value chain study for handmade paper in hoa binh … · value chain study for handmade paper in hoa...

Crafting out of poverty

VALUE CHAIN STUDY FOR HANDMADE PAPER IN HOA BINH PROVINCE OF VIET NAM

NOVEMBER 2010

Prepared by: Thanh Nguyen National Consultant Alfons Eiligmann International Consultant

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While efforts have been made to verify the information contained in this document, the International Trade Centre (ITC) cannot accept responsibility for any errors that it may contain. The views expressed in this report can in no way be taken to reflect the official opinion of the MDG Achievement Fund, the Viet Nam Trade Promotion Agency VIETRADE, the Viet Nam handicraft exporters association VIETCRAFT and ITC. The usual disclaimers regarding responsibilities apply to this report.

Value Chain Study for Handmade Paper in Hoa Binh Province, Viet Nam

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PREFACE This value chain study is prepared by the International Trade Centre (ITC) within the context of the joint programme entitled ‘Green Production and Trade to Increase Income and Employment Opportunities for the Rural Poor’. Viet Nam has achieved impressive economic progress since the doi moi (renovation) process was launched in 1986. Since 1993, real GDP growth has averaged 7.5% per year and the poverty rate has been reduced from 58% in 1993 to 13% in 2008. Growth has been driven by accelerated international integration, market liberalization and job creation in the private sector. However, persistent inequalities and poverty remain, particularly in rural areas where more than 90% of the poor reside. In many areas, the income generated from farming is not sufficient for smallholder farmers to reach an income level above the national poverty line of VND 200,000 per capita/per month. Against this background, the joint programme works to increase income and employment opportunities for raw craft material growers/collectors and grassroots handicrafts and furniture producers. The collection and processing of natural raw materials from forest areas and handicraft production constitute the most important sources of additional income for rural households. In fact, it is very often the additional income generated from handicraft production or the collection of raw material that determine whether rural households can lead a life above the national poverty line. The programme targets about 4,800 poor farming and craft-producing households in four northern provinces of Viet Nam: Thanh Hoa, Nghe An, Hoa Binh and Phu Tho. These provinces were selected due to: (i) the high incidence of poverty, especially among ethnic minorities; (ii) the concentration of raw materials and local production of crafts; and (iii) the possibility to build synergies with past and ongoing development activities Within the four targeted provinces, the programme will focus on the five following value chains: (i) bamboo/rattan; (ii) sericulture and weaving; (iii) sea grass; (iv) lacquerware; and (v) handmade paper. The programme’s approach is to develop better integrated, pro-poor, and environmentally sustainable “green” value chains, enabling poor growers, collectors and producers to improve their products and link them to more profitable markets. The complex challenges faced by the five value chains, ranging from sustainable raw material production, entrepreneurial skills development and cleaner production to market linkages and trade information deficits, can best be addressed by a joint programme which combines the core competencies of the relevant UN agencies: UNIDO, FAO, ILO, UNCTAD and ITC. The authors would like to thank Mr. Ngoc Le Ba, Vice Chairman of the national handicraft exporters association VIETCRAFT for his advice and guidance during the preparation of the report. Lastly, the authors would like to thank all sector stakeholders, including farmers, household craft producers, companies, and officials in Hoa Binh province for making their time available to the study team and openly sharing their knowledge and views. The joint programme is is funded under the Thematic Window ‘Development and the Private Sector’ of the MDG Achievement Fund. The ‘Development and the Private Sector’ Window seeks “to facilitate the achievement of the MDGs through interventions that promote the development of private sector, through enabling policy frameworks, the growth of inclusive markets and the establishment of pro-poor public-private partnerships that create and sustain decent and productive employment.” For further details on the present study, please contact Mr. Koen Oosterom, Senior Technical Adviser, at: [email protected] or [email protected].

mailto:[email protected]

mailto:[email protected]


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LIST OF ABBREVIATIONS AND ACRONYMS

ASEAN Association of South-East Asian Nations

CSEED Centre for Community Socio-Economic and Environmental Development

DARD Department of Agriculture and Rural Development

DOIT Department of Industry and Trade

FAO Food and Agriculture Organization

GDP Gross Domestic Product

GSO General Statistic Office

GTZ German Technical Cooperation

HRPC Vietnam Handicraft Research and Promotion Centre

ILO International Labour Organization

ITC International Trade Centre

JP Joint Programme

JICA Japan International Cooperation Agency

PMU Project Management Unit

UN United Nations

UNIDO United Nations Industrial Development Organization

UNCTAD United Nations Conference on Trade and Development

VA Value Addition

VC Value Chain

VIETCRAFT Viet Nam Handicraft Exporters Association

VND Vietnamese Dong


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TABLE OF CONTENTS

Page

I. INTRODUCTION .......................................................................................................................................... 7

I.1 DESCRIPTION OF PROGRAMME INTERVENTION AREAS .......................................................................................... 7

I.2 MAJOR SOCIO-ECONOMIC STATISTICS ............................................................................................................... 8

I.3 DESCRIPTION OF DIRECT PROGRAMME BENEFICIARIES ......................................................................................... 8

I.4 SCOPE AND COVERAGE OF THE STUDY ............................................................................................................... 9

II. MACRO-ECONOMIC CONTEXT AND VALUE CHAIN POLICIES ..................................................................... 11

II.1 OVERVIEW ON HANDICRAFT AND HANDMADE PAPER IN VIET NAM ...................................................................... 11

II.2 HANDMADE PAPER IN HOP HOA COMMUNE, HOA BINH PROVINCE...................................................................... 12

III. VALUE CHAIN ANALYSIS ........................................................................................................................... 15

III.1 HANDMADE PAPER OVERVIEW ...................................................................................................................... 15

III.2 HANDMADE PAPER PRODUCTION PROCESSES ................................................................................................... 16

III.3 VALUE CHAIN MAPPING AND QUANTIFICATION OF ACTORS ................................................................................ 20

III.4 ECONOMIC ANALYSIS OF THE VALUE CHAIN ..................................................................................................... 24

III.5 CONSTRAINTS ANALYSIS ............................................................................................................................... 26

III.6 MESO LEVEL SUPPORT INSTITUTIONS AND OTHER PROJECTS ................................................................................ 26

IV. VALUE CHAIN UPGRADING STRATEGY...................................................................................................... 28

IV.1 MARKET OPPORTUNITIES AND COMPETITIVE ADVANTAGE .................................................................................. 28

IV.2 SWOT ANALYSIS ........................................................................................................................................ 28

IV.3 VISION ...................................................................................................................................................... 29

IV.4 SUGGESTED FACILITATION ACTIVITIES ............................................................................................................. 30

V. RECOMMENDATIONS ............................................................................................................................... 32

VI. APPENDICES ............................................................................................................................................. 33

Appendix 1: List of Interviewees at Provinces ........................................................................................................... 33

Appendix 2: Project Areas Profiles (2009) ................................................................................................................. 34

Appendix 3: Programme Coverage Area ................................................................................................................... 35

