Many solutions needed for sustainable handicraft exports

DNHN - To achieve sustainable handicraft exports, a long-term strategy is required, ranging from improving production capacity and enhancing brand value to leveraging e-commerce.

Promising numbers

Vietnam's handicraft industry has been affirming its position in the international market; however, to boost exports and fully exploit the potential of the industry, more practical solutions are needed in the near future. At the seminar "Consulting on enhancing marketing capacity for handicraft village export products" on October 9, 2024, Mr. Tôn Gia Hóa, Vice Chairman of the Vietnam Handicraft Village Association, highlighted the opportunities and challenges the industry is facing.

According to the latest figures, the global handicraft market was valued at USD 1.007 trillion in 2023 and is forecast to reach USD 1.107 trillion in 2024. By 2032, the industry's value could rise to USD 2.394 trillion. Vietnam, with more than 5,400 craft villages and traditional villages, possesses a valuable resource stemming from its cultural diversity and long-standing craftsmanship. The total revenue from these craft villages has reached around VND 75 trillion, with export turnover increasing from USD 1.62 billion in 2015 to about USD 3.5 billion in 2023.

Vietnamese handicraft products have reached 163 countries and territories, with key markets including the U.S., Japan, the European Union, and Middle Eastern countries. Particularly, the goal of achieving USD 4 billion in exports by 2025 is the industry's main ambition. However, compared to the scale of the global market and competitors like China and India, this remains a relatively modest figure.

Despite many achievements, Vietnam's handicraft industry still faces numerous challenges in exporting. Most handicraft production facilities still operate under family or village models, lacking professionalism and systematic production processes. This has led to products often being exported as outsourced goods or under orders from major international retailers, reducing the ability to build and develop the Vietnamese brand globally.

Highlighted handicraft products like Bát Tràng ceramics, Phú Vinh bamboo and rattan, Vạn Phúc silk, and Quất Động embroidery, while maintaining certain positions, have yet to make significant breakthroughs in branding. The competitiveness of Vietnamese handicraft products remains limited, especially when compared to international competitors who possess strong industrial foundations and more effective global market strategies.

A new direction for sustainable production

One of the positive signals for Vietnam's handicraft industry is the robust development of e-commerce. With Vietnam's e-commerce market ranking in the top 3 in Southeast Asia, this is seen as a significant opportunity for handicraft businesses to access international markets. Utilizing digital platforms not only helps expand export scales but also reduces reliance on traditional outsourcing orders.

Notably, sustainable production factors are increasingly valued in Vietnam's handicraft value chain. This not only meets the growing demand for environmentally friendly products from international consumers but also helps enhance the value of the Vietnamese brand in the global market.

According to Mr. Tôn Gia Hóa, to truly achieve sustainable development, Vietnam's handicraft industry needs comprehensive solutions in economic-social, environmental, and institutional areas. Particularly, a complete development master plan for the industry needs to be established, and science and technology should be promoted in product design and production processes.

Additionally, building a distribution and export network, as well as enhancing the role and efficiency of industry associations, are important factors. In the future, establishing a dedicated law for craft villages will be a breakthrough step, creating favorable conditions for preserving and sustainably developing handicraft production facilities.

The industry needs to focus on improving the competitiveness of core product groups, increasing product value, and diversifying designs to meet various market segments. At the same time, international standards compliance is also an indispensable factor for Vietnamese handicraft products to go further on the international stage.

Linh Anh