Trang: The average income of low-income households is also from 10-20 million/year. Income from Bat Trang ceramics accounts for 86% of the total income of the whole commune. Therefore, the income of traditional craft villages has created a significant change in the income structure of households and localities.
The stable development of craft villages creates a stable source of goods for businesses trading in this item. This creates convenience in business, brings high profits to businesses, and at the same time improves income and living standards for workers.
In addition, the restoration and production of handicraft products also leads to the development of many other industries, especially tourism and related service industries. Handicraft production and tourism are two factors that have a two-way impact. Handicraft products are always a very important and impressive attraction for tourists, especially cultural tourists. The more diverse the products are, the more they attract tourists to visit, thereby developing tourism services and at the same time, Vietnamese handicrafts are also known more by other countries. This is a manifestation of the form of on-site export. On the contrary, if tourism develops, there will be more tourists visiting craft villages, handicraft products will be known more, promoted more, that is also a form of promoting and introducing Vietnamese products abroad, from there we can expand business relations and increase handicraft export turnover.
* Exporting handicrafts is the basis for expanding and promoting our country's foreign economic relations .
Promoting exports in general and handicrafts in particular plays a role in strengthening international cooperation with other countries, enhancing the status and role of our country in the international market... Exporting handicrafts and export manufacturing industry promotes investment credit funds, expanding transportation.
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International… On the other hand, the foreign economic relations that we mentioned above create the premise for expanding exports.
It can be said that handicraft export not only plays a catalytic role in supporting economic development, but it also, together with import activities, is an internal factor directly involved in solving internal economic problems such as capital, technology, labor, consumer market, etc. For our country, focusing on exporting goods is one of the important goals in foreign economic development.
* Contribute to preserving cultural values and traditional occupations of the nation.
The history of the development of traditional craft villages is always closely linked to the history of the cultural development of the nation. It is the factor that creates that culture and at the same time is the most concentrated expression of the nation's identity.
Handicraft products are the crystallization of material and spiritual labor, created by the talented hands and creative minds of craftsmen. Therefore, each product is a work of art containing the unique features of the nation, at the same time expressing the unique nuances and characteristics of each craft village and bearing the mark of each period. Learning about the history of each craft village, we see that the technique of making products has existed since ancient times and is preserved to this day. The technique of casting bronze and brass alloys has existed since the Dong Son culture - a culture with brilliant achievements, especially the Ngoc Lu bronze drum associated with the history of the Hung King's founding of the country. Until now, the bronze casting profession has left historical marks. Most recently, we saw a newly cast Buddha statue placed at Non Nuoc Pagoda, the tallest and heaviest in Southeast Asia.
Nowadays, handicraft products with their uniqueness and sophistication still have great significance to people's daily needs. These products are the crystallization and preservation of the nation's long-standing cultural values.
is the preservation of cultural arts and techniques passed down from generation to generation, creating generations of talented artisans with unique products bearing their own identity. Therefore, exporting handicrafts not only contributes to preserving and developing the cultural values of the Vietnamese people but also promotes them around the world.
1.3.2.2 For businesses.
Exporting creates conditions for businesses to expand the market for the products they produce. Thanks to exporting, the names of businesses are not only known to domestic customers but also present in foreign markets.
Exports create foreign currency for businesses, increase reserves, thereby improving the ability to import, replace, supplement, and upgrade machinery and equipment to serve the development process.
Exporting highly promotes the dynamism and creativity of import-export officers as well as participating units, actively researching and developing exportable products into potential markets.
Exporting forces businesses to constantly innovate and improve business management, while helping businesses extend the life cycle of their products.
Exporting leads to competition and mutual monitoring between domestic and foreign exporting units. Therefore, enterprises are forced to improve the quality of goods, find ways to improve product quality, reduce costs, thereby saving input factors or saving resources.
Export production helps businesses attract more workers and increase income, stabilize the lives of employees and increase profits for the business.
Enterprises conducting export activities have the opportunity to expand trade and business relations with many foreign partners on the basis of mutual benefit.
1.4 Factors affecting TCMN exports
1.4.1 Macro-environmental factors
* Politics and law
Political and legal factors can affect the expansion of market scope as well as market capacity, and can also expand many attractive business opportunities in the international market. Political factors have a great influence on export activities: political instability will slow down growth, hinder the development of science and technology, making it difficult to improve technology and increase the quality of export products.
Law is also a factor that directly affects export. Any business that wants to do export business and wants to survive and develop in the long term must comply with the law, not only the law of its own country but also the law of the importing country. Carefully studying the political regime and law will help businesses minimize risks in business.
1.4.2 Economic policy
* Customs policy and non-tariff instruments.
The tariff system is also a factor that greatly affects export activities through export taxes and import taxes on raw materials for production of goods that must be imported from abroad. If the import tax on raw materials is too high, it will increase production costs, leading to high export prices, reducing the competitiveness of goods, reducing profits for exporters, and thus reducing export volume and vice versa.
