Connecting Supply and Demand for Handicraft Products

Handicraft products are increasingly popular. However, there is a shortage of raw materials, requiring solutions to connect and source inputs for the handicraft industry.

The 14th Hanoi International Gift Show 2024, organized by the Hanoi Department of Industry and Trade, takes place from October 10 to 13, 2024, at the National Architecture, Planning, and Construction Exhibition Center. This event celebrates the 70th anniversary of the Capital’s Liberation on October 10.

This year’s fair gathers 450 booths from domestic and international handicraft businesses and production facilities, expected to attract over 17,000 visitors, engaging both in-person and online.

The fair presents an opportunity to support businesses, artisans, and production facilities in promoting, showcasing, and expanding their products, sectors, and markets. According to Hanoi’s Department of Industry and Trade, the Hanoi International Gift Show 2024 reflects the city’s commitment to creating a favorable and effective production and business environment for sustainable development in the industry.

Handicraft display area

The event provides significant opportunities for handicraft businesses to advertise new and iconic handicrafts, connect with clients, and expand markets. With thorough preparation from participants and effective support from the Hanoi Department of Industry and Trade, the fair promises success, advancing Hanoi’s and Vietnam’s handicraft sector to global audiences and fostering sustainable development in Vietnam’s handicraft industry.

According to Ton Gia Hoa, Vice President of the Vietnam Craft Village Association, Vietnam is a potential exporter of handicraft products due to its diverse crafts and rich resources. With over 5,400 craft villages, Vietnam has expanded its handicraft market to 163 countries and territories, with export turnover rising from $1.62 billion in 2015 to $2.23 billion in 2019. In 2023, Vietnam’s handicraft export turnover reached approximately $3.5 billion, with key markets including the United States, Japan, the European Union, and parts of the Middle East. Vietnam aims to achieve $4 billion in handicraft exports by 2025. However, this figure remains low compared to competitors like China and India.

The Hanoi Industrial Promotion and Development Center reports that Hanoi’s bamboo and rattan craft villages consume around 6,800 tons of raw materials annually, while ceramic craft villages consume about 620,000 tons, mainly clay and kaolin. However, there is a shortage of essential raw materials like bamboo, rattan, and timber due to shrinking sourcing regions, impacting domestic consumption and export demand. Timber is the most imported material due to severe shortages among furniture producers.

Delegates and leaders of the Industry and Trade sector visited the exhibition area of ​​handicraft products.

In recent years, provinces have been developing raw material zones, but planning lacks inter-provincial coherence to maximize regional strengths. Artisan Nguyen Van Trung of Phu Vinh Bamboo and Rattan Craft Village (Chuong My, Hanoi) highlights that local bamboo sources only meet 20% of demand, prompting businesses to independently organize material sourcing and treatment.

Moreover, limited two-way communication between producers and suppliers hinders raw material supply, raising production costs and complicating operations for both parties. Raw material scarcity increases costs and reduces product affordability, challenging producers and businesses.

The Ministry of Agriculture and Rural Development notes that craft villages are primarily in the Red River Delta, Southeast, and South Central regions, while raw material zones are mostly in the Northwest and Central provinces. Limited connectivity among these areas complicates production, quality control, and logistics costs.

Thus, developing high-quality, abundant raw material zones is essential. Vice President Ton Gia Hoa suggests that craft village development traditionally relies on local materials. Given current demands, imports are necessary, while raw material regions should focus on cultivating relevant industries.

In Hanoi, experts recommend improved policies on land use and raw material areas, encouraging businesses and cooperatives to lease land and consolidate land for raw material zones. Additionally, stabilizing material sourcing areas will help supply materials to craft villages effectively.

By Dinh Bao, Vietnam Business Forum