The process of perfecting policies to promote the development of craft villages in Bac Ninh province from 1997 to 2003 - current situation, experience and solutions - 6


- Domestic product protection policy: Prohibit the import of domestically produced technological products that can be solved to create conditions for township enterprises to exploit the domestic market.

- Technology policy: The Government has proposed a "spark" program to transfer technology and apply scientific and technological advances to rural areas, combining science with economic activities.

With these policies, township enterprises have made positive contributions to China's economic growth, changing the face of rural socio-economics. In 2006, rural industry accounted for 20% of GDP and attracted about 160 million rural workers. The rural economic structure has changed positively towards industrialization, and rural occupations have become more diverse. {19, pp.117-138}

1.2.1.2. Japan

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Japan is the first country in Asia to industrialize from a backward agricultural country, becoming an economic power with a modern industrial and service economy. In Japan, many regions of the country have existed villages with diverse and rich handicrafts: weaving, mat weaving, silk weaving, kimono sewing, sword forging, food processing, handicrafts. Today, new occupations have appeared in the countryside.

The development of LNs has had important impacts on the socio-economic development of rural Japan. The Japanese government pays great attention to the restoration and development of traditional crafts in different provinces and regions of the country. A series of legal regulations were issued to restore and develop traditional handicraft production, called the "Traditional Crafts Law". This is a special law to restore and develop traditional crafts that have received little attention in the past.

The process of perfecting policies to promote the development of craft villages in Bac Ninh province from 1997 to 2003 - current situation, experience and solutions - 6


Japan's socio-economic development policy up to now. At the same time, the Government also encourages the development of new industries in rural areas.

- Credit policy: Establish a credit guarantee and credit insurance system to help SMEs borrow capital without collateral at low interest rates. Provide financial support and capital for SMEs development.

- In particular, Japan has a support policy according to the plan to restore and develop LNTT:

+ Organizations of traditional handicraft producers plan to restore and develop traditional handicrafts based on reality and needs. From there, the State will assist, support funding, and ensure capital to implement that plan.

+ The Government also creates more conditions to establish an association to restore and develop traditional handicrafts to restore and revive the traditional handicraft production industry nationwide, and at the same time make people of all walks of life understand correctly and clearly about traditional technology products by the following measures:

+ Recognize the titles of "traditional technology artisans "; Implement reward policies; Issue certificates of traditional technology products for traditional products that meet inspection standards; Organize exhibitions, competitions, make films about traditional product technology, advertise in newspapers, books, etc.; Establish a national traditional craft center with the function of synthesizing information about traditional product technology, etc.

- LN in Japan plays the role of processing, satellite of large companies, concentrated industrial zones and providing intermediate products for them. On that basis, it creates conditions for urban industrialization and rural industry to develop together, making Japan a modern industrial country and the second economic power in the world. {13, pp.56-60}


1.2.1.3. Thailand

Thailand is a country with many industries that develop handicrafts and LN. There, traditional handicrafts such as gold, silver, gemstones, and jewelry are maintained and developed, creating many export goods, ranking second in the world.

The Thai government has proposed the policy of “one village, one product” , which not only develops local specific products or services but also develops other diverse industries with a comprehensive goal based on the development of local culture and traditional knowledge along with long-standing experiences. In order to achieve the national policy of “one village, one product” with traditional skills and knowledge to bring sustainable resources, the Thai government has proposed support policies.

- Credit policy: Establish a rural credit system, gradually helping workers access official credit sources to encourage investment in developing traditional occupations in rural areas. Provide capital for the formation of community enterprises, so that farmers can take advantage of their strengths such as skilled labor, skills, abundant local resources and local professional know-how.

Encourage businesses to subcontract handicraft activities in rural areas, and provide technical assistance and market training to workers, helping them improve their technical, professional and market knowledge, and production and business skills.

- Training policy : The Government focuses on training forms: on-site training, opening short-term training and refresher courses locally and training through centers and vocational schools to meet the need to combine sophisticated skills with advanced technology.

The government invests a certain amount of capital to build traditional vocational training centers for poor farmers. Vocational training centers annually attract many young people from the localities to learn a trade, and are granted education.


scholarships and learning conditions. No tuition or any other fees are required. At the end of the course, they are introduced back to their locality and are given the opportunity to practice their profession.

- Export policy: Thailand focuses on developing traditional industries with export products: ceramics and fine art jewelry made from gold, silver, and precious stones. These are important export products that help the government earn large amounts of foreign currency.

- Focus on developing industries with high export value products. Thailand has implemented the following policies:

+ Invite foreign experts to advise manufacturers.

+ Advertise the carving techniques and reasonable prices of the product.

+ Workshops and training for manufacturers and exporters to improve understanding of foreign markets.

+ Support manufacturers, exporters with finance and many other privileges.

+ Attend international trade fairs on jewelry and gemstones.

- The new policy takes a typical product as a national strategy for developing and promoting domestic products, building an image of Thailand in the global market as a country with unique cultural features. It represents an effective link between the government, local authorities and the community to exploit internal resources from the community. Using e-commerce as an effective tool to develop traditional products helps develop the knowledge and economy of rural areas. {13, pp.49-51}

1.2.1.4. India

India is a large country, the second most populous in the world. Therefore, the need to solve the employment problem for rural workers is a very urgent problem. (Developing rural industry, village industry with traditional handicrafts is an important solution to solve that problem).