Appendix 4: Bibliography .......................................................................................................................................... 36


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LIST OF TABLES

Table 1: Population Size and Poverty Rate in Project Areas (2008) ........................................................... 8

Table 2: List of Targeted Districts and Communes ..................................................................................... 8

Table 3: Map of Hoa Binh Province and Location of Hop Hoa Commune ............................................... 12

Table 4: Dong Ho Painting Briefs .............................................................................................................. 15

Table 5: Natural Substances Used in Dyeing Process ............................................................................... 20

Table 6: Map of the Current Handmade Paper Value Chain ................................................................... 21

Table 7: Production Areas at Mr. Chuc's House ....................................................................................... 22

Table 8: Some Handmade Paper Products Lines ...................................................................................... 23

Table 9: About ONAO Company ............................................................................................................... 24

Table 10: Calculation of Value Addition per Handmade Paper Notebook Sold ....................................... 25

Table 11: Constraints at Meso Level Institutions ..................................................................................... 27

Table 12: SWOT Analysis for Handmade Paper in Hop Hoa ..................................................................... 28

Table 13: Intended Value Chain Structure after the Intervention of the JP Project ................................ 29

Table 14: Upgrading Solutions and Facilitation Activities ........................................................................ 30

Value Chain Study for Handmade Paper in Hoa Binh Province of Vietnam

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Programme Areas

I. INTRODUCTION

I.1 Description of Programme Intervention Areas

The programme is implemented in four provinces in the North of Viet Nam: Thanh Hoa, Nghe An, Hoa

Binh and Phu Tho. These provinces were selected due to: (i) the high incidence of poverty, especially

among ethnic minorities; (ii) the concentration of raw materials and local production of crafts; and (iii)

the possibility to build synergies with past and ongoing development activities.

Phu Tho is a mountainous midland province situated at 80

km northwestern of Hanoi, and encompassed by Vinh Phuc

and Hanoi to the East, Son La province to the West, Hoa

Binh province to the South and Yen Bai/Tuyen Quang

provinces to the North. The province has fairly

advantageous transport conditions: With the pass-by of

three great rivers (Hong river, Lo river and Da river); the

Hanoi-Lao Cai-Con Minh railway route; inland travel on

National highway No. 2 and the Asian highway which

bridges China to Viet Nam and other ASEAN member

countries.

Nghe An is located at the heart of the Northern Central

region, on the North-South transport route and Asian East-

West corridor. It is 300 km south of Hanoi. Following the

Road No. 8, it is 80 km from the Viet Nam-Laos border and

about 300 km from the Laos-Thai border. Nghe An is

integrated into all types of national transport: Inland road,

railway, waterway, airway and seaway. Having 419 km

length of land border and 82 km coast, the province also

has the Vinh airport, Cua Lo port and the entire

infrastructure under improvement, extension and new

construction.

Hoa Binh was re-established in October 1991, sharing border with Hanoi and being the cross-section

amongst the Northwestern provinces, the Red river delta and the economic hub triangle Hanoi-Hai

Phong-Quang Ninh with a well-developed road network (National road No. 6, Ho Chi Minh trail,

National road 12B, National road 15) and river transport (on Da and Boi rivers).

Thanh Hoa is the northernmost province of the Central region, at 150 km south of Hanoi, 1,560 km

north of Ho Chi Minh City. It shares borders with Son La, Hoa Binh, Ninh Binh to the North, Nghe An

province to the South, Hua Phan of Lao PDR to the West and North gulf to the East. The province has

good access to the transport network through the North-South railway, Ho Chi Minh trail, national

roads 1A, 10, 45, 47, and 217 and the Nghi Son deep port and river system, which eases the North-

South waterway transport within the province as well as to the Central region and international

transport. Currently, Thanh Hoa has built the Sao Vang airport and is planning to build one more

international airport nearby the sea to serve the Nghi Son economic zone and tourism demand.


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I.2 Major Socio-economic Statistics

According to the most recent figures presented in Table 1, the average GDP per capita in 2008 in all

four provinces was below the national level of 17,180,000 VND. Of the four provinces, Phu Tho has the

lowest GDP per capita. The statistics also show that the percentage of poor households in the four

provinces is higher than the country’s average level of 13% in 2008 (based on the national standard for

poor households regulated by the Decision 179/2005/QD-TTg dated 08/07/2005, in which households

living in rural areas with equal or less than 200,000 VND/per capita/month are considered to be poor

households).

Table 1: Population Size and Poverty Rate in Project Areas (2008)1

Provinces Population No of households GDP per capita

(VND)

% of poor

households

Phu Thọ Province 1,364,522 274,908 8,842,097 18.41

Hoa Binh Province 788,274 174,198 13,090,660 19.34

Thanh Hoa Province 3,405,000 746,428 10,295,558 21.15

Nghe An Province 2,919,214 758,333 10,490,458 17.54

Source: The 2008 statistical yearbooks of the 4 provinces

I.3 Description of Direct Programme Beneficiaries

In collaboration with the provincial authorities, 4,822 poor farming and crafts producing households in

the four targeted provinces have been selected as direct programme beneficiaries. Criteria for the

selection of direct beneficiaries include poverty, current activity in the value chain, women and ethnic

minority.

The list of the 25 targeted communes is shown in Table 2. These communes belong to 14 different

districts in the four provinces. The programme will implement promotion activities in 5 value chains in

these 25 communes, with the following grouping of communes: 12 communes in the bamboo and

rattan value chain, 8 communes in the sericulture value chain, 2 communes in the sea grass value

chain, 2 communes in the lacquer value chain and one commune in the handmade paper value chain.

Of the 25 targeted communes, there are 15 communes undertaking the Phase II of the national

Programme 135 II.

Table 2: List of Targeted Districts and Communes

Province No. District Commune

Under

Programme

135

Value chain Number of

beneficiaries

NG

HE

AN

PR

OV

INC

E

1 Quy Chau

1 Chau Tien Yes Sericulture 110

2 Chau Hanh Yes Sericulture 60

3 Chau Thang Yes Bamboo/Rattan 150

2 Nghia Dan 4 Nghia Hoi Yes Bamboo/Rattan 100

3 Quynh Luu 5 Quynh Trang No Bamboo/Rattan 80

1 See Appendix 3 for further information on each commune in project areas


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Province No. District Commune

