A brief description of the situation and some solutions to develop the economic of traditional crafts villages in Viet Nam in the current context

356 A BRIEF DESCRIPTION OF THE SITUATION AND SOME SOLUTIONS TO DEVELOP THE ECONOMIC OF TRADITIONAL CRAFTS VILLAGES IN VIETNAM IN THE CURRENT CONTEXT Dr. Nguyen Thi Bich Thuy Dr. Le Thi Hoa National Economics University. Abstract: By means of appropriate research (synthesis - analysis, document study, field survey,...), the article affirms. Traditional craft villages are basic units, play an important role in economic and social development and improve the material and spiritual life of the people. In the process of operation, traditional craft villages are still limited. For traditional craft villages, there are a number of supporting solutions: (i) Support traditional craft villages to stabilize and expand markets; (ii) improve infrastructure; (iii) perfecting the system of laws and policies of the State; (iv) improve the management of traditional trade villages; (v) Facilitate professional associations to be established and operate: (vi) Technological innovation, product diversification and product diversification. From there, the article concludes: As the village economy develops, it will facilitate the shift of agricultural economy to cottage industries. Key words: Economic development, trade villages, traditional trade villages. 1. Introduction About the current status of traditional crafts villages in Vietnam. Vietnam is an agricultural country. So far about 70% of the population are farmers, living in rural areas, doing farming. In that, traditional villages and traditional crafts villages hold a great importance position in the economic, social and cultural life of the Vietnamese people of today. Traditional crafts villages are basic units, play a very important role in economic and social development and improve the material and spiritual life of the people. It would be difficult to understand Vietnam's overall economic picture with its social and economic transformations if we did not study the history of its formation and development, economic characteristics and social relations of the village govern the life of the traditional crafts village of Vietnam. In the process of revolutionary leadership, the Communist Party of Vietnam has always affirmed the position and strategic role of the traditional crafts village. The Party and the State have issued many guidelines and policies to promote the development of trade villages in order to change the appearance of rural areas in Vietnam. Proper research and understanding of the role and economic position of the trade village in Vietnam's economic and social life is not only about understanding traditional history, but also to give us full awareness of the historical, economic, social and cultural characteristics of Vietnamese villages. 357 2. Method of study Studying solutions to develop traditional handicraft villages will help to make socio-economic policies appropriate to localities and integrate with the whole country on the way of industrialization and modernization. ―Economics and society are broad and interrelated aspects. Economic change is changing society as well, and in turn, society impact to the economy, promotes or inhibits economic development. Studying the change of socio-economic structure is the basis for understanding all the changes in other fields" (1) The collection of historical data on the economic and social situation of traditional craft villages and related documentations for research purposes.. Survey and fielding some nearby traditional villages that are influential and related to economic and social development of traditional craft villages. Study the main issues in the two fields of economic and social of the villages will provide the explanation for the economic and social transformation of traditional trade villages. Research Methods In order to solve the problems, the author uses the historical method, logical method and combination with different methods. Historical method, logical method, comparative method, survey and fieldwork method, interview method: Retrospective interview and in-depth contemporary interviews. The subjects that the author interviewed were diversified in terms of economic conditions, social status, ages, genders, etc. Especially we interviewed well-known artisans and village elders to understand clearly about history of custom, experience in production and living. - On that basis, to clarify the outstanding features of the social, economic transformation of traditional craft villages in order to clarify the role of small handicraft industry of the traditional villages, introducing traditional and economic, political, cultural and social characteristics, thereby clarify more about Vietnamese small handicraft industry in the past and at the present. The People's Committee of Hanoi has approved the Decision No. 31/2014/QD- UBND dated August 04th 2014 promulgating the policy on encouraging the development of craft villages in Hanoi, stipulates the subjects to be supported, vocational training, individual trainees who have permanent residence registration in Hanoi, males from 16 to 60 years old, women from 16 to 55 years old who are trained in the industries: ceramics, silver beans, bronze casting, sculpture, lacquerware, mosaic. Thus, the remaining groups of industries such as embroidery, bamboo and rattan weaving will not benefit from the policies of the management agency, it is easy to lead a situation that does not encourage good craftsmanship and vocational training. Therefore, the city of Hanoi should have a policy adjustment to the traditional handicraft industry to be supported to develop synchronously 358 3 Research results 3.1 Some features about the actual situation of traditional craft villages nowaday In Vietnam, traditional crafts villages play an important role in the development of the