11:34 | 01/05/2016 Industry
(VEN) - According to the Hanoi Department of Industry and Trade, the city’s craft villages reached more than VND7.66 trillion in production value last year, accounting for 8.4 percent of the city’s total industrial production value. Many craft production facilities have focused on improving technology, equipment and production processes to increase productivity and product quality.
Production at the Tan Thinh Pottery Cooperative in Gia Lam District’s Bat Trang Pottery Village
Craft villages across the city are facing some difficulties in development. For example, production sites are small, just meeting 25-30 percent of demand, and production technology is outdated and often obsolete due to limited investment, infrastructure has failed to meet the needs of production and distribution and pollution has become a major concern, said Deputy Director of the Hanoi Department of Industry and Trade Dam Tien Thang.
The removal of craft production facilities into industrial zones and clusters has also met with difficulties on account of high rentals. For example, the cost for pottery producers to move into an industrial cluster may reach VND10 billion, while the majority of pottery producers are small scale and financially limited. Moreover, they have found it difficult to raise bank loans, and each of them could obtain a mere more than VND100 million from banks on average, said Tran Duc Tan, Head of the Tan Thinh Pottery Cooperative in Gia Lam District’s Bat Trang Pottery Village.
Recognizing these difficulties, Hanoi has provided incentives for its craft villages to develop. For example, the city has organized 97 vocational training courses for 3,395 workers and a gift show that attracted around 3,000 commercial visitors including 625 foreign importers who signed 10 contracts worth of US$300,000 in total.
The city has supported five craft production facilities in product design consultancy and funded three craft production facilities in production equipment and technology purchases, with a view to improving product quality and productivity while reducing environmental pollution.
At a recent meeting to discuss craft village development hosted by the Hanoi Department of Industry and Trade, Deputy Minister of Industry and Trade Hoang Quoc Vuong said, “Craft villages across the city are developing spontaneously in residential quarters and should be supported in being moved to industrial clusters to help promote their sustainable development.”
However, Hanoi should have more incentives for craft producers to facilitate the removal of production facilities and promote the distribution of products.
Hanoi has 1,350 craft villages, including 198 recognized as traditional craft villages, attracting more than 626,500 craft people and more than 166,300 craft families. These villages have contributed significantly to the city’s socioeconomic development over time.