export marketing guidelines arts and crafts- edited

DEVELOPING INTERNATIONAL MARKETS FOR

HOME ACCESSORIES AND GIFT ARTICLES

Export Marketing Guidelines for Vietnamese Craft Exporters

Prepared for: VIETRADE/ITC/WTO/UNCTAD


Table of Content

Page

Preamble 3

1 Are you Ready to Export? 4

1.1 Market Analysis (External Analysis) 4

1.2 Company Analysis (Internal Analysis) 9

1.3 SWOT Analysis 11

2 Market Entry Strategy 12

3 Preparing a Professional Presence 14

3.1 Marketing Material 15

3.2 Professionalize your Staff and Communication 19

3.3 Professionalize your Company Operations 21

3.4 Understanding Market Requirements to Improve your Presentation 23

4 Preparing Products for Export 24

5 Export Costing, Pricing and Invoicing 28

5.1 Export Costing and Pricing 28

5.2 Quotations and Proforma Invoices 31

5.3 Terms of Sale 33

5.4 Methods of Payment 34

6 Trade Fair Participations 38

6.1 Selecting the Right Trade Fair 39

6.2 Trade Fair Preparations 40

6.3 Participation Costs 42

6.4 At the Trade Fair 43

6.5 After the Trade Fair 44

7 Export Documentation and Shipping 45

8 Dealing with Claims 47

2


9 Appendixes 48

Preamble

Vietnam is a land of handicrafts1 thanks to the hardworking and creative Vietnamese people.

Fine Vietnamese handicraft articles are exported to over 120 countries worldwide. Products

such as ceramics, lacquer, wooden wares, bamboo and rattan products, textile, embroidery

etc. are nowadays becoming popular throughout the world as home accessories, home decor

and gifts.

Vietnam has been extremely successful in exporting craft products during the last few years.

It is estimated that 1.35 million inhabitants earn a living from producing or trading with

crafts, generating an export turnover of almost 600 million USD per year. However, if

compared with the consumption of home accessories and gifts in the world, the above figure

only accounts for less than 1% of the market volume. There is still tremendous potential for

further export increases.

These Export Marketing Guidelines are a manual which aims to provide practical and

comprehensive information to a large number of Vietnamese craft exporters. The Export

Marketing Guidelines serves the needs of both current and potential crafts exporters, showing

them how to enter and get a firm foothold in the world markets in the context of global

competition.

The authors thank all parties concerned who assisted in preparing the guidelines, notably the

Vietnam Trade Promotion Agency (VIETRADE) and the International Trade Center (ITC)

project team in Hanoi and Geneva.

Prepared by

Handicraft Research and Promotion Centre, Hanoi, Vietnam (www.hrpc.com.vn)

IDC – International Development Consultants, Aachen, Germany (www.idc-aachen.de)

Copyright

The information provided is aimed at assisting handicraft producers, exporters and business support

organizations in Vietnam. It may, therefore, not be used for re-sale, the provision of consultancy services and

other commercial purposes. For utilization of this information on a non-commercial basis, the condition applies

that VIETRADE is referred to as the source of the information. All other use is prohibited, unless explicitly

1 The handicraft articles covered in these marketing guidelines are defined in Appendix No.1

3

http://www.idc-aachen.de/

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


approved in writing by VIETRADE.

4


1 Are you Ready to Export?

1.1 Market Analysis (External Analysis)

To decide if your company is ready to export, first of all assess markets in order to identify

opportunities in the most suitable markets. Then assess to what extent your enterprise is

capable of taking advantage of the opportunities identified in the market analysis.

There are a number of promising markets for Vietnamese crafts in the world and it may cause

some difficulties for you to decide where you should focus your efforts. In general, you can

use the following step-by-step approach.

Step 1: Screen potential markets

Obtain trade statistics about handicraft imports in various countries and Vietnamese

exports. The General Statistic Office of Vietnam (presently located at No.1A Hoang Van

Thu Street, Hanoi) is the best place to find these sources of information, even for your

individual product (product codes according to the Harmonized System). Some

information about different major export markets is included in Appendix No.2 .

Identify 5 to 10 large and fast-growing markets for your products. Look at them over the

past three to five years.

Identify some smaller but fast-emerging markets that may provide particular

opportunities. If the market is just beginning to open up, there may be fewer competitors

than in established markets.

Target three to five of the most promising markets for further assessment. Consult with

experts, the Vietnam Trade Promotion Agency (VIETRADE) and others to help refine

targeted markets.

Step 2: Assess targeted markets

Identify importers, wholesalers and other main players in the market. Make yourself

familiar with distribution channels and business practices.

Identify the market segmentation by users (on demographic criteria, on customer

preferences, by price/ quality, etc). Who will want to buy what you can make and why?

What is their lifestyle, where do they live, what kind of products do they usually buy?

Examine price level and market trends for your company’s products as well as related

products. Ascertain the current supply sources, particularly with regard to major foreign

countries the firm is competing against.

5


Check market entry barriers (tariff or non-tariff) for the product being imported into the

country.

Identify incentives that are given by the Vietnamese government to promote exporting of

your products to these markets.

Examine shipping costs from your main ports to the target markets.

A company may research a market by using either primary or secondary data resources. When

conducting Secondary Research (desk research), a company collects data from compiled

sources, such as trade statistics for a country or a product. Working with secondary sources is

less expensive and helps the company focus its marketing efforts; as a result, most small

businesses begin researching their markets using secondary market information. Although

secondary data sources are critical to market research, they do have limitations. For example,

the most recent statistics for some countries may be more than two years old, product

breakdowns may be too broad to be of much value to a company, etc.

Popular sources of secondary data research include:

Trade associations ; for websites see Appendix No.3. There is a lot of information on

market statistics, up-to-the minute industry news, trade fairs, importers, and expert analyst

opinion which is provided by these associations.

The General Statistics Office of Vietnam (GSO) or other national statistic offices ; for

websites see Appendix No.4. Note that, for the effective search of data from statistic

offices, you should know well the Harmonized System (HS) codes of your products.

Trade journals and trade press ; for websites see Appendix No.5. These sources can be a

good indication of products which are in fashion (like for example “Tableware

International”, a leading journal on the international table and giftware).

Books on the home decor, home furnishings and handicrafts sector. Many of these books

can be found at the library of the Vietnam Handicraft Research and Promotion Center

(www.hrpc.com.vn), or you can buy them at bookshops in Hanoi and Hochiminh City.

Most of them can be bought through websites like www.amazon.com, www.barnes&

noble.com, etc.

International research agencies like Euromonitor (www.euromonitor.com), KeyNote,

Datamonitor (www.datamonitor.com) and Mintel (www.mintel.com), where you can find

a lot of information on markets, consumers’ lifestyle etc.

Trade agencies , like VIETRADE, Japan External Trade Relation Organization (JETRO),

the Center for Promotion of Imports from Developing Countries (CBI, the Netherlands),

the International Trade Center (ITC), Chambers of Commerce and Industry etc.. Here you

can find information on market surveys (segmentation, consumption, competitors, entry

requirements), market trends, statistics etc. For websites see Appendix No.6.

6

http://www.addall.com/New/GOTO/Barnesandnoble

http://www.addall.com/New/GOTO/Barnesandnoble

http://www.amazon.com/


Sector-related trade fair websites indicate new trends and often contain complete contact

information about leading market players. For websites see Appendix No.7.

The websites of trend-setting international companies and important fashion companies

give good insight into new color trends. In general, a website search of main importers in

target markets can increase your knowledge about product portfolios, designs, prices used

in the target market.

Information about upcoming trends and colors in the EU, Japan and US market can also

be taken from the “Trend Forecast” of CBI (www.cbi.nl), the Swiss Import Promotion

Programme SIPPO (www.sippo.ch), Japan Fashion Association (www.japan

fashion.or.jp), Trend Curve’s (www.trendcurve.com).

Buying or commissioning market research reports can be expensive. For a fraction of the cost,

and mostly even free of charge, much of the same information can be gathered from the

Internet. The Internet is one of the most important ways in which an exporter can obtain

market information. You can find almost everything there by using search engines like

Google (www.google.com) and Yahoo (www.yahoo.com). The Google search tools ‘froogle’

and ‘catalogues’ are extremely useful for product design and pricing. ‘Froogle’ shows

photographs of products and their prices ‘Catalogues’ is a directory of over 6000 scanned

catalogues with images of products and prices (http://froogle.google.com;

http://catalogues.google.com).

In conducting Primary Research (field research), a company collects data directly from the

foreign marketplace through interviews, store checks, trade fairs, and other direct contact with

representatives and potential buyers. Primary market research has the advantage of being

tailored to the company's needs and provides answers to specific questions. You can cover

some of the missing information in your desk research, and you may become aware of hidden

feelings people have towards your company, country or product. Even if statistics show a

growing market, field research can be crucial to make the final decision on whether or not to

go, and if so, how to do it, etc. The field research should be conducted after desk research to

confirm the findings of the desk research and fill information gaps.

Popular sources of field research include:

Discussions with handicraft companies/exporters who have similar export products

Discussions with potential buyers or sourcing agents in Vietnam

Information from trade promotion organizations (VIETRADE, www.vietrade.gov.vn,

JETRO, www.jetro.go.jp, KOTRA - Korean Trade Investment Promotion Agency,

[email protected], AMCHAM - American Chamber of Commerce, etc.), and private sector

development projects in Vietnam (JICA - Japan International Cooperation Agency,

7

mailto:[email protected]

http://froogle.google.com/

http://www.trendcurve.com/


www.jica.go.jp/vietnam, VNCI - Vietnam Competitiveness Initiative, www.vnci.org,

GTZ, www2.gtz.de/vietnam/ etc.)

Contact with Vietnam’s Embassies, Consulates, Trade Centers in foreign countries

Discussion with forwarding agencies or shipping companies (see appendix No.8)

Trade fair visits in your target markets or other trade fairs that are close to Vietnam like

Hong Kong, Thailand, China, and Japan.

Store visits in your target markets to check trends, prices etc (see appendix No.9).

Besides assessing market size and identifying key importers, market research should also

include getting an idea of market entry requirements, competition, price structure etc.

It is important to define your research need in relation to your export marketing experience,

for instance, whether you already have clients in a country or whether this is your first export

business venture.

When starting to export to the EU, your research needs would probably be to familiarize

yourself with the EU market by finding out relevant information on subjects such as market

requirements, structure, developments, segments, main players etc. However, when you have

become familiar with the EU market and know which opportunities exist, the next logical step

is to go further into details and explore the possibilities to increase your sales. You will need a

very specific research about customer requirements for individual products and the strengths

and weaknesses of the main competitors.

Important issues of market research are:

A) Market development and opportunities

Market size, sales channels, major importers, agents, distributors and retailers?

What are customer preferences, what is the price level? Who will want to buy what you

can make and why?

What sorts of products are selling well (characteristics, dimensions, colours and

materials)? What colours are in fashion? What new designs are popular?

What are the prices and margins at each distribution level? What are the most important

requirements of the identified sales channels (quality, packaging, etc) and which sales

channel is most suitable for your range of products?

What are the major trade shows where your types of products are sold?

How about cultural factors in doing business in the selected markets? Professor Geert

Hofstede’s model gives you insights into other cultures so that you can be more effective

when interacting with people in other countries (www.geert-hofstede.com). Some other

8

http://www.geert-hofstede.com/


interesting information on cultural factors can be found in Appendix No.10.

B) Market entry requirements

What standards or requirements apply to the quality of your product and are these

standards compulsory?

What standards apply to the quality of your company’s management and production?

Are there any labels (e.g. ECO labels, etc.), which create a competitive advantage?

Are there environmental regulations or requirements on the use of dangerous substances

for your product(s)? For raw materials? For packaging waste?

What special legislation must be complied with regarding health and safety issues?

Are there any requirements on social accountability (e.g. SA 8000)?

Which import tariffs & VAT duties apply to your export products? Are there any

international trade agreements which have a positive effect on tariffs?

What weights and measures are applied in different markets? (e.g. the United States is in

its adherence to a non-metric system but Japan is metric measurement)

Some specific sources for market entry requirements are in Appendix No.11.

C) Competition

Is there much competition in these markets? Who are the main competitors?

What products compete with yours? Who are the suppliers or manufacturers of those

products? What can you make that is different and better?

Who are the main clients of your competitors?

What are the strengths and weaknesses of your main competitors?

How many competitors from your own country are active in the target market?

D) Logistics

What type of packing is appropriate for your range of products in the target markets?

What kind of shipping documentation is required? What are the packaging and labelling

requirements?

What is the average delivery time in your business line?

What type of transportation is mostly used? What are the cost components of transport

from your factory to the buyer’s warehouse?

What are the key seasonal buying and selling periods?

9


E) Price level

What is the price range for your type of products? Can you make a profit at that price?

Note that a significant percentage needs to be deducted from the retail price, which is the

price that can most easily be researched through desk research (see section 5: Export

costing, pricing and invoicing)

What are the price developments on the market regarding your products?

How price sensitive are your clients?

What are the typical sales and payment terms?

1.2 Company Analysis (Internal Analysis)

After your export market analysis, you should assess whether your company is able to enter

your chosen markets, i.e. by doing an internal analysis. Especially if your company is new to

exporting, you should do a company audit and establish whether you can use your resources

without jeopardizing your domestic sales efforts. Elements to be assessed include: Product

standards, production capacity, flexibility, logistics, sales force, financial strengths,

capabilities etc. As a result of this internal analysis, you will be able to assess to what extent

your company is able to take advantage of the opportunities identified in the market analysis.

