Socialist Republic of Vietnam

Ha Noi, Mar. 7 (VNA) -- Viet Nam's fine art handicraft products, regarded as an expression of the nation's traditional culture and art, have found a stable niche in the world market.

Unlike other items, fine art handicraft articles are made mostly from raw materials available in the country with imported additives accounting only 3-5 percent. Accordingly, the net income of hard currencies earned from these exports is as high as 95-97 percent.

Viet Nam's fine art handicraft items sell well in more than 50 countries. It is estimated that every earning worth USD 1 million from their export provides employment and income for between 3,000-4,000 people, mostly in craft villages and the general rural areas.

Outlets for many fine art handicraft products collapsed with the former Soviet Union and East European countries. However, export of these hand-made articles has gradually been restored with total earnings of USD 121 million in 1997 and USD 111 million in 1998, despite the Asian financial crisis.

With their earnings of USD 168 million in 1999 and almost USD 300 million last year, fine art handicraft products have now become one of Viet Nam's top ten export items. Each of the top-ten exports earns more than USD 100 million per year.

Economists forecast that Viet Nam is likely to earn almost USD 1 billion in 2005 from the export of these articles, including between USD 350-400 million from wooden handicrafts and USD 250-300 million from fine art porcelain.

The European Union, EU, is the biggest market for Viet Nam's handicraft products and accounts for one-fourth of Viet Nam's handicraft exports.

Viet Nam's handicraft articles exported to EU include wooden products, fine art porcelain and ceramics, bamboo and rattan products, rattan-made tables and chairs, bamboo- and rattan-made articles for interior decoration, and embroideries.

Economists say that North America is a prospective market for Viet Nam's handicraft products as the region, especially the United States, shows an increasing demand for fine art porcelain and ceramics as well as other handicrafts.

Japan has been the biggest importer of Viet Nam's handicraft items since 1991. Japan's statistics show that it imported about USD 60 million worth of handicrafts, mostly wooden furniture, from Viet Nam each year.

However, Viet Nam exports only USD 5 million worth of porcelain and ceramics to Japan each year, although the latter's demand for such products is on the rise, says Viet Nam's commercial office in Tokyo.

Although Viet Nam's handicraft products are found in more than 50 countries, the handicraft industry is still encountering impediments to both production and export, says the Trade Ministry.

In addition to inharmonious government policies that provide better help to the handicraft industry, craft villages and craftsmen have not yet been given soft bank loans to expand production, increase skill training and upgrade production facilities, a government report says.

It adds that most of enterprises involved in the handicraft industry are small-sized and short of investment capital for modernizing production lines and building waste-treatment facilities. They also lack market information and consultation.--VNA