Over recent years, Da Nang handicraft items have reached out to many foreign markets, especially such fastidious markets as Europe and the US. However, the biggest challenges facing the city’s handicrafts export businesses include handicraft designs, rising input costs, and limited investment capital. Therefore, it is necessary for the city to create effective solutions and policies to help these businesses remove their difficulties and create motivation for them to promote the the development of craft for export.

Picture is taken at a craft facility in Hoa Hai Ward, Ngu Hanh Son District. Photo: P.V

Many difficulties faced by handicrafts export businesses

The Hoang Thien Company Limited located in Hoa Phong Commune, Hoa Vang District specializes in creating craft products from bamboo and rattan. On average, 500-1,000 craft products from the company are monthly sold on the domestic market at prices ranging from VND 30,000 to VND 5 million. The company’s domestic consumer markets are mainly concentrated on localities in the North and Central regions. In addition, the company’s products are exported to Europe, America, and Southeast Asia.

Mrs Huynh Thi Tam, the owner of this craft facility pointed out difficulties and challenges facing her facility. Included are challenges in meeting requirements in the export market in terms of product quality, origin, and brand recognition due to the special and unique features as well as the taste and feeling directly attached to the handicrafts by the artist's hand.

Since the beginning of the year, the Hoang Thien Company has cut more than half of its employees and downsized its products as it has seen sharp drop in export orders while its inventory has been high with rising operating and materials costs.

 “Finding export markets for our products has never been as difficult as now as we have to compete with our competitors who sell the same products from such countries as China and Thailand. Our main products which include altars and tables, chairs, animals, feng shui items have targeted at certain customers over the past years . Besides, exporting handicrafts is a complicated process due to the fact that Viet Nam has strict and complex documentation requirements for handicraft items for export, including complex documents required for export customs clearance purpose," remarked Mrs. Tam.

Survey findings from some craft facilities in the city show that Da Nang’s traditional handicrafts are practiced in the city as tradition, mainly using hand tools, achieving little breakthroughs, and using designs created more than a decade ago.

A total of 300-500 products from the Da Nang Decorative Light Single Member Private Company located in An Hai Bac Ward, Son Tra District are monthly sold on the domestic market. In addition, the major export destinations for the company’s products are Asian countries like South Korea, Thailand, and Singapore. Furthermore, the company’s products are sold at Vietnamese exhibition booths in foreign countries.

Mr. Nguyen Khoa Minh, the Company’s Director, said that many craft establishments are finding ways to target at domestic customers amid export challenges. However, the company’s production only maintains at a moderate level due to the off-peak season, the discruption and shortages of raw material sources.

“In order to find cheap raw materials as well as expand the consumption market, I have repeatedly visited major export destinations for our products, including Europe, America, and Australia to introduce our decorative lighting products in a bid to reduce our dependence on traditional export markets, but no new export destinations have been found, " Mr. Minh said.

Linkages between local handicrafts products and innovations in their products needed

One of biggest problems that makes the city’s exported handicrafts unable to compete with foreign competitors is slow innovation and lack of creativity in craft designs and brands.

Mr. Nguyen Manh Tuan, the Director of the Non Nuoc Art Stone Company Limited located in Hoa Hai Ward, Ngu Hanh Son District pointed out the weaknesses of local handicrafts producers that make them more difficult to compete with foreign competitors. Therefore, his facility is co-operating with other producers to improve their product quality and increase their business efficiency. The importance is attached to improving their crafting skills as customers in export destinations require unique and strange products with clear origins and brands.

According to the Import-Export Management Office under the Da Nang Department of Industry and Trade, the export value of handicrafts, wood products and fine art sculptures from Da Nang is still lower than expected as the number of handicrafts producers in the city is still quite low and such facilities are fragmented. The survey of many handicrafts businesses and shops reveals that they still cherish a dream of exporting and bringing traditional Vietnamese handicrafts to the world.

In order to be able to compete with foreign competitors, Da Nang’s handicrafts producers must work together to develop a supply chain of craft items, diversify their products, build and promote their brands in a bid to increase market share.

Mr. Le Quoc Tien, the Deputy Head of the Central Region Branch of the Viet Nam Craft Villages' Association, stressed the need for simplified procedures for exporting, minimized barriers to international trade, and deeper integration into international markets. In addition, special attention should be paid to upholding the roles and responsibilities of foreign professional organizations and associations that protect the legitimate interests of Vietnamese enterprises in an attempt to promote the development of Vietnamese handicrafts. Heed should be paid to participating in fairs, and trade promotion programs, as well as making an authentic marketing strategy in order to increase the competitiveness of local handicraft products.

Mrs Nguyen Thi Thuy Mai, the Deputy Director of the Da Nang Department of Industry and Trade said that focus will be on continuing to support small and medium-sized enterprises along individual establishments in the industrial sector to drive their innovations, boost their digital transformation, develop a model to access cleaner production, save energy and more in efforts to improve their competitiveness, enhance the linkages between them, and ensure their deeper integration into international markets. In particular, high priority will be introducing and promoting Da Nang-made products at exhibitions in addition to implementing a program to promote brands for Da Nang's craft items in the 2022-2025 period.

Reporting by QUYNG TRANG – CHIEN THANG – Translating by H.L