Furthermore, with a thorough understanding of your company's unique capabilities, you are

able to invest in opportunities that exploit your strengths.

A) Production

Do you have a factory to fully process your products or focus on treatment and finishing

stages to control the quality of your products?

Do you have some good production groups/suppliers of finished/semi-finished products so

that you can make further processing/finishing at your factory?

Are your facilities and equipment in good working condition?

Do you have sustainable treatment techniques of raw materials and finished products, e.g.

treatment for your bamboo and wood products free of mould and insect, dyeing

techniques to keep the colours durable?

Have customers ever complained about quality, for example, that your products got

cracked deformed/ mouldy at the destination?

Do you have a quality management system?

How is the present capacity being used? Will filling export orders hurt your present sales?

What minimum order quantity is required for different products?

Are you able to meet required delivery terms in time/quality?

10


B) Human resources

Do you have skilled workers – is a sufficient number easily obtainable?

Do you have staff that are familiar with export-import techniques? Are they good at

customs declarations, shipping arrangements and international payments?

Can you speak at least one foreign language, especially English?

Who will follow up on orders after the planning is done?

Do you have people who are fully computer-literate?

Do you have your own designers and are they well aware of market trends? How many

new design collections do you have per year?

Do you have any person in your company who is familiar with supportive policies to

encourage handicraft exporters, e.g. Decision 132 on craft development, Decree 51 on

domestic investment? For a list of supporting policies, see Appendix No.12.

C) Marketing

How do you reach potential customers? What are your marketing instruments?

Do you have stable partnerships with key customers? Do you know their requirements?

First focus on existing customers before targeting new ones.

Do you have more than one customer? Do you know that you may be in a very dangerous

situation, if you reduce business with current customers and concentrate on expecting

good business with larger potential clients?

Do you have your own showroom and website? Is the website frequently updated? Do you

have impressive marketing materials (business card, catalogue...)?

Do you produce goods under a brand name? Is this brand name recognized and legally

registered?

Have you met representatives of foreign buyers and offered your services personally?

Do you have your own retail outlets?

D) Logistics

Do you have any problems with transportation of your materials/products, for example,

from your factory to the port of loading?

Do you have sufficient infrastructure to export? Internet, fax, phone, port, roads, shipping

containers?

Do you know the major freight forwarders and shipping companies in Vietnam as well as

their most competitive routes?

11


E) Finance

Do you know your cost structure? Do you have a budget planning for expenditures on

sales, advertising, and research and development (R&D) on a yearly basis?

Can you borrow money from commercial banks or other credit institutions, usually on

short-term basis to finance for your export orders?

Do you know export encouragement programs of the Vietnamese government, where you

can get financial support for export?

Do you have the necessary financial means for increased production?

Do you have the banking ability to get paid and to issue refunds for damaged

merchandise?

1.3 SWOT Analysis

The findings of the external and internal analysis can be summarized in a so-called SWOT

analysis (SWOT stands for: strengths, weaknesses, opportunities, threats), where the most

important strong and weak points (internal factors) and the main opportunities and threats

(external factors) are ranged in order of importance.

The purpose of this analysis is to clearly show the position of the company in the market. The

essence of the SWOT analysis is to find a market segment where there is an opportunity that

matches the strengths and where the threats have a minimum impact on the vulnerable sides,

the weaknesses of the company. In fact, by matching external opportunities and internal

capabilities, the exporter should be able to identify suitable target countries, market segments

and target product(s) within these countries.

Here is an example of a SWOT analysis from a water-hyacinth handicraft company intending

to become a direct exporter to Germany.

Strengths:

We are able to respond very quickly as

we have a good network and well

trained staff

We are able to give best customer care

We can change direction quickly if we

find that our marketing is not working

We have little overhead, so can offer

good value to customers

Weaknesses:

Our company has no market presence or

reputation

We are lacking treatment and coloring

technique for our natural materials

We have no export experience

Ocean freight from Vietnam to

Germany is much higher than from

China to Germany

12


Opportunities:

Our business sector is expanding, with

many future opportunities for success,

especially for EU market

Government always encourages local

businesses with work where possible

Our competitors on water-hyacinth may

be slow to adopt new weaving skills.

Threats:

There’s a trend of using sisal material

which is produced in China

The use of drying equipment that

sometimes causes water-hyacinth

material to break quickly may reduce

our range of in-house products

2 Market Entry Strategy

Gifts and decorative articles are often distributed through many different intermediaries like

agents, importers/wholesalers and retailers. The following chart outlining the distribution

channels in the EU may serve as an example of market structures in key Vietnamese export

markets. Handicraft articles are sold through widely diverging retail channels such as gift

shops, furniture outlets, garden centers, food retail stores, department stores etc.

Source: CBI, EU Market survey 2005, Gifts and Decorative articles

The most important market entry strategies for Vietnamese crafts exporters are:

To supply specialized importers, who buy a broad range of products and resell and

distribute them under their own brand names to countless small retailers. Very often, they

are specialized in different retail channels, supplying garden centers, flower stores or

13


exclusive interior decoration stores. Depending on the respective retail channels they

operate in, they have different needs for product groups, price levels, and design

specifications. Understanding these needs is important for exporters in order to be able to

offer them appropriate products.

Importers can be very reliable partners for exporters, allowing them to enter into long-

term partnerships and to ensure stable growth, and to work with reliable trade partners and

secure repeat orders. Most of the larger importers from the EU, US or other markets visit

Asian supplier countries several times a year, with many of the larger ones having at least

some experience also in Vietnam.

Secondly, there are a number of mass retailers who source products and visit suppliers in

Asia and place orders locally. It can be a very good chance for your company to sell

directly to such mass retailers in the EU, US, Japan or other countries in the world

because of the high volumes they turn over. However, before taking up business with

them you should bear in mind that these mass retailers have all the power in the business

relationship and control the terms of sale. Lots of vendors in every country want to sell to

them, so they can buy anything from anywhere. This leads to price pressure on the

suppliers, forcing everyone from retailers and importers to suppliers to become more

efficient if they want to stay in business.

Other opportunities exist for producers in target markets to act as contract manufacturers.

In order to reduce production costs, some international manufacturers source part of their

collections from abroad and produce only some of their collections themselves.

Recently, the EU, US and Japanese markets are overrun with a surprisingly large variety of

imported household products. As such, it is necessary for you to concentrate on products that

allow both private shops and chain stores to express their individuality. Items that are new and

innovative, possess quality, and have a reasonable amount of practicality and functionality

will be viable. Also, those which are highly original are promising because they allow the

store to differentiate itself from other retailers.

In order to establish a first contact with potential buyers, your company may identify and find

customers by:

Identifying purchasing agents of large retailers that already operate in Vietnam or in the

region e.g. IKEA, Wal-Mart, Tchibo, Otto, Habitat, etc.

Attendance at national or international trade shows

Participation in trade missions abroad

14


Launching mailing campaigns to buyers that you may find through their websites, trade

directories, trade fair catalogues and websites etc.

Assessing websites with large databases with international coverage, including ITC Index

to Trade Information Sources (www.intracen.org), European Business Directory

(www.europages.com), World Trade Center Association (www.wtca.org)

Registering as a user of global B2B on-line trade portals such as www.ecplaza.net,

www.alibaba.com, http://trade.indiamart.com, www.b2bexplorer.com, www.vertical

zoom.com, www.go4WorldBusiness.com etc. and find buyers by searching these

databases

Assessing sources from government or trade associations (VIETRADE, Vietnam

Commercial Affairs in foreign countries, Trade Centers in New York, Dubai, Japan etc.)

Identifying representatives or trade promotion organizations of foreign countries in

Vietnam like JETRO, KOTRA etc.

Your website with special key words like “Vietnam Handicrafts”, “Vietnam Home

Décor”, “Vietnam Home Furnishings”, “Vietnam Bamboo & Rattan”, “Vietnam

Embroidery”, “Vietnam Lacquer ware”, “Vietnam Ceramics” etc.

Some of the EU importers can best be met at leading trade fairs in the EU, others prefer to

source locally and look for unknown suppliers in Vietnam. The latter can best be met at

domestic trade fairs and exhibitions in Vietnam.

For the Japanese market, the use of agents/distributors is the most realistic entry strategy for a

small or medium-sized company, but this approach requires great care in the selection of the

representative. Many Japanese companies visit domestic or international trade fairs, where

often a first contact is established.

In the U.S. market, most trade fairs are dominated by U.S. importers and less suited for

exporters to exhibit. Many Vietnamese exporters failed to find buyers through trade fairs in

the United States because they competed with their buyers. If you want to enter the US

market, you may consider targeting US importers that you may meet through your attendance

at local trade fairs like the International Furniture and Handicraft Fair in Hochiminh City or

other Asian or European trade fairs.

3 Preparing a Professional Presence

In order to strengthen your corporate identity, it is essential that you build up a professional

presence, which accounts for core values, behavior, symbols and communication, and other

principles.

15

http://www.go4WorldBusiness.com/

http://www.vertic/

http://www.b2bexplorer.com/

http://trade.indiamart.com/

http://www.alibaba.com/

http://www.ecplaza.net/

http://www.wtca.org/

http://www.europages.com/

http://www.intracen.org/


The “core values” are important pillars on which a corporate identity rests, and they are based

on fundamental managerial decisions, ranging from daily activities to long-term objectives.

Core values can consist of elements like company strategy, code of conduct or quality

management. Symbols include logo, letter design, brochures, business cards, the website and

other graphic presentations.

However, your company’s appearance is expressed in many more ways than through a logo

on the letterhead and your business card. Another pillar of your identity is the style and

contents of your communication with business partners. Is your communication style open,

honest and correct? Are enquiries, requests or complaints swiftly answered, and by which

means of communication? And is it possible for others to make personal contact with your

staff?

3.1 Marketing Material

You need a Company Profile to give buyers an idea about your company. Bear in mind that

your company profile should reflect what a buyer likes to know about his supplier. To help

potential customers evaluate the appropriateness of your company for their needs, take care

that you refer to the following points in your profile:

Your company‘s background and history

Your company‘s corporate philosophy

How is your company organized?

Which products and services are offered?

Does your company understand the needs and requirements of its market partners?

Which are the technical and commercial skills, how are the offered products and/or

services designed, developed and implemented?

The profile should serve to convince your customer of your ability to meet his needs and to

give him the impression that your company‘s competence, skills and reliability are good

enough to be taken into consideration as a new supply partner. An example:

ABC Decor Company was founded in 1998 by Ms. A, a professional designer, who grew

up in a family with handicraft trade for generations, and Mr. A, a businessman who had

obtained an MBA degree in the United States. With its continuous efforts, so far, ABC

Decor has become one of the most famous groups of home and garden decor producers in

Vietnam, employing 120 workers in its own factory in Phu Tho province and another 200

in its supporting groups in various craft villages nationwide.

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ABC Decor is committed to providing its customers with a broad range of functional,

high-quality products for the home and garden using environmental-friendly materials for

lamps, table, chairs, decor objects.... At ABC Decor, all of us share a common mission:

"To reward our customers with long-term value and product satisfaction for every

purchase". Our passion for product is what has made us different from other producers

and suppliers in Vietnam, and it will always be what moves us forward.

Currently, we are exporting to Japan, Italy, Germany, America and South Korea with the

monthly production capacity of 5 containers. We have received best supplier awards from

XXX Company in Japan and we are also boosting our reliability to customers by adopting

ISO 9001:2000.

This information can be put together on a single page. You can include pictures of your

office, showroom and factory, if appropriate. The profile is not the right place to show

pictures of your products unless you concentrate on only one product. The profile should be

easy to update and should be in English. You should hand it out to customers you meet with

and send it along with your letters and e-mails.

You need a Business Card. This sounds simple but many companies assume they don’t need

one. Take care that it is readable:

Use block letters instead of a fancy print that is difficult to read.

Current telephone, mobile, fax, and e-mail address should be included and new cards

produced if that information changes.

Ensure that the physical address of your office/factory is included so the potential

customer can send something to you by mail or courier or he could show it to a taxi driver

to find your company.

It needs to be in English or the language of your primary customers.

The logo, letter type and colors should correspond with those of the letter paper. All vital

details should be on the front of the card. Complementary information can eventually be

printed on the reverse side. The size of card should not be larger than 9 x 5.5 cm, alternatively

the same size as a credit card, 8.5 x 5.4 cm. Be aware that cards covered with a plastic film

cannot be used to make notes on and cards which are very shiny or have a silver or gold cover

result in problems when copying or faxing them.

You need other Image Carriers, such as letterheads, envelopes, file holders etc.

17


Letterhead: The size of letter paper should be A4 format (210 x 297 mm). The paper quality

should be at least 80 grams, with a high degree of whiteness or, if desired, a light color. You

have to realize that letter types have an influence on the impression the letter makes on the

reader, such as friendly, businesslike, or reliable. Choose a letter design which supports the

desired image.

Envelopes: Preferably use the color white for the envelope, but you could also use the same

color as the letter paper, if it is not white.

File holders: To keep your company introduction (profile, catalogue...) or a set of shipping

document or other transaction documents.

You need a Product Catalogue. Printed catalogues are produced when there is a need to

display a large range or number of products. Product descriptions are accompanied by photos

or drawings. A good catalogue is not always easy to produce. Creativity is a must for an

attractive and appealing catalogue that will impress your customers. The artwork should be a

high priority, both for the text as well as for the layout, photos/illustrations and other

illustrative elements. Its colors should be attractive and professionally matched. Key

information should cover, for instance, product code numbers, specifications and materials

used.

