Improving policies to develop handicraft for exports in 2020 in nam dinh

Therefore, the dissertation will research, develop and apply theoretical frameworks to assess the real state of development policies for handicrafts exported goods, and then on that basi

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INTRODUCTION

1 The necessity of the research

The development of exports of handicrafts have great impact to

promote the development of producing, creating more jobs and income

for rural workers, and contributing greatly to re-assign labour and

restructuring social economy of Nam Dinh province

There are many factors affecting to the development of exported

handicrafts goods among which state policies have an important role in

the growth and efficiency of exported handicrafts In recent years, Nam

Dinh province has developed policies for the export of handicrafts

goods These policies have contributed to assist handicrafts goods

become one of the major export goods of the province However, the

actual situation of producing and exported handicrafts in Nam Dinh

province over this time reveals some restriction, and does not help the

province promote the potential strengths in this field

One of the reasons for the restrictions derives from the policies

developing export handicrafts goods of Nam Dinh province from

propagating to realizing the policy Therefore, there is a need to analyse

and assess the impact of the policy in order to adjust and complete

additional development policies to export handicrafts goods in Nam

Dinh, which is suitable with new situation and growth trends in the

domestic and international area

Stemming from the above requirements, we have selected the

research topic: "Improving policies to develop handicraft for exports in

Nam Dinh province 2020" as our economic doctoral dissertation

2 An overview of the research situation and issues for further study

So far there have been many studies locally and in foreign country

relating to the thesis with different approaches and scopes including

economic and social development policy and development of exported

handicrafts goods However, no studies have resolved comprehensively

and systematically the theoretical and practical problems of assessment,

and improvement development policies for handicrafts goods exports in

Nam Dinh province as well as in other localities in the country

Therefore, the dissertation will research, develop and apply theoretical

frameworks to assess the real state of development policies for

handicrafts exported goods, and then on that basis, will provide some

recommendations for refining development policies to handicrafts export

goods in Nam Dinh province

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3 Research aims and objectives

3.1 Research purposes

The dissertation aims at proposing some contents to complete and innovate development policy handicrafts exported goods in Nam Dinh province

3.2 Objectives of the study The objectives of the dissertation are to

- Develop assessment methods, purify development policy for the local handicrafts exports

- Review and evaluate the impact of policies related to the development of handicrafts goods exports in Nam Dinh, pulled out the strengths, weaknesses and policy reasons

- Propose contents to purify development policy of handicrafts export goods in Nam Dinh

4 Subjects and study area

4.1 Research Subjects

The object of the research is the policies of Nam Dinh province which impact on the development of handicrafts export goods

4.2 Scope of the study

- Field: Assessing, no policies to develop handicrafts export goods within the area of Nam Dinh province

- Time: Some impacts of development policies to handicrafts exported products in Nam Dinh province in 2006-2012

5 Research Method

5.1 Research model

- Develop theoretical framework to evaluate, perfect development policies for handicrafts exported goods

- Develop criteria to evaluate development policies for handicrafts export goods

- Draw some lessons about development policies for handicrafts in some countries and localities in the country

- Assess the impacts

of development policies for exportting handicrafts goods of Nam Dinh province through the

evaluation criteria

- Draw on the strengths and weaknesses of the policy and the causes of these factors

Propose some contents to complete development policies for exported handicrafts goods in Nam Dinh

