Professional Documents
Culture Documents
The outstanding debts of the craft villages, businesses, cooperatives and household producers
in the reported 38 cities and provinces amount to 2,169.064 billion VND with 12.324 billion
VND overdue. Many businesses have bad debts. The situation is particularly serious in the
craft villages that produce fine-arts articles, iron, steel, and paper.
I. Major findings:
This study has dispelled two major myths generated by the Vietnamese media in
recent days. On the occasion of announcing the foregoing statistics, much of the
Vietnamese media has concurrently generated a misleading impression that most of
the craft villagers have become unemployed and fallen in critical production and
living conditions, and it is the on-going global crisis that is totally responsible for
difficulties of Vietnamese craft villages. Whilst this impression may be true
elsewhere, it is not really the case in the three craft villages that the research team
visited in the middle of February 2009.
In fact, from empirical evidence collected at focus group discussions and in-depth interviews
with various social and business groups, four major findings have been extrapolated:
1. Bearing the first brunt of the economic slowdown are migratory workers to
these craft villages. The reason is clear: as a result of the Asian values that
remain respected and practiced strongly in northern rural Vietnam, village
producers follow an implicit rule of employment: family members first,
followed by relatives, fellow villagers, and the rest. In the ‘downsize’ period,
this priority hierarchy becomes a sequence of unemployment, from the rest to
the core. In addition, migratory workers usually are less skilful than indigenous
ones who should thus be retained in order to avoid de-skilling, or to produce
new designs for displays or for exhibition fairs. Therefore, immediate
consequences can be recognised most obviously amongst migratory workers.
1
Nguyen Tam Giang (consultant)
This component report reflects the findings of an rapid assessment in two well-known craft villages
near Hanoi, i.e. Bat Trang ceramics/porcelain (in fact comprising 2 villages of Bat Trang and Giang
Cao) and Ha Thai lacquer, in order to provide information on social impacts of the financial/economic
crisis in craft sector in Vietnam.
1
2. Both craft villages used to experience a multi-year period of robust growth,
especially from their export activities. Thanks to the traditional value of thrift that
is quite popular amongst northern rural people, many businesses and household
producers have accumulated some savings that become useful for them to avoid
credit-related problems and survive at least the initial period of the crisis.
Therefore, no hypothetical signs of seriously deteriorating living conditions
(casual hunger, psychological panic, child drop-outs from schools, or even sales
of assets for food) have been recorded.
3. Unlike in Bat Trang and Giang Cao where households mobilise all resources for
ceramic and porcelain production and business, many households in Ha Thai
maintain their approach of livelihood diversification with a combination of
lacquer work, agriculture, paper-gold making and others. Therefore, the impacts
of the current economic crisis on households in Ha Thai are less obvious than
those in Bat Trang and Giang Cao. Also, there exists a different division of
labour in the production chain, resulting in different livelihood impacts, in the
three villages. In Bat Trang and Giang Cao, production is more concentrated
within a producer, whilst in Ha Thai, the division of labour amongst different
steps of the chain is very clear. Therefore, Ha Thai businesses can be more
flexible in adjusting their production scales in the difficult time.
4. The on-going global crisis is not the sole cause of the business decline in the
three craft villages. Rather, their decline is caused by multiple problems
accumulated over the past few years in these villages. The two biggest blows
are the ‘price storm’ in early 2008 and the current ‘demand shock’. Therefore,
the global crisis may apparently be viewed as the last nail in the coffin of a
number of businesses and household producers.
Bat Trang Commune has two villages, viz Bat Trang and Giang Cao, with 11
residential units. The Commune has 1,721 households with 7,528 people. In the
employment structure, 84 percent of the working-age people are directly engaged in
fine-arts porcelain and ceramics production; 15 percent in trading and services,
including production and supply of clay and enamel; providing services for tourists …),
indirectly promoting the craft; and one percent in other services (hair-cut, hair-
wash…).
