By: Fibre2fashion.com

Traditional hand work, which rely mainly on orders from abroad, have become the latest victims of the global economic downturn, as workshops being shut down, businesses going bust, and workers losing jobs. In many villages the collapse of these crafts has become intertwined with the life of local people.

Fibre2fashion has taken initiative to highlight "Effect of Global Downturn on Handloom and Handicraft Industry" by taking views from people involve in this business and from association who are working in this industry.

 

Vietnam has a very vibrant handicraft industry and the roots of the sector are spread across the country from urban to more particularly the rural areas. In fact it is the rural areas more so, which are helping in keeping alive the age old traditions in the country. Exports of handicrafts are also doing very well, thanks to these artisans. Handicraft exports in 2007 stood at US$824 million. But the artisans are facing a very piquant situation, wherein, they are running out of raw materials for creating the exquisite handicraft products for the export markets and for which they are famous, all over the world. Added to this, is the economic crisis which is making things more difficult for the sector. There are over 2,000 small and big villages engaged in manufacturing of handicrafts; thereby providing employment to hundreds of thousands of people. The artisans are mainly involved in creating handicrafts from cloth, wood, rattan and bamboo. The main reason for the scarcity of raw materials is that the sources for sourcing the vital raw materials are drying up. Experts are suggesting sustainable exploitation of forests and its resources; otherwise they warn that in a few years time, there would not be any raw material of consequence left for the industry to survive. They suggest involving these rural artisans and teaching them the basic tenets of sustainability of these assets, so vital for their survival. The other most important speed breaker coming in the further development of the sector is the availability of credit to these handicraft units and artisans. Either the banks are not willing to provide credit to these artisans, or those who have access to funds from banks have to do with high interest rates which is one of the biggest stumbling blocks in the sector multiplying at a solid growth rate.

While speaking with fibre2fashion Mr. Le Khanh Toan - Director of Vietnam Handicrafts Export-Import told "there is no effect of recession on his business. His company have pending orders also but he also suspicious about future. At present he is exporting products to China, Singapore, Hong Kong and Europe." Even Mrs. Vu Dieu Chinh - Director of CTEX Company Limited told there no reaction till date of global recession, as she is working on order basis only, her company exports handicraft products to Europe, USA, Ireland and many other countries. Sales manager of Daiviet Handicraft Company Limited told us his company facing problem due to financial crisis. They are facing problem in getting new orders.

 

Visitors to Fiji are the main consumers of handicraft produced here. The trend is that when these tourists come to Fiji, they usually purchase small hand crafted items made of wood or something as memento. Fiji is a major stop over point for long haul ships. The main problem these days is the less number of cruising ships from Australia and New Zealand. However, the trend of yester years when Fiji was the thriving, Duty Free port selling to Australia and New Zealand is almost disappeared. The shopping festivities by the Kiwis and Aussies are no longer the craze it once used to be.

Himmat Lodhia, President, Fiji Retailers Association, told to Fibre2fashion, "This is mainly because of global recession along with high prices of products. Now these are easily available in Australia and New Zealand markets and at very competitive prices. So the thought and craving for the so called Duty Free items is all gone. The only room in such kind of shopping is general impulse buying." Thus, it is expected until and unless, more and more tourists start visiting the country, the sale of handicraft will not rise.