province

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5.2 Research Method

The dissertation applies dialectical materialism methodology

combined with logic, history and survey methods, survey and statistical

analysis, using experts and forecasts

6 Contribution of the Dissertation:

6.1 Theory:

- The dissertation clarifies the contents relating to policies

developing exported handicrafts, procedures to improve the policies, in

which factors affecting to these policies have been indicators

- The dissertation draws some lessons in policies to develop

handicrafts exported to some countries and localities in the country

These lessons are basis for reference, to apply and develop policies to

exported handicrafts in Nam Dinh province

6.2 In practice:

- Analyze and evaluate the impact of policies to the development

of exported handicrafts in Nam Dinh province period 2006-2012,

indicating the strengths and weaknesses of the policy, the causes of

weakness

- Propose the complete contents to perfect policies developing

handicrafts exported in Nam Dinh province and recommend measures to

implement policies

7 Dissertation Structure

Besides the introduction and conclusion, the dissertation has three

chapters are presented in 148 pages

Chapter 1 THEORETICAL BACKGROUND OF COMPLETING POLICIES

DEVELOPING EXPORTED HANDICRAFTS AND EXPERIENCE

IN POLICIES DEVELOPING EXPORTED HANDICRAFTS

1.1 Exported Handicrafts

1.1.1.The definition, features exported handicrafts

Definition: Handicrafts are often viewed as the product produced

mainly by manual methods These products have high aesthetic

associated with customs and the culture, and imbued with the culture of

area creating the goods Handicraft products are often traditional

products of a locality or a nation

Features: Exported handicraft goods have some basic

characteristics which are different from other goods in term of the nature

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of the product, the consumer, the materials, the producer and method to

produce them

1.1.2 The importance of exportting handicrafts in the culture, economic and social development of the province

1.1.2.1 For the social and economic development

Play an important role in creating jobs, income, and reasonable use of labor in rural areas; Increase revenues and export efficiency

1.1.2.2 For conservating and developping traditional culture

To preserve, maintain and develop various traditional sectors of the province ;To preserve and develop the traditional culture values and

spread culture to other countries

1.1.3 Supply Chain exported handicrafts goods

Chart 1.1: Supply Chain exported handicrafts goods

Source: [12]

1.1.4 Contents to develop exported handicrafts

1.1.4.1 Developing production scale and capacity

Including: Developing handicraft villages producing handicrafts, workshops to produce and do business, human resources, material resources, capital investment, increase production value and revenue

1.1.4.2 Developing Export

Including: Increase exports; develop new and high value-added exported handicraft products, exploit, expanse, develop new export markets

5

1.1.4.3 Improving the effectiveness of business manufacture

- Improving labor productivity

- Increase business profits of handicraft goods

- Improving the efficiency of using capital

1.1.5 Factors affecting to the development of exported handicraft in

local areas

1.1.5.1 The production condition and factors

ncluding: Natural conditions; infrastructure; capital, labor force,

materials, techniques and technologies; Traditional elements

1.1.5.2 The product consumer market

- Exporting market

- Substitute products

1.1.5.3 The competitors in exported handicraft industry

- Competition among the handicraft industry in local areas in the country

- Competition among countries exported handicrafts

1.1.5.4 The supporting industries and sectors relating to exported

handicrafts

The development of sub-industries to facilitate production and

development of exported handicrafts

* A stable socio-economic-political environment will create

favorable conditions for business

* The impacts of the management, administration and legal

environment of the State to production of exported handicrafts:

- The policies and strategies of the Government in encouraging the

development of handicraft industry

- The policy in developing export of the state

- The cooperation in direct and executive management agencies

from the central to local levels in developing exported handicrafts

* Tariff barriers and non-tariff of the importing countries

1.2 Policy to develop exported handicrafts in provinces

1.2.1 Definition of policies to develop exported handicraft goods

From the analysis of the definitions of socio-economic policies, it

is stated that policies to develop exported handicraft goods are the state

guidelines, solutions affecting to objects in the supply chain of exported

6 handicrafts in order to develop elements for developing exported handicraft goods

Policies to develop handicraft products for export can include policies of the central and local governments

1.2.2 The basic elements of policies to develop exported handicrafts goods

1.2.2.1 Pursuant of the policy 1.2.2.2 Objectives of development policies for exported handicraft goods General objective:

- To develop production, export handicrafts, create jobs and incomes for workers

- The specific objectives to fulfill general objectives such as developing capital, labor, land, technology, market

