II. Economic Development - Investment for Infrastructure and Handicraft Trade Village

1. Total Income of Four Years (2001- 2004) and the First Quarter of 2005

No.DetailsUnit20012002200320041st quarter
of 2005
ITotal annual incomeBilllion VND
USD (thousand)
1IndustryBilllion VND
USD (thousand)
2Small scale industryBilllion VND
USD (thousand)
3Trade, tourism, serviceBilllion VND
USD (thousand)
4Annual income per capitaMillion VND
1VND=0.00006315USD ( 25 May, 2005: http://www.oanda.com/convert/classic )

The annual economic growth rate of Phu Nghia Commune is 10%. The small scale industries play an important part in the economic growth and the stable development of the commune.

2. Investment for Infrastructure in the Past Few Years

Funds for building concrete roads for the handicraft trade village for tourism development purposes was approved by the People Committee and the Tourism Department of Ha Tay province. The total funds are 1 billion VND. The length of the road to be invested in is 1km from the office of agricultural cooperative group to Phu Vinh and to the national road 6A. The investment financial source of the commune comes from the emblement on public land and the contribution of enterprises located on the commune. The commune also invested in building the road from the national road 6A to Dong Tru and to Dam Bung, with a length is 1,274 meter, width is 4 meter, total investment is about 1.3 billions. Moreover, one showroom for the handicraft village was invested with the total cost of 150 million VND.

In 2004, the Industrial department of Ha Tay province signed on the project called "Combine Tourism and Handicraft Trade Village Development". The increase of the tourist number to Phu Nghia commune is as follows:

In the first quarter of the year 2005, there are 725 tourists, which include 47 foreign tourists.

3. The Formulation and Development Process of the Handicraft Trade Village

The Phu Nghia, rattan and bamboo handicraft trade village was born 300 years ago. The village was tossed back and forth along with Vietnamese history.

Before 1960 - the age of cooperative associations, when Phu Vinh households were active in creating different patterns and making rattan and bamboo products to sell at streets in Hanoi for both the local people and the foreign tourists. After the establishment of handicraft cooperative associations, all the rattan and bamboo products produced in Phu Vinh were bought by the State. The production was developed dramatically. After 1986, when Phu Vinh handicraft cooperative associations were dissolved, production was limited within the household and cooperative group scale. People had to run their business themselves and received no more subsidy and protection from the government. In order to survive in the market, producers had to find partners and to look for markets for their output. Severe market competition forced the producers to produce high quality but low price products. So far the rattan and bamboo handicraft industry has developed not only in the number and quality of products but also in the number of households that participate in the production.

The demand from customers with regards to the quantity of rattan and bamboo products is increasing day by day. More and more handicraft and trade villages are recognized by the People Committee of Ha Tay province like Phu Vinh (in 2000), Quan Cham and Khe Than (in 2001), Phu Huu 1 and Phu Huu 2 (in 2003) and the two remaining villages, Dong Tru and Nghia Hao were recognized in October, 2004.

In 2001, Ha Tay people committee and tourism department chose Phu Nghia to be the main tourism spot to be develop. Togather with this decision, the total investment of 30 millions VND was put into the showroom of Phu Nghia village.