2
of household producers have shops to sell their own products. The number of
household producers was reduced from 1,200 in 2004 to 970 in 2007 and to 800 by
the end of 2008. Meanwhile, the total revenues of the Commune were decreased from
226 billion VND in 2007 to 175 billion VND in 2008.4 An annual per-capita income
is between 8.5 million VND and 10 million VND.
Most of cultivable land will be acquired for the concentrated site of the craft village.
Not every body can afford land in the concentrated industrial site. The remaining 21
ha will be designated for growing sandalwood and mother-of-pearl trees.
Production and input supply: Main inputs for ceramics and porcelain production
include clay, fuel, mould, paper packages (or pallets), gas, petroleum. Amongst these,
enamel and colouring have to be imported from China and Japan, respectively. Many
others, such as clay, fuel, and paper, can be supplied on credit. Workers for a producer
include shapers, repairers, enamel makers, painters, kiln loaders, bakers, coal-people,
and driers. As many as 70 percent of the kilns are gas-fired. The box kilns require
higher labour costs while product quality is not high. Some local households are
suppliers of inputs for the village producers.
Gender dimension: In many cases, male workers are believed to be more skilful so are
engaged in sophisticated painting work and earn more money (also due to the harmful
nature of their work as a consequence of paint odour). Nevertheless, more women,
normally aged 18-40, are usually employed as there exist many simple and light tasks
that are more suitable to them. Women aged 40 or more do not qualify as they are seen
as being too slow.
4
The actual figures may be higher as many craft businesses heavily rely on informal transactions.
5
For instance, Minh Hai Co. one of the biggest businesses in Bat Trang Commune, produces 70
percent of their goods and have the rest made by household producers. The Director explained that for
certain types of products, his company cannot obtain the quality as high as some household producers
can (e.g. enamel), so contract them out.
6
Minh Hai Co. exports 70 percent of its products to Japan and 20 percent to Europe.
7
The statistics from this section comes from the Chair of Duyen Thai Commune People’s Committee.
3
Ha Thai village has around 780 households with 3,300 people. As many as 85-87
percent of the village households are engaged in lacquer production while the rest is
involved in rice growing, retailing and other services.
Business situation: Ha Thai has around 20 companies that have a capital of over five
billion VND and employ around 30-50 workers. Sales revenues dropped by 35-40
percent in 2008, as compared with those in 2007. Some producers chiefly provide
products, of both average- and high-quality, for domestic consumption. A production
and business centre is under construction in order to promote the craft.
Boom times: The years of 1995-96 (when lacquer products have been marketed
widely) and 2000-2005 were the most successful, when a business might employ up
to 50 workers on its shop floor, and an additional 150 to work at their own homes.
Home-based employment is rather common as workers can manage their own time
better, thus working more effectively, with higher incomes.
Production and input supply: Inputs for lacquer production include paint, wooden,
bamboo and rattan frames, paper pulp, paper chips, abrasive paper, composite materials,
alluvial soil and some additives. Glossy paint is imported from Taiwan, Japan and
China while abrasive paper is imported from Taiwan, Japan and South Korea.
Environmental problems: water sources from pond and wells are believed to be
polluted by paint- and oil-produced waste. Water from septic tanks and lacquer work
are poured into the public pond.
Relative slow sales and difficult tax collection: Normally, several weeks before Tet
are a good time for business. However, many producers share the view that their
8
According to some senior members of the craft guild in Bat Trang.
4
recent pre-Tet sales declined remarkably as compared with the same periods of the
previous years.9 Anyway, the 20 days before the recent Tet was considered the only
chance over 12 months when local producers could sell a relatively large amount of
their products. Even so, many producers still have many products in stock as a result
of slow sales. Tax collection encounters difficulties given the sales crisis.