1.2.2.3 The subject and object of policies to develop exported handicraft

- The subject of the policy are the individuals, the state management organizations involving to the process of developing management policy

- The object of the policy are handicraft villages, business bases

producing raw materials and exported handicraft products

1.2.2.4 The principles to implement objectives of the policy The point of view directing the behavior of the key actors of the policy in the process of planning and implementing policies

1.2.2.5 The module of policies to develop exported handicrafts

The module of the policy can be classified according to: Scope of impact, the object of the policy or specific objectives of the policy

1.2.2.6 Solutions and tools of the policy

- There are measures affecting directly to the target, but there are solutions indirectly affect to the target

- Tools of the policy include: economic tools, administrative tools - organization, technical and professional tools

1.2.3 The main components of the policies to develop exported handicrafts

There are many ways of classifying policies, to fit the research

objectives of the dissertation, policies for development of exported handicrafts can classified into 9 policy components including:

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1.2.3.1 planning to develop exported handicrafts

1.2.3.2 Product Policy

1.2.3.3 The policy for materials development

1.2.3.4 Land Policy

1.2.3.5 Investment policy and credit

1.2.3.6 The policy for human resources development

1.2.3.8 The policy for technological development

1.2.3.8 Environmental Protection Policies

1.2.3.9 Policies for trade promotion, and market development

1.2.4 The process of policy to develop exported handicrafts

Notes:

Chart 1.3: The process of policy to develop exported handicrafts

Source:[14 pp.32]

1.3 Improving policies to develop exported handicrafts

1.3.1 The necessity to improve the policy

- Limitation about information of policy makers

- The errors in policy implementation

- Environmental changes therefore, policies are no longer appropriate

1.3.2 The steps to improve policies

1.3.2.1 Identifying factors needed evaluating policyies

Showing the circulation in the policy cycle Showing a direct relationship

Maintaining Policy

Identifying

Policy Issues

Making Policy Implementing

Policy

Analyzing Policy

Assessing Policy

Identifying

Conflicts

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- The impact of the policy could change or could not chang the development of handicrafts sector for export

- The appropriate of policy objectives

- The degree of responsiveness of the budget for the policy implementation

- Measures and tools for policy implementation

1.3.2.2 Assessing policy to develop handicrafts goods

* Assessing the impact of the policy system to the development of the industry through the analysis of "rate of change"

# Selecting the object and the time scale to evaluate

Survey respondents are those who benefit the policy and the evaluation period "rate of change" is from the time when the policy was issued to the time of the study

# Define the evaluation criteria "degree of change"

(1) Assess the scale changes, production capacity

- The variation of the handicraft villages, and workshops producing handicrafts

- The fluctuation of the average scale in production industry

- A change in the quantity and quality of labor

- Evaluation of "change rate" in capital source, capital structure

- Assessment of changes in raw materials

- Evaluation of "change rate" in production value, and revenue

(2) Evaluation of the changes in exported handicrafts results

- Evaluation of the fluctuation in export turn-over

- Fluctuations in basic market structure, the fluctuation in number

of market, fluctuations in commodity sales in each market

(3) Assessment of change rate in production and business efficiency

- Assessing the fluctuation of labor productivity

- Assessing the variation in profit

* Assessing the implementation results of policy objectives Using a logical policy framework to evaluate relationship between the outcome of the planning and organizing process, and control of the policy implementation

- Compare actual results with set targets

- Analyze the problem such as: If the policy target is on the right orientation; if the target structure is appropriate? Why?