Under

Programme

135

Value chain Number of

beneficiaries

6 Quynh Thach No Bamboo/Rattan 180

4 Dien Chau 7 Dien Van Yes Bamboo/Rattan 150

8 Dien Kim No Sericulture 174

5 Yen Thanh 9 Kim Thanh Yes Bamboo/Rattan 50

10 Lang Thanh No Bamboo/Rattan 120

THA

NH

HO

A

6 Nhu Thanh 11 Hai Long No Bamboo/Rattan 311

7 Nong Cong 12 Thang Binh No Bamboo/Rattan 200

13 Tan Tho No Bamboo/Rattan 199

8 Nga Son 14 Nga Tan Yes Sea grass 431

15 Nga Thai Yes Sea grass 260

9 Thieu Hoa 16 Thieu Do No Sericulture 193

HO

A B

INH

10 Luong Son 17 Lien Son Yes Bamboo/Rattan 604

18 Hop Hoa Yes Handmade paper 250

11 Tan Lac 19 Tan Lac No Sericulture 50

12 Mai Chau 20 Na Phon No Sericulture 100

21 Pa Co Yes Sericulture 50

PH

U T

HO

13 Tam Nong 22 Tho Van Yes Lacquer ware 180

23 Di Nau Yes Lacquer ware 120

14 Cam Khe 24 Tinh Cuong Yes Sericulture 200

25 Yen Tap Yes Bamboo/Rattan 500

TOTAL 4,822

It is worthwhile noting that 41% of the selected direct beneficiaries are considered as poor, in

accordance with the official national poverty line of 200,000 VND/per capita/per month. As this

percentage is two times higher than the percentages of poor households in the 4 provinces (see table

1), it can be concluded that the programme is indeed pro-poor. In addition, 1,432 beneficiaries from

ethnic minorities have been included in the list of beneficiaries, representing Thai, Muong and H’Mong.

Handicraft production also strengthens the economic position of women, who are involved in many

stages of handicraft production in the five different value chains.

I.4 Scope and Coverage of the Study

Contributing towards the realization of the JP Outcome 1: “Improved understanding of the handicrafts

and small furniture value chains in four provinces” five value chain studies are prepared, one for each

value chain identified for the programme: (i) bamboo/rattan; (ii) sericulture and weaving; (iii) sea grass;

(iv) lacquer ware; and (v) handmade paper.

The present study covers the handmade paper value chain and includes:

A presentation of key macro-economic framework data;

An analysis of the main value chain actors from raw material supply to the international market

and support organizations at meso level;


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An assessment of the strengths and weaknesses of the different actors and income generation

along the chain;

An identification of competitive advantages and market opportunities;

The development of an intervention strategy for value chain upgrading and value addition,

with the view to enhance income generation along the respective value chains.


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II. MACRO-ECONOMIC CONTEXT AND VALUE CHAIN POLICIES

II.1 Overview on Handicraft and Handmade Paper in Viet Nam

Vietnamese have always produced substantial handmade products. It is both cultural and also a matter

of necessity in what has been till recently a very poor, but also very art and culture loving society.

Promoting a rapidly growing handicraft industry in Viet Nam is part of the Vietnamese government’s

plan to foster economic development across all regions of the country, reducing unemployment,

especially in the rural areas, and raising exports. With more than 1,400 ancient handicraft villages,2

Viet Nam is gradually revealing both its potential and the wide range of its products to the

international handicraft markets.

While most handicraft villages cluster around the Red River and Mekong Deltas in the North and the

South, Central Viet Nam is also blessed with abundant natural materials, and thus has been targeted as

a major supply center. The handicraft industry has created millions of jobs for local workers, elevating

their living standards while helping to preserve ancient traditions. Handicraft villages also bring about

benefits as tourism destinations, attracting an increasing number of tourists every year.

Viet Nam has been amazing the international markets with both the variety of its handicraft items and

the skills of its craftsmen. Valued craft items from Viet Nam include wooden furniture, porcelain,

lacquer, silk, embroidery, candles, jewelry, imitation flowers and glass products. Although the export

turnover from the handicraft industry does not compare to other industries such as oil & gas or

textiles, handicrafts have an advantage of low overall production costs. While in 2000, handicraft

export turnover was only about $274 million3, already reaching $565 million in 2005, it increased to as

much as $820 million in 2007 resp. to some $880 million in 2009. According to the Ministry of Trade

and Industry, turnover is expected to reach $1.5 billion by 2010.4

Despite the favorable conditions to be found in view of the Vietnamese government and export

markets, the handicraft industry in Viet Nam still is facing fierce competition from other countries,

including China and Thailand. In addition, foreign customers have commented on the limited

production capacity and the lack of information on market demand which they found Vietnamese

handicraft producers to have, which leads to Vietnamese craftsmen producing crafts of insufficient and

outdated design and styles.

Handmade paper has been produced in Viet Nam since the 3rd century and has been used for many

purposes, especially for painting, drawing, making handicrafts like notebooks, stationeries etc. In the

Northwest, handmade paper is popularly used during local festivals or at various religious activities.

A survey conducted by the Japan International Cooperation Agency (JICA) in the Northwest of Viet Nam

identified a high potential for paper production in the region, because it has, somehow surprisingly,

been a traditional craft for many of the ethnic minorities like Hmong, Dzao or Muong. In the

Northwest, paper production mainly takes place in Son La (Bac Yen and Song Ma district – Hmong

2 Runckel & Associates, Inc. Business in Asia.com, retrieved on July 31, 2010

3 According to Vietcraft: http://vietcraft.org.vn/tin-tuc/tinh-hinh-xuat-khau-cua-hang-thu-cong-my-nghe-viet-nam

4 According to various newspapers sources (www.vneconomy.vn, www.kinhtenongthon.com.vn, etc.)

http://vietcraft.org.vn/tin-tuc/tinh-hinh-xuat-khau-cua-hang-thu-cong-my-nghe-viet-nam

http://www.vneconomy.vn/

http://www.kinhtenongthon.com.vn/


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people), Dien Bien (Dien Bien Dong – Hmong people), Lai Chau (Tam Duong – Dzao people), Hoa Binh

(Luong Son – Muong people) etc. These ethnic minorities use different locally available materials for

paper production. While Muong people use “Duong” and “Do” trees as material for their paper, the

Hmong people often use bamboo, whereas the Dzao people use rice straw for their production.5

In other regions likefor instance in Hop Hoa commune of Luong Son district, Hoa Binh province, the

production of handmade paper is more limited. The major purpose to use handmade paper from Son

La, Lai Chau and Dien Bien is for religious ceremonies, for instance, to put it on an altar to show respect

to the ancestors. The trading activities of handmade paper are restricted to the community.

So far, development organizations have hardly raised the matter of promoting paper production as a

way to create more income for local people by using their traditional skills and locally available, cheap

material. However, this issue should be considered and it is definitely something unique that the

people in the Northwest should seriously think about taking on as a niche activity.

II.2 Handmade Paper in Hop Hoa Commune, Hoa Binh Province

Hoa Binh borders Phu Tho Province and Son La Province to the Northwest, Ha Noi city to the North and

Northeast, Ha Nam Province to the Southeast and Ninh Binh Province and Thanh Hoa Province to the

South. Hop Hoa Commune belongs to Luong Son District, as shown in the map below.

