Handicraft exports expected to reach about 2 billion USD in 2024

Still facing many challenges

According to the Department of Economic Cooperation and Rural Development (Ministry of Agriculture and Rural Development), the country currently has 774,392 establishments producing and trading handicraft products, mainly in the group of wooden products, rattan and bamboo weaving, ceramics, embroidery, and small mechanics; with 2,107 artisans and skilled workers; 571 provincial artisans and 1,322 skilled workers in the rural industry sector. The number of workers in craft villages is more than 1.4 million.

Binh Duong ceramic village is one of the traditional craft villages in this land.

Ceramics is a traditional craft in Binh Duong. Mr. Vuong Sieu Tin - Vice President of Binh Duong Ceramics Association - shared that the number of ceramic production facilities in Binh Duong has decreased by 70 - 80% compared to the golden period of development, the number of workers in each facility has also decreased significantly. Production facilities are facing difficult problems in terms of consumer markets, labor and production materials.

“High international shipping rates, increased production costs and low market demand have caused ceramic sales at many establishments to decrease by 50% compared to the previous period,” Mr. Vuong Sieu Tin shared, adding that market demand may be more positive in the coming time, but without a fundamental solution for long-term labor resources and production materials, the Binh Duong ceramic industry will find it difficult to maintain and compete in the market.

The difficulties of craft villages in Binh Duong are also a common picture of handicraft production and business establishments across the country. Ms. Nguyen Thi Hoang Yen - Deputy Director of the Department of Economic Cooperation and Rural Development - commented that the handicraft industry is also facing many challenges such as: lack of industry linkage in production organization, lack of linkage between associations and enterprises, training schools, craft villages, and artisans. The development of occupations and craft villages is still spontaneous, scattered, unsustainable, small-scale production, mainly taking advantage of labor and space in households. There is no comprehensive model for developing craft villages associated with infrastructure investment and technology application.

Although handicraft products have improved in design, their aesthetic and artistic value is not high; the use of raw materials affects the environment, and their origin is unknown… passing on the craft to the younger generation is difficult, causing many craft villages to be lost.

According to Ms. Nguyen Thi Hoang Yen, Vietnam's goal is to preserve and promote the traditional cultural values ​​and identities of craft villages; promote production development, improve competitiveness and added value for handicraft products, aiming for an export turnover of about 6 billion USD for handicrafts by 2030. To do so, it is necessary to synchronously implement solutions to organize production, train and develop human resources in parallel with preserving and developing craft villages.

Currently, Vietnamese handicrafts have been exported to 163 countries and territories, accounting for nearly 10% of global market demand. The export turnover of Vietnamese handicrafts in the period 2015 - 2019 increased by an average of 9.5% per year, from 1.62 billion USD (2015) to 2.23 billion USD (2019) and strives to reach 4 billion USD by 2025.

Mr. Nguyen Minh Tien - Director of the Agricultural Trade Promotion Center - said that for handicraft products, consumers prioritize sustainable and environmentally friendly products, unique and personalized, harmoniously combining tradition and modernity. A notable trend is online shopping and internationalization of the market. This is an opportunity for products of craft villages to reach beyond the village, national borders and reach global customers.

“To effectively exploit the market in a competitive context, craft villages and production facilities must ensure sustainable production practices, transparent origin, and build attractive and unique stories for the products,” Mr. Nguyen Minh Tien recommended.

Expected to earn 2 billion USD in exports this year

According to the Vietnam Craft Village Association, in 2024, the global handicraft market is expected to reach 1,107 billion USD and is forecast to reach 2,394 billion USD by 2032. This shows that the handicraft export market still has a lot of potential and is an opportunity for Vietnamese handicrafts to continue to expand export markets, increase value, improve quality and diversify products.

Craft artisans demonstrate their skills in making handicraft products within the framework of the 2024 LifeStyle International Gift and Decoration Fair.

In the Program for Preservation and Development of Vietnamese Craft Villages for the 2021-2030 period approved by the Prime Minister in Decision No. 801/QD-TTg dated July 7, 2022, the target is that by 2025, at least 30% of craft villages will have products protected by trademarks; increasing the export turnover of handicrafts of craft villages to about 4 billion USD; 100% of production establishments and households in craft villages will meet environmental protection regulations. By 2030, at least 50% of craft villages will have products protected by trademarks; increasing the export turnover of handicrafts of craft villages to about 6 billion USD.

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam spoke at the Forum "Connecting trade of handicraft and OCOP products with strategic customer systems in Vietnam"

Mr. Tran Thanh Nam - Deputy Minister of Agriculture and Rural Development - commented that the creativity of artisans and enterprises is very abundant; many Vietnamese handicraft products are very diverse and can continue to expand their markets to other countries. However, to meet the standards and tastes of consumers around the world, the requirements for aesthetics and creativity in each handicraft product are very high. The products made must serve life.

According to Deputy Minister Tran Thanh Nam, three issues in the value chain of the handicraft industry must be connected and supported, namely: raw material areas - artisans - enterprises. Along with that, the State's support with mechanisms and policies will bring about efficiency in the development of this industry in the coming time.

Therefore, it is necessary to have advice and suggestions from foreign experts on the market, new techniques and new technologies for artisans to improve their skills, grasp the needs of the international market to breathe life into the products. At the same time, businesses in need can order vocational training schools under the Ministry of Agriculture and Rural Development to train skilled workers.

"We really hope that businesses will join forces through industry associations to have a common voice. Only then can we bring handicraft products and OCOP products to the market. "Introduce to the international community," Deputy Minister Tran Thanh Nam said and suggested that associations need to gather businesses and create catalogs introducing handicraft products so that they can be sent to Vietnamese embassies in other countries to help promote and introduce them to international friends.

"The Ministry wants to restore rural industries, which are the crystallization of the nation's cultural values. If we are united and act together, the handicraft industry and OCOP products will continue to develop in the coming time," Mr. Tran Thanh Nam shared and commented: With the current difficult situation, the export turnover of Vietnam's handicraft industry in 2024 is expected to reach about 2 billion USD. But if we try, next year we can still achieve the target of 4 billion USD in handicraft export turnover.

Source: https://congthuong.vn/xuat-khau-hang-thu-cong-my-nghe-nam-2024-du-kien-dat-khoang-2-ty-usd-353538.html