Tuesday, 19/04/2011 13:48

Ensuring bamboo, rattan exports keep growing

As a supply hub for bamboo and rattan, Viet Nam is regarded as one of the most important sourcing centres for basketware in the world, according a new report from the US nonprofit organisation Kearny Alliance.

The report, Viet Nam Sourcing Report: Basketware, contains information that helps connect local suppliers in developing economies with buyers worldwide.

Viet Nam's basketware industry benefits from an abundant supply of indigenous raw materials obtained from many forests and plantations across the country.

"Viet Nam's handicraft industry enjoys several competitive advantages, among which are craftsmanship and the abundance of rattan, bamboo and water hyacinth used for woven baskets," according to Vu Ngoc Khiem, Programme Manager of the Kearny Alliance's Developing Country Export Assistance Programme in Asia.

The basketware industry manufactured products that were known for their durability and aesthetic craftsmanship, Khiem said.

Viet Nam is the world's sixth largest supplier of raw bamboo and devotes 1.4 million ha, or approximately 4 per cent of total land area, to cultivation of the plant, according to the Ministry of Agriculture and Rural Development.

This leads to an annual yield of 2.1 to 3.5 million tonnes of raw bamboo, depending on the species.

Viet Nam also has 380,000 ha of forest and plantations devoted to rattan, of which 20,000-50,000 tonnes are produced annually.

The abundance of raw materials helped local suppliers procure components easily and inexpensively, and helped prevent product price fluctuations by keeping usage of imported materials at a minimum, the report said.

Viet Nam has about 2,000 craft villages mainly composed of home-based artisans who specialise in the production of handicrafts like baskets.

The country also has 720 trade villages that have organised as companies capable of carrying out the entire manufacturing process.

However, rattan and bamboo are being overexploited in the country, leading to deforestation and a decline of many species of rattan.

The Government was planning to issue conservation policies regulating the exploitation of rattan and bamboo to mitigate adverse effects and to ensure sufficient supply of raw materials over the long-term, the report said.

According to a survey conducted by Kearny for the report, local exporters of basketware are upbeat about their competitiveness, projecting 10 per cent export growth this year, which they attribute to the abundant domestic supply of raw materials.

In addition, 60 per cent of featured producers would keep export prices unchanged over the next six months, while 80 per cent of the interviewed suppliers planned to increase prices to within only 5 per cent, the report said.

"Easy access to natural rattan and bamboo from the suppliers' local plantations enables them to lessen their dependence on imported components, thus stabilising their export prices," Khiem said.

Sixty-five per cent of the surveyed local exporters plan to target the EU market.

Export prices range from about $0.1 for a simple bamboo basket up to $10 for such intricate woven designs.

Featured products are made of one type or a combination of materials including water-hyacinth, sea-grass, pandan leaf, banana leaf, bamboo, rattan or synthetic rattan and plastic.

The report offers in-depth profiles of 36 verified export suppliers, supplier market analysis, price forecasts and more than 130 top-selling products, ranging from storage and laundry baskets to dishes and serving trays, in addition to full descriptions, prices and packaging details.

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