Keeping the incense-making craft alive amidst market fluctuations.

Faced with rising raw material prices, declining purchasing power, and changes in tax policies, approximately 50 incense-making households in Le Minh Xuan incense-making village (Binh Loi commune, Ho Chi Minh City) are striving to adapt in order to maintain their traditional craft.

The incense-making profession amidst market turmoil.

Located more than 30 km from the city center, Le Minh Xuan incense village is situated in Binh Loi commune, Ho Chi Minh City (formerly Le Minh Xuan commune, Binh Chanh district). The craft village area is concentrated along Mai Ba Huong, Thich Thien Hoa, and the embankment of Hamlet 12; bordered to the west and south by the Xang Dung and Xang Ngang canals; to the north by Tan Vinh Loc commune, and to the east by Tan Tao and Tan Tao A wards.

The households making incense in the craft village still maintain the traditional method of drying incense.

Currently, the Le Minh Xuan incense-making village has about 50 households directly involved in production. According to the villagers, this year the prices of input materials such as incense sticks, coating powder, glue, and dyes have all increased, leading to higher product prices. In the context of reduced purchasing power, orders are therefore fewer than in previous years.

Artisan Nguyen Cat Bui Thuy, who has been involved in incense making for over 30 years, said: “Previously, the villagers mainly made incense using manual methods. Most of the steps were done by hand, drying outdoors, 'working when it was sunny, resting when it rained.' At that time, each worker could only make about 7,000-8,000 incense sticks a day. Since investing in modern machinery, labor productivity has increased significantly, about 10 times compared to the manual method. However, the initial investment cost for the incense making and mixing machines is quite high, and not every household can afford to equip themselves with a complete system.”

Ms. Le Thi Thanh Thuy, originally from Vinh Long province, has been making incense sticks for 5 years at a production facility in a traditional craft village. This year, orders are low, so her daily wage is only 150,000 VND.

Producing a complete incense stick requires many different materials. According to artisan Nguyen Cat Bui Thuy, first, the incense stick itself is usually imported from Hanoi ; the adhesive comes from acacia-growing areas in Gia Lai; the coating powder is wood shavings from old rubber wood factories, mainly sourced from Binh Duong; and the dye for the base of the incense stick must also be ordered separately. “To make a standard incense stick, you must know how to mix the powder in the correct proportions and adjust the machinery accordingly. If you don't mix it skillfully, the incense stick will easily bend, break, or burn unevenly,” Ms. Thuy shared.

Due to reliance on raw materials from various localities, production costs increase sharply when the market fluctuates, driven by rising transportation and input costs. Meanwhile, output still primarily relies on traditional markets – a distribution channel clearly impacted by changing consumer habits.

Currently, many incense production facilities in Le Minh Xuan have adopted new technologies to increase productivity and ensure quality.

According to one incense-making workshop owner, before the COVID-19 pandemic in 2021, many workshops in the craft village produced incense year-round. During the months of January, February, July, October, November, and December (Lunar Calendar), there were about 3-4 major production periods each year, requiring workshops to work in two shifts, day and night, to meet delivery deadlines. Now, however, they only produce incense when orders come in. Each year, incense is only in high demand for about 1-2 months, with workers working only one shift, or even not completing a full shift due to a lack of work.

Some incense producers also reported that the high price of raw materials means that each batch of incense (approximately 1,000 sticks) could result in a loss of 17,000-18,000 VND if they maintain the old selling price to remain competitive. In the context of a struggling economy and reduced purchasing power at traditional markets, those in the industry face significant pressure and are caught in a dilemma.

Despite increasingly challenging market conditions, incense-making households remain steadfast in preserving, conserving, and developing their traditional craft.

Finding solutions for incense-making households.

Another issue of concern for incense-producing households is tax policy. According to many households, the shift from a lump-sum tax to a declared tax has caused confusion among some incense producers due to a lack of understanding of the new regulations. "We understand that when doing business, we have to pay taxes. However, we hope for a suitable tax rate so that we can have some income and feel secure in our production," one incense-producing household expressed their concern.

Most incense-making households in the craft village use green, environmentally friendly materials such as chemical-free wood powders and natural dyes to replace industrial dyes.

A representative from the People's Committee of Binh Loi commune stated that, in response to these concerns, the local government will continue to coordinate with Tax Department No. 18 of Ho Chi Minh City to organize specific dissemination and guidance so that households understand the policies and comply with regulations.

Furthermore, the majority of workers in traditional craft villages are elderly people who have been involved in the trade for decades. Their access to technology and sales through e-commerce platforms remains limited. Meanwhile, consumer trends are changing rapidly; without adaptation, traditional products could easily lose market share.

Each batch of incense sticks (approximately 1,000 sticks) could result in a loss of 17,000 - 18,000 VND if the old selling price is maintained to remain competitive.

To preserve and create new directions for traditional crafts, the People's Committee of Binh Loi commune organized a tour, survey, exhibition, and promotion of local agricultural and craft products at the 2026 Vietnamese Tet Festival (Year of the Horse) held at the Ho Chi Minh City Youth Cultural Center. The products showcased included not only incense but also bonsai coconuts, koi fish, Malaysian Siamese coconuts, yellow apricot blossoms, etc. This created more opportunities to connect with the market and expand distribution channels for agricultural products of farmers in the commune.

Le Minh Xuan brand's clean, organic, smokeless incense, free from harmful chemicals, remains popular with consumers.

In addition, the Vietnam Fatherland Front Committee of Binh Loi commune also organized Mega Live programs to promote and introduce incense products from the craft village to a wide range of consumers. This is considered a trial step to help people gradually become familiar with online sales and e-commerce methods.

According to local leaders, in the coming time, the Party Committee, People's Committee, and Vietnam Fatherland Front Committee of Binh Loi commune will continue to coordinate with units, organizations, and businesses to organize many promotional activities, while also orienting the development of agricultural tourism associated with traditional craft villages in the area such as incense-making villages and yellow apricot blossom villages. Combining production with experiential tours, learning about the incense-making process, and taking photos at incense drying yards... is expected to generate additional revenue and enhance the value of the products.

Source: https://baotintuc.vn/anh/giu-lua-nghe-se-nhang-giua-bien-dong-cua-thi-truong-20260213143529425.htm