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Solutions to develop handicraft export in Thanh Hoa province - 2

CHAPTER I: THEORETICAL BASIS OF HANDICRAFT AND HANDICRAFT EXPORT


1.1 Some basic issues on handicrafts and handicraft exports

1.1.1 Some basic concepts

a. Export Concept

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International trade is the exchange of goods and services between countries, through buying and selling, using currency as a medium, following the principle of equal exchange to bring benefits to all parties. International trade has its roots for 1000 years, it was born the earliest and still holds a central position in international economic relations.

International trade includes many different activities. From a country's perspective, it is foreign trade. The content of international trade includes:

Solutions to develop handicraft export in Thanh Hoa province - 2

- Export and import of tangible goods: Such as raw materials, machinery, equipment, food... through direct import and export or entrusted import and export.

- Export and import of intangible goods including technological know-how, patents, inventions, tourism services, trademarks... through direct import and export or entrusted import and export.

- Outsourcing for foreign countries and outsourcing to foreign countries.

- Re-export and transit.

- On-site export: is the provision of goods and services to diplomatic corps, international tourists... On-site export activities can achieve high efficiency due to reduced packaging costs, storage costs, transportation...

Thus, export is an activity of international trade. Accordingly, export is the sale of goods and services (which can be tangible or intangible) to another country on the basis of using currency as a basis for payment.

In foreign trade relations of countries, exports are divided into two types:

- Export of tangible goods: is the export of goods in physical form, for example: clothes, shoes, handicrafts, etc.

- Export of intangible goods: export of services is the export of goods that do not have a physical form, for example: training foreign students in Vietnam, tourism services, telecommunications services...

There are 2 forms of export:

- Direct exporting: Businesses sell their products directly to buyers in the target market.

- Indirect exporting: Businesses sell their products to commercial intermediaries who then resell them to buyers in the target market.

Export activities take place in all areas from consumer goods to industrial products, from machinery and equipment to high-tech technology. Exporting not only brings benefits to the businesses involved but also brings many benefits to the whole country. However, unlike domestic trade activities, exporting falls within the scope of international trade, so it is governed and controlled by rules that go beyond the borders of a country. Therefore, exporting activities are often much more complicated than domestic trade activities.

Currently, our country's leading export market is the United States with a turnover of

84.8 billion USD, up 22% year-on-year, followed by the Chinese markets,

EU, ASEAN, Korea, Japan…

b. Concept of handicrafts.

Handicrafts are traditional crafts, produced by artisans and craftsmen, passed down from generation to generation. These products are often very sophisticated and unique.

From materials such as wood, mother-of-pearl, snails, etc., skillful artisans create handicraft products with strong national identity. Handicraft products such as cabinets, tables and chairs all have soft, graceful patterns. Handicrafts contain cultural elements in a strong way because they are traditional products of the nation. Each nation has its own culture and its own way of expressing it through the form and nuances of the product. This is what creates the uniqueness and difference between products of the same material in different countries.

In general, handicraft products represent real life, spiritual culture with diverse colors, unique artistry. Therefore, they are not only items that meet the needs of daily life but also products that serve the spiritual life, meeting the aesthetic needs of ethnic groups.

In Vietnam, handicraft products have recently been flourishing due to the increasing demand for domestic consumption and export. Along with the expansion of cultural and economic exchanges between countries in the world, Vietnamese handicrafts have been present in the markets of many countries in Europe, East Asia, America, South America, etc. Therefore, paying attention and having appropriate policies to develop these industries and expand the export market is practical to preserve and develop one of the valuable cultural heritages of the Vietnamese people.

Handicrafts in Vietnam can be divided into 10 groups of goods including the following basic groups: Bamboo, rattan, sedge, leaves; Ceramics; Textiles; Metals; Handmade paper; Various materials; Works of art; Others

Among the products listed above, there are main and key groups of goods that our country's current export strategy needs to focus on, including:

- Bamboo, rattan, sedge and leaf products: This is a group of products produced from raw materials such as bamboo, rattan, sedge, leaves including raw materials such as banana leaves or straw, producing household items. The products are used for both use and decoration purposes, the products are very diverse, serving different tastes of customers including tables, chairs, handbags, mats, carpets... The raw materials to produce these items are mainly available locally. However, the raw materials collected and dried in the past are becoming increasingly scarce. Because of this, we recently need to import raw materials from foreign countries such as bamboo from China and textiles from Laos, Cambodia and Indonesia.

