Although international markets continue to offer significant growth potential for Vietnam’s handicraft industry, businesses face numerous challenges in meeting increasingly stringent export standards. Therefore, developing model craft villages that meet export requirements—particularly in sectors with strong export potential—is essential to enhancing competitiveness and expanding access to global markets.
According to Ha Thi Vinh, Chairwoman of the Hanoi Handicraft and Craft Village Association, Vietnam’s handicraft industry—and Hanoi’s in particular—has unique characteristics that distinguish it from many other manufacturing sectors. Most production facilities are located in traditional craft villages, where businesses typically operate on a small scale and are closely connected to local communities.
Yet it is these craft villages that produce products embodying the soul of the nation, reflecting Vietnam’s cultural heritage, identity, and creative traditions.
Bringing these culturally distinctive products to international markets is both rewarding and challenging. Unlike essential products such as textiles and footwear, handicrafts are primarily purchased for decoration and artistic appreciation rather than daily necessity. As a result, consumers often reduce spending on these products during periods of economic uncertainty. This creates significant challenges for exporters.
The ceramics industry provides a clear example. Chinese manufacturers benefit from large-scale, modern factories and lower production costs, while most Vietnamese producers remain small and scattered across traditional craft villages. This limits their competitiveness.
At the same time, the global shift toward green consumption and sustainable development has made environmental and social responsibility standards increasingly important. Major markets such as Europe and the United States now require exporters to obtain environmental and social compliance certifications. These certifications are not only evidence of sustainable business practices but have also become essential prerequisites for accessing high-end international markets.
However, obtaining these certifications requires sufficiently large production facilities, modern manufacturing processes, and professional management systems. These requirements remain difficult for many Vietnamese handicraft producers to meet.
In addition, complying with international standards for green manufacturing and sustainable production requires substantial investment in factories, waste treatment systems, and supporting infrastructure. This presents a significant financial burden for small and medium-sized enterprises, which account for the majority of businesses in Vietnam’s handicraft sector.
Handicraft manufacturers must also comply with international regulations covering environmental protection, fire safety, labor management, and other legal requirements. Meeting these standards requires production facilities of adequate scale, supported by comprehensive infrastructure and management systems. Since most Vietnamese producers still operate as small or micro-sized workshops within traditional craft villages, achieving international compliance remains a major challenge.
According to Ha Thi Vinh, although global markets continue to offer considerable opportunities for Vietnam’s handicraft industry, businesses face significant obstacles in meeting export standards. These challenges extend beyond production scale to include management capacity and operational efficiency. They directly affect the sector’s long-term sustainable development.
“To overcome these barriers, we recommend developing pilot models in traditional craft villages, particularly for product categories with strong export potential,” she said.
Under this approach, the government would play a facilitating role by providing land, production facilities, and equipment while creating favorable conditions for businesses to establish manufacturing operations that meet international standards. Technical guidance from industry experts would help develop export-ready production models. This would enable smaller enterprises to learn from these examples, standardize their production processes, and improve competitiveness.
Trade promotion is also essential. Given the unique nature of handicraft products, businesses cannot rely solely on e-commerce platforms. Participating in major international trade fairs and engaging directly with overseas buyers remain crucial for expanding export markets and securing new business contracts.
At present, many businesses hope to receive greater financial support from the Ministry and the Hanoi People’s Committee to participate in key international exhibitions. However, current exhibition arrangements remain less effective than expected. In previous years, many companies were grouped into shared exhibition spaces, where each business was allocated only a small display area. This fell short of the professional presentation expected by international buyers.
Ha Thi Vinh therefore recommended prioritizing support for export-capable enterprises by providing exhibition booths that meet international standards and feature professional product displays to create a stronger impression on potential customers.
She also emphasized the need to organize more international trade fairs in Vietnam. In the past, Hanoi and Ho Chi Minh City successfully hosted international exhibitions that enabled domestic businesses to connect with overseas buyers without incurring the high costs of exhibiting abroad. These events also allowed foreign visitors to tour production facilities firsthand and assess manufacturers’ capabilities. This increased opportunities for long-term business partnerships.
In recent years, however, international trade fairs in Hanoi have attracted fewer overseas visitors despite their international branding. As a result, Ha Thi Vinh called for improvements to the exhibition model, including higher-quality VIP exhibition areas and internationally standardized display spaces. This would allow trade fairs to become more effective platforms for promoting Vietnamese handicrafts in global markets.
Vietnamese source: https://thanglong.chinhphu.vn/phat-trien-nganh-thu-cong-my-nghe-can-xay-dung-mo-hinh-lang-nghe-dat-chuan-xuat-khau-103251103150308784.htm
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