local economy and the general economy of the country. If a decade ago, in 2008, handicrafts exported in 2008 reached 850 million USD (2). Of which, the rattan and bamboo products reached 225.66 million USD. Ceramics reached 343, 122 million USD; Wood products reached 2,804, 254 million USD. Vietnam has become one of the three largest exporters of rattan and bamboo in the world, such as China, Indonesia and Vietnam. (3) Currently, according to the Vietnam Association of Crafts Villages, there are 5,411 craft villages and trade villages, of which 1,864 craft villages, traditional craft villages and 115 traditional craft have been recognized. This is advantageous in the export of handicraft products. However, according to some experts, many products from Vietnamese craft villages are either out of competition or can not keep up with the trade mark leading to the loss their position. By the year 2017, Vietnamese handicrafts are declining strongly in major markets such as Europe, Japan, USA... in emerging countries such as Philippines, Thailand, Indonesia the exporting of handicrafts are increasing by nearly 15%. By the end of 2017, as reflected by the exporters of handicrafts, orders have not increased dramatically. According to preliminary statistics from the General Department of Vietnam Customs, by the end of November 2017, the export turnover of rattan, bamboo, sedge and carpet products reached 25.3 million USD, raising the turnover of November 2017 to 242.9 million USD, up to 2.64% compared with 11 months of 2016. In the export market of bamboo and rattan products in Vietnam, the US is the main market, accounting for 20.1% of total turnover, but compared with the same period in 2016, the turnover decreased 13.44%. The second largest market was Japan, up to 23.05% reached 47.9 million USD, the third was Germany with a decrease of 9.59%, equal to 25.6 million USD. Generally for the first 11 months of 2017 export turnover to the markets have growth rate of 61.9% and the market with turnover decreased accounting for 38%. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has just been signed, the trade promotion opportunities for Vietnamese textiles and garments are huge. This is one of the main items of the traditional craft villages in Vietnam, when the Agreement takes effect, this will enable traditional handicrafts to penetrate into the markets of other countries, create a large source of income for the country and at the same time make make use of cheap labor in Vietnam market. According to the Vietnam Textile and Garment Association, Vietnam's textile and garment export turnover is ranked second in the country. In 2011, the textile and garment export turnover reached nearly USD 2 billion, reached USD 17.1 billion in 2012, making Vietnam the fifth textile and garment exporter in the world. By 2017, Vietnam's textile and garment export turnover reached USD 31 billion, increased 10.23% compared to 2016. In which, textile and garment export turnover reached USD 25.91 billion, increased 8.7%; Export of yarn reached USD 3.51 billion, increased 19.9%; Nonwovens exports reached USD 472 million, 359 increased 13.73%; Exports of textiles and garments were estimated at USD 1.1 billion, increased 17.3%. Total import value of garment and textile materials is estimated at USD 18.91 billion, increased 11.43% compared to 2016. (4). In which the processing of traditional craft villages in the field of garment such as embroidery, paint spraying... has important contribute for the finished export products. It can be seen that the traditional handicraft industry in Vietnam faces many opportunities and challenges if not changing comprehensively thinking, it will be lagged behind the trend as well as meet the requirements of the market. The development of craft villages is especially important for economic development and transformation in the rural areas along the direction of industrialization and modernization at the same time maintaining and promoting the cultural identity of the nation. The People's Committee of Hanoi has directed the departments, branches and authorities at all levels to study, develop and promulgated a number of policies to prioritize the development of craft villages. In 2006 the city had 1.180 craft villages, in 2009 the city had 1.270 craft villages (an increase of 90 villages compared to 2006). In 2012 there were 1.350 craft villages (increasing 80 craft villages) (5), with the goal of 2030 with 1500 craft villages (accounting for 65.33% of the total number of villages outside of Hanoi), in which there are more than 3.000 craft villages (6). These figures show the important role of craft villages in the development of Hanoi and the country. 3.2. Some solutions to develop traditional craft villages. Support traditional craft villages to stabilize and expand the market. Market is a very important factor in the development of traditional craft villages. In practice, in recent years shows that craft villages, specifically, the thriving establishments is the place where they can solve the output for their products. According to surveys conducted in some traditional craft villages, more than 80% of surveyed enterprises said that it is difficult to market consuming products. The unstable market has created conditions for traders to press down prices, it makes the lower income for laborers. Support traditional craft villages to stablize and expand the market is reflected on the following matters: - Introduce products of traditional craft villages to the market through various forms and ways through mass media such as radio, social networks, newspapers, internet, etc. There is also need policies to encourage all organizations and individuals pay attention to the marketing work such as signing export contracts, offering... So we can introduce products of the traditional craft villages, then it has a stand in the domestic and international market. Help