In Ha Thai, sales and revenues in late 2008 and early 2009 reportedly declined by 30-
40 percent.10 In the previous years, producers had many substantial orders for
Christmas presents (usually in November and December) and had to work hard until
the (lunar) New Year Eve.11 Despite the general downward trend of orders, there
appears to be a sharper decline of orders for exports and lower-quality products for
domestic consumption. Several producers of high-quality products for domestic
consumption (paintings) say they have not been affected significantly and still
anticipate high demands. Furthermore, those who produce paintings for celebrations
of long-lived people earned well in 2008.
Rescheduled delivery: Five businesses in Bat Trang Commune have their contracts
rescheduled.12 For Minh Hai Co., orders used to be placed 10 days before delivery,
they are now placed 15 or more days before delivery as corporate customers need to
study their market demands (of supermarkets, retailers…) more carefully. Concerning
Ha Thai village, distributors become more uncertain about their demands. Normally,
products should be delivered 1.5 or two months after contract signing, but in recent
months, delivery can commonly be made three or four months after contract signing.
Only small customers: In Ha Thai, there remain only a few small buyers (known as
‘backpacker tourists’ who visit the village and come up with the idea to trade some
products to earn small profits). They become ‘life-saviours’ for some businesses in
the crisis although they buy several millions VND worth of goods in stock.
9
The Director of Minh Hai Co. said that its sales turnover was decreased by around 30 percent.
10
According to the group discussion with village officials.
11
One of the biggest companies in the village disclosed that it barely received any orders from foreign
customers at the end of last year (only a small order worth 40-50 million VND from France).
12
Contracts are signed with businesses, not households who work as satellite producers.
13
Customers only say that they cannot sell well, without complaining about high prices; some require
certain changes of product designs.
5
Meanwhile, local officials and residents believe that there are fewer tourists to Bat
Trang as compared with the same periods of the previous years, althouth there is no
available statistics on this trend.
No contracts from fairs: In Ha Thai, local producers usually pin high hopes on
contracts signed after international fairs abroad. However, there were no visitors to
their lacquer exhibition in Germany in late February 2009. The nearest hope is
another fair in Thailand in early March. If no contracts are signed after this fair, it is
quite certain that 2009 would be a gloomy year for Ha Thai’s business.
Bat Trang and Giang Cao: Since last April or March, customers have stopped their
purchase, and some cancelled their orders. Some take their ordered products but
reschedule new orders as a consequence of their slow sales. Some businesses, such as
Hop Luc and Song Cuong,14 were dying even before the current global crisis, due to
their failure to overcome multiple accumulated challenges listed in the table below.
As a result of the pre-crisis at home and the global crisis, Hop Luc’s monthly sales
dropped substantially from three or four containers per month (from early 2008
backwards) to only one or even no container. The number of its employees has
decreased from the previous 100 to only seven now.
Ha Thai: Since last May, businesses have received increasingly fewer orders, and lost
some committed customers as a consequence of slow sales. Major foreign distributors
(chiefly based in the USA) have reduced amounts of their orders.
14
‘Hop Luc’ is the only cooperative that has survived since the central planning economy. In 2008,
the cooperative could export only five containers to Taiwan. The last shipment was made in December
2008, and it has not received any further orders ever since. Other cooperatives, such as Song Cuong,
have to stop their production as a consequence of no orders.
6
Pre-crisis difficulties in the craft villages
15
Fuel accounts for 25-40 percent of the costs of pottery production, according to local producers.
16
Producers may loss two or three million VND for each small batch. Despite the soaring prices of inputs, producers had to buy some when they were in the middle of a batch.
17
The prices of petroleum accounted for 40 percent of input costs as producers consume it for kiln burning and goods transporting.
7
Prices of products cannot be raised as it may lead to loss of At customers’ requests, selling prices of lacquer products
committed customers, which result in substantially reduced profits; cannot be raised;
Unchanged
output prices18 Some customers placed new orders but at terribly squeezed prices, Therefore, many producers earn some money from their own
+ reduced which leave no margin profits for producers given soaring input labour only, without earning good business profits as they did
prices. a couple of years ago, to maintain their production and avoid
profits
worker de-skilling to wait for growth recovery. Otherwise, it
may not be easy to find skilled workers immediately.
