In The Thriving World of Handicrafts: Vietnam handicraft market prospects
- Hung Nguyen Thanh
- Jun 16
- 14 min read
Updated: 6 days ago
This article discusses and explores the Vietnamese handicraft industry, highlights its potential and competitive advantages in the global market. It emphasizes Vietnam's rich craftsmanship tradition, its abundant natural resources like bamboo and rattan, and a growing focus on eco-friendly and sustainable products. It also discusses the economic significance of handicrafts, their export performance to markets like the EU and US, and the increasing role of digital platforms and tourism in promoting these goods. Furthermore, some of the referenced sources touch upon the challenges faced by the industry, such as raw material issues and the need for improved supply chain management, while also examining the broader context of Vietnam's engagement in global value chains and the impact of trade agreements and economic policies on its various sectors.
How do consumer preferences and global market trends influence the growth and demand for handcrafted products?
Consumer preferences and global market trends significantly influence the growth and demand for handcrafted products by emphasizing sustainability, personalization, cultural authenticity, and accessibility through digital platforms.
Consumer Preferences Driving Demand:
Sustainability and Eco-Friendliness: There is a significant and growing global demand for sustainable and eco-friendly products. Consumers are increasingly conscious of the environmental impact of their purchasing decisions and actively seek out alternatives that reduce their environmental footprint. This is reflected in a preference for products made from recycled or organic materials, such as bamboo, rattan, jute, seagrass, coir, hemp, and recycled paper. A 2023 report indicated that 73% of global consumers are willing to change their consumption habits to reduce environmental impact, reshaping the handicraft industry towards eco-friendly goods. Handicrafts often align with these values due to their use of local, renewable resources and lower carbon footprint compared to mass-produced items.
Uniqueness, Individuality, and Personalization: Consumers are increasingly drawn to products that are unique, one-of-a-kind, and customized to fit their individual tastes. Handicrafts, by their very nature, offer customization and inherent deviations from mass-produced items, adding to their distinctive appeal. This desire for individuality and personalization is a key driver for market growth. Handmade items like jewelry, custom home décor, and personalized gifts are particularly popular.
Cultural Connection and Heritage: Many consumers buy handicrafts to feel connected with indigenous traditions and cultures in an increasingly commoditized world. Handicraft products embody a sense of image and identity, signifying the great heritage of a particular locality. This cultural motivation, which can be both rational and emotional, significantly influences buying intention, as consumers develop an emotional bonding with products that depict deep-rooted aboriginal culture. The cultural heritage embedded in artisans' work makes products exciting and valuable. Products that tell a story and celebrate heritage craftsmanship are gaining global recognition.
Ethical Consumerism and Supporting Local Artisans: There's a rising awareness of ethical consumerism, with customers preferring brands that support fair wages and artisan welfare. Consumers are increasingly choosing to buy directly from artisans instead of large retail chains, investing in a movement that empowers artisans and uplifts communities. This trend also helps to preserve traditional crafts and techniques that might otherwise face extinction.
Global Market Trends Influencing Growth and Demand:
E-commerce and Digital Transformation: The rise of online marketplaces and digital platforms has revolutionized the handicraft industry by significantly expanding the reach of artisans to global markets. Platforms like Etsy, Amazon Handmade, and Alibaba enable small businesses and artisans to connect directly with a wider international audience, bypassing traditional intermediaries and boosting sales. The COVID-19 pandemic further spurred demand for handmade goods and accelerated the shift to online shopping. Digital technology, including AI and modern design tools, also enhances product efficiency, quality, and creativity, allowing businesses to respond faster to market demands.
Fusion of Tradition and Modernity: A key trend is the blending of traditional craftsmanship with modern design elements. This approach creates unique products that appeal to evolving modern tastes while simultaneously preserving cultural heritage. This combination of time-honored techniques and contemporary aesthetics resonates with consumers who value both artistry and innovation.
Increasing Demand for Home Decor and Functional Items: With more people investing in home aesthetics, there's a growing popularity of artisanal home décor items such as handwoven baskets, wall hangings, embroidered cushions, and handmade rugs. Consumers are also seeking handicrafts that are both beautiful and practical, leading to demand for functional items like multipurpose baskets, sustainable tote bags, and storage solutions made from natural fibers. Eco-friendly home decor items made from natural and sustainable materials are in high demand, appealing to environmentally conscious consumers and adding a touch of nature to living spaces.