traditional craft villages improve their products to improve the competitiveness of products. - Providing market information for traditional craft villages, helping production establishments in craft villages to research and process market information related to 360 production and business such as product designs which are in demand which types do not have demand, which products are likely to be accepted by customers at which price that the product is acceptable. - Creating conditions for craft villages to connect their production with other enterprises in urban centers and industrial centers, to encourage these enterprises to use products of traditional craft villages for semi-finished products or use traditional craft villages to do their work. This is an important direction combining different technological scales and taking advantage of the strength of economic sectors, at the same time, this is the direction to help traditional craft villages to develop sustainably. The traditional craft villages outsourcing for enterprises in the industry center will create favorable conditions for craft villages to take advantage of the jobs and skills of artisans there. At the same time, through outsourcing to large enterprises, the production technology and skills of traditional craft villages are significantly improved. - Traditional craft villages also need to have connects with other localities, especially raw material areas, so that they can take initiative in supplying raw materials for production. - Expanding the transaction network, in which rural markets promote the circulation of goods, promote the production of goods and stimulate the development of demand. Marketplaces provide the producers with the necessary materials to help them develop their production. “Marketplace is a market as an institution that brings small farmers, craftsmen, small traders and professional traders from villages or urban areas together. It is an institution that organizes and coordinates social interactions, such as commercial business behaviors, of many people in different places in a common activity. It allows buyers and sellers to exchange information and give them the opportunity to complete the purpose of buying and selling goods and services.” (7). Thus, the marketplace is one of the modes of business organization, including social groups involved in trading business and occur in certain areas. Village market is one of the typical features of economic, social and cultural villages in Vietnam. In addition to the arrange of the market system, the state should coordinate with businesses and organizations to help bring goods into major trade centers such as supermarkets, shops system, commcercia exhibition centers... About the capital market. Everyone knows that without capital, it is impossible to produce goods. Survey of some production households in the area, almost 100% of households are facing difficulties in the lack of capital for production. Therefore, in order to help traditional craft production establishments have sufficient capital for production and business and renovation of production equipment and technologies, we need to perform the following: + About the credit system: It is necessary to simplify procedures and have accessible support funds. 361 + Types of services and business: It is necessary to diversify types of services and business in the capital market. + About loan procedures: In order to provide adequate and timely capital for business households in craft villages, procedures for borrowers in banks or credit should be simplified to make more convenient loans. Improve skills and management for laborers in traditional craft villages. - Raise the general level of culture for residents in traditional craft villages. Extending the training scales and diversifying forms of vocational training. - Promulating policies of treatment for artisans in craft villages. This is the countries around us as India, Japan, China did and before in Vietnam we did. In addition, encourage the to train and introduce the technic secrets to the next generation. For the establishment itself, should be active in the training of their own labors, through one of the following forms: - There are private vocational training centers for those in need. - The artisans, skilled workers train in the style of learning by doing. This mode is popular in traditional craft villages because it has the advantage of training skilled workers, making unique products but the disadvantage is poor theory. - Through books, newspapers to be able to self-study technique or business. The form of training is quite flexible, mainly that we have incentive policies for organizations or individuals have the ability to train. Complete infrastructure Complete the system of laws and policies of the State Policies for traditional craft village development must be consistent and must be directed towards the intended goal. The synchronism here is not only reflected in the number of policies that ensure the coverage of the investment process, business production but also the coordination between planning and policy, in the encouragement with restrictions... aimed at encouraging traditional craft villages to develop. Among the policies, should be paid attention to the following policies: - The policy on the structure of the commodity line of business: To pay attention to the develop of industries and products with high socio-economic efficiency such as export goods, agro-forestry products and traditional products bearing national cultural identities. For traditional products bearing ethnic cultural identity that demand in the market is decreasing, the State should have support. - Policy on capital guarantee: The State should have a policy to provide loans to the households in traditional craft villages with incentive interest rates and appropriate payment termswith traditional trades. - Protection and insurance