* Assessment of the policy implementation

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- The scale in which the policy has been implemented

- The scale in which the policy has been introduced

* Using policy matrix to assess the impact of policy

components to the development of handicrafts for export

No Policy

Name

The weighting

of each policy

Impact Scale of each Policy

Level of General Impact

1

2

…

1.3.2.3 Identifying the strengths and weaknesses of the policy and the

reason

* The policy strengths:

* The policy weaknesses:

* Reasons of the weakness:

- The causes deriving from the policy quality, organization of

policymakers

- The causes deriving from organizing and implementing the policy

1.4 Experience in policy to develop handicrafts for export

When conducting research in policies to develop handicraft villages

and rural handicraft industries in which there are exported handicrafts

from Japan, Thailand, Hanoi and Thai Binh, the author has drawn a

number of lessons which can be applied to the study of improving

policies to develop handicrafts for export in Nam Dinh province

- Developing exported handicrafts sectors should be connected to

the rural industrialization process

- Product policies - "Every handicraft village has one handicraft

product" campaign

- Policies to support workforce training

- Policies to support investment, credit, tax

- Policies to promote trade and communications

- Agree on the direction, management and implementing policies

to develop handicraft industry

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Chapter 2 ASSESSMENT OF POLICIES TO DEVELOP HANDICRAFTS FOR EXPORT IN NAM DINH PROVINCE IN THE PERIOD 2006-2012

2.1 Factors affecting the development of handicrafts for exports in Nam Dinh province

2.1.1 The favorable factors

2.1.1.1 The internal factors of Nam Dinh province creating the favorable

conditions for the development of handicrafts for export

- The systems of roads, power, information have been invested quite synchronized to create favorable conditions for economic and social development of the province

- Nam Dinh province has a number of plants for materials such as jute, rush, mulberry, wood, bamboo and rattan for handicrafts production

- Nam Dinh province has the tradition in manufacturing and exported handicrafts with many famous traditional handicraft villages and a number of artists, skillful craftsmen, and skillful team of craftsmen

2.1.1.2 International and domestic status has some advantages for the development of handicrafts for export

- Exported products from Vietnam have been treated equally as products from other WTO members

- Government has great efforts in institutionalizing legal, reforming administration, creating favorable conditions for production and business

- The guidelines and policies of the Party and State are cared about the development of rural handicraft industries, cottage industries

2.1.2 Drawbacks for the development of handicrafts for export in Nam Dinh province

2.1.2.1 The difficulties deriving from the internal factors of Nam Dinh province

- PCI index of Nam Dinh is still low, because budget funding is low; therefore, policy supporting the handicrafts development is limited

- The handicrafts trading and producing workshops are facing to difficulty in finance, production premises; technology in processing raw materials and manufacturing are low; workforce quality of handicraft sector is generally low; handicraft producing is still small and scattered

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2.1.2.2 Difficulties deriving from handicraft importing countries

- The major importing countries are currently deployed

anti-subsidy measures, anti-dumping regulations; therefore management,

quality control of imported products are very strict

- Some markets tend to import handicraft products which are

mass produced by machines

2.2 Policy enforcement to develop handicrafts for export in Nam

Dinh province in the period 2006-2012

2.2.1 Land Policy

In order to have land for developing industry and handicraft, the

province has had a plan until 2020 to have 12 industrial zones with a

total area of 2,040 ha and 31 industrial complexes with a total area of

615.3 ha

Along with planning, Nam Dinh province has published policies

to support the development of industrial clusters such as policy to

support infrastructure development in My Trung Industrial Zone in

2005; A number of mechanisms and policies to encourage investment in

construction and infrastructure in business zones and investing industrial

production and business in industrial zones in Nam Dinh province in

2008; Mechanisms to encourage investment in the development of

industrial clusters and cities in Nam Dinh province in 2006; regulatory

policies to encourage and support investments in the industry of the rural

areas in the southern of the province in 2012 with the support in

constructing roads, electricity, water, communication, compensation and

ground clearance, land rent

In the early 2000s, the province did not have any industrial zones

and complexes; however, by 2012, there had been four industrial zones

with a total area of 714 ha, a total investment of 2,615 billion VND

Basically, infrastructure of these zones has been built and these

zones attract investment in production projects Twenty industrial

clusters have been deployed infrastructure with a total area of 338.9 ha;

