Handicrafts export slows down

Origin Traceability is a difficulty of the handicraft production and export industry.

In addition, due to the specificity of the industry, it is not easy to meet the criteria for the origin of handicraft products. In that context, the units are having to be active to diversify export markets and better exploit the domestic market.

Less Orders

Tran Le Nguyen handicraft production facility of Mr. Nguyen Tran Vuong in Xuan Dinh commune, Xuan Loc district specializes in manufacturing products from water hyacinth and Corypha lecomtei leaves for export. In time of stable production, this facility supplies nearly 1,000 manufactured products each month to partners through major markets around the world. However, recently, the import of partners has been reduced, resulting in the production work of facility also being affected. Lack of orders, the unit was forced to let employees work in moderation because the finished product in inventory was still high. As a small-scale facility, rural industrial units rely heavily on partners and large enterprises, so there is no immediate solution in this moment

Similarly, at the Thanh Binh bamboo rattan base located in Hung Loc commune, Thong Nhat district, Mr. Nguyen Van Hao, owner of the facility, said the Russia-Ukraine conflict, high inflation in many countries, especially in major markets around the world; including the US and Europe, have affected export industries. When goods become expensive, consumer demand for non-essential products will decrease, which leads to high inventories of products in markets, and importers will limit the buying. Handicraft products are not essential products, so this period, similar to wood products, the amount of exported goods decreased sharply. New orders are slow to be signed while the inventory has not been released, causing difficulties for production units.

Another enterprise specializing in manufacturing decorative lights in Bien Hoa, after facing difficulties from the European and American markets, is also gradually diversifying its export markets. According to the owner of this business, he is on a working trip to the Australian market to seek export opportunities here. In the coming years, diversifying into markets other than the traditional ones is also a solution to deal with the disruption of supply sources when difficulties arise.

Standardization requirements on origin of raw materials

 Another problem for Vietnam's handicraft industry is the challenge faced in traceability today. If the products do not meet the requirements of partners, they will not be able to enter the European and American markets because these are key export markets with strict requirements. Meanwhile, the quality and design of Vietnam's products compared to other countries in the region are still limited. Due to limited resources and lack of experience in the world market, the need to export through intermediaries also affects the income of production units.

Besides, the problem of traceability is currently making the unit difficult. Major markets and partners have increased requirements for certification of origin for their products. However, there was a problem that he had a lot of difficulties in carrying out procedures for issuing certificates of origin (C/O) because he did not have enough invoices and documents. Currently, the process of tracing the origin of handicraft products in our country is still very low. The raw material supply chain has too many small suppliers and households with no valid input invoices. To be able to develop long-term and sustainably, the current problem of production units is to update to integrate into the game with the world market. Domestic enterprises need to ensure thorough compliance with international market regulations, especially regarding the origin and legality of raw materials, if they do not want to miss opportunities.