JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT, SOCIALIST REPUBLIC OF VIETNAM (MARD) THE STUDY ON ARTISAN CRAFT DEVELOPMENT PLAN FOR RURAL INDUSTRIALIZATION IN THE SOCIALIST REPUBLIC OF VIETNAM Final Report VOLUME 1 MASTER PLAN STUDY February 2004 ALMEC CORPORATION INTERNATIONAL DEVELOPMENT CENTER OF JAPAN EXCHANGE RATE USED US$ 1 = VND 15,200 PREFACE In response to the request from the Government of the Socialist Republic of Vietnam, the Government of Japan decided to conduct “The Study on Artisan Craft Development for Rural Industrialization in the Socialist Republic of Vietnam” and entrusted the study to the Japan International Cooperation Agency (JICA). JICA dispatched a study team headed by Dr. IWATA, Shizuo of ALMEC Corporation, 8 times during the period from February 2002 to January 2004. The study team conducted the study with the Vietnamese counterpart team and held a series of discussions with the officials concerned of the Government of Vietnam. After the team returned to Japan, further studies were made and then the report was finally completed. I hope that this report will contribute to the economical growth and poverty reduction in rural areas through promotion and development of the craft sector in Vietnam. I wish to express my sincere appreciation to the officials concerned of the Government of Vietnam for their close cooperation extended to the study team. February 2004 IZAWA, Tadashi Vice President Japan International Cooperation Agency February 2004 Mr. Tadashi Izawa Vice President JAPAN INTERNATIONAL COOPERATION AGENCY Tokyo Letter of Transmittal Dear Sir, We are pleased to formally submit herewith the final report of the “The Study on Artisan Craft Development for Rural Industrialization in the Socialist Republic of Vietnam”. This report embodies the results of the Study which was undertaken both in Vietnam and Japan from February 2002 to February 2004 by the Study Team composed of ALMEC Corporation and International Development Center of Japan. We owe a lot to many people for the accomplishment of this report. First, we would like to express our sincere appreciation and deep gratitude to all those who extended their extensive assistance and cooperation to the Study Team, in particular the Ministry of Agriculture and Rural Development in Vietnam. We also acknowledge the officials of your agency and the Embassy of Japan in Vietnam for their support and valuable advice. We wish the report would be able to contribute to the promotion and sustainable development of craft sector to attend poverty and growth issues adequately in Vietnam. Very truly yours, Shizuo Iwata Team Leader, THE STUDY ON ARTISAN CRAFT DEVELOPMENT FOR RURAL INDUSTRIALIZATION IN THE SOCIALIST REPUBLIC OF VIETNAM THE STUDY ON ARTISAN CRAFT DEVELOPMENT PLAN FOR RURAL INDUSTRIALIZATION IN THE SOCIALIST REPUBLIC OF VIETNAM Final Report Volume 1 Master Plan Study Table of Contents List of Tables List of Figures Abbreviations Part I Master Plan Study Page 1. INTRODUCTION 1.1 Study Background............................................................................................1-1 1.2 Study Objectives ..............................................................................................1-1 1.3 Study Coverage ...............................................................................................1-2 1.4 Study Progress ................................................................................................1-5 2. METHODOLOGY 2.1 Study Methodology ..........................................................................................2-1 2.2 National Craft Mapping Survey ........................................................................2-3 2.3 Selection of Candidate Model Provinces .........................................................2-9 2.4 Implementation of Pilot Projects.....................................................................2-16 2.5 Outline of Seminars and Workshops..............................................................2-22 3. CURRENT STATUS OF VIETNAM’S CRAFT SECTOR DEVELOPMENT 3.1 Historical Background......................................................................................3-1 3.2 Craft Sector’s Role in Socio-economic Development.......................................3-3 3.3 Government Policies on Craft Sector Development.......................................3-17 4. CURRENT SITUATION OF CRAFT VILLAGES 4.1 Study Methodology ..........................................................................................4-1 4.2 Distribution and Scale of Craft Villages............................................................4-1 4.3 Socio-economic Condition of Craft Villages .....................................................4-7 4.4 Employment Conditions .................................................................................4-10 4.5 Access to Capital and Information by Craft Villages ......................................4-15 4.6 Awareness of Issues Faced by Craft Villages ................................................4-18 4.7 Direction of Craft Village Development ..........................................................4-22 5. CURRENT CONDITION AND EVALUATION OF CRAFT ITEMS 5.1 Overview..........................................................................................................5-1 5.2 Rush Weaving..................................................................................................5-2 5.3 Lacquer Craft ...................................................................................................5-8 5.4 Bamboo & Rattan Craft..................................................................................5-16 5.5 Ceramics........................................................................................................5-25 5.6 Embroidery ....................................................................................................5-34 5.7 Weaving.........................................................................................................5-40 5.8 Woodcraft.......................................................................................................5-48 5.9 Stonecraft.......................................................................................................5-56 5.10 Papercraft ......................................................................................................5-62 5.11 Woodblock Printing ........................................................................................5-67 5.12 Metalcraft .......................................................................................................5-71 5.13 Direction of Artisan Craft Promotion...............................................................5-78 6. CURRENT STATE OF VIETNAM’S CRAFT SECTOR, ITS ISSUES AND DIRECTION 6.1 Overview..........................................................................................................6-1 6.2 Securing Raw Materials...................................................................................6-2 6.3 Technology Improvement.................................................................................6-7 6.4 Quality Improvement......................................................................................6-10 6.5 Improvement of Production Process..............................................................6-15 6.6 Design Promotion ..........................................................................................6-18 6.7 Information Collection and Management .......................................................6-22 6.8 Cluster Development .....................................................................................6-26 6.9 Human Resources Development ...................................................................6-33 6.10 Business Management Improvement.............................................................6-38 6.11 Improvement of Working Conditions ..............................................................6-39 6.12 Access to Finance .........................................................................................6-43 6.13 Distribution System Improvement ..................................................................6-48 6.14 Improvement of Marketing .............................................................................6-61 6.15 Strengthening of Linkage with Tourism Sector ...............................................6-64 6.16 Mitigation of Environmental Impact of Craft Making.......................................6-68 6.17 Assistance to Ethnic Minorities ......................................................................6-72 6.18 Preservation of Traditional Values..................................................................6-77 7. MARKET OF VIETNAMESE CRAFT PRODUCTS 7.1 Overview of Craft Market .................................................................................7-1 7.2 Overseas Market of Craft Products..................................................................7-2 7.3 Distribution Structure in Craft-consuming Countries ........................................7-7 7.4 Prospects for Vietnamese Craft Products in the Overseas Market ..................7-9 8. CRAFT DEVELOPMENT MASTER PLAN 8.1 Role and Objective of the Master Plan.............................................................8-1 8.2 Goals and Objectives of Craft Development ....................................................8-3 8.3 Mechanism for Implementing the Master Plan.................................................8-5