Local producers struggle on their own in production and business Businesses and household producers struggle on their own,
to accommodate themselves to the market, without formal assistance and only bigger businesses afford international fairs, which
for orientation or strategies; cannot produce substantial impacts on the village’s production;
Limited Some households cannot do their business well due to limited Most businesses and producers cannot approach foreign
capacity. customers19 as:
business
capacity They operate on a small-scale basis, lack physical
facilities and business worthiness;
Many producers do not have sufficient financial capacity
(around 500-1,000 million VND is required);
Lack of knowledge of trade and the outside world;
Lack of skills of foreign languages, communication and
negotiation;
18
In Bat Trang commune, some household producers say that they have slightly raised their selling prices for some products, by around five percent, which still fail to catch
up with the prevailing input price hikes.
19
In Ha Thai, only a couple of companies, viz Thanh Ninh and Thanh Son, can conduct direct transactions with foreign customers. Some foreign customers visit the village
and like some products but then involve a professional trading company in Hanoi as an intermediary. Many local producers believe that direct transactions would have earned
more contracts for them.
8
Limited understanding of transactions procedures;
Lack of on-line marketing campaigns;
Lack of organisational capacity.
Ceramics and porcelain demand becomes saturated since 2004 as This is the third sales and revenue crisis since 1986: The first
Saturated producers fail to offer new and special designs. was in the late 1980s and early 1990s when traditional
demand customers from the USSR and Poland stopped buying; the
second was in 2002 when tourism declined as a result of the
SAS epidemics breakout.
Increasingly Internal: Intra-craft: There are more producers while the demand
fiercer Some businesspeople may offer customers of neighbouring shops cannot catch up this pace; 95 percent of the households are
some concessions, such as on-credit purchase or reduction of a few engaged in lacquer production. Ha Thai also has to compete
competition
cents per certain product; with newly-emerging lacquer craft villages, such as Duyen
Truong and Phuc An villages (in the same Commune) and
(resulting in Some producers copy designs of others and reduce production
another village in the neighbouring District of Phu Xuyen.21
lower output costs;
prices and Legal loopholes in intellectual property rights may lead to some From outside craft: Competition comes from villages in the
producers’ disadvantages for some designers. Some households that can production chain for certain products. For instance, producers
profits) produce special enamel strictly protect their formula as it is from Bat Trang try to attract workers from Ha Thai, thus
impossible to make a suit against rather common infringements of enabling themselves to produce lacquer-covered porcelain and
intellectual property rights.20
9
External: Traditional producers compete, chiefly in designs and ceramics products to compete with producers from Ha Thai.
enamel colour, with new rivals from neighbouring communes within
the District, such as Kim Lan, Đa Tốn, and Đông Dư, and even from
the neighbouring District of Châu Quỳ.
Recent technological improvements have lead to mass production, Lacquer products have been modernised to reduce production
Mechanisation which causes oversupply. costs (for instance, using ready-made paint and reducing
sophisticated manual work of fine-arts articles) so it is easier to
be imitated and replicated.22
Foreign The USD appreciated against the VND, which resulted in more
exchange expensive imported inputs;
Lack of good tourist infrastructure. The tourist infrastructure is poor, even without signposts to
Infrastructure access the village;
Goods-transport infrastructure is poor: 29-seat automobiles
cannot enter the village, and trucks are uploaded onto trucks on
the side of the highway;23
No exhibition centres in the village.24
20
Therefore, good businesses, such as Minh Hai, have to rely on their prestige and long-term relationships to keep their customers against such violations from rivals.
21
These villages have produced lacquer products for two or three years.
22
Approximately one percent of the households remain loyal to the traditional manual arts work.
23
The District’s People’s Committee has recently upgraded the entry road. Tradesmen could have doubled or tripled their selling prices for tourists as compared with those
applicable to Hanoi’s intermediaries.