- Group of precious stone and metal products: Including decorative products and gift products made of metal such as statues, Buddha statues, jewelry, bells, bells and picture frames and some other household items. Among these products, items such as eyes you must know bronze and cast bronze products are exported. Recently, bronze products have increased significantly due to the combination of bronze products with other natural materials such as western cat mi and other materials. On the basis of combining these materials, many diverse products can be created at present. The raw materials used to produce this group of products are stone rice, soft stone and white stone. Products from the export price to the EU, the United States, Canada include statues made of garden items. The trend of using soft is on the rise.

- Group of wooden handicraft products: Most of the production activities of wooden products are concentrated in the northern provinces of Vietnam, in which the industrial wood processing industry is mainly concentrated in the central and southern provinces. Raw materials for the production of this group of products are taken from the central and southern provinces, and can also be imported from some neighboring countries such as Myanmar, Cambodia... Exported wooden products mainly focus on tables, chairs and kitchenware, picture frames, mirror frames... Some wooden handicraft products that require sophistication such as carved wooden statues are on the rise, especially serving Asian markets such as China, Hong Kong, Taiwan.


1.1.2 Characteristics of exported handicraft products

The main and popular feature of handicraft products is that they are traditional handicrafts with strong cultural nuances in the products. Traditional handicrafts mainly serve daily needs. Most of the production process is done by hand, but machines can be used.

Handicrafts are a traditional industry of Vietnam. They are created by craftsmen, mainly produced by hand, so there are products with uneven quality, difficult to standardize. However, these products are often very sophisticated and unique. Because they are traditional products, most of them have national cultural features, showing unique artistry. This is a strong attraction for customers, especially international customers. In addition, it also creates a difference between products even though they have the same materials in different countries. Handicrafts use domestic raw materials, especially raw materials, collected from scrap and secondary materials of agricultural and forestry products, imported raw materials are estimated to only account for 3 - 3.5% of export value, so they bring about very high efficiency in earning foreign currency, some items almost reach 100% of export value, the rest also reach over 80% of export turnover value. At the same time, exporting handicrafts has helped society recover a part of agricultural waste after processing and harvesting, turning processed materials into export products, contributing positively to environmental protection and economic development of the country.

1.1.3 The role of handicraft export development

Firstly, export brings foreign currency for import to serve the industrialization cause:

- Exporting goods in general and exporting handicrafts in particular requires foreign currency capital for import and export and serves the industrialization of localities and enterprises. Industrialization creates benefits to help industries develop, production develop, overcome the current situation of unemployment and underemployment in localities, overcome the poverty and underdevelopment of localities. Rapid industrialization in a short time then requires a huge amount of capital to import machinery, equipment, and advanced technology.

- Foreign capital sources such as loans and aid, although important, must eventually be repaid in one way or another, while the central budget is increasingly limited. The most important source of capital for import and local industrialization is to actively promote production and export of goods and services to have foreign currency for import. Therefore, local exports determine the scale and growth rate of imports, and determine the industrialization rate of that locality.

Second, exports promote economic restructuring and economic development. From a local perspective, there are still different views on the impact of exports on production development and economic restructuring:

- Export is just the consumption of products that are lost due to excess demand. If we passively wait for production to change, exports will remain small, growth will be slow, production and economic structure changes will be limited.

- The international market is an important direction for organizing production and export because it needs to originate from the needs of the international market to organize production. This will have a positive effect on economic restructuring and promote production development. The impact of export is shown through: export creates favorable conditions for manufacturing industries to develop. For example, if developing handicraft exports means creating opportunities for sedge and jute growing industries... and developing raw material areas, it will develop handicraft villages. Export creates the ability to expand the consumer market, providing input for production. Export creates economic and technical premises to regularly innovate production capacity. In other words,

In other words, export is the basis for creating more capital, techniques and advanced technology from abroad into manufacturing enterprises.

Third, export contributes to creating jobs, improving life, and reducing social evils.