total investment was 198.67 billion VND

2.2.2 Investment policy, credit

Policies supporting investment and credit were issued in a

mechanism to encourage investment in the development of industrial

clusters in districts and cities in Nam Dinh province A number of

mechanisms and policies to encourage investment in construction,

infrastructure of business and industrial zones, and investment of

12 manufacturing industrial zones in Nam Dinh province and regulations and policies to encourage and support investment in industrial locations

in rural areas of Nam Dinh province

With the investment policy, credit, up to 2012, 98 enterprises invested into industrial zones; there were 401 investment projects in industrial clusters, of which 108 projects relating to producing handicrafts; capital for developing handicrafts increased from 137.6 billion VND in 2005 to 872.9 billion VND in 2012, of which over 50% were from credit loans

2.2.3 Policy in Training Human Resources

Policy in training human resources for handicraft industry was issued in "Management Regulation and using funds from economic services for industrial promotion activities" in 2005, "Mechanism to encourage development of industrial cluster in districts and the cities in Nam Dinh province; the Project "vocational training for rural workers in Nam Dinh province in 2020” and "Regulations in management and using funds for economic services for industrial promotion activities in Nam Dinh” in 2012 With the policy supporting to professional training for employees, from 2006 to 2012, 10,045 workers working in handicrafts industry trained in short courses organized from the recommended budget and funding for training rural labor villages

2.2.4 Technological Development Policy

The policy of the province in developing technological for handicrafts sector is specified in the "Regulations in managing and using business funding for economic industrial promotion activities" in 2005 and "Regulations in managing and using business funding for economic industrial promotion activities in Nam Dinh" in 2012 By 2006-2012, the provincial budget had supported 7 projects in delivering, applying modern machinery, advanced technology in the production phases, and 9 technical demonstration models in producing handicrafts with the total cost 2,325 billion VND

2.2.5 Environmental Protection Policy

Nam Dinh provincial People's Committee issued Action Plan 54 / PPC-VP3 implement Resolution No 41 / NQ-TW dated 15.11.2004 of the Ministry of Politics in environmental protection during the period of industrialization, modernization of the country and since 2007, the

13 province has spent 1% of the total annual budget for environmental

protection activities

Total expenditures on environmental protection activities in 2006

- 2012 was 542.371 billion VND In particular, investment in waste

water treatment projects, waste from industrial zones and industrial

complexes, the handicraft village was 44,703 billion VND, constructing

landfill waste disposal was 144 430 billion VND

2.2.6 Business Promotion and Market Development Policy

Business promotion policies are presented in the "Regulations in

managing and using business funding for economic industrial promotion

activities in Nam Dinh" in 2005, 2012, and "Regulations in managing

and using business funding for business promotion activities in Nam

Dinh" in 2010 to assist to organize exhibitions in the province, and to

assist businesses to participate to trade fairs locally and abroad

In 7 years (2006-2012), the provincial budget supported more than 90

handicrafts enterprises to participate into trade fairs in the country and

abroad and held 30 trade fairs in the province with a total over 700

participating businesses

Thus, compared to 9 components of policies mentioned in section

1.2.3 to develop handicrafts for export, the Nam Dinh still lacks three

policy components: planning to develop handicrafts for export; Product

policy; Policy to develop material resource These policies need adding

to improve development policies for exported handicrafts in Nam Dinh

province

2.3 Evaluating policies to develop handicrafts for export in the

period 2006-2012 in Nam Dinh Province

2.3.1 Evaluating the impact of these policies to develop handicrafts for

export in Nam Dinh period 2006-2012

2.3.1.1 The impact of policies to the development of scale, production

capacity of exported handicrafts

a, Developing handicraft villages, production of handicrafts workshops

In 2005, Nam Dinh province had 37 handicraft villages; in 2012

this number handicraft villages was 43

In 2005, the province had 6378 workshops producing handicraft

products, including 45 enterprises; In 2012 this number rose to 8183

workshops, including 81 companies After 7 years, this number

increased by 1,805 workshops

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b, The changes in scale of workshops producing handicrafts

