Vietnamese handicrafts are highly popular, reasonably priced and are unique to the country's culture. But today, they are facing tough competition from China, Thailand, Indonesia and Malaysia.
handicrafts has tremendous export potential that can help eradicate hunger and poverty in rural areas of Vietnam.
Handicraft sales to foreign tourists if accelerated, coupled with production backed by proper market efforts can really boosts the fortunes of the people involved in the industry.
The sector can acheive export growth rate of over 20 percent per annum, earning US $800 million worth foreign exchange by 2005 and a a total of $1.5 billion in export value by 2010, according to a report.
Since export markets are encouraging, with production costs accounting for only 35 percent of export value of handicraft products, profitability seems quite attractive over return of investment. Bereft of any Government support, the sector can still earned $565 million from exports last year, that is up 9.6 percent over 2004.
Handicraft exports would increase substantially if right steps are taken for promoting sales in traditional markets like Japan, South Korea, Taiwan, France and the EU; and new ones like the US, Canada, Mexico, Eastern Europe etc.
However, handicraft industry of Vietnam is plagued by lack of innovative design, quality, small-scale production and short supply of essential raw materials.
If the handicraft manufacturers and exporters rightly coordinate with tourist firms, exports can multiply, opine Trade Ministry officials.
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