24
A big exhibition centre is under construction in the village.
10
3.4. Added difficulties in the global crisis:
Businesses and household producers that have survived the domestic crisis of inflation are
encountering the following difficulties in the global crisis:
However, some local suppliers in Bat Trang complain about their substantial losses as a
result of producers’ bad debts, some of which may last for seven or eight years, with no
interests. Suppliers have suffered more losses after the soaring inflation in 2008. Some
producers also sell their products to foreign customers on credit. A business even became
bankrupt after being cheated by a South Korean importer.
11
for only 50 million VND and bearing an outstanding debt of 1.5 billion VND from the
bank.
Recently, only two or three household producers have become bankrupt and have to rely on
their social network (kin, relatives and close friends). In Bat Trang Commune, local people
can access some credit sources, viz the Social Policy Bank, and trust-based funds of the
Women’s Union, the Youth’s Union and the Veterans’ Union from which they can receive
soft loans without collateral. In Duyen Thai Commune, some credit sources include those
from the Fund for Poor Households, the Fund for Students, the Social Policy Bank, and the
Agricultural and Rural Development Bank (AgriBank).
In Ha Thai, some producers26 have borrowed cash from banks to invest in production
floor and facilities in the village’s production and exhibition centre and now fail to pay
debts as a result of prolonged losses. Sacombank has recently frozen their debts totalling
four billion VND. However, no producers have been subject to the Guild’s penalty of
craft suspension. Few have sold their land whilst others have borrowed from their social
network to pay amortisation debts. Many producers (an estimated 80 percent of the
households) that have borrowed cash to invest in their shop floors in the village’s
production and exhibition centre are deeply concerned about what to do when fewer or no
orders are obtained.27
12
4.1. Household producers with the greatest difficulties:
The major approach to survive the crisis in both villages is to receive revenues from their
own labour only, no longer from business profits. There are no unpaid apprentices in
both villages. Apprentices can receive at least 25,000 VND per day (Bat Trang and Giang
Cao) and 10,000 VND per day (Ha Thai).
29
For instance, whilst good workers can produce 10 quality products per batch, poor-skilled workers can
make only six.
30
For instance, some producers have created a special type of enamel and kept it as a family secret.
31
For instance, Quang Mex and Minh Hai Companies. Minh Hai representatives attended some exhibition
fairs in Japan, Hong Kong, France, and Germany to introduce some special products, such as fake
antiquities and light holders. However, as it is very costly to attend international fairs, although many
contracts may be obtained hereby, few businesses can afford.
13
Reduce numbers of employees;32 Some send children to vocational
courses, or to work overseas;
Some retain few skilled workers to avoid Some shift to other types of
deskilling.33 employment (retailing, paper trading
and other services);
Labour
restructure Some producers are engaged in
production steps which they contracted
out in the period of good growth.
New products and new customers. Marketing more new samples abroad;
Turning to other parts of the domestic
market: delivering products directly to
New
souvenir shops in Hanoi, in which they
marketing
were not keenly interested during the
period of good growth;35 or production of
32
In its peak time (early 2008), Minh Hai Co. employed 200 workers but now has 70 employees. The
company also plans to reduce the number of shop-keepers if the numbers of tourists continue to be on the
decline. Its shop-keepers are local village girls who have been taught some English and Japanese and some
marketing skills, as locals are believed to be able to introduce the production process better than non-locals.
33
Although there is nothing much to produce, many businesses and household producers have to retain
skilled employees to avoid de-skilling in a hope that the latter may be used when orders return. At its peak
time, Hop Luc Cooperative employed 100 workers with 75 being women. It now retains only seven
workers but has nothing for them to do.
34
For instance, it is reduced from 20 batches to five or six per month.
35
Many businesses only delivered goods directly to souvenir shops in Hanoi after their loss of USSR and
Polish customers in the early 1990s. During the period of good growth, people from souvenir shops had to
14
worship articles.