Table 3: Map of Hoa Binh Province and Location of Hop Hoa Commune

5 Project on Capacity Development on Artisan Craft Promotion for Socio-economic Development in Rural Areas in Viet Nam

(JICA). http://taybac.net.vn

http://taybac.net.vn/


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Hop Hoa Commune is among the poorest of the 19 communes belonging to Luong Son district. From

2005 to2008, the commune has received assistance from a project named “Community Assets for

Improved Livelihoods”, implemented by The Centre for Community Socio-Economic and Environmental

Development (CSEED) and the Handicraft Research and Promotion Centre (HRPC). Production of “Giay

Do” (handmade paper) was selected as a means of job creation and additional income generation for

poor families in Suoi Co Village, Hop Hoa Commune. The “Giay Do” initiative was piloted for farmers to

use locally available material as well as to cultivate the raw material themselves. It is expected that this

will ensure the long term sustainability of this initiative and its poverty reduction achievements.

“Giay Do” production under this pilot project was implemented with the involvement of 25 Muong

ethnic minority people, who are from the poorest families in Suoi Co Village. Most of these

participants/beneficiaries are women. The site was selected because it provided particularly favorable

conditions for producing “Giay Do” among them:

Natural materials available in the site: Duong and Do trees, key materials for paper making and

other plants for natural dyes can be sourced locally;

Available labor resource: Villagers in Suoi Co had spare time in which they could work to

generate additional income;

Market demand: A market survey done by supporters indicated that there are potential

markets for Giay Do products, with a particular potential for the international market;

In line with local authorities’ priorities: Promotion of non-farm activities to generate income for

families is in line with the local authorities (at district and communal levels) priorities. As such,

local authorities have provided support and contribution to the project through assigning their

staff to implement project activities.

The project supported the Suoi Co group with the provision of several initial facilities and equipment

such as a pounding tank, grinding machine, drying room, Duong and Do boiler, paper web forming

frames, paper pressing tools, a telephone and other equipment.

With regard to production technologies, the project has worked in cooperation with the Handicraft

Research promotion Center (HRPC) to support technical training on Giay Do making. This training has

included both the traditional technology used by the Bac Ninh Do paper making village, Japanese

handmade paper making technology (under the guidance of Japanese consultants) and Thai paper

making techniques.

After an exposure visit to a traditional “Do” handmade paper making village in Bac Ninh and after more

than 3 months of training, the group was able to produce Do paper. Dyes used for coloring the paper

are made with natural materials such as saffron, canh kien (lac), cashews, dry tea. The group is now

able to make a variety of products from this paper including envelops, notebooks, hand-books,

greeting cards and calendars. All products are well made using modern designs.

Customers from Japan, such as the ONAO Company (http://onao.co.jp/english_index.html), have

initially placed orders for the Thai style paper products from the group. Even if the quality of paper

produced in Hop Hoa does not yet reach the quality as that made by the traditional handcraft village in

Bac Ninh province, the products provided by Suoi Co paper making group were still appreciated by the

Japanese company. Handmade paper production has initially generated an economic benefit for the

http://onao.co.jp/english_index.html


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group, with each member household having increased their monthly income by VND 500,000. Some of

this extra income villagers have used for improving their daily lives and the rest they have put in a

group revolving fund pool used to buy necessary tools.


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III. VALUE CHAIN ANALYSIS

III.1 Handmade Paper Overview

Handmade paper, or "Giay Do", is a type of paper which is produced from the bark of the "Do" or

"Duong" trees, with the scientific name of broussonetia papyrifera (paper mulberry). It is based on a

handicraft process, which has been transferred from generation to generation in several traditional

handicraft villages of Viet Nam. Handmade paper has existed thousands of years with famous names

such as Nghia Do, Yen Thai, Phong Khe, An Coc villages. However, many villages have been

disappearing or do not keep the prestigious value of handmade paper. "Giay Do" is used for painting in

Vietnamese popular arts, especially to make Diep paper for "Dong Ho" paintings, or used for archival of

documents thanks to its durability over time.

Table 4: Dong Ho Painting Briefs

Dong Ho painting (Vietnamese: Tranh Đông Hồ or Tranh làng Hồ), full name Dong Ho folk woodcut painting is a genre of Vietnamese woodcut paintings originated from Dong Ho village in Bac Ninh Province, Viet Nam. Using the traditional handmade paper and colors derived from nature, craftsmen print Dong Ho pictures of different themes from good luck wishes, historical figures to everyday activities and folk allegories. In the past, Dong Ho painting was an essential element of the Tet holiday in Viet Nam; this tradition has gradually declined under the influence of modern types of painting and fake Dong Ho products. However, the art of making Dong Ho pictures is always considered a symbol of traditional culture and aesthetic value of Viet Nam.

Rat's wedding, a popular example of Dong Ho painting

In printing pictures, Dong Ho craftsmen use a special type of paper named "diep" paper. "Diep" paper is obtained in almost the same way as "Do" paper, the bark of "Do" tree, is soaked in water for months, and then mixed with powders of seashells, which is the origin of the paper's name, and glutinous rice to make sheets of paper. Thanks to the element of seashell and glutinous rice, Diep paper possesses an exotic sparkling hard background and is able to conserve the durability of colors. The colors of paint used in printing are refined from various kinds of natural materials which are easily found in Viet Nam. For instance, the red color is taken from red gravel in Thien Thai Mountain while the black comes from coal of burned bamboo leaves. In that way, Dong Ho painting can keep its colors for a long time. The last stage of making Dong Ho painting is printing, the woodblock is applied with paint and pressed on a sheet of paper like a stamp, and the process is repeated with different colors until the craftsman is satisfied with the painting. There is one woodcut for outline and several others for each color printed, they are carefully engraved by hand so that the woodcuts can be preserved through generations. The finished picture is covered with a layer of rice paste to strengthen the durability of its illustration and colors and afterwards dried under the sun.

Source: Wikipedia


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Studies undertaken in several “Do” paper making productions in Viet Nam have revealed that the

production process can be considered as handmade paper production. There are no chemicals used,

which may create acid inside the paper. The bark of the “Do” or “Duong” trees is boiled and soaked in

lime water for a period of three months, the black layer of skin is removed, the remainder is pounded

with mortar and pestle and then the pulp becomes cohesive in a sticky liquid. When making the paper,

the worker uses a paper web making frame to oscillate a small amount of “Do” paper pulp in a tank.

The layer of “Do” on the screen is then becoming the “Giay Do” after the finishing processes of

pressing, drying and rolling flat. “Do” fibers adhere together like a spider web in many layers creating

“Giay Do”. Such webbing makes the paper very spongy, and as such the paper is very light. The last

process is drying under the sun or heat-drying. Production tools are mainly made of bamboo and

wood. “Giay Do” produced in this manner doesn’t contain acid, so it leads to long life paper, which can

last for 500 years according to some records. Physical and chemical features of “Giay Do” include:

Light and spongy, durable and not blurring when painting or writing on, very seldom to be

rotten, or crusty;

Durability: In the national archival centers, among other handmade paper documents, the ones

with “Giay Do” have the longest life;

Catching colors, absorb humidity and escape from humidity: As it is spongy, it is easy for “Giay

Do” to catch color when writing or printing on it;

Heat and sound insulation: As it is spongy, handmade paper has its advantages of heat and

sound insulation as it fibers patterns is multi-direction.

