Craft village enterprises face difficulties in accessing capital sources.

Despite their significant development potential, small-scale production, outdated technology, and lack of investment capital have limited the competitiveness of traditional craft village businesses in the market.

Despite countless difficulties, they did not give up the profession.

Vietnam is known for its rich and diverse craft village culture, ranging from pottery, carpentry, and embroidery to the production of handicrafts. Hanoi , in particular, is known as the "Land of a Hundred Crafts," with its craft villages accounting for 56% of the country's total.

At the dialogue conference on resolving difficulties and promoting production and business for enterprises, cooperatives, and business households operating in craft villages, organized by the Hanoi People's Committee on the morning of July 5th, Vice Chairman of the Hanoi People's Committee Nguyen Manh Quyen stated that Hanoi currently has 1,350 craft villages and villages with crafts, including 331 craft villages, traditional crafts, and traditional craft villages recognized by the City. The current production value of Hanoi's craft villages exceeds 24,000 billion VND.

However, one of the biggest challenges facing handicraft businesses today is the difficulty in accessing capital for development and expansion of production.

Vice Chairman of the Hanoi People's Committee Nguyen Manh Quyen delivered a speech at the conference.

At the conference, dozens of businesses expressed the difficulties they are facing and made recommendations on planning, infrastructure, tourism and the environment of craft villages; policy mechanisms to support craft villages in terms of loans, training... and issues related to science and technology, trade promotion, branding and regional raw material linkages.

Sharing about the long-standing difficulties regarding capital, Ms. Nguyen Thi Luong, from Hien Luong Export Bamboo and Rattan Weaving Company (Phu Tuc commune, Phu Xuyen district) - a company specializing in handicrafts with 95% of its products exported to European and American markets - said that in recent times, the company has received much support from the city in vocational training, especially for export goods which receive 100% tax support, making procedures quick and convenient…

However, the company still faces difficulties regarding transportation costs and a lack of production space. Ms. Luong suggested that the city address the difficulties related to land and capital for business development; support trade promotion, especially participation in international trade fairs.

The shortage of production space not only reduces the ability to scale up businesses but also affects product quality and delivery schedules. High transportation costs are also a significant financial burden, increasing product prices and reducing competitiveness in the market. Therefore, resolving these difficulties is essential for the sustainable development of traditional craft village businesses.

Ms. Nguyen Thi Luong, from Hien Luong Export Bamboo and Rattan Weaving Company (Phu Tuc commune, Phu Xuyen district), expressed her opinion at the conference.

Similarly, Mr. Dong Quang Chinh, Director of Duc Anh Cooperative, also presented the difficulties regarding the costs of participating in promotional programs and trade networking activities, and requested the City to create favorable conditions to support businesses in participating in exhibitions and introducing handicraft products in provinces and cities nationwide and abroad, creating more opportunities for businesses and production facilities to interact and promote trade.

Mr. Nguyen Xuan Thang, Director of Thang Long Handicraft Co., Ltd. (Thiet Binh village, Van Ha commune, Dong Anh district), also stated that although the company has achieved many successes in preserving and developing traditional handicraft products, it still faces many difficulties in terms of capital to expand production and improve product quality.

Therefore, Mr. Thang hopes that the City will create favorable conditions to attract investment capital into the development of the industry so that the company can expand production, improve product quality, and develop new distribution channels.

Coordinate efforts to resolve difficulties for businesses.

After listening to the opinions of businesses in craft villages, representatives from city departments and agencies addressed the concerns. Regarding loan issues, a representative from the State Bank of Vietnam's Hanoi branch stated that the banking sector has been implementing numerous policies and solutions to boost credit growth; promoting feasible solutions for credit packages and preferential policies to support and increase access to credit for individuals and businesses.

