Tuesday, 23/12/2008 07:53

Slump in demand for bamboo products hits craftsmen hard

Local crafstmen are feeling the pinch of falling prices and lower demand of export markets for bamboo and rattan-made products.

Artisan Tran Thi Nam, said: "I am old already, who wants to employ me? I have no choice but to borrow money to get by."

The 60-year-old craftswoman has been making hand-crafted products for most of her working life. Nam lives with her son in Di An District in southern Binh Duong Province. Her son is also in the trade.

Both are now trying to eke out a living without a reliable source of income.

In the past they earned between VND50,000 and VND60,000 per day. But orders for products began to decline at the end of September, and had further worsened by mid-November when European markets stopped buying.

"I will not have a Tet if the situation keeps going like this," Nam says.

Le Thi Khanh is in the same boat. The farmhouse where she worked making bamboo and rattan baskets closed a month ago.

Khanh is continuing to buy bamboo and rattan materials in the hope that she will be able to sell her products to other traders. The first month has not been successful, with very few buying her baskets.

Khanh has even sold her goods at prices that fail to cover her production costs.

The director of Hien Luong import-export fine arts company Nguyen Thi Luong, admits that artisans have been hardest hit by the recent drop in demand. Most companies specialising in exporting handicrafts do not employ people directly, opting instead to order produce from people.

Luong warned that many young, skilful artisans would abandon the craft if the situation continued.

The owner of a basket-making farm Le Dinh Trong, only has two employees at present. The farm used to employ 30.

"They will stop working to finish the remaining quantity of materials in the next few days," Trong said, "There will be great challenges ahead."

In the past, his farm exported about 14 containers of baskets every month to Taiwan. It has not received any orders for next year.

Many co-operatives said they had been facing difficulties since the beginning of this year when the cost of materials and labour increased.

The Director of Hiep Luc Co-operative Luong Thi Thuy expects the co-operative to earn VND7 billion this year. Last year’s earnings reached VND12 billion.

Local businesses are predicting a tough year ahead. Many overseas Vietnamese in Russia – who in the past made-up a reliable market for handicraft products – said they would no longer be buying them.

A company director revealed that exports to the European Union have plummeted by 70 per cent. Local businesses have had to cut sales prices by 30 per cent to offset the huge loss.

Many companies are now pinning their hopes on selling goods to foreigners and local consumers – groups which enjoy more stable incomes.

Some cash-strapped companies have also approached the Government, asking it to encourage banks to loan money at reduced interest rates.

According to Deputy chairman of HCM City Handicraft, Wood and Wood Processing Association, Dang Quoc Hung, total export profits for handicraft products was nearly US$750 million. The association has set a target to increase the figure to $1 billion this year. Hung is not as confident about this target.

Viet Nam News

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