Handicrafts' Access to US Market: A Change Needed in Samples and Designs

Handicrafts are considered one of the advantages of Vietnam. Each year, the item earns the country high economic benefits. However, it is facing fierce competition in export markets. In some markets like the US, Vietnamese handicrafts are considered overrun by Chinese products.

 

Vietnamese handicrafts still face two difficulties, including samples and designs, which result in a poor competitiveness in export markets. In terms of samples, handicrafts of Vietnam concentrate on exploiting advantages of the Vietnamese traditional culture. Market experts advised: “We should try to introduce but not impose our culture or taste on foreign customers, especially in such hard-to-please markets as the US. Instead, we should bring American culture into products.”

 

Apart from some enterprises, which have concentrated on renewing and diversifying products, many enterprises still follow an instant business model. These enterprises just come for short-term benefits but do not invest in samples and designs. Some even copy samples and designs of other enterprises.

 

In terms of prices, Vietnamese handicrafts are sold at higher prices than products of other countries in the US. Why do Vietnamese products have higher prices while Vietnam is considered to have low labour costs? Answering the question, foreign experts said Vietnamese handicrafts had high prices because they were made by small-sized traditional establishments, which were constrained in production organisation capability.

 

In 2005, export turnover of Vietnamese woodworks reached US$1 billion. Of the figure, more than US$370 million came from the US, which has become the target of many Vietnamese woodwork manufacturers. In ten months of 2006, Vietnam earned US$20 million from exporting rattan and bamboo articles and around US$29 million from exporting woodwork and ceramic products. The figures, however, remain modest in comparison with the annual import value of the US. In the new context, export value of woodwork and handicrafts of Vietnam to the US is expected to see major increases. 

 

At present, after Vietnam’s accession to the World Trade Organisation (WTO), the export of products to the US has become easier. The problem is how to have products standing firm in such a hard-to-please market as the US. Apart from some enterprises, which have had business experience in the US market, other enterprises are promoting their products to the market.

For small and medium-sized enterprises, their weakness is lack of experience. However, in compensation, they have made good preparations from design to production. On June 10, 2006, the Ket Tinh Company, which has been successful in the Japanese market, opened its branch in New York to introduce its products. Dang Hoang Vinh Loi said in 2007, his company’s target markets would be Dubai, Singapore and the US. At first, the company will export embroidered handbags, wood sandals and bamboo blind shades. Loi said, from experience of other enterprises, his company would concentrate on samples, designs, prices and quality.

 

The fact that many local enterprises have targeted the US proves the high confidence of the enterprises. Their success, however, will depend in many other factors. Accordingly, they should invest in diversifying products. Prices are also a factor to which enterprises should pay attention.