Non-tariff instruments such as import quotas on imported raw materials for the production of export goods and export quotas also cause great difficulties for export activities.
Because of these effects, to encourage exports, the Government often exempts export taxes and reduces import taxes on raw materials to produce export goods for products with production advantages. The Government often applies export quotas to goods whose production is not sufficient to meet domestic demand and increases import taxes on raw materials used to produce export goods.
* Exchange rate policy
In international payments, people often use currencies of different countries, so the foreign exchange rate compared to the domestic currency has a great influence on export activities: if the exchange rate is greater than the profit rate, export activities are profitable, thus promoting export and vice versa. That is why the exchange rate becomes a regulatory tool of the State.
* Financial banking system.
Import and export activities are closely related to international payment issues, through the financial banking system between countries. It creates favorable conditions for payment to be made simply, quickly and securely. Thanks to this banking system, it will ensure that the seller will receive the money and the buyer will receive the goods, reducing the need to spend a lot of time and costs for the partners to get to know each other.
If a country has a developed and modern financial system, it is also a favorable condition for domestic enterprises in export activities and vice versa.
*Production capacity
Vietnam's handicraft production is affected by many factors, these factors change over time and have different impacts. They can be promoting factors but conversely, they can also be factors that inhibit the development of production. In each region, each locality, each craft village, due to different characteristics of natural, economic, social and cultural conditions, the impacts of these factors are not the same. It can be generally understood that they include the following factors:
Firstly, human resources : is one of the most important resources of production. In craft villages, the main human resources are artisans, craftsmen, and owners of production and business establishments. Artisans are people who play a particularly important role in passing on and teaching the profession, and are also the ones who create unique products with strong traditional characteristics. Having a highly skilled and qualified human resource will be a factor promoting the production and export of handicrafts.
Second, capital : this is a very important material resource in the process of production and business activities. The main task of capital is to invest in production development, investment in developing facilities and infrastructure, investment in technological innovation. Therefore, the development of handicraft production depends largely on mobilized capital sources. Previously, the capital of production and business households was very small, mainly self-owned capital, which limited production growth. Nowadays, the development of the market always requires a large amount of capital to meet market needs. Therefore, active and specific support from the state is needed, especially the establishment of policies suitable to the production characteristics of traditional craft villages to ensure capital for production and export.
Third , the source of raw materials : in the previous stages, proximity to the source of raw materials was considered one of the conditions for the formation and development of handicraft production facilities or traditional craft villages. However, this issue has now become less important for the development of craft villages due to the active support of means of transport and technical means. However, the issue of quantity, quality, type and distance of these raw material sources still has certain effects on the quality and price of products. If there is a stable source of raw materials leading to stable production, exporters will have a regular source of goods, creating prestige for the business.
Fourth, technical and technological level : in the current conditions, when trade exchanges are globalized, the application of science and technology is of decisive significance, having a direct impact on ensuring and improving the competitiveness of products. Realizing that, many handicraft villages have promoted the application of techniques and technological innovation, improved production methods to increase labor productivity and product quality, reduce costs, creating strong and stable development for the industry. However, the application of science and technology is not complete, but must still preserve the essential culture and tradition in each handicraft product.
Fifth , infrastructure : including the system of roads, electricity, water supply and drainage, post and telecommunications. Reality shows clearly that handicraft production can only develop strongly in places with guaranteed and synchronous infrastructure. This is a factor that creates favorable conditions for the establishment and development of production facilities, creating the premise to exploit and promote the existing potential of craft villages. The development of this factor will ensure the transportation and supply of raw materials, product consumption, rapid application of new scientific and technological advances into production, and at the same time reduce pollution.
environment. The postal and telecommunications communication system helps businesses grasp market information to respond promptly.
1.4.3 Micro-environmental factors
* Financial potential
Is a synthetic factor reflecting the strength of the enterprise through the amount of capital that the enterprise can mobilize for business, the ability to effectively distribute (invest) capital. The ability to effectively manage capital sources in business of the enterprise is shown through the following indicators: equity, mobilized capital, reinvestment rate of profits, ability to pay short-term and long-term debts...
* Human potential
In business, people are the most important factor to ensure success. It is people with their abilities who choose the right opportunities and use other strengths they already have such as capital, assets, and technology.
* Management and organization level.
Each enterprise is a system with close links to each other to reach the goal. A business that wants to reach its goal must simultaneously reach a corresponding level of organization and management. The ability to organize and manage an enterprise is based on a comprehensive, comprehensive perspective, focusing on the interactive relationships of all parts that create the real strength of the enterprise.
* Technical facilities.
Technical facilities reflect the fixed assets that a business can mobilize for business: equipment, factories, etc. If a business has increasingly complete and modern facilities, the ability to grasp information will also increase.