Government Support and Free Trade Agreements (FTAs): Vietnamese government policies and initiatives, including tax reductions and improved logistics infrastructure, aim to support handicraft exports. Participation in significant FTAs like the CPTPP and EVFTA provides preferential access to larger markets and helps businesses improve their competitiveness, creating new opportunities for export and international collaboration.
Sustainable Tourism and Community Engagement: Craft village tourism is a growing trend that offers handicraft businesses unique opportunities to engage with customers and promote local products. Tourists often seek authentic, handmade souvenirs that represent the local culture and heritage, providing an additional revenue stream and fostering economic opportunities for local communities.
In Vietnam, these factors have positioned the country as an ideal destination for sourcing sustainable products, leveraging its vast natural resources, traditional craftsmanship, and commitment to eco-friendly manufacturing. The handicraft industry in Vietnam, with its rich cultural heritage and thriving craft villages, exports products to 163 countries and territories, with a total export value of nearly $4 billion in 2023.
How does e-commerce impact artisans?
E-commerce has a multifaceted impact on artisans, primarily by expanding their market reach and facilitating direct sales, while also introducing specific challenges related to digital literacy and market competition.
Here's a comprehensive look at how e-commerce influences the growth and demand for handcrafted products:
Expanded Global Reach and Market Access: The rise of online marketplaces and digital platforms has revolutionized the handicraft industry by significantly expanding the reach of artisans to global markets. Platforms such as Etsy, Amazon Handmade, and Alibaba enable small businesses and artisans to connect directly with a wider international audience, often bypassing traditional intermediaries. This digital transformation has been a major cause of increased international market access for handicrafts.
Direct Sales and Artisan Empowerment: E-commerce provides the option for consumers to buy directly from artisans instead of large retail chains. This shift is driven by consumers' increasing awareness of ethical consumerism and a desire to support local businesses, empowering artisans and uplifting communities. This direct connection also allows consumers to feel more connected to the story and history behind a product and the artisan who made it.
Emphasis on Uniqueness, Personalization, and Storytelling: Online platforms highlight the uniqueness of handmade items, as no two products are exactly alike, catering to the consumer desire for individuality and personalization. Artisans can use e-commerce to effectively communicate their brand's identity and uniqueness, and to tell the story of why a handicraft requires human labor, which adds to its perceived value. This storytelling approach, combined with limited editions, helps to justify the higher price points of handicrafts compared to mass-produced alternatives.
Acceleration of Market Growth: The period from 2020 to 2024 saw significant growth in the handicraft market, partly due to increased consumer demand for handmade, eco-friendly, and culturally relevant products, a trend amplified by the widening market access provided by social media and e-commerce platforms. The COVID-19 pandemic further spurred the demand for handmade goods, with online platforms fueling much of this growth.
Challenges for Artisans in the Digital Sphere:
Digital Divide and Literacy: Many rural artisans face significant barriers such as limited internet access and inadequate digital literacy, which restrict their ability to effectively market their products online and expand their reach.
Logistical Constraints: Efficiently managing logistics and distribution, especially for international markets, can be complex and costly for small-scale producers.
Competition and Imitation: Artisans face intense competition from cheap, mass-produced goods, including those designed to have a "handmade look," which can put pressure on pricing and demand. The lack of legal intellectual property laws surrounding handicraft products in many developing nations also makes artisans vulnerable to mass-market replication.
Dependence on Intermediaries: Despite the potential for direct sales, over 80% of rural Indian artisans, for example, still rely on intermediaries, which can reduce their profit margins.
Quality and Certification Standards: Rural artisans may struggle to meet international quality and certification standards required for participation in global e-commerce.
Government and Organizational Support: Governments and organizations are increasingly introducing policies and initiatives to support artisans in leveraging e-commerce. These include programs to digitize craft village brands, product information, and even e-commerce contracts. Such support aims to improve market linkages and empower rural artisans economically.
