The Ministry of Trade identifies the target export markets of Vietnam's handicraft industry as the US, EU and Japan.
The Government's strategic orientation for the handicraft industry is to strive for the export turnover of handicrafts to reach 1.5 billion USD by 2010.
In the current period, to achieve the above goal, the Ministry of Trade has identified the target export markets of Vietnam's handicraft industry as the United States, EU and Japan.
In general, the international market for Vietnamese handicrafts has changed a lot in recent decades. Previously, Vietnamese traditional handicrafts were exported to countries of the former Soviet Union and Eastern Europe, neighboring countries such as Laos, Cambodia and Thailand (in 1996 exported to 50 countries and territories). , in 2000 it was 90 countries and territories, in 2004 it was over 100 countries and territories, in 2005 it was 133 countries and territories), currently Vietnamese handicraft products are being sold in most of the world market.
The European Union (EU) is the most important market. In 2005, among the 15 main export markets of Vietnamese handicrafts, there were 7 EU countries, accounting for 42%, equivalent to about 241 million USD and 4 times the amount exported to Japan or Japan. USA.
Previously, the Japanese market was ranked first among the major target export markets, but now the leading position belongs to France and the United States. The United States is still considered a market with impressive growth in the period 1999 - 2005 and this market still has a lot of growth potential in the future.
Among East Asian countries, Taiwan and South Korea are also potential markets. Vietnam's export of handicrafts to these two markets also increased sharply, with export turnover to Taiwan in 2005 equivalent to that of France and the United States. The Middle East is currently a potential market area but Vietnam has not yet been able to exploit it to boost exports.
Three main target markets
In recent years, the United States has had a need to import about 13 billion USD/year of handicrafts. Vietnam's exports of handicrafts to the United States in 2005 accounted for only 1.5% of the country's import turnover. The Ministry of Commerce aims to increase the proportion of the United States' import turnover of handicrafts to 3% by 2010 (reaching a turnover of over 0.4 billion USD). In 2006, Vietnam exported about 76.4 million USD of handicrafts to the US market, accounting for 0.97% of Vietnam's export turnover to the US, of which 36.8% was 36.8% million USD. ceramic goods, increased 27.6% compared to 2005 and increased 7 times compared to 2002 (Vietnam Customs Statistics).
The EU market has an import demand in recent years of about 7 billion USD/year, of which, Vietnam's exports in 2005 only accounted for 5.4% of the region's import turnover. In 2006, Vietnam exported handicrafts to France reaching 81.8 million USD; Germany reached 62.5 million USD; Belgium reached 36 million USD; UK 21.4 million USD; Netherlands 18.9 million USD; Italy 16.2 million USD; Spain 18.8 million USD... According to the Ministry of Trade, in the future, this is a market area capable of strongly consuming many Vietnamese handicrafts. Therefore, the goal by 2010 is to increase this ratio to over 6.4% (reaching a turnover of over 0.6 billion USD).
For the Japanese market, the demand for imported handicrafts is about 2.9 billion USD/year, of which goods from Vietnam in 2005 only accounted for 1.7% of the country's import turnover. According to statistics from Vietnam Customs, in 2006, Vietnam exported about 70.14 million USD of handicrafts to the Japanese market, accounting for 1.34% of Vietnam's export turnover to Japan. Of which 30.8 million USD were ceramic products. It is expected that by 2010, the proportion of Vietnam's handicrafts will reach over 4% (equivalent to a turnover of about 150 million USD) of the total import turnover of handicrafts in this market.
How to reach the target market
In order to grow exports to the US market, Mr. Le Ba Ngoc, Director of the Vietnam Craft Villages Development Project, said that export businesses should look for separate distribution channels for their target customers. This company is always looking for truly special products to create competitiveness in the market. Besides, their orders are not too large, completely consistent with the capacity of Vietnamese handicraft exporters.
Manufacturing enterprises must enhance design development and create product differentiation to increase competitiveness in the market. At the same time, when researching this market, businesses need to pay attention to what customers will buy because in reality, customers only care about the usefulness of handicraft items for home decoration. .
Ms. Yoko Kawaguchi, a Japanese expert, affirmed that to be able to dominate the Japanese market, Vietnamese businesses need to focus on producing quality products that are in line with Japanese people's preferences and must have High use value in daily life. Manufactured goods should develop in the direction of diversifying products by diversifying types and reducing the number of finished products to meet the needs of a large number of consumers. In addition, businesses need to ensure a balance between product quality and price, because Japanese people now always believe that "cheap goods are poor quality goods", they are willing to pay high prices for cheap products. Good quality product.
As for large EU importers, Mr. Victor Lamont, a consultant with the International Trade Center (ITC), said that the most important factor is not differentiated products but service offerings. service providers, such as whether orders are produced on time, flexibility, logistics issues, and the exporter's social responsibility standards. If the exporter can ensure these factors, the importer will agree to import the goods.
Thus, Vietnam's exports of handicrafts currently only account for 1.5% of the import turnover of this product group in the United States, 1.7% of Japan and 5.4% of the EU, but if In the coming time, export turnover to these markets will double, which will bring huge turnover for this product.
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