According to some permanent members of the Bat Trang Guild Management Board, if the
crisis lingers on, many more producers will definitely have to terminate their production.
Some stronger producers may shift from box kilns to gas-fired ones if they can access funds
from either bank loans or the Environment Fund jointly set up by the Ministry of Science
and Technology and a UN agency. However, to be eligible for an amortisation loan from
the Environment Fund, household producers must strictly follow its guidelines which may
not be always suitable to household conditions.
Ha Thai:
Most officials and people believe that when lacquer production slows down, only part of
their livelihood and incomes has been affected, and therefore no households have fallen
into poverty instantly, as there exist other employment opportunities. For instance, the
Commune has run a number of industrial extension courses, not only for lacquer work,
but also for industrial sewing and other handicrafts.
Some villagers have shifted to rice cultivation and services. In Ha Thai, every household
is allocated some field land although areas may vary depending upon household member
characteristics. In the period of good growth of lacquer work, producers rent or give their
field land to poorer farmers,36 many of whom hail from Thanh Hoa Province,37 for
cultivation, which requires hardwork but provides low incomes. Often, only old people
come to village businesses and producers to collect goods.
36
Some households employ farmers from Thanh Hoa to work on their rice fields.
15
work on the field. However, most of the field land may be acquired for the construction of
the Bac Thuong Tin industrial zone in late 2009. Local officials and people are deeply
concerned about the loss of field land which may at least ensure their food security 38
when other types of livelihood fail. Some suggest that the remaining cultivable land
(around 30-40 percent of the Commune’s total arable land) should be shifted to growing
safe vegetables for quick rotation of harvests (three to four crops per year).
Many youths do not want to continue traditional lacquer work which, they believe, brings
low returns and high risks for human health and the environment. Only those youths who
are unable to enter universities or colleges have to continue this type of employment,
which is still better than rice cultivation or work in factories.
Nevertheless, some members are not convinced of the role of the guilds, listing some of
their failures as follows:
• Failure to unite all producers and suppliers for a common voice;
• Failure to develop good guidelines;
• Failure to produce good impacts on members’ production and business;
• Lack of legitimate authority (therefore, its functions over conflict settlement are
confined to reconciliation. Unsuccessful cases are forwarded to administrative courts for
further settlement).
Bat Trang and Giang Cao: The concentrated 18-ha craft site is under construction, a
quarter which is designated for workshop floors. The whole area has been rented.
However, the Commune has not had any specific development plans to facilitate the
production and business of the craft villages.
37
According to the Head of the Ha Thai Lacquerwork Craft Guild, more than 100 migrants from Thanh
Hoa worked in the village fields during seasonal periods. Now most of this farm-work is taken up by local
villagers from Ha Thai.
38
Each household spends only two months on its rice field every year.
16
Many businesses and household producers remain unsure of what to do in the coming
time, if the crisis still lingers. Some think about shifting to tourism but Bat Trang has not
had a favourable infrastructure for tourism, except for the central porcelain market.
Meanwhile, it may take five years to invest in a good infrastructure for tourism. A 15-
billion-VND tourist harbour is under construction and expected to be completed by late
2009. Once completed, it is expected to generate only 20 service jobs, but receive more
tourists. At present, the Commune welcomes 20,000 tourists annually.
Meanwhile, local villagers still maintain their employment either for their own
households or for households of their relatives. Generally, living conditions of most local
people remain stable as they have savings from the long period of good growth.
Bat Trang and Giang Cao: Producers employ a considerable numbers of migratory
workers, chiefly from the neighbouring province of Hung Yen, followed by Ha Tay, Hai
Duong, Ha Bac and Bac Ninh,. Workers from Hung Yen do not stay overnight, while
those from other provinces do. More than 500 migratory workers rent their
accommodation in the commune. There exist some small ‘human markets’ within the
Commune, where employers can pick up their casual employees. Before 2008, local
household producers employed around 10,000 migratory workers, with no clear gender
imbalance, and this figure was reduced by 60 percent after Tet.39
Ha Thai: Usually, household producers employ around 400 migratory workers, from
Phu Tho (chiefly), Hoa Binh, Ha Nam, Nam Dinh, Thai Binh and Thanh Hoa. Some
local villagers complain about problems caused by migratory workers, such as social
insecurity (thefts) and other social evils.