Technological Advancement and Fusion: Digital technology, including AI and modern design tools, plays a pivotal role in enhancing product efficiency, quality, and creativity, allowing businesses to respond faster to market demands. The fusion of traditional craftsmanship with modern design elements creates products that appeal to evolving tastes while preserving cultural heritage, and e-commerce facilitates the global distribution of these blended styles.
What defines Vietnamese handicrafts?
Vietnamese handicrafts are broadly defined as products made by hand, utilizing traditional techniques and tools, rather than being mass-produced in a factory. They are the creations of skilled artisans and craftspeople, often embodying a sense of image and identity that signifies the rich heritage of a particular locality or nation. These items are considered cultural artifacts that tell stories of tradition, creativity, and community.
Key characteristics that define Vietnamese handicrafts include:
Cultural Heritage and Authenticity Vietnamese handicrafts are deeply infused with the country's rich cultural heritage and artistic traditions, reflecting the unique cultural characteristics of different regions and deep-rooted aboriginal culture. Products from traditional craft villages, some with centuries of history, embody Vietnamese customs and traditions.
Skilled Craftsmanship and Artistry These products are created by skilled artisans and craftspeople, whose expertise and precision are honed over generations. Many techniques and ancestral know-how are meticulously passed down, making each piece a work of art.
Uniqueness and Personalization Handicrafts are inherently unique and one-of-a-kind, appealing to consumers who seek individuality and personalized items. The human touch in their creation means no two products are exactly alike. Artisans can also effectively communicate their brand's identity and uniqueness, and tell the story of why a handicraft requires human labor, adding to its perceived value.
Blend of Tradition and Modernity Vietnamese handicraft products often represent a harmonious blend of tradition and modernity. While preserving ancient values and techniques, their designs are diverse and eye-catching, keeping up with contemporary trends. This approach creates unique products that appeal to modern tastes while preserving cultural heritage.
Sustainability and Eco-Friendliness There is a growing emphasis on sustainability and eco-friendliness in Vietnamese handicrafts, reflecting global consumer demand for greener products. They often utilize natural, recycled, and biodegradable materials. Vietnam's vast natural resources and commitment to eco-friendly manufacturing make it an ideal sourcing destination.
Common materials used in Vietnamese handicrafts include:
Bamboo and Rattan: Highly versatile and sustainable, used for furniture, baskets, kitchen utensils, and home decor.
Natural Fibers: Such as water hyacinth, seagrass, jute, coir, and sedge, often used for mats, rugs, and storage solutions.
Recycled Paper: Repurposed into notebooks, gift wrapping, and stationery.
Organic Cotton and Hemp: Used for textiles like clothing, home linens, and tote bags.
Coconut: Almost every part of the coconut can be repurposed into products like bowls, cutlery, and candles.
Reclaimed Wood: Given new life in furniture and decorative pieces.
Silk: Known for its luxurious and intricate weaving, used in clothing, scarves, and embroidered paintings.
Clay/Ceramics: For pottery products such as vases, bowls, plates, and decorative items.
Lacquer: Used in a meticulous, multi-stage process for artwork, furniture, and decorative screens.
Natural Grass: Used for reusable straws.
Discarded Fabrics and Leather: Repurposed into upcycled fashion and accessories.
Examples of prominent Vietnamese handicraft villages that embody these definitions include Bat Trang Pottery Making Village, known for its ceramics, Van Phuc Silk Village, famous for its silk products, and Chuong Conical Hat Village, specializing in the iconic nón lá. These villages not only preserve traditional crafts but also contribute to the economic development and cultural identity of Vietnam.
What are Vietnam's main export markets?
Vietnam's handicraft products are exported to a wide array of international markets, reaching 163 countries and territories globally. The primary export markets for Vietnamese handicrafts include the United States, Japan, the European Union (EU), South Korea, and Southeast Asia.
Between 2011 and 2020, Vietnam's nine biggest import markets for handicrafts spanned both developing and developed countries, including the EU, ASEAN, USA, Japan, UK, Korea, Australia, China, and Canada.
