Abstract

Purpose The purpose of this paper is to investigate the factors that affect handicraft export from Vietnam to trading partners in the period 2007–2017, and how those factors influence the export of handicraft products of Vietnam. Design/methodology/approach The research uses the approach of gravity model based on panel data to evaluate the export of Vietnamese handicraft to 50 main trading partners, covering the period from 2007 to 2017. Findings The estimated results reveal that Vietnam’s GDP, importer’s GDP, trading partner’s population, Vietnam’s inflation, the economic distance between Vietnam and importer, the openness of Vietnam, importing country’s common language and the issue that both Vietnam and importer are member of APEC are the main factors affecting Vietnamese handicraft export. Research limitations/implications This study also has some limitations. It is limited in the data, as some other areas in the world have not been observed and included in the research. In the future, a study with large-scale data of space and time should be conducted, which will certainly give a universal result and fewer errors. However, this paper, in our opinion, provides a significant result and may help the government and policy makers to undertake appropriate measures to improve and promote the export of Vietnamese handicrafts to the world markets. Practical implications The research describes the current situation, and it studies factors influencing Vietnam’s handicraft export using the qualitative analysis. The result should be useful for the policy maker and enterprises to promote export activities of Vietnamese handicrafts to international markets. Social implications Handicraft export of Vietnam plays an important part in retaining the culture value and social development as well as encouraging sustainable development for the rural poor within the country. Originality/value The past research related to Vietnamese handicraft export almost analyzed the situation to promote export handicrafts. This research is based on the study of factors affecting trade and the gravity model to elaborate and supplement the factors that affect the export of handicraft in accordance with the actual conditions of Vietnam.

Highlights

  • Handicrafts stand out as an important part of Vietnam’s cultural heritage; the industry is a source of productive activities, incomes and livelihoods in rural areas throughout the country, with women and ethnic minorities among the greatest beneficiaries

  • According to UN Comtrade Statistics ( from the Online Database of the International Trade Centre (ITC)) (Figure 1), in the period from 2011 to 2018, Vietnam exported handicrafts to many countries, with total exports of all commodities rising from the US $96.9bn in 2011 to the US$243.48bn in 2018, which means an increase of 151 percent over the period

  • The model in this paper considers that the dependent variable is traded flow of Vietnamese handicrafts

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Summary

Introduction

Handicrafts stand out as an important part of Vietnam’s cultural heritage; the industry is a source of productive activities, incomes and livelihoods in rural areas throughout the country, with women and ethnic minorities among the greatest beneficiaries. Such development has been rapid with the availability of resources: skilled labor, quality raw materials, designs and markets. Labor-intensive and often highly dispersed handicrafts provide additional incomes in times of low labor demand in agriculture, whose exports can be an important source of foreign earnings (Wong, 2013). Fine-art handicrafts of Vietnam are available in 163 countries and territories around the world

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