Evaluation Summary of the Model Villages

Based on the study in the two model villages, we evaluate the villages in the several aspects, such as products, customers, management etc. Here are the details of evaluation.

*Those who are interested in the tour to these villages, please contact*

Mr. Nguyen Van Uc, T&T Travel　Address：9 Vong Duc St., Hoan Kiem District, Hanoi, Vietnam, Tel: (84 4) 824 5116, Fax: (84 4) 824 5167, Mobile：(84 9) 1360 4689, E-mail: uc.nv@tnt-vietnam.com, 　 (English or Vietnamese)　or

Mr. Hoang Nhon Chinh, Hanoitourist Travel Center　Address：18 Ly Thong Kiet Street, Hanoi, Vietnam, Mobile：(84 9) 1322 9252 E-mail: chinhhn@yahoo.com, hanoitourist-hnc@fpt.vn, (English or Vietnamese)

1 Factor Conditions

• Infrastructure: Given the villages proximity to Hanoi, the infrastructure is relatively good. The main companies which export the bamboo and rattan products are all located on or near the main highway which links the village to Hanoi. Internal roads within the village, however, are still in need of more development, especially if the village hopes to attract foreign tourists.
• Labour: Both low cost skilled and unskilled labour is in good supply, both within the village and from the province. Several of the artisans have highly developed design skills. Young workers were observed to be motivated in working and teaching the technique to one of the students on the team.
• Raw Materials: Bamboo and rattan materials are in short supply locally and are purchased from outside of the village. Prices have increased by approx. 40% over the last 2 years.
• Environment: Though the community was reported to have water pollution problems, there was no chance to make further research on the matter in the study mission. The connection between nature and villagers is very strong.
• The history of handicraft: The village has been dealing with rattan and bamboo handicraft business, processing natural resources, etc. for many years.

2. Products

• Good diversity of rattan and bamboo products (e.g. furniture, household and decorative items).
• Motifs and designs: There are a lot of motifs based on the local knowledge inherited from generation to generation. The product design is inspired from their way of life.
• Uniqueness: Some village artisans are developing unique products which are not produced by other artisans. It includes the products which combined different natural materials together, though some are not practical for use in everyday life. It was also mentioned by one artisan, however, that he had difficulty protecting his new designs as they are often copied by his competitors.
• Product Quality is mixed, though most of them are well-finished and high quality. There tends to be an over-reliance on chemicals to treat the bamboo and rattan products. More emphasis should be placed on natural coloring methods.


• Product usage rate within the village: Though the percentage was not high, the villagers were observed to actually use the bamboo and rattan products in their daily lives. (e.g. the bird cage, the desks and chairs, especially the small one made of bamboo, child seat made of bamboo, the tool box which is repeatedly fixed and improved, rattan chair, bed and sofa set).
• The products which used to be used in the village: e.g. basket, thermal basket for teapot (often used till 1990s).
• The products which are produced only for exports: e.g. lady's hand bags, and the bread baskets.
• In general, the artisans and village producers are very skilled and have a long history of producing bamboo and rattan products, though more training is needed with regards to product development, packaging and branding.

3 Customers

• Export markets: Phu Vinh producers are very successful in exporting their products to Europe and Asia, since foreign customers have nostalgia for the past as well as seek the exotic.
• The foreign tourist market segment is primarily served via retail outlets in Hanoi. The amount of foreign tourists visiting the village directly is still rather modest.
• The domestic market is not very developed with regards to the use of bamboo and rattan products.
• The furniture and interior products are sought mainly by the domestic market, while other products are focused on the international market.
• One of the main weaknesses of the Phu Vinh producers is that they lack knowledge about customers and markets. Marketing research is one of their main weaknesses.

4. Management

• Most of the village producers operate along family lines, using traditional management practices.
• Larger export companies located just outside of the village do utilize more modern management systems. These larger companies maintain relationships with the smaller family based producers in order to help fill larger export orders.
• A number of sample products are shown at the showroom of export factory. However, the information on the products' producers or the usage information was lacking.

5. Competitive Linkages

• Most of the producers work closely with the local government authorities to improve the factors of production, and to develop a master plan.
• There are linkages with the Bat Trang ceramics cluster, especially in terms of creating new products which combine ceramics with rattan (e.g. ceramic bowls and plates with rattan borders, etc.)
• No linkages currently exist with universities in Hanoi. These universities could help to provide business training and also help with quality and design issues.
• Very few linkages currently exist with tour operators and hotels in Hanoi.

6. Other

• Access to information on the village and village products is limited.
• There were a lot of wastes from bamboo and rattan production left in the backyard of villager's compound.

1 Factor Conditions

• Infrastructure: The infrastructure is excellent given their close proximity to the tourist destination of Tam Coc (also referred to as Vietnam's inland Halong Bay). Roads are very good, hotels and restaurants are in good supply.
• Labour: Both low cost skilled and unskilled labour is in good supply, both within the village and from the province.
• Raw Materials: High quality textiles are imported from Europe and other countries in Asia. Textiles from Vietnam are also used.

2. Products

• There is limited diversity of embroidery products. Most of the products consist of tablecloths, napkins, etc.
• Uniqueness: Embroidery products are not very unique as similar products and designs are produced in other regions and countries. Most of the designs are set by external buyers, so less emphasis is placed on preserving traditional designs and patterns which are perhaps of more interest to foreign tourists.
• Overall Product Quality is very good.

3. Customers

• Export markets: Embroidery products are exported to countries in Europe including demanding sophisticated markets such as Germany and Italy.
• The foreign tourist market segment is primarily served via retail outlets in Hanoi. There are however many tourists visiting the area directly due to the villages proximity to the tourism destination of Tam Coc. Thus, there is good potential for direct sales to tourists.
• The domestic market is not a main factor with regards to the purchase of embroidery products. Prices are often too high for the local domestic market, and the products, designs and patterns do not fit their daily lifestyle.
• One of the main weaknesses of the producers is that they lack knowledge about markets and customers. Their marketing skills however are more developed than the bamboo and rattan producers of Phu Vinh.

4. Management

• Most of the producers utilize a family based management system.
• The managing and organizational skills, however, appear to be more developed than at Phu Vinh village.

5. Competitive Linkages

• Most of the producers work closely with the local government authorities to improve the factors of production and to develop a master plan.
• No linkages currently exist with universities in Hanoi. These universities could help to provide business training and also help with quality and design issues.
• Some linkages currently exist with tour operators in Hanoi, though they are still not very well developed.

6 Other

• Access to information on the village and village products is limited.