- The average scale of workshops by the number of employees was rather stable over the period 2006-2012, on average there were 3.4 people/ workshop

- The average scale of workshops by capital was from 21.6 million VND/workshop in 2005 to 106.7 million VND in 2012, which increase 85.1 million VND/workshop

- The average scale of workshops by the value of producing workshop increased from 32.5 million VND in 2005 to 74.7 million VND in 2012

- The average scale of workshops by revenue also increased from 81.3 million VND in 2005 to 191.7 million VND in 2012

c, Labor changes in the handicraft sector

- Total number of employees in the sector: in 2005, there were 21

498 employees, 27 435 employees in 2012, after 7 years this number increased by 5,937 employees

- The percentage of employees trained (from short-term to university) increased by 13.6% after 7 years (from 52.7% to 66.3%); the proportion of untrained workers fell from 47 , 3% in 2005 down to 33.7% in 2012

d, "The change scale" in capital, and capital structure

- The total capital of the whole sector increased from 137.6 billion VND in 2005 to 872.9 billion VND in 2012; after 7 years, this number increased by 735.3 billion VND

- The proportion of the total equity capital of the enterprises was 74.6% in 2005, by 2012 there was only 53.3% The proportion of loans

in 2005 was 25.4%, and 46.7% in 2012, down to 21.3% after 7 years

e, The rate of change of source materials

Nam Dinh does not have policies to support for the development of the production materials for handicrafts; therefore, since 2006-2012 from materials from plants reduce both in the area and exploited outputs

f, The change in production value and sales:

- The value of handicrafts production (according to fixed price in 1994) increased by an average of 16.7% / year: In 2005 it reached 207.4 billion VND, in 2012 it reached 611.5 billion VND, which increased 404.1 billion VND compared with this number in 2005

- Revenue of the whole handicrafts industry (according to current prices) increased by an average of 17.3% / year: In 2005 it only reached

15 518.6 billion VND, in 2012 it reached 1568.9 billion VND, which

increased 1050.3 billion VND compared with this number in 2005

2.3.1.2 Impacts of the policy to export of handicrafts

a, The changes in turnover, export structure

- Exports of handicraft products in 2006-2012 period on the

average increased 14.53% / year; in 2005 reached 9,654 million USD, in

2012 reached 24,952 million USD, which increased 15.928 million USD

compared to this number in 2005

- The structure of exported products:

Export of rattan is relatively stable and it accounts for more

than 50% of total turn-over of exported handicrafts Items such as

jute, seagrass, banana have slight growth Products of engineering

handicrafts and fine art furniture have a gradual growth, and they

gradually make up a high proportion in the total of export

turn-over of handicrafts

b, Evaluating the "change rate" in the export market:

- Export market of handicrafts in Nam Dinh province increased

from 31 markets in 2005 up to 42 markets in 2012

- The changes of the basic market structure:

EU market: The ratio of export turn-over to the EU market

gradually decreased from 63.76% in 2005 down to 48.32% in 2012;

Northeast Asia Markets: The proportion of export turnover slightly

increased from 15.53% to 17.01% in 2012; Eastern European and

Russian markets the export turnover decreased from 12.85% in 2005 to

11.63% in 2012; Market in the USA: The proportion increased from

4.23% in 2005 to 12.97% in 2012; Other markets including Singapore

and newly exploited markets since 2005: The propotion gradually

increased from 5.6% in 2005 to 9.98% in 2012

2.3.1.3 Evaluation of the efficiency of development in production and

business

- Fluctuations in labor productivity: The average labor

productivity under production value / year increased from 9.6 million

VND in 2005 to 22.3 million VND in 2012; and under sales/ year

increased from 24.1 million VND in 2005 to 57.1 million VND in 2012

- Gross margin of the companies in this industry in 2005 was 35.6

billion VND, and in 2012 was 79.4 billion VND, which increased 43.8

billion VND compared to this number in 2005

16 The average profit/per employee was 23.3 million VND in 2012, which 12.4 million VND increased compared to this number in 2005 The average profit margin/per VND capital in 2005 was 0.228%, 0.012% in

