In the long term, the move is aimed at tapping these villages' strengths through trade and tourism and ensuring their sustainable development.

Handicraft and fine art products of Vietnamese villages have been gaining more and more attendtion from customers, and earning themselves a firm foothold in some major markets. Their output value has been growing at an annual average of 19 percent. Handicrafts also help generate jobs and increase effective working time in rural areas.

The State has issued policies on land, capital and support of trade in order to promote production in craft villages. The government has instructed relevant ministries and services to implement material production development programmes, establish craft design centres, provide credit for small-and medium-sized enterprises in craft villages, organise annual trade fairs and establish craft associations.

Vietnam now has 2,017 officially designated craft villages, with 1.4 million households involved in the production process, employing about 11 million workers. Revenues of handicraft villages are on the increase.

According to the Ministry of Trade, the export value of handicraft and fine art products increased from US$6.8 million in 1990 to about US$600 million in 2006. The government has set an export revenue target of US$1.5 billion for these products by 2010.

Household-based production, however, is not stable, said Vu Quoc Tuan, President of the Vietnam Association of Craft Villages. With small capital, limited activity and low production capacity, household businesses are unable to meet big orders. Craft villages should try to cooperate with other businesses or services to export outlets for their products, Mr Tuan said.

VOVNews/VNA