III.2 Handmade Paper Production Processes

There are 12 steps in production of "Giay Do" or handmade paper:6

6 Based on interview with Mr. Nguyen Van Chuc, team leader and HRPC materials on Green paper

1

CUTTING "DUONG" & "DO" TREES

Select tree branches, which are 1 year old, with about 2-4 cm in diameter and 60-90 cm in

length. Cut them down and tight together in bundles of 20 cm;

The material collector should also cut down the unqualified branches in order to

encourage the young shoots to grow again, so that they can harvest the next round in 6-8

months. The cutting process should be done very carefully to avoid scratches on the outer

bark of the branch and to avoid any harm for the tree roots.

Working safety must be applied such as safety hat, working gloves and boots.


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5 MATERIAL DRYING & STORAGE

The material is naturally drying under the sunshine by hang on a steel wire

After the drying process, they are stored indoor.

4

MATERIAL WHITENING

Natural whitening is done in the river or in the running-water tank. The quality of water has

great impact on the degree of whiteness.

Sun drying is also recommended in the summer for natural dry and whitening process.

However, it is forbidden to let rain water in the materials as it may change the color.

3

PEELING & SCRAPING

The materials are peeled off immediately after getting out from the steaming pot. If the

tree is big (4 cm), the outer bark can be split into two pieces. If the tree is small, the outer

bark should be peeled off in one piece.

The scraping and cleaning process is very important to make qualified paper. The outer

bark is put on a steady wooden board, and then is scratched by a small knife to make the

outer green color off. All the notches and dirty pieces are cut off. The qualified material is a

nice & white piece.

Any leaves of "Duong" trees should always be kept away from the material processing,

because there was bad experience that the material became all green if it was put next to

"Duong" leaves.

2

MATERIALS STEAMING

Duong & Do branches are steamed within one week after harvesting. The bundles are put

carefully on the steaming pot. Water is always kept about 20 cm. The wooden lid should be

very strong and do not let the air go in & out.

The steaming process lasts for 2 hours for Duong & Do, 1.30 hours for fan-palm & 1.15

hours for banana & pineapples leaves. Summer & winter and the age of material may affect

the length of steaming, therefore, the supervisor should take note of the time put in and

get out. The supervisor should check the materials gradually and if the outer bark is shorter

than the inner bark about 1-2 cm that means it’s OK.

No chemical or additional substances required for this step.

Duong trees are grown in Hop Hoa

commune


P a g e | 18

9 FIRST PRESSING

The pile of paper is pressed with a pressing tool to get all the water out. This is a very

important process and should be done slowly. No need to press too much, otherwise the

paper will be cracked out.

8

PAPER MAKING

The beaten materials are put into a tank with water. The materials should be stirred very

carefully. The tank should be kept absolutely clean, anything falling into the tank will be on

the face of the paper. A deckle and mould are needed, both are made by “Thi” or pine

wood with a bamboo screen inside. Hold them both together and submerge both under the

water with the pulp in it to capture the pulp on the screen. Withdraw the mould and deckle

slowly and evenly allowing the water to drain back in to your tank.

During this process, many decorative items can be added such as dried flowers, colorful

thread, souvenir items so that they can stick between two layers of paper.

The paper is put together one layer after another and has to wait 24 hours before pressing.

7

MATERIAL BEATING

After cooking, the material is soaked into cold water and cleaned very carefully until the

favor of ash and lime disappears. They are squeezed out and ready for the beating process.

The material is put into a steady wooden board and beaten with wooden cane during 1

hour. The mortar can be used. This manual process makes the paper fiber strong and nice.

6

MATERIAL COOKING

The Do & Duong materials are put in to a cooking pot with water. In other places such as

Bac Ninh, they usually use NaOH or Na2CO3 in this process. However, due to expensive

chemical substances and also the available of lime (cement factory nearby Suoi Co hamlet)

and available of ash from rice straw, the group is now using lime and ash to cook the

material.

The Duong & Do material is cooked within 4 hours, other trees (banana, straws and

pineapples leaves) are cooked for 2-3 hours. Once again, the weather and the quality of the

material also influence the duration of the cooking time. The supervisor should take note of

the time put in and out. Besides, they must stir the materials every 30 minutes; check the

material every 15 minutes after the first cooking hour. They check the material by tearing it

into two pieces; if two parts have short saw-tooth, it means OK;

During the cooking process, remember to cut the tight rope because it will make the part

tighten uncooked.


P a g e | 19

Handmade paper is used then to produce final handicraft paper products, such as paper bags, photo

frames, notebooks, business card holders, gift boxes etc, or just simply for calligraphy and painting.

However, the volume used for latter purposes (calligraphy and painting) is very limited. Moreover, in

Bac Ninh province, there are still households continuing to do "Giay Do" production, who can supply

the market for "Dong Ho" painting or calligraphy. Thus, handmade paper produced by Hop Hoa

villagers is largely used for making final handicraft products. The previous project had helped

producers selling their products through domestic trade fairs or an online business portal

(http://www.hrpc.com.vn) and export to a Japanese company. The designing, printing and finishing

techniques are being supported by the Technical and Designing Department of the Viet Nam

Handicraft Research Center. HRPC continuously supported the producers during the previous project

for 3 years and now the group is able to make high quality handmade paper products, which can be

exported to Japan.

Some of the important things that the producers use are natural substances available in the area such

as flowers, roots, leaves, trees bark, etc. to dye papers and final products:

The orange is made from “Hoang Dang”, a kind of root available in the forest

The light yellow is made of eatable flowers while the deeper color is made of saffron

The dark blue is made from indigo trees

The green is made of “rau ngot”, a kind of eatable vegetable

The dark brown purple is made of “Cam Nau”, a kind of eatable leaves.

The pink is made of “Cam Hong”, a kind of eatable leaves usually use for steamed glutinous

rice during traditional festivals.

Among the above colors, pink is the most complicated color. The dyeing material is made of “Cam

Hong”, the leaves must be picked early morning before sunrise. After picking, the leaves must be put

on the ground and be processed into products during daylight. If the leaves are preserved overnight, it

will not have any color. The table below shows some pictures of natural substances used for dyeing.

10 PAPER SPLITTING

After pressing, the piles of paper wait for about 1-2 days before splitting them into

separate sheets of paper. The splitting process need to be done carefully. Producers usually

put a small piece of tape between two sheets, so that the splitting process is very easy.

12 FINAL PAPER PRESSING

A pressing tool is used to make the paper flat. All other processes are affected by this final

process, so this is very important. The longer they press and the more pressure that they

use, the stronger your paper will be.

