villages capable of independent, sustainable development, the local budget will support infrastructure investment but recover capital according to the investment scale of enterprises and households and individuals in the trade village.

The sector will also help trade village production establishments build websites in order to introduce, promote and build product brands, and ensure regular information about markets, regulations on quality, product design and consumer preferences to provide trade village manufacturing establishments with appropriate production and export orientations. Moreover, the sector will seek to promote and develop trade village tourism, while encouraging artisans and skilled workers to participate in design of products that retain traditional features and satisfy consumer taste.

It continues to support training courses in order to improve trade village workers’ qualifications and skills and ensure high quality, low prices and improved export competitiveness, while prioritizing investment in facilities that research, apply and transfer new technology in the field of preservation and processing of agricultural and aquatic products. It also encourages and invests in research and testing of new products in trade villages.

Hai Linh