While a printed brochure can be browsed in a few seconds to get an impression of the

company and product catalogue, a CD-Rom needs to be inserted in the CD-Rom drive of a

computer. It therefore happens often that the CD-Rom is tucked away in a quiet corner in the

bottom drawer. It can, however, be a very effective tool as a multimedia presentation at an

exhibition. As an interactive tool, where the viewer is in control of the navigation panel, it

definitely has advantages over a video presentation. You should also take note that the content

and design of the CD-Rom will give your customers a good impression about your quality

management. An appealing CD-Rom sticker and holder will make your CD-Rom stand out

among others and will encourage your customer to actually insert into his CD computer drive.

In addition, you can prepare a photo album displaying your product range. You should take a

photo of every style you make for reference, and a number of these can be put together to give

prospective customers an idea of the products you have made previously and what other

customers are purchasing from you.

You need a Website. If you have a website, ensure it is up to date. Websites serve as a

reference for your company but also need to be promoted. Many companies spend thousands

of dollars on the creation of a website and wonder why they do not have any visitors. The

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reason is simple: no one knows it is there. The company profile, brochures, and catalogues

can be digitalized and put on the Web. By placing promotional materials on the Web, you will

save printing costs, while still being able to update the information any time without incurring

substantial costs. In other words, it is an economic and flexible promotional tool.

When developing and maintaining your website, you should pay heed to the following

factors:

Design the site in accordance with the corporate image

Build a site that looks professional, attractive, and is fast

Offer the most important information clearly and concisely

Text blocks have to be short and to the point

Offer a download option for background information, datasheets and manuals

Develop a logical and simple navigation system

Register the site with all well-known search engines

Ensure that your site is well linked to other relevant websites

Check the links regularly

Update and renew the site regularly, so as to offer up-to-date information and to

encourage repeat visits

Include a “What‘s New” page

Promote your site on all the promotional materials

Track and profile the visitors by offering an e-mail up-date service.

It is emphasized that your website cannot be used effectively as a promotional tool unless you

actively attract your target group to visit it.

You need other Promotional Material.

Product Sheets: Product sheets are usually one-page formats which provide more detailed

information on specific products. They can be distributed as loose leaflets as well as inserts in

company brochures and replaced whenever required. You can easily prepare product sheets

with the help of a computer and a color printer. This will further reduce production costs and

at the same time allow you adapt and update the sheets easily.

Hang tags: It is very important to design a nice hang tag for your product. It will list name,

style number, raw material content, colour, size of your product. Hang tags are a good tool to

advertise the maker, and to specify that the product complies with safety standards. In many

cases, hang tags are used to describe the cultural importance of your design; to explain how it

is made and its traditional uses. Make hang tags as beautiful as your products.

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Insert cards: An insert card should be used professionally, especially for high-end products.

This is a removable card or label that “romances” the product, tells its story and/or the

artisan’s story to help increase the likelihood someone will buy it.

Care labels: A care label giving caring and cleaning instructions is permanently or semi-

permanently attached to a product. It is often applied to lacquer ware and textile articles, of

which imported textiles have specific care-label requirements.

3.2 Professionalize your Staff and Communication

You will impress a potential buyer if not only you yourself as the general manager act

professionally but if your staff does as well. A good method of accomplishing this is to train

the key members of your staff (manufacturing, customer service, and engineering) to be able

to make a quick and accurate presentation of their job and to explain in which way they are

responsible for the production or shipping of the client’s order. This should be done in

advance of the customer’s visits, and the presentation should be reviewed to see that it is

accurate but no confidential information is provided. The goal is for the customer to know

that his order is being attended to professionally from the time it is received until it is shipped.

It is therefore important that the company’s personnel should be given clear instructions as far

as external communication is concerned.

Although it is not likely, it is possible that a customer will buy from you but will never visit

your office. It is likely that a customer or potential customer will communicate with you for

some time before visiting your office. A mistake many companies make is that they fail to

professionalize their office communication.

You should insure that if you have e-mail, you have a policy that it is checked and responded

to promptly. Even if the response is “we have received your query and will answer

tomorrow.” Fax machines often run out of paper and continue to ring or customer faxes are

collected but not acknowledged. Company telephones are answered by people who speak only

the native language and hang up if there is a foreign language on the other end.

The way your company communicates reveals a great deal of information about your

professional conduct to a potential customer. Professionalizing your office communication is

very inexpensive yet pays off substantially over time.

Writing effective e-mail messages:

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E-commerce is ever more popular in business transactions nowadays. However, many

companies often disregard the importance of writing an e-mail message effectively and if

you do so, this may influence your image to some extent.

It is crucial that your message catches the readers’ eye. Begin with a greeting, or a word of

thanks. Thereafter, write your main message in one or two short sentences, and end by

stating what you expect from the reader. In the following paragraphs, you give additional

information or arguments and describe the advantages to the reader. The last paragraph

should once more contain the core of your message, after which you sign off with a

greeting. Just as in a letterhead and the signing of an ordinary letter, it must be absolutely

clear who is writing the e-mail. Therefore, under the text you should place your own

name, company name, address, telephone and fax numbers.

When you answer an e-mail message, let the subject line remain unaltered. It is then easier

for the receiver of your reply to know instantly what the message is about. You write your

answer above the text which you received. It is not advisable to deal with different

subjects in one and the same e-mail. Instead, send separate e-mails, so that the receiver

can open and/or file them separately.

Make sure that there is a policy that all e-mails are checked and responded to promptly –

even if the response is “we have received your query and will answer tomorrow.”

Writing effective business letters:

A formal business letter is constituted by the following elements: Letterhead, name and

address, date, salutation, reference, body of the letter, complimentary close, signature and

enclosures.

The salutation: The type of salutation depends on your relationship with the recipient.

Always try to personalize the letter by addressing the recipient with his/her name rather

than with dear sir/madam.

A reference line is optional, but its inclusion can help the recipient deal successfully with

the subject of your letter. Normally the reference line is preceded with the word Re:. It

should be placed one line below the greeting.

The main body of your letter contains a number of paragraphs, each paragraph dealing

with one point and one point only. Start your letter with the main message. Do not waste

too much time with introductions. Give the reasoning or the background of your message.

Tell the reader why you are approaching him or her. Elaborate on the message: Provide

details, precise information, arguments, and, if applicable, the actions you intend to take.

Finish with a closing statement. Do not leave anything open by saying for instance “We

look forward to your response” but close with “We will phone you next Friday (May 22)

to discuss your feedback on the proposal”.

The signature should be clear and legible, showing you are interested in the letter and

21


consequently in the recipient’s aim. Your signature should also be followed underneath by

a typed version of your name and your job title.

If you include other material in the letter, put 'Enclosure', 'Enc', or ' Encs ', as appropriate,

two lines below the last line.

Once the final version of the letter is ready, polish it with a final spelling and punctuation

check. A letter should make an impeccable impression, neat, without typing errors. Try to

pack the whole message onto one A4 size page. Use good quality and clear-white paper.

Telephone etiquette:

Knowing how to answer the telephone is an essential business skill. The person who

answers the phone gives the caller a first impression of your company. He or she must be

friendly and courteous and know good telephone etiquette. When answering the phone,

you should always start with a greeting e.g. Good Morning (Afternoon, Evening). This is

ABC Decor, How may I help you? or Hello, ABC Decor, How may I help you?.

If the caller asks for a certain person, a proper response would be "One moment please, I

will transfer you to that extension" or "Mr. A/Ms. B is out of the office at the moment, is

there something I can help you with?"

If the caller asks a question and you don't know the answer, a proper response would be

"I'm sorry I can't answer that, let me transfer you to someone who can help you" or " Can

you hold please? I will see if I can get you the answer in a moment."

If you put someone on hold, do not make him or her wait too long. Be prepared before

you answer the telephone. Have a pencil or pen along with a pad of paper near your

telephone so you can write down important information such as their name. When

speaking to them, use their name during the conversation but don't overdo it.

When initiating the telephone call, you should organize your thoughts before you place

your call. Make a short list of important items you want to discuss.

If the person you are trying to contact actually answers the telephone, after shortly

introducing who you are, begin by asking them, "Is this a good time to talk?" You may

have called while they were busy. In that case, ask them when would be the best time to

call them again. Make sure you remember and call them again at the correct time.

Do not speak too fast and slow down when you are leaving a message, or saying your

telephone number. Pronounce your name clearly and spell it if necessary.

For both answering and initiating a phone call, please remember that people do judge you

by the tone of your voice and what you say - always sound professional!

3.3 Professionalize your Company Operations

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In many cases, especially when working with large corporate clients, a company’s operations

need to be well organized to meet the auditing requirements of their buyers. As a matter of

fact, these requirements also always tend to support the effective operation of the companies

in term of productivity, environmental protection etc. and therefore, in any case, the exporters

should consider applying these standards.

Following is an example of auditing requirements from a larger retailer to its suppliers.

① Employee record. Availability: Yes No

② Past 12 months’ time card/attendance record Availability: Yes No

③ Past 12 months’ pay record. Availability: Yes No

④ Factory regulations. Availability: Yes No

⑤ Insurance certificate. Availability: Yes No

⑥ Environment Approval Certificate. Availability: Yes No

⑦ Fire drill record. Availability: Yes No

⑧ Production machinery list. Availability: Yes No

⑨ Organization chart with number of workers in each

division / section.

Availability: Yes No

⑩ Business Registration. Availability: Yes No

⑪ Factory owner’s/major share holder’s name

Other information also needs to be provided for the buyers’ quick reference:

a. Factory Area – Production: Office: Dormitory:

b. Number of employee:

c. Monthly production capacity:

d. Your major customers:

e. Normal working hours: hours/week

f. Average overtime hours: hours/week

g. Do you have enhanced overtime payment as required by Labour Law: Yes No

h. Do you have maternity leave policy: Yes No

i. Do your employees have pay during the statutory holidays: Yes No

j. Do you discipline the employees by salary deduction: Yes No

k. Youngest employee: years old

l. Local legal minimum wages: /month Average wages: /month

m. Lowest wages: /month

n. Do your factory building(s) each has TWO fire exits: Yes No

o. Do your dormitory building(s) each has TWO fire exits: Yes No N/A

p. Do you have first aid supplies in each production floor / dormitory: Yes No

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q. Number of person per toilet: Men Women

r. Number of person per dormitory room Average area / person:

You can study and apply some useful management solutions to improve the effectiveness of

your company’s operations e.g. ISO, TQM (Total Quality Management), Kaizen & 5S,

SA8000 or 6Sigma. Of course, it is time-consuming and costly to have the above standards

certified, but following and learning from their procedures will surely professionalize your

company’s operations.

If your customers are from Japan, you may have an advantage if you apply the Japanese 5S

philosophy (Seiri, Seiton, Seiso, Seiketsu, and Shitsuke). It focuses on effective work place

organization and standardized work procedures. 5S simplifies your work environment,

reduces waste and non-value activity while improving quality efficiency and safety:

Seiri (Sort): focuses on eliminating unnecessary items from the workplace

Seiton (Set in Order): focuses on efficient and effective storage methods

Seiso (Shine): focuses on cleaning the work area. Daily follow-up cleaning is necessary in

order to sustain this improvement

Seiketsu (Standardize): focuses on standardizing best practice in your work area

Shitsuke (Sustain): focuses on defining a new status quo and standard of work place

organization.

Your Showroom is the most effective marketing tool to convince the customers that visit you

on your premises. If you cannot afford to participate in expensive international trade fairs,

start with an impressive showroom first.

How things are displayed also affect how valuable they appear. Present your products as

nicely as you can, arranging them by topic/collection with specific color and shape. Your

product samples need to be creatively arranged in a crisp, clean, architecturally appealing

setting so that your customers can visualize how they function and how they can be used.

Furthermore, it may be a good idea if you decorate your showroom with a set of green trees to

give the room a natural appearance.

You may not have the skills required for decorating. In that case, you can ask for the support

of the designers at the Art Colleges or the designers who come from your target markets and

work in Vietnam through many co-operation programs.

3.4 Understanding Market Requirements to Improve your Presentation

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Vietnamese companies have a particular style when it comes to presenting products in

marketing documents, like catalogues, brochures, and websites. Most documents refer to

either the name of the product or the materials used to make the product. For example,

handicraft companies often divide their product range into the categories of bamboo, rattan,

ceramic, embroidery and lace and others, then further split the products into sub-categories

such as baskets, trays, handbags etc.

When dealing with US clients, you should be aware that this classification system seems

strange to US customers, because they often categorize products by function, e.g. furniture,

home textiles, floor coverings, wall decor, tabletop and giftware (usually grouped together),

house wares, sleep products (mattresses), major appliances, etc., and not by raw material or

production method. Then they further sub-categorize their products by design, quality and

function. Raw material and production method are only important in so far as they contribute

to design, quality, and function. For example, a silk pillow is obviously more valuable than a

polyester one, but the buyers wouldn’t necessarily know the difference between cane, rattan,

or bamboo, or their different weaving techniques or qualities. Clients may just recognise

which product looks nicer according to their tastes and preferences.

Therefore, if the US market is your target, your products should be categorized according to

US custom in all of your marketing documents. Generally speaking, if you target a specific

market, you should study and understand the conventions of product presentation in these

markets in order to improve your own presentation.

