The handicraft sector is facing a number of difficulties. The sector has to import a large volume of materials due to unstable material supplies in the country. Enterprises can not receive large orders which require high quality and on-time delivery because of their small-scale production. In addition, simple and poor designs do not meet the demands of the international market. Most producers tend to accept design and technical requirements from foreign importers, rather than investing in developing their own designs and trademarks. Many of their products do not meet customers’ tastes due to a lack of facilities.

Nguyen Thu Hang, deputy director of Nhat Thang Company which specialises in exporting ceramic and bamboo products said as foreign customers’ requirements are becoming more demanding her company has to study each market carefully to understand customers because they have different tastes. For example, products sold in the US quite differ from those sold in the EU and Japan, both in colour and design.

The company has to launch a wide variety of products onto different markets to meet customers’ demands. To undertake this task, the company has recently established its own design department and invited foreign designers to work with Vietnamese partners on an annual basis. When joining fairs abroad, the company often brings along new products in different designs and colours, Ms Hang said.

Thanks the availability of domestic materials, the real export value of handicraft products is very high and accounts for 95-97 percent, as imported supporting materials only make up 3-5 percent of total value. Furthermore, handicraft products no longer face imposed quotas and are exported to the US, Japan, and the EU in a large volume. However, due to the instability of material sources enterprises are currently facing difficulties in production due to soaring prices.

Nguyen Tien Khanh, owner of a bamboo handicraft production unit in southern Tien Giang province said during the export season, China imports a huge volume of materials, thus to causing material price hikes. “I hope that there will be stable supply of materials soon to make enterprises feel secure about production plans to improve the competitiveness of handicraft products on the market,” Mr Khanh said.

Many enterprises only sell their products locally due to a lack of information about the export market.

Nguyen Huu Chinh, chairman of the Van Phuc Crafts Association said the Van Phuc village produces around 2.5-3 million metres of silk every year, mainly serving domestic customers and tourists. Goods are often sold through intermediaries so the association has to combine crafts with tourism. It has marked off an open area to introduce the silk to tourists. A number of domestic and foreign tourists often come to visit the village and buy products, especially in summer. The association has also encouraged its members to participate in fairs and developed a website to introduce the village.

Deputy Minister of Trade Do Nhu Dinh said handicraft enterprises should co-ordinate with each other to exchange information and experience to find new markets and improve competitiveness.