Some producers find it more costly to employ migratory workers. Each migratory worker
earns around one million VND, without having to pay board and lodging as they stay with
their employers. Meanwhile, local workers also earn around one million VND or slightly
more. Most migratory workers have not returned since Tet as producers have not received
any new orders.
5.2. Formal and informal assistance
39
According to some senior members of the craft guild.
17
Formal assistance for businesses and producers:
• The energy-saving project from the Vietnam Environment Fund40 requires some
conditions unsuitable to local households in Bat Trang Commune. Some
households have limited space which can fit the proposed model;
• Many businesses enjoy income tax reduction worth three to four million VND at
their final accounting;
• The commune administration cannot provide any significant assistance, except
facilitating paperwork for loans.
Mutual support:
Generally, competing producers do not help each other but try to keep production techniques
and business information as much as possible. Confidentiality in terms of production and
business is particularly important given a lack of an enforced intellectual property
protection system. Producers do not register their designs due to the following reasons:
5.3. Changing total consumption and consumption patterns within the households:
Some early signs of austerity have been recorded in both villages, although in different
ways. However, the crisis’s impacts on household welfare in the three villages have not
been so serious to the extent of bankruptcy, children’s school drop-out or sales of land or
assets. Few villagers have to rely on some loans from other fellow villagers. In Bat Trang,
which had enjoyed more robust growth before the crisis, producers have accumulated
some considerable savings by local standards. Nevertheless, they restructure their
consumption patterns by cutting expenditures on some expensive items, rather than using
their savings for working capital (around 300-400 million VND). In particular:
• Less spending on upgrading or new construction of houses (it usually happens at the year-
end);
• Less spending on fashionable durables (motorbikes, automobiles, machines, flat-screen
TVs and other electronic facilities …);
• Less spending on tourism: usually, at the beginning of the previous years, many
households bought tours, foreign and domestic alike. But the numbers of such tours have
been reduced visibly this year;
• Considerably lower pre-Tet sales of decorative items (such as expensive cherry blossom
flowers, Kumquat trees, …);
• Less spending on meat consumption (the sales of pork, beef and chickens have been
reportedly lowered in recent months).
40
This scheme, jointly run by the Ministry of Science and Technology and an UN Agency, offers an annual
lending interest rate of 0.6 percent. It is reported to have disbursed 19 billion VND in Bat Trang Commune
by the moment of the assessment.
18
Meanwhile, in Ha Thai, which enjoyed more modest growth (than Bat Trang) during its
hey day, some local people have to trim down their expenditures on daily-use essential
items, such as food and clothes, and do not buy unnecessary goods.
5.4. Assistance for poor and near-poor households:
In the research sites, poor households are those that suffer from chronic poverty, with
permanently old, sick, disabled and lonely members.
Bat Trang: The Commune has 13 poor households according to the old poverty lines.
Both the District and the Commune have the Funds for the Poor.
Duyen Thai: The Commune has 49 poor households with more than 400 people
(according to the old poverty lines) or more than 80 poor households (according to the
new poverty lines). Ha Thai Village alone has 30 poor households (according to the old
poverty lines) or around 40 poor households (according to the new poverty lines). Apart
from entitlements for poor households, they may receive some occasional assistance, viz
Tet gifts and some production inputs (fertiliser in 2007). However, near-poor households
have not received any assistance.
Only poor households have considerably reduced the nutrition quality of their meals as a
consequence of slowed-down production. Mr. and Ms. N. V. T.41 earned more than one
million VND per month from lacquer work in 2007 but have seen their montly incomes
decreased by 25 percent since November 2008. Their household produces lacquer worship
articles, whose pre-Tet production and sales slowed down as compared with the same periods
of the previous years.
