Viethands
Viethands rattan bamboo handicraft production and trading
The traditional trade of rattan bamboo weaving with over 400 year history in the villages of Phu Nghia commune, Ha Tay province is endanger of loss. Viethands Social Enterprise, with my special interest in doing business for poverty reduction and cultural preservation, aims to directly create jobs and increase income for at least 300 local producers in three years and; help preserve a 400 year traditional handicraft trade
Facts
2008
| Two years ago: | |
| Last year: | |
| This year (forecast): | 100,000 |
| Year 2 (forecast): | 300,000 |
| Year 3 (forecast): | 500,000 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | -5000 |
| Year 2 (forecast): | 10,000 |
| Year 3 (forecast): | 30,000 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | 4 |
| Year 2 (forecast): | 6 |
| Year 3 (forecast): | 7 |
How do you expect this to be financed?
| Own Contribution in cash | 12,000 |
| Loans (debt) | 20,000 |
| Shares in your company that you offer to investors (equity) | |
| Other sources | |
| Total finance needed (US$) | 32,000 |
The Business
The business of Viethands is handicraft production and trade. In the first period (3 years), Viethands will target rattan-bamboo products such as baskets, frames, furniture, other house wares, home and outdoor decoration items
Our products and services will be special to both buyers and suppliers:
To our buyers, Viethands will provide special products from special producers with special services. Rattan-bamboo crafts will be produced by artisans from Chuong My district, Ha Tay province where rattan-bamboo weaving is a traditional trade with a history of over four centuries. There are now a limited number of skillful artisans remaining, the weaving patterns are recognized unique. Therefore, every buyer can contribute to preserve traditional trade and culture. Our products are diversified and fashionable with the adaptation of traditional patterns to practical functions.
To our suppliers (artisans): Training to develop skills will be provided free of charge (existing companies does not provide trainings but exploit existing artisans). Self-help groups will be develop to help members secure their livelihoods and social status (this is our unique that other companies do not have). Viethands will also give special priorities to the poor, disadvantaged people and women. We will also look at stable material supplies in terms of quality and quantity to our producers which other companies are not paying attention to. Profit from the business will be reinvested to improve artisans’ skills, develop traditional trades or other development projects.
To make our products and services special following are our strategies
1. Make the company a true social enterprise. The company will register as a social enterprise with a commitment to contribute all of the company’s profit to traditional trade and social development. Transperant accounting and auditing system will make Viethands become customer friendly. Viethands product will developed as a chritiable product. every purchase will contribute to the development of Vietnam handicraft and other development intervientions.
2. Aims to become a quick and high quality supplier. In the current years, Vietnamese companies have missed many big orders. The reason is that they do not have enough producers for a large quantity in a short period of time. While start-up with small orders, Viethands will pay special attention to increase and stablize the number of skilled producers so that we can secure our product and service quality. Firstly, we will provide free of charge training courses to producers. Secondly we will introduce them into producer groups to increase coherence and self-support among members. Furthermore, the company will guarantee fair wages and social welfare to producers. These will improve the producer skills, income and ensure their commitment to the company.
3. Make product diversified and fashionable. The current situation of Vietnamese handicraft is poor in models. Beside competitive price as a strength of Vietnamese handicraft, special and diversified products will make the company soon to be well-known. The most skilled artisans will be invited to provide training to producers. Designers will also be hired to develop new models and art items.
Marketing strategies and actions of Viethands are:
1. Provide supply for big exporting companies to secure the company income at establishment stage
2. Become a direct seller in domestic and international markets by: opening a showroom and stores in Hanoi, open a website for e-business, communicate with international importers and attending trade fairs, etc.
3. Develop Viethands brand name as a social enterprise for handicraft development and social and economic wealth of handicraft producers.
1. Supply for big exporting companies: Right after the establishment, Viethands will operate as a satellite for Vietnam Rattan-Bamboo export company. This company has big orders from international buyers and it wants to develop satellites. In fact, the company used to make contracts with existing producer groups but it still want to have a more professional supplier. The company management has committed to continue such partnership. A MoA will be negotiated before Viethands established. This buyer will secure the company sales at the establishment period. Other contracts will also be signed this way to secure the company sales.