11 PAPER DRYING

Paper can be dried naturally in summer time or in the drying oven in winter time. The

paper is put on the smooth surface, until it becomes totally dry.

http://www.hrpc.com.vn/


P a g e | 20

Table 5: Natural Substances Used in Dyeing Process

“Hoang Dang” “Rau Ngot” “Hoa Hoe”

Saffron Bamboo leaves “Cam Hong”

III.3 Value Chain Mapping and Quantification of Actors

Currently, there is only one group of beneficiaries consisting of the 25 people in Hop Hoa commune

involved in "Giay Do" production. This is a result of the previous project and the number of members

has remained unchanged since the project ended. Initially, final products were marketed and sold at

trade fairs and some retailers. Nowadays, ONAO Company from Japan purchases all outputs made by

the group and there is a mutual agreement on selling exclusively to this client only. The table below

illustrates the current value chain map for handmade paper in Suoi Co village, Hop Hoa commune, Hoa

Binh province.


P a g e | 21

Table 6: Map of the Current Handmade Paper Value Chain

The collectors in the chain are the same group of 25 people involved in the production of handmade

paper. "Duong" trees are mostly grown in the forest in a very natural and scattered way. The trees can

be found on the road side of the commune or in someone's garden in the area. There is no area for

planting the materials, except for few plants being grown in gardens of some members of the producer

group. Normally, a group of 10 people goes together to collect bark in the forest or anywhere they can

find "Duong" trees. The distance between the commune and forest is about 10-15 km with unfavorable

roads. During each trip (one whole day), the collectors can take 4-5 cubic meters of "Duong" tree

(equivalent to 3.5 tons). They don’t have to pay for these materials, but have to cover the costs of

transportation, meals and other expenses for a group of 10 collectors. These costs are estimated at 1.5

million VND (US$ 75).

Once "Duong" trees are collected, they start producing with the 12 steps as mentioned in the

production procedure (section III.2). Mr. Nguyen Van Chuc, team leader of the producer group, uses his

house as the production area. Some pictures of the "production area" are shown below. Production

tools and equipments include a pounding tank, grinding machine, drying room, Duong and Do boiler,

paper web forming frames, paper pressing tools. They are all manually made by craftsmen, mostly

from Bac Ninh province. Some of them can be made by members of the group, but others such as the

paper web forming frames (made from wood) cannot be produced by them. Instead, they have to buy

this particular tool from Bac Ninh. Even if this tool is quite simple and made of wood, they cannot make

it, because know-how was not transferred from Bac Ninh villagers. They don’t know which kind of

wood is used and how to avoid deforming under hot temperature.


P a g e | 22

Since the group of producers is using Mr. Chuc's house for production, the working conditions are not

well-organized and work safety is not considered a priority. This must be upgraded to align with

expansion and development strategies. The table below shows some pictures taken at the "production

sites".

Table 7: Production Areas at Mr. Chuc's House

Handmade paper is a semi-final product, as it becomes an input for the production of final products,

which are classified in different groups of products:

Paper group: Banana paper, “Duong” paper, “Do” paper, Thailand style paper (this type is

exclusive style of a Japanese customer), bamboo paper, palm paper, rice straw paper;

Stationery group: letter head paper (natural vein paper which is able to print nicely by LaserJet

printer), envelopes, book marks;

Gift group: Albums, notebooks, post cards, pictures frames, calendars, boxes.


P a g e | 23

Table 8: Some Handmade Paper Products Lines

Paper bags

Plain paper can be used for calligraphy/painting or inputs for other final products

Paper stationery: note book, photo frame, card holders…

Those products were initially introduced, under the support of HRPC, at a number of trade fairs and

they were also listed on the HRPC website in order for the producers to find selling opportunities to

international buyers.. Later on, the Japanese ONAO Company accepted to order all outputs made by

the group. However, ONAO just buys the paper to serve as inputs for their final production. Each

month, ONAO orders around 750 sheets of paper (size 80cm x 55cm/sheet) at VND 7,000 per sheet.


P a g e | 24

Table 9: About ONAO Company

III.4 Economic Analysis of the Value Chain

The calculation of value addition for handmade paper is based on the following estimates:

The cost for collecting 4.5 cubic meter of "Duong" trees (about 3.5 tons) is VND 1.5 million.

This cost does not include the price for the trees as they are collected free of charge in the

forest;

From the 3.5 tons of trees above, about 1,500 sheets of paper are made (requires one month

to process and then sell to ONAO Company);

Labor cost for producing above production is VND 6,000,000 (300 man-days x VND 20,000 per

man-day, for one month);

Selling price is VND 7,000 per sheet;

Some other costs are not quantifiable, for example heating (people collect dry trees free-of-

charge to steam and cook trees bark), estimated at 10% of total cost.

Revenues: VND 7,000 x 1,500 sheets: VND 10,500,000

Cost: - Materials cost: VND 1,500,000

- Labor cost: VND 6,000,000

- Other expenses 10% VND 750,000

---------------------

Profit: VND 2,250,000

Thus, value addition for producing each sheet of paper is VND 5,500: (profit + labor)/number of sheets

produced: [(2,250,000+6,000,000)/1,500 sheets].

This profit goes to the team leader, as he invests the initial money to pay labor cost for collecting trees

bark and producing paper. Thus, the members of the group can earn an additional income of VND

20,000 per man-day (as labor costs) as they don’t work full-time for this work. So if all 25 members

participate in the production, each member can earn VND 240,000 per month on average (12 man-

days x VND 20,000). But in reality, participation varies depending on the availability of members. Some

can work up to 25 man-days, while others just work for a few days.

ONAO Co., Ltd. was founded in January 1974. The origin of Onao’s company name is onao, the highest grade of shoingami paper used for akari-shouji sliding doors, and its history has progressed alongside the history of Ichikawadaimon’s paper industry. From the exquisite hadayoshigami, which originates from this town, to other fine washi papers, we would like to continue delivering the tranquility of traditional Japanese washi paper that is traditional yet fresh, to everyday living.

Address: 184-3 Takata Ichikawamisato-cho Nishiyatsushirogun, Yamanashi, 409-3606 JAPAN Phone : +81-(0)55-272-0321 FAX : +81-(0)55-272-0323

Source: http://onao.co.jp/english_aboutus.html

http://onao.co.jp/english_aboutus.html


P a g e | 25

In order to produce a final stationery item such as a notebook, it takes around two sheets of paper and

some other additional inputs such as cover, decoration, glue and labor cost. One man-day (costs VND

20,000) can make 5 items, which is priced at VND 30,000 per item. Cover, decoration and glue are all

estimated at about VND 1,500 per notebook. Thus, the calculation of economics to produce one

notebook as follows:

- Selling price: 30,000

- Costs:

o Two sheets x 7,000 = 14,000

o Labor 20,000/5 = 4,000

o Other inputs = 1,500

o Total costs 19,500

---------

- Profit per item: 10,500

Therefore, the VA created in this process is VND 14,500 (profit 10,500 + labor 4,000) per notebook. As

one notebook requires two sheets of paper, thus value addition per sheet is VND 7,250. The

presentation of value addition is illustrated in the Table 10 below. All calculations are made on basis of

one notebook sold.

Table 10: Calculation of Value Addition per Handmade Paper Notebook Sold


P a g e | 26

Actually, the collectors of bark are also the producer group members and they are themselves selling

final items directly through domestic trade fairs. Thus, value addition is created in two main processes

instead of by different actors.