2009, rose to 0.126% in 2012 but it was lower than that in 2005

2.3.2 Evaluating results in implementing goals developing handicrafts for export in Nam Dinh province in the period 2006-2012

Table 2.22: Evaluating results in implementing goals developing handicrafts for export in Nam Dinh province in the period 2006-2012

Target Result Assessment Target Result Assessment

The average growth rate of the production value/

year (%)

The average growth rate of the export turnover/

year (%)

Export turnover in

2010, 2012 (1.000 USD)

20.300 17.458 Fail 23.898 24.952 Pass

Source: Summary from research of many researchers

2.3.3 Evaluating the implemention of the policy for developing exported handicrafts in Nam Dinh province

Through the summarized survey results (Table 2:25 and Table 2:26), it is showed that the percentage of objects unknowing the policy is quite high and the rate of those benefitting the policy has been low Besides, the dissemination and policy guidelines for the business and production workshops are still limited

2.3.4 Assessing the impact of each policy component of the policy to develop handicraft for export

According to results synthesized from the survey (Table 2.28) the dissertation identifies the number and impact level of each component of policy to the development of exported handicrafts, which is the basis for the completion and improvement of the policy implementation Among the policies, policy to promote trade and develop markets plays a very important role

17

2.3.5 The strengths and weaknesses of each policy to develop

handicrafts for export in Nam Dinh province

2.3.4.1 Strengths

Firstly, the policies have a positive impact on the development of

factors coming from production to exported handicrafts market

Secondly, the policies have had a positive impact on the results of

operating and producing handicrafts

Thirdly, the policies were constructed, issued by Nam Dinh

province on the basis of specifying guidelines and policies of the central

and applied in accordance with the specific situation of the province

2.3.4.2 Weaknesses

Firstly, the policies are insufficient and not synchronized

Secondly, the support level from the budget of some departments

is still low, which causes difficulty in implementing

Thirdly, some policies have no resources to implement

Fourthly, some inconsistent policies have not been amended, and

some overlapping policies cause difficulty in implementing

2.3.6 The reasons of the weakness of policies to develop handicrafts

for export in Nam Dinh Province

2.3.6.1 Reasons deriving from organizing the policies

Firstly: All levels and branches have not really cared for leading,

directing the planning, developing policies in producing handicrafts for

export

Secondly, there is an inconsistence in organizing, researching,

policy making and monitoring policy, implementing; therefore, policies

to develop handicrafts for export are not consistent, and overlapping

Thirdly, the staff issuing and advising policies have limited capacity

2.3.6.2 The reasons deriving from organizing implementing policies

Firstly, the assigning roles to implement the policies to develop

workshops in rural areas is still overlapping

Secondly, at district, commune, there are not many skillful and

sufficient staff to guide and implement the policies to develop

workshops in rural areas

Thirdly, a number of policies to encourage the development of

handicrafts have been issued but have been implemented slowly

Fourthly, there are barriers between the policies realizing and

implementation

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Chapter 3 ORIENTATION AND CONTENTS TO IMPROVE POLICIES TO DEVELOP HANDICRAFTS FOR EXPORT

IN NAM DINH PROVINCE BY 2020 3.1 Perspective, orientation, goals to develop handicrafts for export

by 2020 in Nam Dinh

3.1.1 Development viewpoints Firstly, all the industry at all levels need to be aware of the role of

producing, and exporting handicrafts

Secondly, developing handicrafts production must link to the process of industrialization - modernization in rural areas to efficiently use resources such as land, labor, capital, raw materials

Thirdly, developing handicrafts production should associate with developing tourism in order to exploit the potential values of developing tourism with traditional villages and developing export (export on the spot)