4 Preparing Products for Export

Selecting and preparing a product for export requires not only product knowledge but also

knowledge of the unique characteristics of each single market that you target. Your market

research, especially through field research and through the contacts made with foreign

representatives, will give you an idea of which products can be sold in which markets. Before

selling, however, you may need to modify a particular product to satisfy buyer tastes or needs

in foreign markets, thus creating a unique selling proposition for your products.

Your bestseller: If your company manufactures more than one product, you should start with

the one best suited to your targeted market. Ideally, you choose one or two products that fit

the market without major design modifications. Make what you’re good at and what you

know, inspired by your culture. Make everything as perfectly as you can, especially the

finishing.

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Quality comes first: The international consumer constantly expects higher quality at a better

price, and this expectation leads to re-structuring the medium and low-end market that most of

Vietnamese handicraft items belong to. To meet this expectation, even mass merchants

upgrade to higher quality, better-designed goods as Chinese factories improve quality and

production methods while still keeping prices low. They have set a new quality standard for

low priced mass products and have put tremendous pressure on every other market segment to

lower prices and improve quality by comparison. Therefore, to position yourself in the

marketplace, you should always produce the best possible quality you can, even for

inexpensive items. Constantly strive to improve quality.

Different products for different customers: In order to make as much business as possible,

Vietnamese handicraft exporters tend to offer everything they produce or source from craft

villages to everybody who will buy. This strategy may give you more orders in the short term,

but may prove a disadvantage in the longer term. When you (and many other exporters in

your area) sell the same things to multiple buyers, the market quickly becomes saturated and

oversupplied, and the uniqueness of the products gets lost. As they can be bought in many

places, they become more ordinary and are perceived to be less valuable. However, depending

on the actual situation, you can consider offering the same products for different markets.

Do not copy from others but develop unique products: For foreign buyers it is easy to find

hundreds of websites of Vietnamese handicraft exporters, but often they are disappointed

because they do not see much difference in the products offered on the websites. The pictures

of products in some websites operated by different producers are exactly the same. Also,

when visiting a foreign show, especially in the International Furniture and Handicraft Fair in

Hochiminh City, you will find that many stands display the same products. By doing this,

Vietnamese producers severely restrain their own competitiveness and that of their fellow

producers, because in the end no company will have a unique product.

You should learn the product trends by observing the market but do not copy from them. Try

to develop your own products based on your analysis of trends. You can find a lot of finishing

patterns from a trade fair, e.g. circles of mother-of-pearl inlaid into lacquered vases,

embroidered circles on the pillows and cushions, circles on the wall papers etc.. All of those

tell you this: circles can be a trend in the market, and you can apply the “circles” idea to

decorate the surface of your ceramic pots in creative way. Designers often collect magazines,

and catalogues and make a “catalogue” of finishing patterns to develop their own products,

and that is also what you can do to develop your unique products.

The cruder and less unique your product, the more you will be expected to lower your price.

The better your workmanship, the less you will have to negotiate on pricing.

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Develop a collection: Home decoration products are fashion items subject to the fast-

changing whims of consumers. Consumers buy products they find attractive and which fit to

what they already own. It is better to develop a collection of several matching items rather

than to try to develop unrelated stand-alone products e.g. a collection for table tops, with a

tablecloth, table runner, placemats and coasters. Always bear in mind what the best

combination of functional and decorative characteristics of your products can be.

Use professional designers: Fashionable product development is a key pre-requisite for

success, and professional designers are the ones who differentiate your products. And it would

even be better if you developed new collections in cooperation with your customers. On the

technical side, you know very well what you can make. In addition, your customers know

what they can sell, and will be happy to give you design and color information when you have

established a trust-based working relationship. Try to combine design advice from your

customers with further development by own Vietnamese in-house designers.

Add value to your products: Make your products functional in addition to being decorative.

Improve the design and desirability, making useful things fashionable too. A pillowcase is

functional and decorative. A pretty box is also useful, it can hold things. Multi-use and

reusable things have a higher perceived value. Quality and finishing are most important, even

for inexpensive items; you can use several materials or patterns, more than one production

technique, or moving parts, in one product.

Adapt your products to the market: It is quite important for your company to adapt

products to the geographic and climate conditions that prevail in your target market, and to

take the availability of resources into account. Factors such as topography, humidity, and

energy costs can affect the performance of a product or even determine its usage. Given the

case of spun bamboo articles, which are mainly produced in Cat Dang village, Nam Dinh

province - these articles have been exported to many countries all over the world, especially

to Germany, UK, France, USA and Japan. Many producers of these articles (vases, boxes,

trays...) received complaints from customers because the products cracked in the customers’

stores and showrooms after only a short period of time. The reason for this was the low

humidity in the foreign country. To avoid this problem, Vietnamese exporters should apply

more treatments to protect the bamboo core from the outside environment, or use some raw

fabric to cover the core before lacquering to strengthen its solidity.

The problem of humidity also affects the exportation of wooden articles, especially wooden

furniture (chairs, tables, cabinets...). These are produced by exporters or producers in the craft

villages who have no advanced treatment (drying) technologies.

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In addition to adaptations related to the climate conditions and cultural and consumer

preferences, the exporter should be aware that even fundamental aspects of its products may

require changing. For example, electrical standards in many foreign countries differ from

Vietnamese standards. You cannot find two-hole sockets in the States and your beautiful

bamboo lamp with silk shade would be rejected by a US client if you fixed your lamp with a

two-pin plug. If you are involved in exporting lighting equipment, you need to install different

electrical wires for each country, like CE standard for EU, UL for America, UK for England,

PSE for Japan and OVE for Australia, etc.

Understanding the product sales periods: In Japan, the months of March, June, September

and December are said to be the period when household goods sell well as gifts. In March

they are bought as graduation presents, while in April, they are bought as presents for entering

school and for successful job placements and transfers; in June and September, they are given

as wedding presents; and in December they are mainly sought as Christmas presents.

Products from craft villages: In many cases you need to source out your production to many

households in the craft villages. For large orders that comprise one or two product styles only,

you may need to employ just one or two villages, but with thousands of households involved.

For some orders, you need to consolidate products from many craft villages and some of them

are not close to each other at all. In any case, you may find that the final products are not

consistent in term of shapes, measurements, colors and even finishing patterns.

To ensure the quality of your products, you are always requested to control the quality

permanently during the production process and to inspect all products before they are loaded

into containers. You should reject all products which are defective or do not match with the

approved samples.

It is a matter of fact that, the more you control the production at household level, the less

work you have to do at your factory. It is therefore recommended that you make efforts to

build the capacity of your producer groups in the craft villages in terms of quality

management.

Consider venturing into machine production: With today’s factory production methods, it

is possible to produce large volumes of products that have the appearance of hand-made items

at very low cost, making it difficult for the average consumer to differentiate between

handcrafts and machine made products. It is not the authenticity of the material or the

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production method that is critical for the consumer; it is what can be done with it in terms of

design, what the look is like.

If another material, weave, or production method looks just as good, most consumers will

easily be convinced to purchase the item, especially if it costs less. So unless there is a

specific design or another feature that is obvious to a western consumer, you will find it very

difficult to sell products made with more expensive hand production methods and raw

materials. The average consumer cannot tell the difference and just wants to buy the “look”,

not the authenticity. Handmade is more valued in the high end art market, where it adds

artistic value.

5 Export Costing, Pricing and Invoicing

5.1 Export Costing and Pricing

You can define production costs, which may include the components of fixed costs

(depreciation of fixed assets – defined as objects with value over VND5 million and being

used for more than a year like machines and premises) and variable costs (materials,

transportation or labor costs). However, there are a number of additional costs that must be

considered when calculating your offer based on different terms of delivery (FOB, CIF...)2.

These should all be put into your cost calculation before you engage in a discussion with your

customer.

You may run into considerable problems if you just set a price for your export product by

calculating your production costs and adding a 15% margin or so. Technically, this means that

you determine the “Ex Works” price, which covers the production costs plus a certain

percentage for profit, and offer it on FOB basis to an importer abroad. This method is

common practice but it is far from best practice because your calculated market price may be

either too low or too high, as you have not considered many other costs resulting from

customs clearance, inland transportation, quantity of export orders etc.

A better technique for price setting is based on a simple calculation. You can either start from

a cost calculation side by adding the costs of getting your product to the customer - which

should give you the selling-price. Or you can calculate down from the final market price by

deducting all costs from that price until you have arrived at your product price.

2 FOB stands for Free on Board: A pricing term indicating that the quoted price covers all expenses up to and including delivery of goods upon an overseas vessel provided by or for the buyer. CIF stands for Cost, Insurance, Freight: A pricing term indicating that the cost of the goods, insurance, and freight until the final port of destination are included in the quoted price.

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So, the point that you have to decide upon now is which technique you should apply for your

price calculation. This decision depends on the kind of products you offer to the market. In

principle, you might think that your products are new in the marketplace and that they can

actually dictate the price level in that market just based on their costs and desired profit

margin.

But in that case, you should also consider the substitute products available on the market. Bed

cloth that is made of bamboo fiber with beautiful decorative embroidery patterns is an

example. It is a very unique product and you have a better chance to ask for a higher price, but

you should know that your customers may shift to the silk cloth instead and increase its value

by trendy and creative designs.

To set your price based on the cost-price method, you should be aware of the different cost

components (not only add 15% margin as above), which often depend on the terms of

delivery (will be mentioned in the later part). The following table describes different cost

components need to be included for calculating FOB and CIF prices.

Cost components Cost (US$)

/Mark-up (%)

Price

(US$)

1 Factory price or producer costs of making the products

(labor, materials, packing, overhead...)

1.0 1.0

2 Profit of the producer 20% 0.2

Producer’s price/Ex-works (1+2+3) 1.2

3 Inland transportation (e.g. to Haiphong port) incl. loading

and unloading

0.3 1.5

4 Customs declaration/export clearance, export agent fees 0.1 1.6

5 Port receiving charge (usually CFS) 0.1 1.7

FOB Haiphong port 1.7

6 Ocean freight & Insurance 0.2 1.9

CIF Destination port 1.9

7 Charge in destination port (DDC-destination delivery

charge, AMS-Advance Manifest System...)

0.1 2.0

Landed price to importer 2.0

If your customer finds your offer too high and requests you to review it, take such feedback as

a chance to improve your costing. Keep in mind that a sound costing system is very

important. But to simply reduce the price and your profit margin is not the right way, until

30


you have considered and checked the following matters:

Is the ocean freight you obtained the most competitive? (Are you sure that your selected

shipping line/ forwarder is the most competitive in terms of price?)

Does the agreed delivery deadline still allow you to change to other shipping

companies/forwarders that can offer you lower prices but longer delivery times? Does

your customer accept this change?

Can your buyer recommend other shipping companies/forwarding agents that offer lower

freight rates? If yes, will they accept your offer on FOB basis?

Have you offered your customer a quantity-based price yet (especially for LCL3

shipment)? Can you suggest to your customer to switch to bigger quantities in order to

reduce freight and other handling charges (customs declaration, CFS, inland

transportation...)?

Can you optimize your packing to minimize the volume?

Do you have other chances to reduce the unit costs (review supplies, productivity,

marketing expenses)?

Another option to calculate your prices starts from the selling price. Being an exporter in a

developing country, you are most probably a price-follower rather than a price-setter. In this

case, you can:

Find out the current market price for comparative and/or substitute products in the target

market;

Establish all the elements of the market price, like Value-Added Tax (VAT), margins for

traders and importers, import duties, freight and insurance costs etc.;

Make a top-down calculation, deducting all the elements of the expected market price of

your product(s) in order to arrive at the price “Ex Works” (traditionally called “Ex

Factory”) or ex warehouse;

See if you can meet this price.

Price mark ups of importers and retailers vary a lot depending on market segments and

distribution channels. The following table may serve as a rough average calculation.

Landed price to importer 2.0

1 Import duty (10% of landed price) 0.2

2 Price upon arrival at the port 2.2

3 Wholesaler mark up (warehousing, distribution, 80%

3 LCL stands for Less than a Container Loaded

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marketing, profit)

4 Wholesale price 4.0

5 Retail mark up (store, personnel, advertising, profit etc.) 100%

Final consumer price 8.0

If you find that your price is very competitive (much lower than your competitors’ ones) then

at which price you should offer your products? Your primary aim in the target market is to

offer your products at a price level that does not exceed that of your competitors. You can

apply “Penetration pricing” – offer the product at a price that is slightly lower than the one of

your competitors.

After fixing your price, it is important to create stability and reliability in your pricing. It is

difficult to increase prices later, if you started with very low prices. However, in practice, the

market price is always changing, up or down and as a player in the marketplace; you should

adjust your prices accordingly. Whatever your (forced or voluntary) changes in your prices

may be, always make sure that your customer and trading partner understands the reasons for

it. Those reasons should be made acceptable and justifiable in their minds.

The choice of currency in which you calculate your offer is very important. You can offer the

products in VND to avoid complicated and expensive currency transactions with your bank,

but in general, your customers will not accept a quotation in VND but ask for a quotation in

their own currency, e.g. JPY in Japan. In those cases, you should consider some hard foreign

currency; say Euros or US dollars because of their stability.

5.2 Quotations and Proforma Invoices

A quotation describes the product, states a price for it, sets the time of shipment, and specifies

the terms of sale and terms of payment. The description should include the following points:

Buyer's name and address, buyer's reference number and date of inquiry

Listing of requested products and brief description

Unit price and quantity of each item

Gross and net shipping weight

Terms of delivery & Terms of payment

Validity period for quotation

Estimated time of Departure (ETD) and Estimated time of Arrival (ETA).

