Hung Ha: Finding a way to export traditional products

Exporting traditional products such as textiles, towels, gloves, etc. is a strength in the economic development of Hung Ha district, with a total annual export value of hundreds of millions of USD. However, in the past 3 years, due to the impact of the epidemic and economic recession, the export output of products has decreased sharply. Faced with this reality, Hung Ha district has implemented many solutions to support and create leverage for craft villages to bring their products further.

Glove production at Toan Thang Company Limited.

Toan Thang Company Limited (Dong Tu Industrial Park) specializes in manufacturing handkerchiefs, gloves and OE yarn. The company's products are directly exported to the markets of China, Korea, Taiwan, Japan... Export revenue reaches over 300 billion VND/year, creating jobs for over 400 direct workers and 500 satellite workers with income from 5 - 7 million VND/person/month.

However, not being outside the market vortex, from the beginning of 2023 until now, the Company's export output of textile yarn, gloves and cotton towels has decreased by 50%; 2 yarn production lines have had to temporarily stop operating, the monthly yarn production capacity reached 400 tons, now reduced to 200 tons, mainly serving the domestic market due to the lack of export orders.

Mr. Tran Van Vuc, Chairman of the Board of Directors of the Company, said: During the production process, we closely monitor each stage such as spinning, weaving, bleaching, dyeing, sewing and packaging to build prestige with customers. In addition, we actively seek many markets, focus on changing designs, reducing product costs and improving production capacity, at all costs maintaining and affirming the brand of the craft village to attract foreign partners to consume products.

Previously, Thanh Chat Mechanical and Textile Export Company Limited, Thai Phuong Commune exported cotton towels to Taiwan, Japan, and South Korea with over 100 tons of products/year. However, in the first 6 months of 2023, the export volume decreased by 30%. Currently, the Company only focuses on producing orders signed in 2022, and even faces the risk of a shortage of orders in the last months of 2023. Promoting the advantage of products meeting 4-star OCOP standards along with many years of experience working with international customers, the Company has planned to expand the export market.

Mr. Bui Thanh Chat, Director of the Company said: To maintain the traditional market, the Company is always ready to meet the requirements of designs as well as speed up the implementation of orders. In addition, the Company constantly improves product quality, at the same time searches for new materials with reasonable prices to bring high quality products at suitable prices to customers. In addition, the Company always maintains close relationships with partners, sharing difficulties with partners. The Company is continuing to research and seek export markets to expand to Thailand and Africa.

Ms. Nguyen Thi Chi, a worker at Thanh Chat Mechanical and Textile Export Company Limited, said: I have been working at the Company for nearly 20 years, with a salary of 6 million VND/month. The job is suitable for our age and health. At this time, due to the lack of orders, the Company has had to reduce production scale, cut labor, shorten working hours... so our income has decreased significantly. We hope that all levels and sectors will have solutions to help businesses overcome difficulties and create stable jobs for workers.

Hung Ha district has more than 200 craft villages with more than 2,000 households participating in activities and more than 180 enterprises operating in craft villages. Currently, the whole district has 53 craft villages and 4 craft communes recognized by the Provincial People's Committee, including 20 scarf weaving villages, 22 mat weaving villages, 5 bamboo and rattan weaving villages, 3 vermicelli and cake villages, 1 carpentry village, and 2 incense making villages. The development of craft and craft villages has created jobs for more than 22,000 workers, accounting for 66% of the total number of workers in craft villages. However, most of the enterprises and production facilities in craft villages have not developed commensurately to promote the export of traditional products of craft villages due to lack of economic information, science and technology; some enterprises have not been able to sign directly with customers, have to go through intermediaries, so they are forced to lower prices and are not proactive in the market.

Mr. Tran Huu Nam, Secretary of Hung Ha District Party Committee, said: To find a way to export traditional products of craft villages in the current stages in a sustainable manner, we have recently contacted a number of businesses specializing in international freight transport, import and export and distribution of consumer goods in the markets of Dubai, India, Philippines... to remove difficulties for businesses, because these are potential markets that Hung Ha's traditional products have not penetrated. The connection will help local businesses not spend much time looking for customers and customers can buy goods at the factory without additional intermediary costs, thereby helping to reduce product costs and increase competitiveness in the international market. In addition, we continue to promote and introduce products through international fairs, promote trade promotion programs in the e-commerce environment; strengthen the activities of vocational training facilities in the area; train skills for highly skilled workers in businesses; Encourage businesses to invest in modern technology and diversify products to be able to export to European and American markets. In the current difficult period, the domestic market also needs to be focused on exploiting and promoting investment promotion programs. Functional sectors and local authorities need to review and evaluate traditional products with export strengths to orient investment and development.