Fourthly, producing handicrafts to export must bring socio-economic efficiency

Fifthly, developing handicraft production must go along with constructing new countryside, maintaining the traditional and cultural values of the country

Sixthly, developing handicraft production must link with protecting the ecological environment, ensuring sustainable development

Seventhly, the Government supports by passing policies to develop the internal resources of the handicraft villages, and business workshops

3.1.2 Development directions

Firstly, in the manufacturing and developing production, it is necessary to combine between specialization and diversification in producing

Secondly, workshops should be active in generating product sales while producing, focusing in design, innovating product design

Thirdly, developing export market on a direction to diversify markets and forming key markets

Fourthly, jointing ventures with foreign companies to develop exports; actively participate in the global distribution network

19 Fifthly, developing handicrafts for export should primarily base on the

development of handicraft villages; at the same time should concentrate

to develop production in industrial zones, industrial clusters villages

3.1.3 Objectives to export handicrafts by 2020

- To focus on developing strategic exported handicrafts of the

province They are as following:

Group 1: Exported handicraft commodities using much

labor-intensive, creating more jobs for citizens, improving living standards for

people in rural areas: bamboo and rattan products, lacquer, sedge

products, embroidery

Group 2: Exported handicraft commodities applying technology,

machinery and equipment in a number of stages, using skilled labor to

create high value products to increase exports turnover: fine art

furniture, art metal ware

- Target plan to export handicrafts:

Table 3.1: Plan to export handicrafts of Nam Định province

in the period 2013-2020

Unit: thousand USD

2012 2013 2015 2020 Total export turnover of

handicrafts 24.952 28.532 37.135 76.890

1 Rattan, bamboo 11.627 13.214 16.940 35.114

2 Mechanical art 4.405 5.099 6.893 14.260

4 jute, seagrass, banana 2.130 2.373 2.975 4.987

5 Woolen carpets,

Source: [ 56], [58]

3.2 The viewpoints and orientations to improve policies to develop

handicrafts for export in Nam Dinh Province

3.2.1 The viewpoints to improve policies to develop handicrafts for

export in Nam Dinh Province

Firstly, applying properly and flexibly policies and laws of the

country to the specific conditions of the province

Secondly, improving the policies to meet the requirements of

developing the economy-oriented socialist market, with the deeper

integration and international

20 Thirdly, improving the policies on the principle of respecting the autonomy and not discriminating production and business workshops Fourthly, improving the policies on the basis of combining long-term vision with short-long-term vision Besides, the policies must have a long-term stability

Fifthly, improving the policies must ensure the harmonization the benefits of the country and organizations with benefits of individuals

benefiting these social policies

3.2.2 The orientations to improve policies to develop handicrafts for export in Nam Dinh Province

Firstly, improving the policies in the orientation to uniform, synchronous, and completing with an aim to promote sustainable growth

Secondly, improving the policies should be appropriate with policy planning, plans and objectives to develop socio-economic of the province

Thirdly, improving the policies must achieve the goal in promoting the potential and strengths of the province

Fourthly, the policies must be feasible and easy to be implemented

3.3 Contents to improve policies to develop handicrafts for export

in Nam Dinh Province

3.3.1 Construction Planning to develop handicrafts for export in Nam Dinh province including

3.3.1.1 Planning to conservative, develop traditional handicraft villages 3.3.1.2 Planning to develop new handicraft villages

3.3.1.3 Planning to develop tourism in handicraft villages

3.3.1.4 Planning industrial clusters, industrial locations

3.3.2 Constructing Product Policies

3.3.2.1 Developing and implementing the campaign "One Village One Product" (OVOP)

3.3.2.2 Developing and promulgating regulations to vote typical rural industrial products

3.3.2.3 Increasing support to construct, register and develop brands 3.3.2.4 Encouraging professional development, and developing handicraft villages

3.3.3 Develop policies to develop material resources

- The policies to develop the material areas: Seagrass, mulberry, jute

- The policies to develop processing places, processing raw materials