32


Sellers are often requested to submit a pro forma invoice with or instead of a quotation. Pro

forma invoices are not for payment purposes but are essentially quotations in an invoice

format.

In addition to the foregoing list of items, a pro forma invoice should include a statement

certifying that the pro forma invoice is true and correct and a statement describing the country

of origin of the goods.

Also, the invoice should be visibly marked "pro forma invoice." These invoices are only

models that the buyer uses when applying for an import license or arranging for funds.

As an example of a quotation, have a look at the following quotation for sea-grass baskets for

a Japanese customer.

33

GREEN WORLD CO., LTD.No.20 Lane 192 Giap Bat Str., Hoang Mai Dist., Hanoi - Vietnam

Tel: 84.4.6642866 Fax: 84.4.6642983 E-mail: [email protected]

QUOTATIONRef: Inquiry No.: QUO61/06.LP Date: June 27, 2004

To: DECO IMPORTS 3-2-22 Higamitsu, Saitama-Tokyo, Japan.

NO ITEM

CODE

PICTURE ITEM

NAME

SIZE

(CM)

PACKING Q’TY

IN 40’’

CONT.

(PCS)

CIF

TOKYO

(USD)

TOTAL

AMOUNT

(USD)

1 BS01 Sea-grass

basket

56x35x24

52x32x20

28x20x18

17x9x17

2PCS/

CTN

1,212 10.5/PC 12,726

TOTAL 1,212 12,726In words: In US dollars Twelve thousand seven hundred and twenty six only.

Time of delivery: FOB Haiphong seaport, Vietnam Place of delivery: Tokyo, Japan – 45 days after receipting your first remittanceTerm of payment: T/T remittance. 30% advance right after signing contract. The balance (70%) will be paid up upon the readiness and final inspectionValidity of the quotation: By 27 September, 2004

Green World Co.,Ltd.

Le Nguyen Bao TramSale Manager


5.3 Terms of Sale

In any sales agreement, it is important that a common understanding exists regarding the

delivery terms. Confusion over terms of sale can result in a lost sale or a loss on a sale. For

this reason, you must know the terms before preparing a quotation or a pro forma invoice. A

complete list of important terms and their definitions is contained in INCOTERMS 2000,

which are grouped in four categories E (EXW, ex-works, formerly ex-factory), F (including

FCA, FAS, FOB), C (including CFR, CIF, CPT, CIP) and D (including DAF, DES, DEQ,

DDU, DDP). The obligations and charges that will be at your or your buyer’s account is

summarized in the following table:4

The first group (E) has only one trade term EXW, formerly ‘ex factory’. The second F-group

4 Refer to “A Guide to Exporting Solid wood product” United States Department of Agriculture.

34


The first group (E) has only one trade term EXW, formerly ‘ex factory’. The second F-group

indicates the obligation of the seller to hand over the goods to a carrier free of risk and

expense to the buyer. The third C-group includes terms that indicate the seller’s obligation to

bear certain costs after main carriage, which is a critical point in the sales contract: the

obligation to bear risks and costs change from one party to the other. The fourth D-group

includes the terms that prescribe that the goods must have arrived at a specified destination.

The most popular terms of sale that you often use are FOB (port of loading) and CIF (port of

discharge). For FOB (free on board) at a named port of export, you quote the buyer a price

that covers all costs up to and including delivery of goods aboard an overseas vessel. But for

CIF (cost, insurance, freight), you quote a price for the goods (including insurance), all

transportation, and miscellaneous charges to the point of debarkation from the vessel. You

should quote CIF whenever possible, because it is internationally recognized. It shows the

foreign buyer the cost of getting the product to a port in or near the desired country.

When quoting a price, you should always make it transparent to the prospective buyer. A

price for your tablecloth quoted "EXW Ha Tay" would be meaningless to most prospective

foreign buyers because they don’t know how to determine the cost to the port as well as the

total cost to their warehouse. Therefore, they would hesitate to place an order.

5.4 Methods of Payment

There are several methods of payment for your products sold abroad. Ranked in order of

security for the exporter from most secure to least secure, the basic methods of payment are:

Cash in advance, Telegraphic Transfer (T/T)

Letter of credit (L/C)

Documents against Acceptance (D/A)

Documents against Payment (D/P)

Open account.

Since getting paid in full and on time is of utmost concern to exporters, risk is a major

consideration. One of the most important factors in reducing risks is to know what risks exist.

For that reason, you are advised to consult your banker to determine an acceptable method of

payment for each specific transaction.

Cash in advance: Cash in advance of shipment may seem to be the most desirable method, as

the seller is relieved of collection problems and has immediate access to the money if a wire

35


transfer is used. However, on the other hand, advance payment creates cash flow problems

and increases risks for the buyers and they may refuse to pay until the merchandise is

received.

In order to ensure that both parties benefit from the payment arrangement, you need to discuss

the method of payment with your buyer. In case that full payment before shipment is not

accepted, you may consider other terms of payment, for example: “30% of the total contract

amount will be remitted to the exporter’s account right after signing of the contract, and the

remainder will be paid by the importer right after receiving copies of shipping documents” or

“30% of the total contract amount will be remitted to the exporter’s account right after signing

of this contract and the balance will be paid through Confirmed Irrevocable Letter of Credit”

in order to minimize your risks.

Letter of credit (L/C): The buyer may be concerned that the goods may not be sent if the

payment is made in advance. To protect the interests of both buyer and seller, documentary

letters of credit are often used. In this case, documents are required to be presented before

payment is made. The letters of credit may be paid immediately, at sight, or at a later date.

L/C may be revocable, irrevocable, unconfirmed or confirmed. The irrevocable L/C cannot be

canceled or altered in any way by the banks or the buyer, without the permission of the

exporter. A revocable L/C can be changed or canceled by the opening (buyer’s) bank at any

time without notifying the exporter. In a confirmed L/C, the confirmed bank accepts

responsibility to pay. If the L/C is unconfirmed, the exporter is relying on the foreign bank to

make payment.

Here is what typically happens when payment is made by an irrevocable letter of credit

confirmed by a U.S. bank (this method is defined as Confirmed Irrevocable Letter of Credit):5

1. After the exporter and customer agree on the terms of a sale, the customer arranges for

their bank to open a letter of credit.

2. The buyer's bank prepares an irrevocable letter of credit, including all instructions to the

seller concerning the shipment.

3. The buyer's bank sends the irrevocable letter of credit to a U.S. bank, requesting

confirmation. The exporter may request that a particular U.S. bank be the confirming

bank, or the foreign bank selects one of its U.S. correspondent banks.

4. The U.S. bank prepares a letter of confirmation to forward to the exporter along with the

irrevocable letter of credit.

5 Refer to “A basic guide to exporting”, published by US Department of Commerce

36


5. The exporter reviews carefully all conditions in the letter of credit. The exporter's freight

forwarder should be contacted to make sure that the shipping date can be met. If the

exporter cannot comply with any conditions, the customer should be alerted at once.

6. The exporter delivers the goods to the right port or airport.

7. When the goods are loaded, the exporter completes the necessary documents.

8. The exporter presents to the U.S. bank documents indicating full compliance.

9. The bank reviews the documents. If they are in order, the documents are airmailed to the

buyer's bank for review and transmitted to the buyer.

10. The buyer (or agent) gets the documents that may be needed to claim the goods.

11. A draft, which may accompany the letter of credit, is paid by the exporter's bank at the

time specified or may be discounted at an earlier date.

Upon receiving a letter of credit, you should carefully compare the letter's terms with the

terms indicated in your pro forma quotation. This is extremely important, as the terms must be

precisely met or the letter of credit may be invalid and the exporter may not be paid. If

meeting the terms of the letter of credit is impossible or any of the information is incorrect or

misspelled, the exporter should get in touch with the customer immediately and ask for an

amendment to the letter of credit to correct the problem.

You must also provide documentation showing that the goods were shipped by the date

specified in the letter of credit or the exporter may not be paid. You should check with their

freight forwarders to make sure that no unusual conditions may arise that would delay

shipment. Similarly, documents must be presented by the date specified for the letter of credit

to be paid.

Documentary Collection (D/A and D/P): This payment mechanism is the collection by a

bank of funds due from a buyer against the delivery of documents. The bank, acting as agent

for the seller (exporter), presents documents to the buyer (importer) through that party's bank

and in exchange receives payment of the amount owed, or obtains acceptance of a time draft

for payment at a future date. The liability of the bank under a documentary collection is

primarily restricted to following the seller's instructions in forwarding and releasing

documents against payment or acceptance.

Unlike a letter of credit, the bank does not assume any liability to pay if the buyer does not

want or is unable to pay. Compared with open account sales, the documentary collection

offers a higher more security to the seller, but less than a letter of credit. The steps in a

documentary collection are as follows:

1. The buyer (importer) and seller (exporter) agree on the terms of sale, shipping dates, etc.,

37


and that payment will be made on a documentary collection basis.

2. The exporter arranges for the delivery of goods to the port/airport of departure.

3. The exporter delivers the goods to the point of departure and prepares the necessary

documentation.

4. Export documents and instructions are delivered to the exporter's bank by the exporter

5. Following the instructions of the exporter, the bank processes the documents and

forwards them to the buyer's bank.

6. The buyer's bank, on receipt of documents, contacts the buyer and requests payment or

acceptance of the trade draft.

7. After payment or acceptance of the draft, documents are released to the buyer, who uses

them to pick up the merchandise.

8. The buyer's bank remits funds to the seller's bank or advises that the draft has been

accepted.

9. On receipt of good funds, seller's bank credits the account of the exporter.

Open account: Under an open account, the exporter simply bills the customer, who is

expected to pay under agreed terms at a future date. This method of payment is convenient

and may be satisfactory if the buyer is well established, has demonstrated a long and

favorable payment record, or has been thoroughly checked for creditworthiness.

Open account sales do pose risks, however. The absence of documents and banking channels

may make legal enforcement of claims difficult to pursue. As an exporter, you may have to

pursue collection abroad, which can be difficult and costly. Also, receivables may be harder to

finance, since drafts or other evidence of indebtedness are unavailable. Note that, for all of the

mentioned methods of payment, you should know and mention in the contract the party that

will bear the bank charges for remittance.

The advantages and disadvantages of payment terms are summarized as follows:

Method of

payment

Timing of

payment

Goods

availability

Seller’s risks Buyer’s risk

Cash in

advance

Before shipment At destination

arrival

None 100% reliance on seller

Letter of

Credit

Presentation of

documents after

shipment

When L/C is

paid

Minimal, Issuing/

confirming bank

obligation to pay if

documents conform to

L/C

Assurance of shipment,

but depends on seller to

supply goods ordered

38


D/A collection When accepted

Trade Draft

matures

At time Trade

Draft is

accepted

Non-payment of draft,

even though buyer has

the merchandise

Minimal, may refuse to

pay draft at maturity

D/P collection When documents

received at the

presenting bank

When payment

is made

Non-payment of draft Assurance of shipment,

but depends on seller to

supply goods ordered

Open Account Buyer's

discretion

Upon arrival 100% reliance on buyer None

The term of payment to be applied is much dependent on your understanding and your

relationship with your buyers. In general, a documentary collection and open account would

be appropriate (1) where the seller and the buyer know each other to be reliable, (2) there is

no doubt about the buyer's willingness or ability to pay, (3) the political and economic

conditions of the buyer's country are stable and (4) the importer's country does not have

restrictive foreign exchange controls. When dealing with new customers, you should better

apply Cash in Advance or Letter of Credit (often, Confirmed Irrevocable Letter of Credit at

sight) even L/C is often subject to a high bank charge.

Below are payment services operating by some commercial bankers in Vietnam:

Name Website Export service

Bank for Foreign Trade of

Viet Nam

http://www.vietcombank.com.vn - Payment by L/C

-D/A Collection

- D/P Collection

- D/OT Collection

- Telegraphic transfer – T/T

Techcombank http://www.techcombank.com.vn - Payment by L/C

-D/A Collection

- D/P Collection


Asia Commercial Bank http://www.acb.com.vn - Payment by L/C

-D/A Collection

- D/P Collection


Bank for Investment and

Development of Viet Nam

http://www.bidv.com.vn - Payment by L/C

-D/A Collection

- D/P Collection


39

http://www.bidv.com.vn/

http://www.acb.com.vn/

http://www.techcombank.com.vn/

http://www.vietcombank.com.vn/


6 Trade Fair Participations

Trade fairs are an excellent way to find new customers, to get an update on the current

situation in the sector, such as market trends and product developments. Hundreds of

Vietnamese handicraft companies have participated in many trade fairs over the world,

particularly in Germany, France, Italy, Spain, UK, Japan, Hong Kong, Thailand, United

States. Many of them participate twice or even three times per year.

But you cannot take it for granted that you will actually reap success from participating in a

trade fair unless you prepare your attendance carefully. If you appear on the market with

products or services which fall short of market standards, e.g. because they are technically

inferior, too expensive, or your product information is inadequate, you will face more

drawbacks than simply making no sales and losing money. You will damage the image of

your company and even the image of Vietnamese handicrafts in the world market.

In order to plan and prepare for trade fair participations, there is a number of manuals that we

recommend you to read thoroughly:

“Show master“ from CBI (www.cbi.nl)

“Successful participation in Trade Fairs“ from AUMA (www.auma-fairs.com)

“From Contacts to Contracts” (www.sippo.ch).

