VN
EN
14/10/2026, 02:38
Business economics
Craft villages open new opportunities for Hanoi rural economy
With more than 1,350 craft villages and villages with traditional trades, Hanoi has a distinctive economic resource that creates jobs, raises local incomes and preserves long-standing cultural values. By connecting traditional crafts with markets, technology, design and tourism, the sector is creating new momentum for rural economic development in the city.
Nguyen Dinh Hoa, Deputy Director of the Hanoi Department of Agriculture and Environment (in a white shirt), at a craft village product recognition event.
Creating livelihoods, reshaping the rural economy
Woodworking workshops, mother-of-pearl inlay facilities, pottery households, garment workshops and handicraft establishments have long been a familiar part of many suburban areas of Hanoi. Behind these production spaces is an economic sector that creates jobs for tens of thousands of workers, supports trade and services, and contributes to restructuring the rural economy. In many craft-producing areas, annual incomes for general workers currently range from VND70 million (US$2,692) to VND130 million (US$5,000) per person. Some areas with stable products, strong brands and broad markets achieve higher incomes.
In Son Dong, nearly 400 production and business establishments provide regular employment for nearly 2,000 local workers and workers from neighboring areas. Wood carving and lacquer crafts have become an important part of the local economic structure.
In January 2026, Son Dong wood carving and lacquer craft was recognized by the World Crafts Council as a “World Craft Village for Spiritual Wood Carving and Gilded Lacquer Works.” The recognition affirms the technical and cultural value of the craft while creating additional opportunities to promote products and connect with international markets.
In Chuyen My, mother-of-pearl inlay and lacquerware, garments, leather and footwear, and fine-art woodworking have created a relatively diverse production structure. In 2025, the commune’s total production value reached about VND6.9 trillion (US$265.4 million), of which industry and handicrafts accounted for more than VND2.4 trillion (US$92.3 million); average income was about VND78 million (US$3,000) per person per year.
The value of craft villages is also expanding beyond handicraft products. Production spaces, crafting techniques, artisans’ stories and the history of each craft can all serve as resources for tourism, the cultural industries and the creative economy.
Hanoi currently has four craft villages recognized by the World Crafts Council: Van Phuc, Bat Trang, Chuyen My and Son Dong. Participation in international craft networks creates more favorable conditions for craft villages to promote their brands and connect with designers, companies and customers.
In 2026, Hanoi is implementing the Contemporary Crafts Development Program based on Craft Village Heritage, with a focus on connecting artisans, designers, companies and training institutions. This marks a significant shift, as craft preservation is being linked with product innovation and market demand.
Enhancing the competitiveness of craft products
According to Nguyen Dinh Hoa, Deputy Director of the Hanoi Department of Agriculture and Environment, handicraft products need to continue innovating in form and design while retaining the cultural identity and distinctive values of traditional crafts. The city also identifies human resource training, skills transmission, and promoting the role of artisans and skilled workers as important solutions.
In practice, craft preservation needs to be approached more flexibly. Core values in techniques, materials, knowledge and identity need to be preserved, while design, packaging, management methods and sales practices need to change in response to market demand.
Digital transformation is creating additional opportunities for production establishments to reach customers. Social media, e-commerce platforms and other online platforms help products reach markets beyond traditional ones. For products with strong cultural content, the digital environment also supports storytelling about artisans, production processes and product origins.
Craft village tourism is also emerging as a promising development direction. Bat Trang is a clear example of combining production with trade and tourism. The value created lies not only in ceramic products but also in experiential spaces, services and the ability to attract visitors to the locality.
However, tourism and trade can develop sustainably only when limitations in infrastructure, the environment and production organization are addressed. This is also why support policies need to gradually shift from simple preservation toward strengthening competitiveness. Alongside infrastructure investment and environmental management, establishments need support in design, product standards, trade promotion, e-commerce and brand building.
The role of companies in the value chain also needs greater attention. Workers have advantages in technical skills and craftsmanship, but taking products to wider markets requires additional capabilities in market research, design, standardization, distribution and marketing.
Connections among artisans, production households, cooperatives and companies therefore play a decisive role. When each stakeholder focuses on its strengths, traditional products can shift from competing on price to competing on quality, design and cultural value.
The challenge for Hanoi today, therefore, goes beyond preserving a certain number of traditional crafts. It is about enabling each craft to generate greater economic value, giving products access to broader markets, and enabling local people to earn a stable living from their crafts. If bottlenecks in infrastructure, the environment, technology, design and markets continue to be addressed, the sector can become an important part of the rural economy while creating distinctive economic and cultural spaces for the city as it develops and integrates.
Author: MINH NGOC
RECOMMENDED TOPICS
