Craft products are diverse, well-designed, and high-quality, providing a competitive edge both domestically and internationally

According to the National Strategy for the Development of Vietnamese Cultural Industries to 2020, with a vision to 2030, approved by the Prime Minister in 2016, handicrafts are identified as one of the 12 key sectors for cultural industry development. In Hanoi, handicrafts are also prioritized among six areas with significant potential and advantages, receiving targeted investment. The city is implementing a range of solutions to develop handicrafts into a cultural industry, including: expanding the cultural industry market, focusing on traditional craft villages to boost creativity and target international markets, and promoting investment to leverage and showcase the unique cultural values of each locality.

Unlocking untapped potential

Hanoi is home to 1,350 craft villages, including approximately 176,000 households, representing 45% of the country's total craft villages. These include many occupational groups such as handicraft production, woodworking, rattan and bamboo crafts, ceramics, glassmaking, textiles, yarn, embroidery, knitting, small mechanics, and agricultural product processing and preservation.

Craft products are diverse, well-designed, and high-quality, offering competitive advantages in both domestic and international markets. These include garments, ceramics, traditional textiles and embroidery, wooden items for both consumption and construction, mechanical products, and processed agricultural goods. Many of these products are exported to major markets such as Japan, the USA, the EU, Dubai, Russia, and many Asian and Southeast Asian countries.

Despite their important contributions to Hanoi's economic growth, the development of handicraft villages has not fully realized their potential. A major limitation is product design. Although Hanoi boasts nearly 200 artisans, thousands of skilled workers, and many leading experts and specialized students, only a small fraction of the thousands of new product designs created annually are commercialized, with most remaining at the research stage.

Ms. Ha Thi Vinh, Chairwoman of the Hanoi Association of Handicrafts and Craft Villages, said that Vietnamese handicrafts lag behind regional competitors like Thailand and Indonesia in terms of design. Design innovation is important for product competitiveness. Mr. Le Duc Ke, Chairman of Bat Trang Travel Service and Trade Joint Stock Company, said that while Bat Trang ceramics are renowned, they lack modern design expertise and vision, which hampers their performance in the global market compared to international competitors.

Accelerating export growth

In recent years, handicrafts have consistently ranked among high-turnover export items. They play an important role in transforming the rural economic structure, attract a significant workforce, and contribute to poverty reduction in rural areas.

Mr. Luu Duy Dan, Chairman of the Vietnam Association of Craft Villages, said that while Vietnamese handicrafts were once highly favored in foreign markets for their unique designs and affordable prices, their appeal has recently declined. This decline is attributed to a lack of design innovation and an inability to meet evolving customer preferences and needs.

Hanoi's handicraft products reflect artisans' storytelling, preserving cultural identity and traditional craftsmanship. To enhance their value, these enterprises must not only produce high-quality, unique items but also invest in design improvements to meet consumer preferences. Additionally, many enterprises have successfully leveraged e-commerce platforms, which have boosted revenue, reduced costs, and expanded brand visibility, allowing handicraft products to reach the world market.

Ms. Ha Thi Vinh said, “The free trade agreements that Vietnam has signed offer a 'golden opportunity' for export enterprises, including those in handicrafts. However, these agreements also introduce technical barriers that require Vietnamese manufacturers to adapt and enhance their practices. For instance, stringent regulations on environmental standards, noise levels, and worker conditions necessitate that our products meet high standards. As such, we must ensure our products are 'clean' and compliant to successfully compete in the global market.”

Mr. Nguyen Van Chi, Director of the Hanoi Rural Development Department, said the city's high demand for raw materials and its focus on connecting with provinces nationwide for production. To address raw material supply issues for craft village development, he advocates for improved land and raw material policies, enhanced public-private partnerships, and support for sustainable, certified raw material sources. Additionally, he recommended businesses, particularly large ones, invest in comprehensive production chains and technological advancements to boost agricultural mechanization and product processing.