6.1 Selecting the Right Trade Fair

Selecting the right trade fair plays an important role for your market entry and finding the

right customers. Choose 1-2 trade fairs only to take part in, but then participate continuously,

in order to turn first contacts into real business and then stable partnerships. Do not expect too

much from a first participation. In general, you will need to attend 2-3 fairs in a row before

you can actually develop business.

You may find information on trade fairs in databases such as www.tsnn.com,

www.exhibitions-world.com, www.auma.de or www.fairlink.se.

You can also find trade fairs through many Export Promotion Agencies and you can discuss

with other companies who have participated in foreign trade fairs before. Every trade fair

organizer has its own website, e.g. http://www.giftshow.co.jp for Tokyo Gift Show in Japan

or http://www.ambiente-frankfurt.de for Ambiente in Frankfurt/Germany.

40

http://www.ambiente-frankfurt.de/

http://www.giftshow.co.jp/

http://www.sippo.ch/

http://www.auma-fairs.com/

http://www.cbi.nl/


Important international trade fairs for Vietnamese handicraft exporters are:

Ambiente and Tendence (in Germany) – the world’s largest trade fairs for home

accessories and gift articles

Maison & Objet (France) – One of the leading trade fairs for international design trends

Expohogar Regalo Otono (Spain), Macef Milano (Italy), Spring Fair Birmingham (UK)

and Herning (Denmark) with more regional focus on EU markets

New York International Gift Fair, (USA), the most important trade fair in the US

For Asia: Hongkong Gift fair, Hongkong Houseware Fair; Bangkok International Gift Fair

& Bangkok International Houseware Fair (Thailand), Canton Fair (China); Giftshow

Tokyo and Giftshow Fukuoka, Japan.

A list of many other useful trade fairs is enclosed in Appendix No.7.

It should be emphasized again that before deciding to attend a fair, you should thoroughly

study the type of the trade fair. There are many trade fairs in the US that are dominated by

U.S. importers and less suitable for exporters to exhibit. The exhibitors there are your

potential clients and they would not like to see you there at your exporter’s price.

6.2 Trade Fair Preparations

It is recommended that before attending the fair as an exhibitor, you should once attend the

fair as a visitor. You can talk to exhibitors and other visitors, identify ideal locations and seize

the opportunity to establish contacts with potential buyers.

The purpose of the pre-visit is to learn and to understand:

What is the overall character of the show: design, quality, price level? What kinds of

products are being shown? What kinds of businesses are exhibiting?

Product and design trends

What kinds of booths are heavily frequented?

How are products displayed, how are booths arranged?

What networking services are provided by the show management (buyers contacts, sales

reps), what services are provided for exhibiting: storage, lighting, carpeting, booth

displays, exhibitor directory?

Costs and logistics, which become an important issue once you have decided to actually

participate in the show (visit the show management office).

41


The following table from CBI provides some guidance on a detailed trade fair planning

schedule.

No Activity Deadline

1 Fair information and application form 12 – 8 m

2 Decision on budget 12 – 8 m

3 Decision to participate 11 – 7 m

4 Reservation of stand space 11 – 6 m

5 First staff planning meeting 10 – 6 m

6 Confirmation by fair organizer 8 – 5 m

7 Request for stand quotations 7 – 5 m

8 Draw-up detailed budget 7 – 5 m

9 Book hotel accommodation 5 m

10 Final selection of products 5 m

11 Decide on promotional campaign 5 m

12 Start preparing mailing list 5 m

13 Organizer approval for special design stand 4 m

14 Quotations from forwarding agent 4 m

15 Catalogue entry to organizer 4 m

16 Preparation of sales literature 4 m

17 Order forms (from the Manual) to organizer 4 m

18 Appointment of stand staff 4 m

19 Book travel arrangements 4 m

20 Arrange hostesses, local staff, interpreters 3 m

21 Order workmen and exhibitors’ passes 3 m

22 Finalize mailing list 3 m

23 Press releases to organizer and trade press 3 m

24 First visitors’ mailing 2 m

25 Deliver exhibits to shipping agent 1 m

26 Second visitor mailing 1 m

27 Telemarketing short list 2 w

28 Arrival of exhibits at the fair 10 d

29 Arrival of stand staff at the fair 2 d

Note: m: months; w: weeks; d: days

Before attending the fair, you should have the necessary company documentation ready (order

sheets, price lists, catalog, website, leaflets, name cards, etc.) for dissemination to importers at

the fair. We advise that you always have a catalogue on hand because it will save time for

42


visitors to understand your range of products at a glance.

It is important that you invite potential buyers to visit your trade fair booth. Particularly at

large international trade fairs, it is difficult for new exhibitors to get recognized. Therefore, it

is recommended that you launch an invitation mailing to prospective buyers prior to the fair in

order to effectively inform them of your presence at the fair and motivate them to visit your

stand.

6.3 Participation Costs

The budget is an important point to be considered before you decide on participating in a fair.

If you are a first time exhibitor at a fair, budgeting will be a challenge.

The following table will give you an indication of the total expenses that were to be incurred

by a Vietnamese exhibitor with 2 participants for a stand of 12 square meters at the 2005

Tendence fair:

NoDescription Unit Quan-

tity

Unit price

EUR

Total Amount

(EUR)

1 Visa fee person 2 48 96.00

2 Cost of products/exhibits lot 1 1,500 1,500.00

3 Stand rental m2 12 160 1,920.00

4 Stand construction m2 12 100 1,200.00

5 Catalogue entry Comp. 1 170 170,00

6 Marketing documents lot 1 500 500.00

7 Sea freight lot 1 300 300.00

7 Air-ticket person 2 750 1,500.00

8 Hotel nights 8 150 1,200.00

9 Food days 8 700.00

10 Travelling in Germany days 8 500.00

11 Communication days 8 200.00

Total 9,786.00

Note:

The cost of sea freight rate is very low in the above example, since the exhibitors were

able to get a very good rate for consolidated container shipment door-to-door with other

43


exhibitors for Frankfurt. In general, transport costs are higher (particularly regarding

delivery of the goods to the trade fair booth)

Make sure that you book your hotel early, as hotels can be very expensive at trade fair

times.

Space and stand rental can be offered by not only the trade fair organizers but also its

representatives or many other local trade fair companies.

Carefully check all components of the total costs including delivery of your exhibits to

your stand with the organizer or his representative. Many Vietnamese exhibitors were

confronted with very high costs for the delivery of exhibits from the Exhibition Center

gate to their stand (especially for trade fairs in US). In many cases, you may have to pay

even for cleaning your stand after the fair.

You can agree with other Vietnamese exhibitors to share a large stand, which improves

your negotiation power towards the trade fair organizers.

Before or at the early stages of the fair, think of possibilities to sell and leave your exhibits

with buyers (mind though that the trade fair organizers will not always allow you to do

so).

An appropriate booth decoration requires particular attention:

Get concrete measurements and prepare a stand sketch in order to develop an attractive

stand design prior to the trade fair. Think about how best to present your products (tables,

shelves or else).

Select product samples and present a few collections of your best products. Do not try to

present all your products, instead arrange the exhibits by topic/collection using specific

colors and shapes. Avoid creating a warehouse character on your stand.

Display some larger products in a prominent position to attract customers’ attention.

Visitors pass by quickly, see hundreds of

booths in a hall. Help your customers’ eye to

focus on a few particular outstanding products.

6.4 At the Trade Fair

Not only does your success at a trade fair depend on

the quality of your presentation and preparatory

efforts before the fair, but also, and to a

considerably extent, on the performance of your

staff during the fair. Make sure that senior sales

management staff is available at the stand to answer

questions and to establish personal contacts.

44


We also recommend that you:

Train staff with regard to product information and communication: Sales staff should be

qualified to be able to answer all questions asked by customers (understand production

processes, what adaptations and alterations would be possible, price...) and should be open

and friendly.

Staff should pro-actively approach all customers who show a first interest. They should

ask customers about the nature of their interest, the type of their company, and their

function or area of responsibility within the firm (see: visitor contact form). Obtaining this

information from stand visitors will help the exhibitor later on to decide what direction the

discussion should take.

Be honest and realistic. Never give an untrue answer; do not promise what you cannot

keep afterwards.

Carefully take note of the information given by the visitors on the visitor contact form,

which you should always have at hand.

There should not be too many exhibitors on a stand (their number depends on the

available space but 2 exhibitors seem to be best for 18-30 m²).

Wear your exhibitor’s badge. “Ao dai” can be a good selection for female Vietnamese

exhibitors.

Speak English or another language slowly and clearly. For many European persons, the

Asian accent is difficult to understand. In order to make yourself understood properly by

foreign visitors, it would be advisable for you to hire Vietnamese students who study

overseas to assist you as translators during the fair.

Always keep the stand neat and tidy.

6.5 After the Trade Fair

The contacts you make during the trade fair are just the beginning of your efforts to build up

business relationships. In many cases a prospective customer has to be approached several

times before a business deal is concluded. A well-planned follow-up of the contacts made at

the fair will help you achieve your desired trade fair results. Right from the beginning you

should decide on how, when (how soon) and by whom (sales, sales force, representatives)

your initial trade fair contacts can be consolidated.

When you follow up with actual or potential customers who visited your booth, you should:

Send a note of thanks for their visit

Send all documents or quotations which were promised

45


Provide further information on the points in the customer record form

Arrange further appointments

Designate members of staff or the sales force to consolidate the initial contacts

Participating in a foreign trade fair is rather expensive; therefore exhibitors should optimize

their time by visiting some stores or importers immediately after the fair. Store visits are

useful to see what the current consumer trends are, what products are selling, and what trends

are declining. Visiting stores or importers will also be helpful for you to identify whether the

firm is a retail store or chain you can profitably sell your products to, whether they would be

interested in buying what you make and consequently whether it would be worth your time to

ask for an appointment with the firm’s purchasing department to show your products. Note

the differences between stores, and what each store claims as its competitive advantage and

how it tries to attract consumers. Look for the “feel” of the store, its personality, which

highlights its competitive advantage: the latest designs, “snob appeal”, low price, top quality

customer service; the store floor plan and product layout; how are products displayed; what is

the price level etc.

7 Export Documentation and Shipping

In order to ship your goods, you need to prepare your Export Documents for Customs

Declaration. According to the latest regulation from the Ministry of Finance, Vietnam, the

documents for exportation of handicrafts include:

Customs Declaration Form: 2 originals

Packing List: 1 original and 1 copy.

Depending on the contract with your buyers, you may be also requested to present a

Commercial Invoice, Phytosanitary Certificate and Inspection Certificate

The Customs Declaration Form includes a listing of the products shipped according to the

Harmonized System or HS codes. It includes complete particulars of the shipment. You can

buy it easily at the Customs Office in your area.

The Packing List and Commercial Invoice are to be prepared by the exporter. The

Phytosanitary Certificate will be issued by the Department of Plant Protection of the Ministry

of Agriculture and Rural Development.

46


When determining the best Way of International Shipment, you should check out with

forwarders and shipping companies in Vietnam (Appendix No.8) to find the best ones in terms

of the cost of shipment, delivery schedule, and preferences of the foreign buyer.

You should reserve space on the carrier well before the actual shipment date (this reservation

is called the booking contract). For inland transportation (from you factory to the port of

loading), you can ask your selected carrier/forwarder for help. They can arrange this inland

service or you can contract some trucking companies who are used to dealing with export

shipments.

Export shipments usually need to be insured against loss, damage, and delay in transit by

cargo insurance. For international shipments, the carrier's liability is frequently limited by

international agreements and the coverage is substantially different from domestic coverage.

Arrangements for cargo insurance may be made by either the buyer or the seller, depending

on the terms of sale. You are advised to consult with international insurance carriers or freight

forwarders for more information.

The Shipping Documents will be prepared by you and sent to your bank or your customer for

settlement depending on the terms of payment. The following shipping documents are

commonly used:

Bill of lading: Bills of lading are contracts between the owner of the goods and the

carrier. The customer usually needs the original or a copy as proof of ownership to take

possession of the goods. You should get a Clean Bill of Lading. In case of urgent delivery,

where you cannot send your original shipping document to your foreign customer on time,

you can request your shipping company to issue a Surrendered Bill of Lading for releasing

the cargo.

Commercial invoice: A commercial invoice should include basic information about the

transaction, including a description of the goods, the address of the shipper and seller, and

the delivery and payment terms.

Packing list: An export packing list itemizes the material in each individual package and

indicates the type of package: box, crate, drum, carton, and so on. It shows the individual

net, legal, tare, and gross weights and measurements for each package.

Certificate of origin (C/O): Certain nations require a signed statement as to the origin of

the export item - such certificates are obtained in Vietnam through the Vietnam Chamber

of Commerce and Industry (VCCI). However, in many cases, the buyer request a

Certificate of Origin issued by your company. By showing the C/O to the Customs upon

arrival in the importing country, your customer may be subject to tax exemption or tax

reduction depending on the Agreements between Vietnam and importing countries.

47


In some cases, you may need Inspection, Insurance, Fumigation and Phytosanitary

Certificates:

Inspection certification: Some purchasers and countries may require a certificate of

inspection attesting to the specifications of the goods shipped, usually performed by a

third party. Inspection certificates are often obtained from independent testing

organizations.

Insurance certificate: If the seller provides insurance, the insurance certificate states the

type and amount of coverage.

Phytosanitary Certificate/Fumigation Certificate: The document certifies that the

product is free from quarantine pests and significantly free from injurious pests. In

addition, treatments such as fumigation or cold storage, required by the importing country,

or those treatments which are necessary to meet pest free standards, are supervised by the

certifying official and document on the certificate.