The Commune’s authority has requested for more cash Vietnamese trade attaches abroad should
allocations for the Funds of the Women’s Union, the help explore foreign market demand, which,
Youth’s Union and the Veterans’ Union to help their however, may negatively result in the
members in difficulty; favour-granting mechanism in business;
The Government should pay attention to marketing Bat
Trang’s products, through the Guild or the local Local producers should be equipped with
administration; some basic knowledge of trade.42
Financial support should be provided for producers
with box kilns to upgrade their facilities;
Scientists should study how to reduce gas consumption
for various types of products.
41
This household is classified as ‘poor’ according to the old poverty lines.
42
Since the collapse of Binh Minh Cooperative in the early 1990s, many local producers have shifted from
agriculture to handicrafts, without any chance to study basic trade knowledge. They had to start up and
develop their work on their own, without any formal assistance.
19
Some rescue measures officially recommended by the Bat Trang Guild to Hanoi’s
People’s Committee:
1. The State should provide part of the stimulus package for household producers;
2. Household producers should increase their production for domestic consumption;
3. Export-oriented businesses should create more designs;
4. The State should provide continued training for high-skilled workers;
5. Banks should continue reschedule debt payments for businesses in difficulty;
6. Tax payment should be rescheduled; more tax reduction and exemption should be
provided to encourage businesses.
20
Annex 1: Research methods
The study was conducted three weeks after Tet, which is a quiet time for shopping
and for orders in the three craft villages every year. Also, observation was made in
two week days, which are not a busy time for shops. They often have more visitors
during weekends. Also, according to the interviewees, around 30 or 40 percent of the
kilns have not resumed their work after Tet. Therefore, it remains unclear whether
these producers will stop their production or just halt it for some time after Tet.
Given these hypothetical biases, the findings presented in this report are based on the
synthesis of various sources (employees, household producers, businesses, senior
members of the craft guilds, and commune and village officials), the comparison of
various periods (boom times, the domestic crisis, and the global crisis, including pre-Tet
and post-Tet in relation to the same periods of the previous years), and the understanding
of invisible factors underlying visible phenomena. Such an exercise of triangulation aims
to achieve the highest possible validity of the information provided herein.
In fact, the research team has interviewed 12 representatives from craft companies
and cooperatives, 17 from household producers, 12 workers, with four being female,
and six senior officials of the communes, villages and craft guilds.
21
Annex 2: Illustrative photographs
Photo 1: Assistants from the electronic and electric equipment shop in Bat Trang
Commune say their pre-Tet sales went down sharply despite many discount offers.
Photo 2: Some household producers shift to using their workshop floors for tourist
fun services. This is a pottery-breaking service to relieve stress.
22
Photo 3: The only ATM located in Bat Trang Commune was much-frequented by
local producers and businesspeople who withdrew cash from their sales transactions.
It now becomes rarely used.
Photo 4: Song Cuong, one of the few cooperatives in Bat Trang Commune, now
receives neither orders nor visitors to its showroom.
23
Photo 5: An unsuccessful producer has been employed to transport products on his
bicycle for other fellow producers in Bat Trang.
24
Photo 7: An old-fashioned box kiln for pottery production was Photo 8: This pair of vases should be sold for 1.8 million VND
deserted in early 2009. to spare some business profits given the soaring input prices.
However, the pair has long remained unsold, even only for 1.5
million VND.
25
Photo 9: A pottery kiln has been dismantled to make room for a temporary fast-food
restaurant.
Photo 10: The shop-keeper has been sitting idle all day during one of the tourist
seasons in Bat Trang Commune.
26
Photo 11: A poor household produces lacquer worship articles for domestic
consumption. The yard used to be packed with products during better business periods.
But it became rather spacious at the moment of research.
27