III.5 Constraints Analysis

Constraints of the subsector normally fall into the following categories:

Input supply: As mentioned in the previous parts, Duong trees are grown in a scattered manner

and it becomes tougher to collect enough material for production. Households are now trying

to grow Duong trees in their gardens, but the size is generally limited. There has not been a

land area allocated for material planting with clear support commitment of local authorities. As

a consequence, insufficient quantities of raw material lead to delay in delivery;

Market access: The current group depends totally on one client, i.e. ONAO, and there is no

chance for other buyers to purchase handmade paper products from the current group of

producers. Even if the group would increase production, there is little chance for them to find

markets due to limited marketing/selling capacity;

Technology and product development: The production is done entirely manually with very

simple tools and equipment. As a consequence, some steps in the production process are

strongly influenced by climate conditions. For instance, if it rains, the drying process under

sunshine cannot be done. There is also an impact on the material quality if it has passed

steaming/whitening but cannot be dried after that. Furthermore, design skills are very limited.

Producers depend on support from HRPC for final product designs, i.e. bags, stationery, photo

frames, etc.;

Organization and management: Currently, the group of producers is organized on a voluntary

basis as a result of the previous project. The team leader, who is quite active and business-

minded, can get the involvement of other members, but might face problems if the group

expands;

Services: Training programmes, especially technical ones, were provided by craftsmen from Bac

Ninh province (e.g. Mr and Mrs. Hien & Them) with support from another NGO during the

previous project. After the end of the project, no more training was provided. Thus the quality

of paper is still unstable and sometimes refused by ONAO Company.

III.6 Meso Level Support Institutions and other Projects

The handmade paper industry in Viet Nam is represented in only few areas such as Phong Khe (Bac

Ninh), Yen Thai (or Buoi, Ha Noi city) and Hop Hoa as a follower. There is no association (business or

technical), which would be supporting the development of the subsector. As mentioned in previous

parts, there was only one project implemented by the Centre for Community Socio-Economic and

Environmental Development (CSEED: www.cseed.org.vn) and the Handicraft Research and Promotion

Center (HRPC: www.hrpc.com.vn) from 2005-2008. Since the end of this project, there has been almost

http://www.cseed.org.vn/



P a g e | 27

no intervention from any meso level institution, even if the local authorities want to support the

subsector. The table below summarizes the key constraints to be found at meso level:

Table 11: Constraints at Meso Level Institutions

Some meso level institutions contacts:

Institute of Paper: 12/55 Chinh Kinh – Thanh Xuan – Ha Noi, Tel: (04) 399.

58. 451 (http://vnpaper.net)

Viet Nam Pulp & Paper Association: 18C Pham Dinh Ho, Hai Ba Trung, Ha Noi Tel:

38210455 (www.vppa.com.vn)

VN Handicraft Exporters Association: 20 Ly Thuong Kiet, Ha Noi, Tel: 39399284

(www.vietcraft.org.vn)

Vietnam Handicraft Research &

Promotion Center: 13 Lac Trung, Hanoi (www.hrpc.com.vn)

http://vnpaper.net/

http://www.vppa.com.vn/

http://www.vietcraft.org.vn/



P a g e | 28

IV. VALUE CHAIN UPGRADING STRATEGY

IV.1 Market Opportunities and Competitive Advantage

Handmade paper and products from paper embody the cultural spirit of Viet Nam. Therefore, foreign

tourists coming to Viet Nam are important potential buyers of for handmade paper products.

According to the General Statistic Office (GSO), during the first 7 months of 2010, altogether 2.9 million

foreign visitors have come to Viet Nam (increase of 35% in comparison with same period of 2009), out

of which 1.85 million visited the country as tourists. This target group can be attracted relatively easily,

provided that the handmade paper products presented are unique, well designed and of good quality.

This target group is likely to buy from local selling channels such as retailers/shops in Hanoi, Ha Long

bay (Quang Ninh), Sapa (Lao Cai), Hue, Da Nang, Hoi An (Quang Nam), Vung Tau, Nha Trang, Da Lat and

Ho Chi Minh City.

An international benchmark for the handmade paper industry is Nepal, which exported handmade

paper of a value of 269 million Nepalese Rupees (equivalent to 3.6 million USD) in 2006 and 76% of this

volume were sold to the US, UK, France, Japan and Switzerland.7 This reveals that there is export

potential for handmade paper and that Vietnamese products have not penetrated these markets yet.

IV.2 SWOT Analysis

The Table 12 below analyzes SWOT for handmade paper in Hop Hoa commune.

Table 12: SWOT Analysis for Handmade Paper in Hop Hoa

Strengths Weaknesses

Very unique products and potential for export;

Easy to get attention from government agencies for

preservation of handmade paper as cultural characteristic of

Viet Nam (e.g. Dong Ho painting on handmade paper);

The materials for handmade paper are existing in the

commune and can be easily grown in the area;

Low capital investment required (mostly manually made);

Viet Nam Handicrafts Research and Promotion Center

(HRPC) together with Japanese experts (ONAO Co.,) support

on production know-how and marketing;

Close to Hanoi City (about 40 km far away), easy

transportation of products to the Hanoi.

Manual/crude technology in paper

making resulting in unstable quality;

Lack of standardization (production)

based on experience and traditional

ways;

Lack of design and quality expertise

for meeting export requirements;

Awareness and responsibility of

people in commune is weak;

Range of products is still limited (less

diversified).

Opportunities Threats

Niche market opportunities (e.g. foreign tourists want to

experience the cultural spirit of Viet Nam);

Best promotion tool for tourism development in the

commune;

Fast changing customer

requirements in terms of quality and

design;

Competition of paper from Thailand,

7 GB Banjara (2007), Handmade Paper in Nepal, GTZ


P a g e | 29

Luong Son district has supported the commune to develop

handmade paper profession;

Export potential: US, Europe and Japan are big importers of

handmade paper from Thailand (Saa paper), Nepal (Lokta

paper), this provides also chances for Vietnamese

handmade paper.

especially, the Saa products from

“One Tambon One Product” in

Thailand or Lokta paper in Nepal.

IV.3 Vision

Proposed VISION: "To build a sustainable handmade paper subsector in Hop Hoa commune with Duong

trees plantation and higher quality of paper that is attractive to local consumers, foreign tourists and

international buyers"

With the above vision, the project aims to assist 250 beneficiaries in Hop Hoa commune (including the

current group of 25) with 150 people involved in Duong trees growing and 100 producers of handmade

paper. Specific upgrading solutions include:

Sustainable Duong tree cultivation is introduced;

The number of handmade paper makers in the commune is increased;

Production capacity and skills of final products producers are upgraded;

New markets are developed.

Besides the current group of 25 producers, about 225 additional people will be involved in the chain, as

illustrated in Table 13 below.