8 Dealing with Claims

In some cases, you and your customers may fail to meet specific contract obligations leading

to losses for one of the parties and may not be able to settle that problem in a friendly way. In

such cases, arbitration should be considered.

Arbitration is an out-of-court method to settle commercial disputes through a binding

decision. It is a private, highly flexible method of dispute resolution, where the parties select

arbitrators, the place where the hearings will be held, the rules, language and type of

procedure. All this has a price, which is paid by the parties. In return they receive a decision

that can be enforced practically anywhere in the world.

The arbitration is different from a court case in four aspects: First, the arbitration agreement.

Courts are generally open to all parties that have a dispute. Arbitration is only open to parties

that have agreed (usually in a contract) to arbitrate. Second, the selection of arbitrators.

Parties in court cases do not select their own judges, but in arbitration, they select their own

arbitrators. Third, neutrality and flexibility. Imagine a dispute between a Vietnamese exporter

and an importer from Japan. A court dispute will probably be resolved before the courts of

Vietnam if the Japanese company is the claimant, and before the courts of Japan, if the

Vietnamese exporter initiates the proceedings. In arbitration, the parties can select, say, an

Egyptian or a Swiss arbitrator, and the arbitration can take place somewhere in between,

Italy, for example. Last, arbitration is international enforcement. The Vietnamese Exporter

48


will not easily be able to enforce a Vietnamese decision in Japan, and vice versa for the

Japanese party. In contrast, an arbitration award can be recognized by judges in most

countries of the world.

It should be noted that, for clause of claim, the applicable law should be always mentioned

clearly. For example, in an export contract, it is stipulated as follows: “If any dispute arises

under a contract that is not settled amicably between the two sides, the matter will be settled

by Vietnam International Arbitration Center in accordance with the International

Commercial Arbitration Rules whose awards shall be final and biding for both sides. The fee

for Arbitration and charges shall be born by the losing side unless otherwise agreed“

In Vietnam, the Vietnam International Arbitration Centre shall be responsible for the hearing

of the disputes arising from international economic relations, such as foreign trade contracts

and those concerning investment, tourism, international transport and insurance, transfer of

technology, services, international credits and payments, etc. For more information, assess its

website http://www.viac.org.vn/.

9 Appendices

Appendix No.1 H.S. Codes of selected Handicraft Articles

Appendix No.2 Major International Markets for Vietnamese Handicrafts

Appendix No.3 Trade Associations

Appendix No.4 National Statistic Offices in the EU, Japan and USA

Appendix No.5 Trade Journals and Trade Press

Appendix No.6 Chambers of Commerce & Trade Agencies

Appendix No.7 Trade Fairs

Appendix No.8 Major Freight Forwarders and Shipping Companies in

Vietnam

Appendix No. 9 Large Stores in the US, EU and Japan

49


Appendix No.10 Cultural Factors

Appendix No.11 Information Sources about Market Entry Requirements

Appendix No.12 List of Supporting Policies for Handicraft Exporters

Appendix No.13 References

Appendix No.1

H.S. Codes of selected Handicraft Articles

No. Category H.S. Codes Description

1 Bamboo, rattan,

rush and leaf

4601.20 Mats, matting and screens of vegetable plaiting materials.

Basket ware, wickerwork and other articles made directly to shape from

plaiting materials or made up from goods of heading No 46.01; articles

of loofah

4602.10 Of vegetable material

4602.90 Made up from other plaited materials

6504.00 Hats and other headgear, plaited or made by assembling strips of any

material whether or not lined or trimmed.

9401.50 Seats of cane, osier, bamboo, or similar materials

9403.80 Furniture of other materials (including bamboo)

2 Pottery 6912.00 Ceramic tableware, kitchenware, other household articles and toilet

articles (other than porcelain or china).

6913.90 Statuettes and other ornamental ceramic articles (other than porcelain or

china).

6914.90 Other articles of ceramics

3 Wood 4414.00 Picture frame, photo frame, mirror frame and other similar ones

4419.00 Tableware and kitchenware, of wood.

Wood marquetry and inlaid wood; caskets and cases for jewellery or

cutlery, and similar articles, of wood; statuettes and other ornaments, of

wood, wooden articles of furniture not falling within the division 82:

4420.10 Statuettes and other ornaments of wood

50


4420.90 Wood marquetry and inlaid wood; caskets and cases for jewellery etc

4421.10 Clothes hangers of wood

4421.90 Other wooden products: beads, accessories for curtain, toothpicks...

9401.69 Seats with wooden frames

9403.60 Furniture, wooden, n.e.s.

4 Embroidery 580430 Lace, hand-made, in the piece, in strips or in motifs.

580500 Hand-woven tapestries, of the type Gobelins, Flanders, Aubusson,

Beauvais and the like, and needle-worked tapestries (e.g. petit point,

cross stitch), whether or not made up.

581010 Embroidery in the piece, in strips or in motifs: Without visible ground

581091 Other embroidery: Of cotton

581099 Other embroidery: Of other textile materials

5 Textile 4202.22 Handbags with outer surface of sheet of plastics or of textile materials

4202.32 Articles carried in pocket or handbag with outer surface sheet of plastic

or other textile

Carpets and other textile floor coverings, knotted, whether or not made

up:

5701.10 Of wool or fine animal hair

5701.90 Of other textile materials

Carpets and other textile floor coverings, woven, not tufted or flocked,

whether or not made up:

5702.10 "Kelem", "Schumacks", "Karamanie" and similar hand-woven rugs.

5702.20 Floor coverings of coconut fibers (coir)

5702.31 Carpets of wool or fine animal hair, of woven pile construction, not made

up, n.e.s

Other, of pile construction, made up:



Other, not of pile construction, made up:



51


5811.00 Quilted textile products in the piece, composed of one or more layers of

textile materials assembled with padding by stitching or otherwise, other

than embroidery of No. 58.10

Handkerchiefs

6213.10 Of silk or silk waste

6213.20 Of cotton


Shawls, scarves, mufflers, mantillas, veils and the like




Ties, bow ties and cravats



Bed linen, table linen, toilet linen and kitchen linen

6302.10 Of textile knitted or crocheted materials

6302.21 Of cotton, printed, not knitted

6302.31 Other bed linen of cotton

6302.51 Table linen of cotton, not knitted

6302.91 Other toilet and kitchen linen, of cotton

6302.92 Toilet and kitchen linen, of flax

6302.99 Toilet and kitchen linen of other textile materials

Other furnishing articles, excluding those of heading No. 94.04:

6304.11 Bedspreads of textile materials, knitted or crocheted, n.e.s.

6304.19 Bedspreads of textile materials, not knitted or crocheted

6304.92 Furnishing articles of cotton, not knitted or crocheted

6304.99 Furnishing articles of other textile materials, not knitted or crocheted

6405.20 Footwear with uppers of textile materials n.e.s (e.g. alpargatas)

6 Metal 7326.11 Articles of iron or steel, forged or stamped, but not further worked, n.e.s.

8306.10 Bells, gongs and the like, non-electric, and parts thereof, of base metal

8306.21 Statuettes and other ornaments plated with precious metal

8306.29 Other statuettes and other ornaments

52


8306.30 Photograph, picture or similar frames and mirrors of base metal

9401.79 Seats with metal frames, n.e.s., other than those of heading No 94.02

9403.20 Furniture, metal

9606.22 Button of base metal, not covered with textile material

7 Handmade

paper

4802.10 Hand-made paper and paper board

8 Various animal,

mineral

materials

(Stone, glass,

bone, horn,

shells, etc., or

combination)

Worked monumental and building stone:

6802.91 Marble, travertine and alabaster and articles thereof, molded, turned,

polished, decorated, carved or otherwise worked.

6802.92 Calcareous stones

6802.93 Granite

6802.99 Other

Glass beads, imitation pearls, imitation precious or semi-precious stones

and similar glass small wares, and articles thereof (other than imitation

jewellery); glass eyes (other than prosthetic articles); ornaments and

other fancy articles of lamp-worked glass (other than imitation

jewellery); glass micro spheres not exceeding 1 mm in diameter:

7018.10 Glass beads, imitation pearls, imitation precious or semi-precious stones

and similar glass small wares

7018.90 Other

Worked ivory, bone, tortoise-shell, horn, antlers, coral, mother-of-pearl

and other animal carving material, and articles of these materials

(including articles obtained by moulding):

9601.10 Worked ivory and articles of ivory

9601.90 Other

9606.29 Buttons, n.e.s.

9614.20 Smoking pipes and pipe bowls

9615.19 Combs, hair-slides and the like of materials other than hard rubber or

plastics

9615.90 Hairpins, curling pins, hair-curlers and the like, n.e.s.

9 Extra

Categories

9307.00 Side-arms (e.g. swords, cutlasses and bayonets) and parts thereof and

scabbards and sheaths thereof.

3406.00 Candles, tapers and the like

53


Festive, carnival or other entertainment articles (including conjuring

tricks and novelty jokes)

9505.10 Articles for Christmas festivities

9505.90 Other

Artificial flowers, foliage, fruit and parts thereof; articles made of

artificial flowers, foliage or fruit:

6702.90 Of material other than plastics

Jewellery and gold/silversmith wares

Articles of jewellery and parts thereof, of precious metal or of metal clad

with precious metal:

7113.11 Of silver whether or not plated or clad with other precious metal

7113.19 Of other precious metal whether or not plated or clad with precious metal

7113.20 Of base metal clad with precious metal

Articles of goldsmiths' or silversmiths' wares and parts thereof, of

precious metal or of metal clad with precious metal:

7114.11 Of silver, whether or not plated or clad with other precious metal

7114.19 Of other precious metal, whether or not plated of clad with precious

metal

7114.20 Of base metal clad with precious metal

7115.90 Articles of precious metal or of metal clad with precious metal, n.e.s.

Articles of natural or cultured pearls, precious or semi-precious stones

(natural, synthetic or reconstructed):

7116.10 Of natural or cultured pearls

7116.20 Of precious or semi-precious stones (natural, synthetic or reconstructed)

Imitation jewellery:

7117.11 Cuff links and stud of base metal whether or not plated with precious

metal

7117.19 Other imitation jewellery of base metal whether or not plated with

precious metal

7117.90 Other imitation jewellery

Musical instruments

9206.00 Percussion musical instruments (e.g. drums, xylophones, cymbals,

castanets).

Toys

54


Dolls representing only human beings:

9502.10 Dolls, whether or not dressed

9502.91 Garments and accessories therefore, footwear and headgear

9502.99 Other parts and accessories n.e.s.

Other toys:

9503.30 Construction sets and constructional toys, n.e.s.

9503.41 Stuffed toys representing animals or non-human creatures

9503.49 Toys n.e.s. representing animals or non-human creatures

9503.50 Toy musical instruments and apparatus

9503.60 Puzzles

10 Works of Art 9706.00 Antiques of an age exceeding one hundred years

9704.00 Postage or revenue stamps, stamp-postmarks, first-day covers, postal

stationary (stamped paper), and the like, used, or if unused not of current

or new issue in the country to which they are destined

9705.00 Collections and collectors’ pieces of zoological, botanical, mineralogical,

botanical, historical, archaeological, palaentological, ethnographic or

numismatic interest

Painting and Prints

Paintings, drawings and pastels, executed entirely by hand, other than

hand-painted or hand-decorated manufactured articles; collages and

similar decorative plaques:

9701.10 Paintings, drawings and pastels

9701.90 Other

9702.00 Original engravings, prints and lithographs

Photography

Other printed matter, including printed pictures and photographs:

4911.91 Pictures, designs and photographs

Sculpture

9703.00 Original sculptures and statuary, in any material.

55


Appendix No.2

Major International Markets for Vietnamese Handicrafts

Total exports of Vietnamese handicrafts articles to major international markets

(in 1,000 US$)

No Country 1999 2000 2001 2002 2003 Total

(5 years)

1 Japan 109,355 122,850 137,837 133,118 150,945 654,106

2 France 43,089 59,703 71,483 79,773 96,943 350,990

3 Germany 38,081 58,791 67,385 67,512 95,698 327,466

4 United Kingdom 35,586 49,502 62,518 73,339 83,021 303,966

5 Taiwan 57,470 53,829 65,309 48,998 42,945 268,551

6 United States 6,507 14,870 24,293 50,444 124,252 220,366

7 Korea, Republic of 18,535 23,589 25,349 29,999 33,182 130,653

8 Netherlands 20,316 23,493 22,955 27,238 39,989 133,991

9 Italy 11,695 13,265 16,371 22,789 36,735 100,856

10 Australia 8,018 9,793 13,706 21,965 34,812 88,295

Export markets for wooden handicrafts

(in 1,000 US$)

No.

Country Year Total Change

1999 2000 2001 2002 2003 (5 years) (%)

Total 152,152 157,527 213,703 209,711 384,140 1,117,233 152%

1 Japan 48,279 40,143 50,095 47,341 62,102 247,960 29%

2 Taiwan 28,304 26,350 35,565 26,617 21,547 138,383 -24%

3 United States 3,048 8,821 14,891 23,091 69,258 119,109 2172%

4 United Kingdom 12,405 14,370 17,594 23,489 41,631 109,489 236%

5 France 5,650 8,233 13,809 13,425 30,753 71,870 444%

6 Korea, Republic of 8,747 10,325 11,583 15,898 17,066 63,619 95%

7 Germany 4,651 6,261 6,384 5,054 21,448 43,798 361%

8 Netherlands 3,747 4,635 6,190 4,831 15,354 34,757 310%

9 Australia 2,689 3,566 4,829 7,821 14,169 33,074 427%

10 Spain 1,405 3,551 3,883 3,213 17,504 29,556 1146%

56


Export markets for handicrafts made of bamboo, rattan, sea-grass, leafs...

