Vietnam’s craft gift suppliers are gearing up for robust sales growth for second half of 2010, after weathering a challenging export climate last year. This is according to Vietnam Sourcing Report: Craft Gifts, released by the Kearny Alliance with the support of its partner in development, Global Sources (NASDAQ: GSOL - globalsources.com)
To attract buyers, more than 70 percent of makers have maintained prices through lower margins. They are also focusing on combining a variety of locally available materials to differentiate their products from competitors.
The Report covers profiles of 34 manufacturers, plus descriptions, prices and packaging details for 105 best-selling export products. These include crafts, gifts and novelties which are made of wood, bamboo, ceramic, glass, metal, fabric, plastic and more.
“As major export markets show signs of recovery, Vietnam craft gifts suppliers are confident of seeing stronger demand,” said Khiem Vu, program manager of the Developing Country Export Assistance Program. “In fact, 90 percent of the suppliers interviewed for this report expect export sales to increase by at least 10 percent over the next 12 months.”
One supplier profiled in the report, Nguyen Huy Thong, sales manager of Ngoc Dong Ha Nam, said: “We are focusing on pressed bamboo by using semiautomatic machines to reduce labor cost and combine bamboo with woven rattan to offer competitive quotes with unique designs.
“We expect to attract more orders from new markets through this export marketing assistance program provided by the Kearny Alliance and its partner Global Sources.”
Survey results show export price trend; highlight product and target market
“The report survey shows export prices range from less than 30 cents to above $20, depending on type of material and design,” Vu said. “Fifty six percent of the featured suppliers are releasing new models in the coming months.”
Other results of suppliers featured in the Vietnam Sourcing Report: Craft Gifts include:
• Crafts account for up to 75 percent of total output;
• Wood, and ceramic and glass are used as main materials, accounting for 21 and 16 percent, respectively;
• 60 percent of supplier will target the EU market; and
• Suppliers who plan to raise quotes will keep increases to within five percent.
Total capacity of featured suppliers is 820,000 pieces per month, of which exports account for more than 50 percent.
Sourcing Reports for Vietnam, India, Cambodia, the Philippines and Indonesia
The Vietnam Sourcing Report: Craft Gifts is one of a series of emerging market Sourcing Reports. Free previews and ordering information to purchase online for immediate download is available at chinasourcingreports.com/.
Other Sourcing Reports available online are:
• VIETNAM: Bags, Baby & Children’s Toys & Garments, Footwear, Ceramic & Porcelain, Garments, Home Decor, Fashion Accessories, Lawn & Garden, Lacquer ware, Indoor & Outdoor Furniture;
• INDIA: Ceramics, Craft & Promotional Gifts, Glass & Metal Tableware, Fashion Accessories, Garments, Craft & Promotional Gifts;
• CAMBODIA: Silk Fashion Accessories;
• PHILIPPINES: Home & Garden Decor, Fashion Jewelry, Christmas Decorations, Indoor & Outdoor Furniture;
• INDONESIA: Indoor & Outdoor Furniture, Footwear;
• SOUTHEAST ASIA: Indoor & Outdoor Furniture.
The next Sourcing Report to be published in August will be Vietnam Sourcing Report: Kitchenware and will be available to purchase online.
About The Kearny Alliance
The Kearny Alliance (kearnyalliance.org), a US nonprofit foundation, partners with other international organizations to further its mission of “Aid through Trade”, to advance international development and poverty alleviation through trade-related business, education, training and applied research.
Key programmatic areas include:
• Livelihood development at the grassroots level: Through the social enterprise Export Service Centre (ExportServiceCentre.com) in Indonesia and Cambodia, the Kearny Alliance assists small producers who do not have the capacity to export direct to participate in the global economy. It estimates that in 2009 it created more than 3,800 jobs.
• Job creation for small & medium producers: Through the Developing Country Export Assistance Program (kearnyalliance.org), the Kearny Alliance connects smaller exporters in developing Asia with buyers worldwide. Surveys of beneficiaries show that suppliers have received $440,000 in export orders, and they expect more than $5,000,000 to develop in 2010.
• Education & skills development: The Kearny Alliance offers stipend support for students from Myanmar, Cambodia, Vietnam and mainland China to study in Hong Kong and the US. The dozens of Kearny Alliance Scholars receive internships and on-the-job training in export-related companies and organizations in 10 countries.
• Trade policy research: One major initiative is The Kearny Alliance – Arizona State University forums on China, trade and the world economic order (wpcarey.asu.edu). At this high-level series of interlinked meetings – held in Phoenix and Beijing, culminating in an Online Forum in 2010 – policy makers, business leaders, and academics explore potential solutions to issues and challenges that will be mutually beneficial to China-US trade relations.