2. Approach more buyers and become a direct trader: At the beginning, a store will be open in Hanoi (20km from Chuong My bamboo-rattan villages). It functions as both a retail store and a whole sales showroom. Hanoi is one of the biggest handicraft market in Vietnam. Using handicraft house wares and decor items is becoming very popular in this city. Tourists are also potential buyers of the retail store. Furthermore, Hanoi is a window to access international whole sales market as many international handicraft trader visit the city every year. As it just take maximum 30 minutes to get Hanoi from production area, transportation cost is minimize, and it is easy to show our whole sale clients the production site. New stores will be opened based on domestic market researches later on. A website will be developed right after launching the company. The website particularly aims at online business and marketing our product to international market. Through internet and other active means such as trade fair, bazaar, email, etc. the company will communicate directly with international handicraft importers to seek opportunities for international market access.
3. Develop Viethands brand name: The model of social enterprise which target the producer benefit is a strength of Viethands. With this model, Viethands will commit with social mission driven to nurture high commitment from producers and the favor of customers. The commitments of Viethands to development are to ensure triple bottom lines: fair wages and social wealth for producers, development of Vietnamese traditional
handicraft trade, and environmental friendly. A Viethands logo has been developed.
Every purchase can contribute to preserve and develop traditional handicraft trade and culture, poverty reduction and environment protection. Viethands products will integrate traditional and cultural features into fashionable items. Therefore, it help preserve and develop traditional knowledge. The company will also aims at fair wages for producers and artisans. Furthermore, profit from business will be reinvest to handicraft or other development projects.
The Entrepreneur & Management
I have almost ten year directly managing and running micro-credit and micro-enterprise development programs. Of which, a number or projects centre on handicraft production with various communities. Particularly, I possess three years helping handicraft artisans in Phu Nghia develop their business. I provice technical support to help them set up self-help producer groups, provide them with credit, technical training and link them with handicraft exporting companies.
Working in micro enterprise and development areas, I have develop a set with wide range of skills. Strategic planning and institutional appraisal skills could help me develop strategic development plans of the company. leadership, team work, communication, negotiation and problem solving skills that I gained from ten years in rural and business development are my valuable assets that can be utilized when leading the company as well as communicating and developing relationship with our partners.
Besides, I had three years involved in my family business doing food trading when I was still a university student. That build up in myself a sence of business.
Development
As a social enterprise, the vision of Viethands is for development. Firstly the company will contribute to poverty reduction by increasing stable and fair income for poor artisans and producers. At the beginning stage, the company will secure income for around one hundred producers. As the company’s sales developed, more producers will be trained and producer groups will be established. It is expected that after year 3, at least 300 producers will have secured income by producing rattan-bamboo product to the company. After year three, Viethands will diversify its products, not only rattan bamboo but also embroidery. It is expected that after ten years, Viethands will bring about change in livelihoods for at least 500 artisans, most of them are women, the poor and disadvantage people. From the yer three, when profit will has been stably generated, such profit will be use for humanitarian purposes then alot more communities and people will be benefit from Viethands business.
As a secondary impact, rattan-bamboo industry will contribute to the development of non-timber forest product industry which is promoting by the Vietnamse government and other international as a mean for forest protection. Over the last decade, the Vietnamese Government and International Organization promoted planting bamboo and rattan to increase non-timber forest income and reduce cutting off trees. It is estimated that a sum of 2000 poor mountainous people will benefit from the company business at the first period of three years.
Regarding cultural and social aspects, the company will have a significant contribution to cultural preservation. Phu Vinh, Phu Nghia and Phu My communes in Ha Tay have 600 year history of rattan bamboo weaving tradition. This trade is being endanger of getting loss after the collapse of the East-Europe market (late 1980s). The company will contribute to recover this cultural tradition trade. In addition, the company will help reduce the pressure of migration from this area to Hanoi. Every year man and women in Ha Tay has 7-8 spare months after cropping seasons, a large number of them move to Hanoi for earning. This cause problems in the city such as traffic jams, pollution, security, etc. Furthermore, their children have to live without care at home with high risk of child development, security and education. At-home job created by the company will help reduce such social problems. Most of artisans are women, helping women to increase their income is also a means to inprove their living and social status.









