New-generation free trade agreements (FTAs) have opened up greater opportunities for Vietnamese handicrafts to access international markets. However, the challenge is not simply to expand export markets, but also to increase the value of products and strengthen their competitiveness.
Broader opportunities, considerable challenges
Thanks to the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), handicrafts have gained greater access to major markets with strong purchasing power.
However, along with rapidly changing consumer tastes, increasingly stringent standards on the environment, social responsibility and transparency require production establishments to change the way they organise their operations.
Nguyen Van Hoi, Director of the Vietnam Institute of Strategy and Policy for Industry and Trade, said new-generation FTAs not only expanded trade opportunities but also imposed higher standards on the environment, labour and transparency. Businesses therefore needed to shift from a production-oriented to a market-oriented mindset, while strengthening links to build competitive supply chains.
More importantly, businesses need to strengthen their own capabilities, from market research and product development to production organisation and distribution.
Innovation to retain markets, increase value
Trinh Quoc Dat, Chairman of the Vietnam Craft Village Association, said design innovation was essential for Vietnamese handicrafts to continue attracting international customers. Traditional designs could initially draw interest, but without regular updates to reflect changing tastes, consumer demand could gradually decline.
To appeal to international markets, designers need to study consumer preferences and incorporate Vietnamese cultural elements into ceramics, rattan and bamboo products and other handicrafts.
Alongside design, the application of science and technology is another way to improve productivity and quality. According to Dat, machinery can be used to support physically demanding and labour-intensive stages of production, while tasks requiring dexterity and finesse should remain in the hands of artisans. This combination can improve production efficiency while preserving the distinctive value of handicrafts.
Green production is another increasingly important requirement. Dat said customers are now particularly interested in environmentally friendly products. However, for small-scale household producers 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 Co., Ltd., stressed that innovation and creativity are essential to preserving traditional crafts. In sericulture, for example, her company has developed silk production using a technique that allows silkworms to spin an entire silk sheet themselves. This has enabled the material to be used in a wider range of everyday products, including blankets, pillows, warm clothing and decorative items, creating new products and expanding their appeal to consumers.
However, Thuan noted that for craft villages to develop over the long term, they must also address difficulties relating to raw material supply areas, production premises, the transfer of traditional skills and human resources.
She also emphasised the importance of telling the story behind each product. Consumers need to understand the materials used, how the product is made and the values it embodies.
Practical experience shows that the competitiveness of handicrafts depends on more than price or craftsmanship. It also rests on the ability to create products that meet market demand, maintain consistent quality, ensure transparent origins and demonstrate distinctive value.
Effective implementation of trade agreements is therefore not merely about taking advantage of market-opening opportunities. It should also serve as a catalyst for Vietnamese handicrafts to upgrade production capacity, build stronger brands and capture greater value in international supply chains./.