Specifically:
European Union (EU): The EU has consistently been the largest consumption market for Vietnamese handicrafts, with an export turnover of 1.98 billion USD between 2011 and 2020. Within the EU, major importers include Germany, France, and the Netherlands. For bamboo and rattan products, EU countries accounted for 31.44% of total exports in 2019, growing by 35.36% over the previous year.
United States (USA): The U.S. is a significant market, ranking as the second-largest for Vietnamese handicrafts overall, with 1.65 billion USD in export turnover from 2011 to 2020. The U.S. market saw a substantial increase, rising fivefold from 76 million USD in 2011 to over 375 million USD in 2020, partly due to increased American consumer interest in home decoration during the COVID-19 pandemic. In 2019, the U.S. market accounted for 19.5% of Vietnamese bamboo and rattan product exports.
ASEAN: This region is a major market for Vietnamese handicrafts, with exports totaling 1.29 billion USD between 2011 and 2020.
Japan: Japan is another key market, accounting for 1.28 billion USD in export turnover from 2011 to 2020. For bamboo and rattan products, Japan represented 9.3% of exports in 2019, showing a 10.8% growth.
Other notable markets include the UK, Korea, Australia, China, and Canada. Exports of rattan, bamboo, sedge, and carpet products have also reached markets such as Spain, Italy, Belgium, Denmark, Sweden, Brazil, Taiwan, and Russia. India also saw a significant increase in bamboo and rattan exports, rising 2.3 times in one year, despite starting from a small turnover.
While Vietnam has experienced significant export growth, especially in handicrafts made from natural materials like rattan and bamboo, the industry's global market share for these products remains modest, at less than 3%. Despite challenges like the COVID-19 pandemic, the export of handmade products, including ceramics, rattan, and bamboo, continued to grow. The Vietnamese handicraft industry's export value reached nearly 4 billion USD in 2023, solidifying its position globally. This growth is driven by increasing global demand for sustainable and eco-friendly products and supportive government export policies.
How much do handicrafts earn?
Handicrafts generate substantial income and export value, both globally and specifically for Vietnam. The earnings can be understood through various metrics:
Global Market Value: The creative manufacturing and handmade (CMH) market was estimated to total $1 trillion in 2023. This market is projected to reach $1.107 trillion in 2024 and is expected to hit $2.394 trillion by 2032. Another source states that the production of handicraft alternatives is expected to be worth USD 427.71 billion in 2025 and USD 1,160.83 billion in 2035, with a Compound Annual Growth Rate (CAGR) of 10.5% from 2025 to 2035. The global handicrafts market size was estimated at USD 739.95 billion in 2024 and is projected to reach USD 983.12 billion by 2030, growing at a CAGR of 4.9% from 2025 to 2030. The global demand for handicrafts is substantial, with a market value of $100 billion USD.
Vietnam's Handicraft Earnings:
The handicraft industry in Vietnam generates more than $1 billion USD annually from exports alone.
For every $1 million in handicraft exports, the profit is 5-10 times higher than many other export items, indicating a very high actual value obtained from exporting these items.
In 2023, Vietnam's handicraft exports reached approximately $3.5 billion, and the sector is striving to achieve an export turnover of $4 billion by 2025.
The total export turnover of Vietnamese handicraft products increased from $1.62 billion in 2015 to $2.23 billion in 2019, and then to $3.5 billion in 2023.
The export value of Vietnamese handicrafts reached nearly 4 billion USD in 2023, solidifying the industry's strong position globally.
The Ministry of Agriculture and Rural Development aims to raise the export turnover of handicraft products from craft villages to 4 billion USD by 2025 and 6 billion USD by 2030.
The overall handicraft industry in Vietnam, encompassing over 5,400 craft villages, generates a total revenue of approximately VND75 trillion (over $3 billion).
Specifically, the export of rattan, bamboo, sedge, and carpet products earned more than USD 733 million for Vietnam in 2023. In March 2024, this group set a two-year record, reaching USD 85 million. For the first three months of 2024, exports of rattan, bamboo, sedge, and carpet products reached USD 212.07 million.
Specific Product Categories in Vietnam:
In the period from 2011 to 2020, pottery and bamboo, rattan, sedge, and water hyacinth products were the two key export groups.