Table 13: Intended Value Chain Structure after the Intervention of the JP Project


P a g e | 30

The current group of 25 people will be expanded into 50 people serving the current Japanese client,

ONAO. Another group of 50 people will be serving other potential customers through other channels

such as UMA, fair trade importers, retailer shops at tourist spots. As tree growers usually would take

paper production on as this as an additional job, they might be able to participate in the process of

production. Therefore, the number of producers might be higher than 100. In order to connect these

two groups, formulation of cooperative might make sense to ensure commitment of each actor in the

chain.

IV.4 Suggested Facilitation Activities

Table 14 below proposes facilitation activities for each of the upgrading solutions for the handmade

paper value chain, which are mentioned above.

Table 14: Upgrading Solutions and Facilitation Activities

Upgrading solution 1:

Sustainable Duong tree

cultivation is introduced

Related facilitation activities:

Work with the local authorities on land allocation for Duong trees:

increase areas of Duong trees plantation and the number of farmers

involved in bark collection with transfer of skills in debarking and cutting

the trees;

Train 150 new people (bark growers) on techniques of growing and

collecting bark;

Find other sources of raw materials such as banana tree body, straws

and pineapples leaves, etc to grow together with Duong trees.


The number of handmade

paper makers in the commune

is increased


Train a new group of producers on techniques to make quality paper

and enhancing their production capacity: take a few experienced

persons from the existing group and train others. As the targeted

beneficiaries are 100 producers, organize them in 3-4 groups. The

training may take 6 months and require the invitation of an expert from

the Institute of Paper and some experienced craftsmen from Bac Ninh

province;

Standardization of handmade paper quality; preparation of a manual for

the production process;

Introduce and train paper grading techniques for producers;

Organize exposure visits to other countries such as Thailand, India,

China or Nepal to exchange experience in producing and marketing

paper product.


Production capacity and skills

of final products producers are

upgraded


Strengthen the design capacity and skills of producers to diversify the

production of final products by creating new designs with better quality;

link the group with foreign designers to transfer design and sampling

products;

Find and assist a creative designer who can make new designs for

handmade paper products;

Work with the University of Industrial Arts and Design


P a g e | 31

(http://design.edu.vn/) to organize some contests on “excellent/best

handicraft design award” for products in project areas. This is a chance

for the university students to take part in practical exercises that help

improve design handicraft products of Viet Nam.


Market development and

diversification


Develop a brand for handmade paper in Hop Hoa commune as a unique

identity for both domestic and international markets. This requires a

good branding strategy and implementation;

Strengthen ties with ONAO company;

Link the producer group to local retail chains, such as UMA;

Link the producer groups to fair-trade exporters and importers;

Participate in domestic and international fairs and exhibitions

Support in designing promotional materials, etc.;

Support some retailers in tourist spots with direct links to handmade

paper producers in Hop Hoa.


Address environmental, labour

and occupational safety and

health issues in order to meet

market requirements.


Investigate and build capacity to address environmental concerns in the

hand-made paper production process;

Investigate and build capacity to improve occupational safety, health

and labour conditions among hand-made paper growers, collectors and

producers, taking international buyer requirements fully into account.

http://design.edu.vn/


P a g e | 32

V. RECOMMENDATIONS

As the production of handmade paper in Hop Hoa Commune is currently limited to one small group of

25 people and the products are solely exported to ONAO Company, the development of the subsector

in the area depends strongly on an expansion/upgrading plan as mentioned in Table 14. A clear action

plan must be made by the PMU urgently with the following priorities:

Confirm the interest of targeted beneficiaries and organize a stakeholder meeting to launch

the formation of new producer groups to take part in the expansion plan;

Ensure local authority commitment on land allocation for Duong trees plantation;

Support the plantation of Duong trees, as it takes one year to harvest bark for production: In

the initial time, trees can be grown in household gardens and around Hop Hoa commune for

ease of collection; support to growers on growing techniques;

Training for new producer groups: Organize training programmes with participation of current

producers, paper experts from HRPC, Institute of Paper and experienced craftsmen from Bac

Ninh province;

Support for production tools and equipment: investment in production area for new group.


P a g e | 33

VI. APPENDICES

Appendix 1: List of Interviewees at Provinces

(Done by the authors from July 04 to 18, 2010)

# Name Title Organization Contact

Hoa Binh Province

1. Mr. Ha Ngoc Son Deputy Director

Rural Development Division,

DARD

0977868999

2. Mr. Nguyen Ho

Thuy

Head of Rural Handicraft 0903482558

3. Mr. Dinh Van Vien Expert

4. Mr. Van Trong Khoi Head of Industrial Management Department of Trade & Industry

0912877992

5. Mr. Pham Xuan Dan Deputy Head of Industrial Mgt

6. Mr. Pham Trung

Han

Head Industry Promotion

Center

Department of Trade & Industry 0913296271

7. Ms. Do Thi Kim

Tuyen

Expert of Trade Promotion Unit Department of Trade & Industry 0987056148

8. Mr. Duc Deputy Head of Agriculture Unit Agriculture Dept., Luong Son

Dist.

0913251687

9. Mr. Nguyen Van

Chuc

Team Leader, Handmade Paper Hop Hoa Commune, Luong Son 01649405385


P a g e | 34

Appendix 2: Project Areas Profiles (2009)

# Project Area by

Administration Units

Population

(people)

Area size

(km²)

GDP/

capita

(USD)

No of

house

holds

Ethnic

minority

(%)

% of

the

poor

1 Phu Tho Province 1,364,522 3,532.9 1,320 274,908 14.11 13.2

Cam Khe District 131,929 29,919 0 15

Tinh Cuong Commune 2,963

2 Hoa Binh Province 788,274 4,596.4 894.7 174,198 72.27 16.56

Mai Chau District

Na Phon Commune 1,696 368 10,1

Pa Co Commune 2,282 438 35,6

3 Thanh Hoa Province 3,405,000 11,120.3 780.0 746,428 17.57

Thieu Hoa District 195,000 175.47 592.1

Thieu Do Commune 8,000 1,700

4 Nghe An Province 3,113,055 16,487.0 758,333 13.41 14.45

Quy Chau District 52,627 12,435

Chau Tien Commune

Chau Hanh Commune

Dien Chau District 267,216 68,662

Dien Kim Commune

Source: Provincial General Department of Statistics Yearbook 2009 and author's compilation


P a g e | 35

Appendix 3: Programme Coverage Area


P a g e | 36

Appendix 4: Bibliography

GB Banjara (2007), Handmade Paper in Nepal, GTZ;

Matthias L. Herr & Tapera J. Muzira (2009), Value Chain Development for Decent Work,

International Labour Office;

MARD (2009), Report on Raw Materials for Handicraft Villages, Hanoi;

Andreas Springer-Heinze (2008), ValueLinks Manual, GTZ;

Le Ba Ngoc (2008), Preliminary Survey on the Project on Capacity Development on Artisan Craft

Promotion for Socio-economic Development in Rural Areas in Viet Nam, JICA & HRPC.

value chain study for handmade paper in hoa binh … · value chain study for handmade paper in hoa...

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