Vietnam boasts more than 1,800 traditional handicraft villages, yet its products still struggle to hold their ground on the global stage. While rich in heritage, they often fall short in competitiveness and creative flair, particularly in meeting the high aesthetic demands of affluent markets. This leaves many Vietnamese handicrafts stuck in the low-value bracket, unable to rival offerings from other countries.

Still, industry experts see huge untapped potential. The Vietnam Handicraft Village Association reports that exports have grown steadily, with products now reaching 163 countries and territories, including major markets like the US, the EU, Japan, South Korea, and Australia. Exports brought in around $3.5 billion in 2023, and the target this year is $4 billion, with ambitions to hit $6 billion by 2030.

Crafting opportunity

Mr. Trinh Quoc Dat, President of the Vietnam Association of Craft Villages, believes the industry is now in a prime position to grow. Around the world, consumers are showing a stronger preference for sustainable, handmade products crafted from natural materials such as bamboo, rattan, wood, and recycled paper - items that are eco-friendly, distinctive, and rich in local culture. At the same time, Vietnam’s booming e-commerce scene, ranked among the Top 3 in Southeast Asia, is opening new doors. Many handicraft businesses are already selling through platforms like Amazon, Handmade, Etsy, Lazada, and Tiki, making it easier than ever to connect with international buyers.

Yet the industry faces formidable challenges. Fierce competition is coming from low-cost industrial goods produced in China, India, and Indonesia. On top of that, tariff barriers in key markets like the US are making exports more difficult and costly.

According to Mr. Vu Hy Thieu, President of the Advisory Council of the Hanoi Handicraft and Craft Village Association, the biggest weakness lies in limited design skills and aesthetic sensibility, which hinder the development of fresh, market-ready product lines. “Too often, products are overly elaborate and complicated, focusing on showcasing technical mastery rather than appealing design,” he said, noting that some artisans even resort to copying foreign products.

“Vietnamese craftsmen have an impressive understanding of materials and a frugal mindset that ensures nothing goes to waste,” Mr. Thieu explained. “Even a tree stump or bamboo root can be transformed into a work of art. But skillful use of natural materials and intricate craftsmanship alone aren’t enough to create products that meet the aesthetic demands of higher-income markets.”

The challenges don’t stop at design. A lack of market insight and limited exposure to new technologies are also stifling creativity, reducing product value and keeping artisans’ incomes low. As a result, despite their diversity, Vietnamese handicrafts are often undervalued, difficult to sell, and stuck in the low-price segment; a reality made starkly clear at international trade fairs and in export negotiations.

Associate Professor Nguyen Thua Loc, Senior Lecturer at the National Economics University, attributes these limitations to the very nature of craft villages, which are small-scale, fragmented, and labor-intensive, and are now compounded by the pressures of Industry 4.0, global economic integration, and digital transformation.

Meeting traceability requirements is proving particularly challenging, especially in the European market. Many villages also grapple with inconsistent raw material quality and unstable supply. “Technology is outdated, product quality is low, and prices can’t compete with goods from other countries in the region or beyond,” Associate Professor Loc said. “Many cooperatives and small enterprises also lack access to capital and struggle to promote their products professionally to global audiences.” He added that with most artisans untrained in the demands of Industry 4.0, adapting to the digital era remains a steep uphill climb, one that directly impacts competitiveness and innovation.

From tradition to triumph

Faced with mounting challenges, Mr. Dat believes the handicraft sector needs a set of comprehensive, long-term solutions. First, domestic raw material zones supplying the industry must be sustainably planned and carry proper certification of origin, while materials extracted from mines must be legally managed. Workforce development is equally vital. Training should combine artisans’ traditional skills with technical programs at vocational schools, colleges, and the University of Industrial Fine Arts.

He also underlined the importance of in-depth market research and a clear understanding of consumer tastes, especially in major destinations like the US, the EU, and Japan, to design products that match demand. Trade promotion must be ramped up through domestic exhibitions, participation in international fairs, and partnerships with global shopping centers and distributors.

Associate Professor Loc, meanwhile, believes the industry must rethink its market development mindset. Modern sales methods, along with green and sustainable business practices, should become the new standard. Regional collaboration and deeper integration into international markets are essential, as is investment in design and creativity, through design competitions and partnerships between artisans and professional designers, to produce distinctive, culturally rich, and highly functional products. A multi-channel distribution strategy, he added, would help get more products into the hands of customers.

“E-commerce should be fully leveraged, with dedicated online trading platforms for handicrafts,” Associate Professor Loc said. “Strong branding, compelling product stories, and clear traceability will boost reputation and competitiveness.” He also proposed building a nationwide “Vietnam Handicraft Village Association” network to share expertise, organize joint exhibitions, and raise the country’s profile on the global stage.

Echoing this view, Associate Professor Dang Mai Anh from the University of Industrial Fine Arts said digital marketing is a powerful tool to promote Vietnamese handicrafts to consumers worldwide. Innovation and fresh product designs that reflect customer preferences, she noted, are key to attracting business partners and securing a stronger position in global markets.

For Mr. Thieu, the top priority is helping artisans enhance their creative capacity and develop designs that truly resonate with the market. “From experience, expert consultancy is the most practical and effective way forward,” he said. “The key is to select the right consultants with clear objectives and tailored programs for each market and export timeline.” Production facilities, he added, must assign their most skilled and creative artisans to quickly bring new design concepts to life during the consultancy process.