India is a country with a long-standing civilization and culture that is clearly reflected in traditional handicraft products, and is also home to many traditional industries and industries. In India, there are many industries that produce high-end consumer goods such as gold, silver, jade, handicrafts, silk, etc. These products are exported to many countries around the world and bring India a large source of foreign currency.

The Indian Government pays great attention to developing traditional and new occupations in rural areas through specific policies:

- Financial and credit policy : Implement credit policy for poor farmers through comprehensive rural development strategy, promote industry to create jobs and increase income.

The State lends medium- and long-term capital from 5 to 10 years to traditional enterprises with low interest rates to purchase machinery and equipment and innovate technology.

- Training policy : The Indian government has established 450 vocational training centers in regions across the country, 13 training centers to improve the skills of master craftsmen in high-end handicrafts such as ivory, jewelry, and ceramics to preserve and restore unique traditional crafts. In addition, there are centers for technology development and new design to meet domestic and international consumption needs. The government has an investment policy in education to improve the cultural and intellectual level of the people, thereby training and improving the skills of workers.

- Investment policy : The government has increased investment in infrastructure, especially in transportation, which has increased non-agricultural employment opportunities, including traditional occupations. This is an important solution to expand traditional occupations in both production and consumption, thereby attracting direct or indirect labor to serve the agricultural sector.


1.2.1.5. Korea

In Korea, traditional handicrafts are also widely developed. This is a fairly common type of production and business in rural areas. The Korean government has also focused on rural industrialization, including traditional handicrafts and industries such as; handicrafts, tourism services, exports... New industries have also appeared in Korea. The Korean government has issued many policies to develop traditional industries such as:

- Tax policy : Exemption from income tax, corporate profit tax, property tax... for small and medium enterprises in rural areas, exemption from 3-5 years.

- Credit policy : Households engaged in the craft are provided with credit capital by banks with preferential interest rates to purchase raw materials for production and to help traditional LN consume products. The government has established trading companies to trade in these traditional products.

With these incentive policies, Korea has promoted the development of LNs, contributing to promoting the rural economy and strengthening economic links between urban and rural areas. {13, pp.55-56}

1.2.1.6. Indonesia

The Indonesian government is very interested in developing small-scale handicrafts in rural areas. Therefore, the government has policies and solutions to impact and develop rural areas such as:

- Build workshops and centers to sell handicraft products.

- Implement small industry guidance and development projects to educate and train, expand small-scale industrial production activities of small enterprises.

- The Government organizes a number of agencies to manage, direct, and guide the provision of equipment and materials and the consumption of products.


In addition, the Government has also issued a number of policies to encourage and support the development of small-scale industries. Establishing a network of small-scale rural banks across the country to facilitate the provision of credit to rural areas, mainly to the unemployed poor. Tax incentives for enterprises processing agricultural products for export. Organizing the "National Handicraft Council" to promote the development of small-scale handicrafts such as: Organizing design models, exhibitions in rural areas. These policies have brought about the development of traditional industries and handicrafts of Indonesia.

1.2.2. Lessons learned from craft village development policy

In fact, China, Japan, Thailand, India, South Korea and Indonesia have achieved many important results in restoring, expanding and developing rural areas. To achieve these results, it is necessary to have positive policies and solutions from the state to stimulate and promote all resources of rural areas for the development of industries. The promulgation of legal regulations, the creation of a favorable legal environment for production and business, financial support and access to capital, and a series of other policies affecting factors governing the development of rural industries have created the premise and motivation for the development of rural areas.

The development of LN in some Asian countries has many similarities with our country. Through studying the experience of LN development policies in some Asian countries, it will contribute to perfecting the policy to promote LN development in our country, which are:

1.2.2.1. Craft village development needs to be associated with the rural industrialization process.

The process of industrialization, urbanization, and commercialization in countries has at times caused the unique and sophisticated elements of LN to fade and become obscured. But in general, countries have focused on and considered LN as part of the industrialization process.


Rural areas. Therefore, when carrying out industrialization, they often combine manual techniques with modern mechanical techniques, depending on the material conditions of each country, applying traditional or modern technology. At the same time, arrange production facilities near raw material areas and locate them in rural areas to facilitate production development and exchange of goods. In China, India, Japan, and Indonesia, it is believed that in order to promote rural industrialization, attention must first be paid to traditional industries. From there, a large rural market for non-agricultural products and services must be created, contributing to promoting rural development in the direction of industrialization. Many traditional industries have been equipped with machinery, mechanical and semi-mechanical equipment, combined with the skillful hands and creativity of artisans. Therefore, the traditional handicraft industry is having favorable conditions for strong development. Diamond processing in India, gem and handicraft processing in Thailand have created high economic value products for tourism and export. This has created conditions for farmers to access advanced techniques and become familiar with industrial production style.

1.2.2.2. Focus on training and fostering professional and technical skills for human resources in rural areas

Training and fostering human resources in rural areas plays an important role in the development of LN. Therefore, countries pay attention to investing in education and vocational training for workers so that they can acquire advanced techniques, because the formation of a highly skilled workforce is very important. If this factor is lacking, the acquisition of science and technology will not be as successful as expected. In general, countries thoroughly use many forms of training and improving skills for workers such as: On-site training, concentrated training, short-term training, following the motto of training whatever is lacking. Promote the establishment of centers and research institutes to systematically and methodically train human resources to meet the needs of production facilities or localities.

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