Lacquerware made in Vietnam has gained worldwide recognition for its durability, craftsmanship and design. Bowls, plates, trays, boxes and vases with eggshell or mother-of-pearl in lay are popular export products, as well as wall paintings with intricate handpainted designs.
Vietnam’s rich tradition of making handicrafts has enabled it to become one of the major sources of lacquerware. In fact, the country’s handicraft industry is targeting export revenue of $1.5 billion in 2010.
To achieve this goal, lacquerware makers are focusing on product innovation, offering low minimum order requirements, and accepting mixed orders. Suppliers’ access to abundant supply of raw materials and large pool of talented workers has also helped boost production and sales.
Amid strong demand from overseas, suppliers in Vietnam are bracing themselves for the numerous challenges that they face. The country’s rising inflation has pushed up raw material and real estate costs, and has led to wage increases. Intensifying competition from other countries in Asia is another issue makers continuously need to address.
In response, most suppliers are putting measures in place to attract more export orders. Some, for example, are increasing their focus on product and design development. New models are combining traditional production technique with modern designs. In addition, many companies are looking for ways to control costs.
The following are some of the key trends we see in Vietnam’s lacquerware industry:
• Exports in the line are expected to increase in the next 12 months. Suppliers will continue to target the US and the EU markets.
• Many companies will increase export prices by the end of 2008 as raw material costs continue to rise. In fact, 82 percent of the makers surveyed for this report plan to do so. The suppliers that are considering price increases will implement minimal changes. Seventy-nine percent of the respondents that plan to raise their quotes will limit increases to 10 percent and below.
• In the next 12 months, many suppliers will focus R&D efforts on releasing lacquerware that combine traditional and modern designs. Makers are also exploring other product areas, releasing models not typically applied with lacquer.
The above is extracted from the Executive Summary of China Sourcing Report: Vietnam - Lacquerware
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/vietnam-lacquerware
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