Broad opportunities, significant challenges
In the context of free trade agreements such as the Viet Nam-EU Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), handicrafts have gained greater access to major consumer markets. However, rapidly changing consumer preferences mean that production establishments must not only preserve their traditional identity but also continuously renew their designs, improve product quality and seek new markets. At the same time, increasingly stringent standards on the environment, social responsibility and transparency require producers to change their production methods.
According to Nguyen Van Hoi, Director of the Viet Nam Institute of Strategy and Policy for Industry and Trade, new-generation FTAs not only expand trade opportunities but also impose higher standards on the environment, labour and transparency. Businesses therefore need to shift from a production-oriented mindset to a market-oriented one, while strengthening cooperation to develop competitive supply chains.
In reality, many handicraft establishments still operate on a small scale, with limited resources and insufficient investment in design, branding and technology. Some products have been slow to adapt in terms of design and functionality, while their cultural value has yet to be translated into clear commercial advantages. Constraints involving stable supplies of raw materials, traceability, logistics and the ability to meet green production requirements also undermine competitiveness.
These bottlenecks show that trade promotion and product advertising alone are unlikely to enable craft villages to establish a sustainable position in international markets. More importantly, businesses need to strengthen their internal capabilities, from market research and product development to production organisation and distribution.
Innovating to retain markets and increase value
Trinh Quoc Dat, Chairman of the Viet Nam Association of Craft Villages, said design innovation was one of the key requirements for handicrafts to continue attracting international customers. Traditional designs may initially appeal to consumers, but demand can gradually decline if products are not regularly updated to reflect changing tastes.
When targeting international markets, designers need to study consumer preferences and incorporate Vietnamese cultural elements into ceramics, bamboo and rattan products, and other handicrafts. However, innovation does not mean following trends at all costs. Products must meet modern needs while preserving their cultural identity and maintaining a distinctive appeal compared with mass-produced goods.
Alongside design, the application of science and technology is also a means of improving productivity and quality. According to Trinh Quoc Dat, machinery can be used to support labour-intensive and physically demanding production stages, while processes requiring dexterity and precision should remain in the hands of artisans. This combination can improve production efficiency while preserving the distinctive value of handicrafts.
Another increasingly important requirement is green production. According to Trinh Quoc Dat, customers are now particularly interested in environmentally friendly products. This requires producers to pay attention to every stage, from raw material selection and technological processes to machinery, equipment and waste treatment. However, for small-scale production households and businesses, investment in low-emission equipment, environmental treatment systems and pollution reduction remains a challenge due to limited capital.
Meritorious Artisan Phan Thi Thuan, Director of My Duc Silk and Sericulture Company Limited, also noted that innovation and creativity were essential to preserving traditional crafts. In the silk industry, for example, her company has developed a production method using a technique that allows silkworms to weave silk sheets themselves. This has enabled the company to expand the technique's applications to a range of everyday products, including blankets, pillows, warm clothing and decorative items, creating new products and broadening their appeal to consumers.
However, Thuan also pointed out that, to ensure long-term development, craft villages must address persistent difficulties relating to raw material supply areas, production premises, skills transmission and human resources.
She also emphasised the importance of telling the stories behind products. Consumers need to understand what materials are used, how products are made and what values they embody. When stories about the craft, the artisans and local culture are clearly communicated, products offer not only practical utility but also added value in terms of experience and cultural identity.
Practical experience shows that the competitiveness of handicrafts lies not only in selling prices or craftsmanship. It also depends on the ability to create products that meet market demand, ensure consistent quality, provide transparent information on origin and demonstrate distinctive value.
Effective implementation of trade agreements, therefore, is not simply about capitalising on opportunities arising from market opening. It is also a driving force for Vietnamese handicrafts to upgrade production capabilities, strengthen their brands and increase their value in international supply chains.
