ASEAN KEY DESTINATIONS
EU, US increase orders of handicrafts
Vietnam: Domestic handicraft exporters are benefiting from a new trend in which customers from the EU and the US are moving to Viet Nam, according to the Handicraft and Wood Industry Association of HCM City (HAWA).
Hawa said that the price of Vietnamese handicraft products was much cheaper compared with other countries, including China.
This has encouraged customers from the EU and the US to order products from Viet Nam.
Nguyen Ba Linh, director of the Tu Bon Handicraft Company in the southern province of Binh Duong, said many export orders had been received since August.
Each month, his company made 1,000 products to meet demand.
Luong Thi Thuy, director of the Hiep Luc Co-operative in southern Dong Nai Province, said they had received orders up to May of next year. Most of the customers were from the EU and the US.
Thuy said thanks to the increasing orders, her co-operative's revenue increased by 25 per cent year-on-year.
The Phuoc Du Long Company in Binh Duong Province had a fruitful year as their exports accounted for 90 per cent of its total yield.
Experts warned that problems existed in the domestic handicraft industry.
Dang Quoc Hung, deputy chairman of Hawa, said the production ability of Vietnamese handicraft producers was not stable.
Due to small-scale production, many companies could not meet demand and failed to hand over products in time, he explained.
Ton Gia Hoa, deputy chairman of the Viet Nam Handicraft Association, said Vietnamese handicraft producers had not invested much in technology, production and design.
Many companies had faced losses or had to reduce their production activities.
The increasing cost of raw materials was also cited as another difficulty.
In the first nine months of this year, the handicraft industry earned an export revenue of US$1.1 billion, rising by 15 per cent year-on-year.
To reach the goal of $1.5 billion in export value this year, companies must invest more in technology, expert said.
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