Over the past period, the Bank has coordinated with relevant units to organize conferences to address capital issues for businesses and craft villages; implemented policies and mechanisms to adjust tax deferrals and reductions, and adjusted loan repayment terms for businesses. The Bank has been and is implementing solutions to increase credit growth and support businesses and customers in accessing credit through cost-saving measures and reduced lending interest rates; offering the best credit packages and preferential loan products for businesses, especially craft village businesses, to access…

Addressing the concerns of Ms. Nguyen Thi Luong, from Hien Luong Export Bamboo and Rattan Company (Phu Tuc commune, Phu Xuyen district), Ms. Nguyen Kieu Oanh, Deputy Director in charge of the Hanoi Department of Industry and Trade, stated that support for businesses promoting foreign trade is provided in two forms: If the business participates with a booth, 100% of the costs will be covered; if the business participates in the fair but does not have a booth, airfare will be subsidized…

Regarding the Phu Tuc Industrial Cluster, the Deputy Director of the Hanoi Department of Industry and Trade stated that the cluster's technical infrastructure has been completed. Currently, 26 small-scale production facilities in the commune have registered to operate within the cluster. “We hope that Phu Xuyen district will continue to encourage businesses and small-scale business households to participate in the industrial cluster. The Department of Industry and Trade always shares the difficulties with businesses, providing maximum support, especially to businesses in traditional craft villages,” the Deputy Director of the Hanoi Department of Industry and Trade emphasized.

Mr. Nguyen Anh Duong, Director of the Hanoi City Investment, Trade and Tourism Promotion Center, answered questions from businesses at the conference.

Regarding promotion, Mr. Nguyen Anh Duong, Director of the Hanoi City Investment, Trade and Tourism Promotion Center, said that supporting businesses participating in exhibitions and product introductions, enabling businesses and production facilities to network and promote trade, is one of the important tasks assigned to the Center by the Hanoi City People's Committee.

Over the past period, the Center has coordinated with relevant units to organize and participate in many fairs and exhibitions in Hanoi and other localities nationwide. At these fairs, the Center has built display spaces to showcase and demonstrate handicraft products, aiming to promote and introduce these products to tourists, businesses, distribution systems, and importers. With this objective in mind, the results have consistently provided businesses with opportunities to promote and introduce their products to consumers both domestically and internationally.

Notably, in early 2024, the Center organized a trade fair in Laos, where nearly a dozen Hanoi handicraft products participated and were introduced and promoted to the Lao people. “In the future, we will report to the Hanoi City government to continue organizing similar trade fairs so that OCOP products and traditional craft products from businesses and enterprises can reach consumers,” said Mr. Nguyen Anh Duong.

At the same time, the Center will continue to organize major programs such as Regional Specialties, and events commemorating the 70th anniversary of the Liberation of Hanoi, such as: Hanoi Days in Dien Bien, Hanoi Days in Ho Chi Minh City… The Center hopes to connect with associations and businesses to promote traditional craft products at these programs.

At the conference, Chairman of the Hanoi People's Committee Tran Sy Thanh highly appreciated the opinions shared by businesses and craft village cooperatives. Currently, the revenue of Hanoi's craft villages alone reaches approximately 1 billion USD, accounting for 1/50 of the value of Hanoi's total production. Importantly, they create jobs for hundreds of thousands of workers in rural areas. More importantly, they are places where we preserve, conserve, and promote the unique cultural values ​​of Vietnam; bringing culture to the world and engaging with the world.

The Chairman of the Hanoi People's Committee affirmed that the Party Committee and the entire government system pay close attention to businesses, cooperatives, and production and business households operating in craft villages. "At times and in some places, the insufficient attention from all levels of government has led to many difficulties in this sector; it has not yet achieved the expected results, the inherent strengths of the craft villages, and the advantages of the Capital City…", the Chairman of the Hanoi People's Committee stated frankly.

Therefore, the Chairman of the Hanoi People's Committee clearly stated his viewpoint: "We must think big and act big, cooperate with each other, especially in accessing science and technology, markets, and promoting international trade..."

“Currently, the city is focusing on implementing the amended Law on the Capital City. This is an opportunity to enact specific and strong mechanisms and policies to promote the sustainable preservation and development of traditional craft villages in the capital,” emphasized Chairman of the Hanoi People's Committee Tran Sy Thanh.

The head of the Hanoi People's Committee pledged to always stand alongside the business community and entrepreneurs of the capital; to continue implementing decisive solutions to support and resolve difficulties for businesses in craft villages; especially to continue removing difficulties and obstacles in resolving administrative procedures, improving the investment and business environment… towards building Hanoi into a "cultured, civilized, and modern" city.

Source: https://baodautu.vn/doanh-nghiep-lang-nghe-gap-kho-trong-viec-tiep-can-nguon-von-d219380.html