Hanoi crafts ambitious plan to develop production villages

Great contribution

Hanoi currently has 1,350 craft villages producing diverse goods, such as lacquer, mosaics, conical hats, bamboo and rattan, forestry processing, embroidery, garments and textiles, leather and footwear, metalworking, and carving.

Due to a good grasp of the market trends, rapid change of production methods, and strong investment in product design and quality, some craft villages have earned high revenues, such as Son Dong fine arts village, La Phu village producing confectionery and knitting products, and Minh Khai and Duong Lieu agro-processing villages. The average income of workers in craft villages ranges between VND4-5 million per person per month. In 2017, total revenues of craft villages reached over VND20 trillion, contributing significantly to the city’s socioeconomic development.

Tran Thi Phuong Lan, deputy director of the Hanoi Department of Industry and Trade, said craft villages annually export products worth US$175 million, mainly pottery, lacquer, embroidery, and wood sculpture. The potential for expanding exports remains large, as many businesses and production establishments in craft villages have promoted investment in machinery, equipment and technologies to increase productivity and improve product quality.

As one of the direct management units in terms of production and distribution, the local department of industry and trade supported more than 400 production establishments in creating about 300 new handicraft samples in 2018.

Thanks to the local industry promotion budget, the department has also helped 14 units to invest in machinery and equipment serving production, promoted branding for 12 craft villages, hired consultants to develop product models for 20 units, and organized vocational training for 1,400 laborers.

In particular, the department successfully organized the 2018 edition of the Hanoi Gift Show with more than 650 booths of 250 domestic and foreign firms. The annual event offers an opportunity for businesses and craft villages to introduce their latest products, seek more customers and expand their export markets.

Large investment

Aware of the importance of craft villages to socioeconomic development, the Hanoi People’s Committee has approved a development plan of craft villages in the city by 2020, with a vision for 2030.

Under the VND8.25 trillion plan, the city foresees having 1,500 craft villages by 2030, striving to restore 21 craft villages, developing 17 others in association with tourism and helping 70 villages to improve roads and bridges. The city is also aiming to create jobs for nearly one million workers with an average annual income of VND35-40 million by 2020 and VND50-60 million by 2030.

The plan also sets development orientations for craft villages. It includes developing traditional craft villages such as handicrafts, forestry processing, silk weaving, embroidery, ceramics, leather and footwear; developing preservation and processing of fruit and vegetables in urban neighborhoods; and developing processing of Vietnamese traditional medicine and oriental medicine for domestic demand and exports. Garments and textiles, metalworking, and forging are being developed toward production of auxiliary products for industrial production.

With the expected budget, the city will organize activities to bring products into markets, supermarkets and trade centers, as well as rural and remote areas; strengthen links between businesses and craft villages; promote branding for craft villages, especially traditional ones; implement relocation of production establishments causing serious environmental pollution; and encourage cleaner production.

Hanoi will also spend considerable funds on industry promotion activities in the city, support participation of craft villages in specialized fairs and exhibitions, and build four centers to introduce products of traditional craft villages to domestic and foreign customers following the tours in Thuong Tin, Chuong My, Soc Son, and Son Tay districts.

With specific development orientations and large budgets, by 2030, craft villages are expected to become a key economic area.