In 2019, Vietnam's export of rattan and bamboo products alone reached $474 million, making it the product group with the highest value in non-timber forest products.
Shipments of rattan, bamboo, etc., products increased by 25% year-on-year, reaching $542 million USD in the last 11 months (presumably of 2020), and exports of ceramics grew by 7%, reaching $517 million USD.
Impact on Artisans' Income: Income from handicrafts can empower women, providing them with greater voice in the family and independent income. For example, selling artisan products in India has brought 10 million women back into the labor market in the past decade, generating up to $77 billion. This income enables them to care for their health and children's education, and 75% of Indian women feel more respected when supporting their families through handicrafts.
Value Chain of Bamboo and Rattan (Vietnam)
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1. Who is GreenWeaver?
We are a Vietnam-based wholesaler and manufacturer specializing in handmade products crafted from natural materials such as bamboo, rattan, water hyacinth, seagrass, and other eco-friendly fibers. Our items include home décor, baskets, lampshades, tableware, and lifestyle products.
2. Are you a manufacturer or trading company?
We are a direct manufacturer and wholesaler with a strong network of artisan villages and suppliers across Vietnam. We work closely with local craftspeople to ensure both quality and the most competitive pricing.
3. Where are you located?
Our head office is located in 3rd Floor - Blgd 25T2, Hoang Dao Thuy Str, Trung Hoa Wrd, Cau Giay Dist, Hanoi, Vietnam, with production partners and workshops in craft villages across Vietnam.
4. What types of products do you offer?
We offer a wide range of handcrafted items: baskets, trays, lampshades, mirrors, plant pots, wall décor, placemats, and more — all made from natural, sustainable materials.
5. Can I order samples before placing a bulk order?
Yes, we offer samples so you can check the design, quality, and materials. Sample fees may apply and are usually deducted from your final bulk order. Generally, we’re flexible case by case.
6. What is your Minimum Order Quantity (MOQ)?
Our general MOQ is 300–1000 pieces per design, depending on size and complexity. For certain made-to-order or customized items, MOQ may vary. We are also very understandable, flexible and not too tight in term of MOQ with customers to faciliate their new product launching. Let’s discuss this in details.
7. Can I customize the design, size, or color?
Absolutely! We offer full customization to meet your brand’s needs. Just send us your design brief or mood board, and we’ll make it happen, customize any design for you to sastify your customers’ needs.
8. Do you offer wholesale pricing?
Yes, all our prices are wholesale. Pricing depends on materials, craftsmanship, size, and order quantity. We mainly provide bulk order. For a personalized quotation, please contact us.
9. How long does production take?
Lead time typically ranges from 25–65 days, depending on your order size and customization level. We’ll always keep you updated throughout the process. We’ll always strive to accelerate production and deliver ahead of time for our customers.
10. What are your shipping options?
We ship worldwide via sea or air freight. For urgent orders or smaller shipments, we also offer express delivery via DHL, FedEx, or UPS.
11. How much is shipping?
Shipping costs vary based on weight, volume, and destination. We’ll provide a detailed shipping quote once your order is confirmed.
12. Can I track my shipment?
Yes. Once your order is dispatched, we’ll share tracking information so you can monitor your shipment in real-time.
13. Do you work with both businesses and individuals?
We primarily serve wholesalers, retailers, interior designers, and lifestyle brands. However, we’re happy to support passionate individuals with smaller needs — just reach out!
14. What payment methods do you accept?
We accept T/T (bank transfer), L/C, and major credit cards. Other methods can be arranged depending on nature of your order, upon discussion.
15. Do you have certifications?
Yes. We prioritize sustainability and fair trade practices. Our factories are all BSCI certified.
16. What’s your return policy for wholesale orders?
We stand behind our quality. In case of any damage or discrepancy, we’ll work with you to find a solution, including replacement or refund if applicable.
17. Do you sell on platforms like Alibaba?
Yes, you can find us on Alibaba. However, for the most personalized service and latest designs, we recommend contacting us directly.
18. Can I visit your workshop or factory?
Absolutely! We welcome visits to our artisan villages and workshops. Please contact us to schedule an appointment.
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