From tree to market: Central region develops handicraft value chain

14:17 | 09/06/2019 Industry

(VEN) - By consulting on appropriate policy development, implementing trade promotion activities to find new markets, and developing product models, the Ministry of Industry and Trade has cooperated with the Vietnam Chamber of Commerce and Industry (VCCI) to create a value chain in the handicraft industry.

central region develops handicraft value chain

In 2017, the Nghe An Province-based Duc Phong Company Limited was selected to support brand building by designing a logo, brand identity and trademark registration, and business planning. As a result, products such as baskets and wood lamps and boxes, are popular at leading tourist destinations such as Da Nang and Hoi An. The company’s products are also exported to foreign markets under its brand name. It is also supplying livelihoods to 200 households in the districts of Quy Chau and Que Phong, from which it buys raw material, and leasing 26 processing establishments with 1,000 workers in Thanh Hoa and Nghe An.

The Duc Phong Co., Ltd is a successful example of cooperation between the VCCI, the Ministry of Industry and Trade and other agencies to support the value chain of handicrafts. Several enterprises have benefitted from the project, developing their production and sales. Among them are Chi Pottery Co., Ltd., Huong Mai Wood Furniture Co., Ltd., and Viet Handbag Co., Ltd. and the Vietnam Embroidery Company Limited.

According to a representative of the VCCI, the project helps handicraft enterprises to take advantage of each other’s strengths in production, labor and raw materials, thereby increasing the handicrafts industry competitiveness in both domestic and export markets. Specifically, the project has helped enterprises make business plans; access markets; train to improve corporate governance capacity and qualify workers. However, the VCCI representative also conceded that the project is small-scale, with difficulties raising capital through matching funds or credit, and thus the number of participating enterprises is still small. Moreover, many handicraft enterprises are located in craft villages, where production often takes place in the home or close by and affects the living environment. All these factors, along with low labor quality, are major obstacles to the formation and development of handicraft production chains.

In order to overcome these difficulties as well as increase the stability of established handicraft chains, the VCCI urged investment to set up souvenir shops and sell handicrafts at domestic and international airports that have enough space to display and attract visitors.

Each province and city should also set up a center to introduce handicrafts and other local products near places of interest or relics so that tourists can have the opportunity to buy.

The representative of the VCCI also proposed that the project continue to build and develop handicraft production chains in the central region to match the speedy development of tourism development in this area and create a channel linking between the handicraft sector and the tourism industry. Some hotel chains have exhibited handicraft products to bring them closer to guests, which is also an important avenue to promote and develop handicraft products.

Building handicraft production chains in the central region is necessary to take advantage of tourism potential and

develop products that are unique and of high value.

Hai Linh