Binh Dinh Backs production in craft villages

Local women weave baskets

There are now about 7,550 production facilities and businesses located in Binh Dinh province’s craft villages, which mainly operate in fields of food processing (Bau Da rice alcohol and rice vermicelli), fine arts products (carved items, sedge mats, brocades) and cast bronze. Most of these facilities are small in scale and use backward production technologies, therefore their products are mostly sold in the domestic market.

Due to this, the provincial production facilities and craft villages lack capital and can’t access loans due to a lack of collateral.

According to Binh Dinh Province Department of Industry and Trade, it was also difficult to encourage businesses to take on new equipment to improve productivity because the markets they produce for are too small and there is little chance they would operate at sufficiently high capacity. Some firms only used 30 percent of the capacity of equipment, which they regarded as a waste of their resources.

To support facilities, Binh Dinh’s industry promotion sector has carried out a range of practical measures over the past years. The provincial Industry Promotion and Consultancy Development Center has trained and generated jobs for 5,600 people, built and implemented many technical demonstration models and applied advanced machinery and equipment in production. The province also organized exhibitions on rural products at regional level and votes on typical rural industrial products at provincial, regional levels and participated in trade fairs on rural industrial products at regional level which helped encourage the promotion of the province’s products.

Along with a series of preferential policies to develop craft villages and production facilities, the province also adopted measures to move craft villages and production facilities that cause pollution into industrial zones. Regarding craft villages and production facilities producing products with low competitiveness and low efficiency, they would be reorganized to gradually expand their scale of production hand-in-hand with finding markets.

Thanks to the local industry promotion fund, Binh Dinh prioritized supporting craft villages and production facilities that produce typical products, consolidate traditional skills and put new technologies into production; built technical demonstration models; and organized training programs to improve vocational skills at the craft villages.

To expand markets and find out a suitable path for exports of the craft villages and production facilities, the Binh Dinh Province People’s Committee organized coordination between craft villages, production facilities with enterprises to create a close link between producers and consumers.

According to the Binh Dinh Province Development planning for craft villages by 2020 with vision until 2030, the total demand for investment capital of the province will be VND116.58 billion, including VND49.04 billion from the state budget, and reciprocal capital and funds raised by craft villages and production facilities totaling VND67.54 billion.          

By Hai Linh