policy by industry, goods 362 - Tax policies: There should be some incentives for taxation on products that need to be maintained, for traditional craft villages, and also for products utilizing domestic materials that are likely to be exported. - Policy on infrastructure construction + The construction of inter-communal roads, inter-village roads and electricity lines in communes should be carried out in the manner of the State and the people working together. - Land policy: There is a preferential land use tax for the operation of the production households in the traditional craft villages. - Labor policy: Labor policy occupies a very important position as labor plays a decisive role in the production of traditional craft villages; on the other hand, labor issues are not yet available . The survey found that nearly 100% of the workers interviewed were unaware of insurance, labor law and what was relevant to workers' rights. Many artisans come to the South to set up a business because of low labor costs. Labor policy should go in the direction: + Increase the quantity and quality of labor for traditional craft villages and this is a trend suitable with the development of social labor division. + There should be regulations on the implementation of labor contracts and labor agreements between owners and workers. + Formulating social insurance and labor protection regimes. + Formulating the reward system, the title of "Golden Hand". - Technology transfer policies, policies to encourage the formation of professional associations. Also through association, the facilities have the ability to help each other through technical services, management and supply of materials, create conditions and opportunities to cooperate with each other in production and consumption. By the exchange, mutual help cooperation such that possible to maximize the potential of units and economic sectors in traditional craft villages to create more and better products with higher quality, better meet the demand of the market not only in the country but also reach the foreign market. Complete the management structure for traditional craft villages Creat conditons to the establishment and operation of professional associations. Technological innovation, technique and product diversification of the craft village. Technological innovation, modernization of production techniques is one of the important solutions that affect the development of traditional craft villages. Thus, the new craft village has the conditions to increase labor productivity, the product is both modern and sophisticated, increasing the competitiveness of the product.. This is the interaction of industrialization and modernization to produce in traditional craft villages. Currently, due to environmental protection requirements, coal fuels will need to be replaced gradually. Alternative energy is electricity or gas. 363 Environmental issues of craft villages also need special attention when the production process puts waste into fields, ponds and rivers that pollute water sources, pollute the air, damage agricultural land and lead to a negative impact on the health of the people living here. The treatment of wastewater from the production process to ensure the environment to avoid pollution and toxicity is an important issue to ensure the living environment for the residents of the crafr village. 4. Discussion and conclusion. From the study of economics and society of the craft village we find that traditional craft villages will contribute to creating jobs, assigning labor to attract surplus labor in rural areas. Especially with the current high population growth rate, solving the demand for jobs in traditional craft villages will effectively solve the employment situation of some sections of the population and raise the living standards. their lives. At the same time, the development of traditional craft villages will facilitate the shift of economic structure in agriculture, labor division more rational. The development of traditional craft villages will greatly contribute to limiting free migration, improving the cultural and spiritual life of the people. The stable workers, ensure good life, they will not like to leave the village, relatives,the develop craft villages creates the stable employment, income to ensure life; it has good effects on the psychology, sentiment, customs, working style and create a cultural characteristic of the village. As the village economy develops, it will create conditions for increasing non-farm income, facilitating the shift of agricultural economy to handicraft and narrowing the gap between rural and urban areas. Due to the low productivity of agricultural labor, the income from agriculture is not high, the development of traditional craft villages facilitates the income of the inhabitants, some households have boldly abandoned their agriculture, focusing only on traditional industries. This has led to a shift in the agricultural structure from agro-based to agro-handicraft economy has developed in Vietnam today In developing and planning a national socio-economic development strategy, mastering and deep understanding of the socio- economic characteristics of a typical craft village will contribute to creating the basic premise for the effective implementation of economic and social policies. 5.References: (1) V.I Leninist full episode, Episode 20 (1980), Tien bo Publisher, Maxcova; pg.221. (2) Hoang Hien, Hoang Hung(19/12/2018). ―Solutions to solve difficulties for craft villages‖ ; Nhan Dan Newspaper. (3) Ha Anh (17/6 2007) ; Exit for handicraft villages; Nhan Dan Newspaper. (4) Summarized informations of Vietnam Textile and Garment Industry Conference 2017. (5), (6) Luu Thi Tuyet Van, Small industry in the Red River Delta (1954 – 1994), PhD thesis in science, Institute of History; Pg.1, Pg.4. (7) Le Thi Mai (2004), Rural market in transition, World Publisher, Hanoi; Pg.52.