- The impact of export on society includes many aspects, first of all, it promotes the recovery and development of manufacturing industries, export production is a place that attracts tens of thousands of manual workers, creating jobs with stable income. Contributing to solving the problem of unemployment of young people and other social classes. Export also creates capital to import essential consumer goods to serve life and meet the increasingly diverse consumption needs of the people.

Fourth, export is the basis for expanding and promoting foreign economic relations.

- Export is an activity that comes earlier than other foreign economic activities, creating conditions to promote the development of these relations. The policy of exporting goods promotes credit relations, investment, expanding the tourism market, international transportation... On the other hand, these relations create conditions for us to apply economic export to develop and closely link with the international division of labor.

Fifth, export is a factor that encourages businesses to always innovate and improve production and business management.

- The reasons presented above show that exporting goods in general and handicrafts in particular plays a very important role, has strategic significance and economic development to carry out the country's industrialization and modernization.

- Through export activities, domestic enterprises have the opportunity to participate in international market competition and product price and quality. These factors require enterprises to form a production structure suitable for the market.

- Due to competition in the production of export goods, businesses must always innovate and improve their business management. At the same time, exporting helps businesses have foreign currency to reinvest in the production process in both breadth and depth.

Producing goods for export helps businesses attract more workers, create stable income, create foreign currency to import necessary production and consumption materials, both meeting the increasing needs of the people and earning profits.

In addition, when conducting export activities, businesses have the opportunity to expand trade and business with many foreign partners on the basis of ensuring benefits for all parties.

Increase sales and profits. At the same time, disperse and share risks and losses in business operations, enhance the reputation of the enterprise, and contribute to improving the position of the enterprise in the market.

Exporting encourages the development of business networks of enterprises, such as investment, research and development, production and marketing activities.

as well as distribution and expansion in licensing.

Exports contribute significantly to creating the main source of capital for investment, purchasing to expand business, equipping machinery, creating capital for importing equipment, raw materials, and innovating technological lines. It can be said that export activities play a very important role for businesses.

Handicrafts are products imbued with national culture, so they not only meet daily needs but are also cultural products serving spiritual life. Nowadays, the trend of purchasing handicrafts is increasing, especially in developed countries. Therefore, it is necessary to focus on the strengths to promote the export of handicrafts. This is necessary because it not only brings in a lot of foreign currency for the country but also creates many jobs for workers, especially rural workers. Because handicrafts are mainly produced from domestically available raw materials and imported raw materials are often insignificant, the export of handicrafts achieves a very high level of foreign currency earnings, contributing to the

partly solves employment for many rural workers. On the other hand, most handicrafts have certain cultural and historical values, so the export of these items also plays a significant role in spreading and exchanging Vietnamese culture to countries around the world.


1.2 Factors affecting the development of handicraft exports

1.2.1 Micro factors (factors from the business side)

Human resources and leadership

- People are the most important factor in the production and business activities of an enterprise. Highly qualified people will know how to exploit resources such as capital, technical machinery, tangible assets, etc. most effectively.

- The leadership is the key department, always setting out directions of operation in accordance with the development goals set by the party, and at the same time is responsible for supervising and managing implementation.

Implementation of the plan. The management level of the board of directors has a great impact on export business activities.

- Employees directly affect the production and business efficiency of the enterprise. The qualifications, capacity and sense of responsibility of the workforce affect all stages of the production process, directly affecting all stages of production, directly affecting productivity and product quality.

Financial potential

- Good finance ensures continuous business capital even when there is a storm. Capital is an important factor in production and agriculture, determining the growth rate of business capital in addition to available capital must be considered when mobilizing medium and long-term capital.

Technical and technological facilities

- Fixed assets such as buildings, production machinery, and filtering equipment that the enterprise puts into use in the production and business process are the technical facilities of the enterprise.

- Technical facilities and technology are the decisive factors affecting the competitiveness and taking advantage of graduate opportunities in the market. It affects the quantity, quality and even delivery time.


1.2.2 Macro factors

Economic environment.

- Economic growth rate, inflation, exchange rate stability, tax system in the economic environment are the main factors affecting the business activities of enterprises. The growth or decline of the national economy will directly affect people's lives, reflected in labor income, this point will directly affect the product consumption situation.

- Economic development of the export market: affects the demand and payment capacity of export customers, because it affects the export activities of domestic enterprises. Factors reflecting the economic development of the export market are people's income, inflation, and interest rates.

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