(in 1,000 US$)

No Country Year Total Change

1999 2000 2001 2002 2003 (5 years) (%)

Total 62,499 78,730 95,878 113,379 142,673 493,159 128%

1 Japan 9,337 13,159 17,568 24,078 23,952 88,094 157%

2 Taiwan 14,443 12,720 13,377 10,631 10,462 61,633 -28%

3 Germany 2,881 4,488 5,129 7,890 13,241 33,629 360%

4 France 3,552 5,166 6,151 6,603 8,105 29,577 128%

5 Korea, Republic of 4,427 5,906 5,691 4,252 4,380 24,656 -1%

6 Spain 2,721 3,625 4,813 5,081 6,074 22,314 123%

7 United States 572 1,686 2,596 5,014 10,366 20,234 1712%

8 United Kingdom 987 2,736 3,228 4,372 7,449 18,772 655%

9 Italy 1,898 1,917 2,988 3,944 5,023 15,770 165%

10 Netherlands 1,791 1,415 2,058 3,390 5,536 14,190 209%

11 Belgium 817 2,375 3,087 3,047 4,440 13,766 443%

12 Singapore 2,016 2,584 2,086 2,693 2,655 12,034 32%

13 Australia 391 637 962 1,959 2,843 6,792 627%

14 China 1,161 1,030 611 1,509 1,312 5,623 13%

15 Canada 145 462 841 2,177 1,810 5,435 1148%

16 Others 15,360 18,824 24,692 26,738 35,025 120,639 128%

Export markets for ceramics

(in 1,000 US$)

No. Country Year Total

5 years

Change

(%)1999 2000 2001 2002 2003

Total 67,414 108,393 116,715 120,002 132,829 545,353 97%

1 Germany 9,836 20,631 24,035 19,752 25,943 100,197 164%

2 United Kingdom 5,605 12,667 14,112 12,186 13,850 58,420 147%

3 France 6,330 10,030 11,129 12,172 12,228 51,889 93%

4 Netherlands 7,345 13,708 10,465 10,391 9,068 50,977 23%

5 United States 2,246 3,744 5,488 10,318 14,796 36,592 559%

6 Japan 3,436 5,255 5,764 8,526 9,312 32,293 171%

57


7 Australia 4,019 3,722 4,569 6,940 10,141 29,391 152%

8

Korea, Republic

of 3,660 5,909 5,729 3,812 2,169 21,279 -41%

9 Belgium 2,414 4,081 4,241 3,149 3,329 17,214 38%

10 Singapore 2,266 2,453 3,670 4,104 1,259 13,752 -44%

11 Canada 1,192 2,497 2,835 2,833 3,605 12,962 202%

12 Italy 1,293 1,817 2,039 2,203 2,446 9,798 89%

13 Taiwan 2,121 2,108 1,968 1,648 1,385 9,230 -35%

14 Spain 413 738 884 1,782 2,483 6,300 501%

15 China 15 - 40 53 112 220 647%

16 Others 15,223 19,033 19,749 20,132 20,701 94,838 36%

Export markets for embroidery and lace

(in 1,000 US$)

No. Country Year Total Change

1999 2000 2001 2002 2003 (5 years) (%)

Total 1,066 69 824 2,765 974 5,698 -9%

1 Korea, Republic of 137 - 23 821 422 1,403 208%

2 United Kingdom 0 679 7 686

3 Italy 251 - 254 76 38 619 -85%

4 Japan 75 - 68 127 123 393 64%

5 France 38 - 74 60 142 314 274%

6 Spain 50 51 73 174

7 China 33 39 - 72

8 Taiwan 27 - 6 28 4 65 -85%

9 Singapore 2 53 55

10 United States 5 7 12

11 Germany 3 8 - 11

12 Australia 1 2 5 8

13 Netherlands 5 - 5

14 Belgium 0

15 Canada 0

16 Other 535 69 315 863 101 1,883 -81%

58


Export markets for textile products

(in 1,000 US$)


1999 2000 2001 2002 2003 (5 years) (%)

Total 113,460 126,766 141,021 168,970 162,862 713,079 44%

1 Japan 32,601 53,536 52,594 38,291 37,550 214,572 15%

2 Germany 13,170 9,860 16,549 25,851 24,392 89,822 85%

3 United Kingdom 8,970 13,238 13,876 22,366 12,770 71,220 42%

4 France 11,929 10,659 11,000 13,514 12,302 59,404 3%

5 Taiwan 10,255 11,416 12,218 8,381 6,958 49,228 -32%

6 Italy 6,435 3,439 5,025 8,952 15,090 38,941 134%

7 United States 47 - 414 7,921 19,606 27,988 41615%

8 Netherlands 6,347 2,999 3,580 7,499 6,844 27,269 8%

9 Belgium 3,942 2,801 4,148 4,360 3,511 18,762 -11%

10 Korea, Republic of 964 803 1,497 2,971 3,427 9,662 255%

11 Spain 1,648 1,292 1,956 2,362 2,250 9,508 37%

12 Canada 2,083 1,229 979 1,888 1,980 8,159 -5%

13 Australia 475 489 725 696 939 3,324 98%

14 Singapore 1,097 - 314 284 574 2,269 -48%

15 China 66 - 25 81 70 242 6%

16 Other 13,431 15,005 16,122 23,553 14,598 82,709 9%

Export markets for metal arts

(in 1,000 US$)


1999 2000 2001 2002 2003 (5 years) (%)

Total 2,723 1,020 4,850 8,836 19,029 36,458 599%

1 France 27 - 843 1,171 4,565 6,606 16807%

2 United States 30 - 105 1,349 3,544 5,028 11713%

3 United Kingdom 796 606 1,007 843 670 3,922 -16%

4 China 817 - 742 1,118 1,022 3,699 25%

5 Netherlands 24 - 195 625 2,281 3,125 9404%

6 Belgium 4 - 626 488 1,890 3,008 47150%

59


7 Taiwan 856 240 405 407 503 2,411 -41%

8 Germany - 174 335 391 1,341 2,241

9 Japan 5 - 53 555 116 729 2220%

10 Italy 8 - 136 232 339 715 4138%

11 Spain 50 281 331

12 Australia 112 - 90 36 23 261 -79%

13 Singapore 3 - 82 97 69 251 2200%

14 Korea, Republic of 9 48 140 197

15 Canada 16 52 113 181

16 Others 41 - 206 1,375 2,133 3,755 5102%

Export markets for stone arts, horn and other products

(in 1,000 US$)

No. Countries Year Total Change

1999 2000 2001 2002 2003 (5 years) (%)

Total 3,901 1,140 2,378 5,893 9,453 22,765 142%

1 Japan 1,565 451 1,110 1,480 2,604 7,210 66%

2 Italy 28 340 2,196 2,113 4,677 7446%

3 Taiwan 570 282 247 523 1,053 2,675 85%

4 Korea, Republic of 314 190 109 303 883 1,799 181%

5 Belgium 28 46 304 234 612 736%

6 Australia 10 - 3 17 474 504 4640%

7 United States 34 27 159 242 462 612%

8 Germany 27 - 16 34 289 366 970%

9 Singapore 105 33 72 110 320 5%

10 United Kingdom 9 - 11 57 148 225 1544%

11 Netherlands 46 16 62 98 222 113%

12 France 74 2 22 71 169 -4%

13 Canada 13 9 6 18 46 38%

14 China 13 15 8 36

15 Spain 17 17 34

16 Others 1,078 217 396 625 1,090 3,406 1%

60


Appendix No.3

Trade Associations

JAPAN IDAFIJ (Furniture Industry) http://idafij.com/IDAFIJ/index.html

JHI (Housewares Importers) http://www.jhi.co.jp/english/english.htm

Japan Jewelry Association http://www.jja.ne.jp/english/index.htm

Japan DIY Industry Association http://www.diy.or.jp/english/index.html

Association for the Promotion of Traditional Craft Industries.

http://www.kougei.or.jp/english/

GERMANY National Association of Gifts Articles and Home Accessories: www.bkg.org

Association of German Ceramic Manufacturers: www.keramverband.de

National association of Candle Makers: www.kerzenverband.de

UNITED KINGDOM Giftware Association: www.ga-uk.org

Crafts Council England: www.craftscouncil.org.uk

FRANCE Confederation of Ceramic Industries of France: [email protected]

French Federation of Jewelry, Silverwares, Diamonds, Gems & Pearls: www.bjo-

france.com

Business Gifts Professional Union: www.syprocaf.fr

National Wood Federation: www.fnbois.com

ITALY National Confederation for the Craft Sector and Small and Medium Enterprises:

www.cna.itAssociation of candle makers: www.assocandele.it

Association of Glass & Ceramic Dealers: ww.assoceramvetro.it

THE

NETHERLANDS

Vereniging GEBRA: www.gebra.nl

Stichting Max Havelaar: www.maxhavelaar.nl

Fair Trade Organisation: www.fairtrade.nl

UNITED STATES OF

AMERICA

National Craft Association: www.craftassoc.com

American Craft Council: www.craftcouncil.org

Crafts Center at CHF International: www.craftscenter.org

CANADA Ontario Crafts Council : www.craft.on.ca

Canadian Gift and Tableware Association: www.cgta.org

INDIA Export Promotion Council For Handicraft: www.epch.com

AUSTRALIA Craft Australia: www.craftaus.com.au

ASEAN ASEAN Handicraft Promotion and Development Association: www.ahpada.com

TAIWAN Taiwan Gift and Houseware Exporters' Association (TGHEA): www.gift.com.tw

THAILAND Northern Handicrafts Manufacturers and Exporters' Association: www.nohmex.com

VIETNAM Vietnam Handicraft Research and Promotion Center: www.hrpc.com.vn

61

http://www.craft.on.ca/

http://rds.yahoo.com/_ylt=A0geur778LpESjEAOJhXNyoA;_ylu=X3oDMTE3dmZvaG50BGNvbG8DZQRsA1dTMQRwb3MDMTEEc2VjA3NyBHZ0aWQDRjc1NF83Mg--/SIG=11babvmrv/EXP=1153188475/**http%3A/www.craft.on.ca/

http://www.fairtrade.nl/

http://www.gebra.nl/

http://www.assocandele.it/

http://www.cna.it/

http://www.fnbois.com/

http://www.ga-uk.org/

http://www.keramverband.de/

http://www.diy.or.jp/english/index.html

http://www.jja.ne.jp/english/index.htm

http://www.jhi.co.jp/english/english.htm

http://idafij.com/IDAFIJ/index.html


Appendix No.4

National Statistic Offices in the EU, Japan and USA

AUSTRIA Osterreichisches Statistisches Zentralamt: www.statistik.at

BELGIUM Institut National de Statistique: www.statbel.fgov.be

DENMARK Danmarks Statistik: www.dst.dk

FINLAND Tilastokeskus - Statistics Finland: www.stat.fi

FRANCE Institut National de la Statistique et des Etudes Economique: www.insee.fr

GERMANY Statistisches Bundesamt: www-ec.statistik-bund.de

GREECE NSSG - National Statistical Service of Greece: www.statistics.gr

IRELAND Central Statistics Office: www.cso.ie

ITALY ISTAT - Instituto Nazionale di Statistica: www.istat.it

JAPAN Japan Statistics Bureau & Statistics Center www.stat.go.jp/english/index.htm

NETHERLANDS CBS - Centraal Bureau voor de Statistiek: www.statline.cbs.nl

NORWAY Statistisk Sentralbyra: www.ssb.no

PORTUGAL INE - Instituto National de Estatistica: www.ine.pt

SPAIN INE - Instituto National de Estadistica: www.ine.es

SWEDEN Statistiska Centralbyran: www.scb.se

SWITZERLAND Bundesamt fur Statistik: www.statistik.admin.ch

UNITED KINGDOM ONS - Office for National Statistics: www.statistics.gov.uk

USA STAT-USA, U.S. Department of Commerce: www.stat-usa.gov

62

http://www.statistics.gov.uk/

http://www.statistik.admin.ch/

http://www.scb.se/

http://www.ine.es/

http://www.ine.pt/

http://www.ssb.no/

http://www.statline.cbs.nl/

http://www.stat.go.jp/english/index.htm

http://www.istat.it/

http://www.cso.ie/

http://www.insee.fr/

http://www.stat.fi/

http://www.dst.dk/

http://www.statbel.fgov.be/

http://www.statistik.at/


Appendix No.5

Trade Journals and Trade Press

US market

http://www.homeaccentstoday.com/ The information source for the home accent industry

http://www.accessorymerchandising.net/ The retailer’s choice for fashion, trends and product news

(for accessory)

http://www.furniturestyle.com/ The retailer’s choice for fashion, trends and product news

(for furniture)

http://www.hfnmag.com/ The news weekly of home products retailing (for all kinds

of home products)

http://www.hometextilestoday.com/ The online fashion and business news source for the home

textiles industry

http://www.furnituretoday.com/ The weekly business newspaper of the furniture industry

http://ldbinteriortextiles.com/topnav_test.htm News and trends in the industry

EU market

GERMANY Schöner Wohnen

Living and interior decoration

www.livingathome.de

Stil & Markt

Gifts, table- and houseware, lifestyle

ww.meisenbach.de

Das Haus

Interior decoration, garden

www.haus.de

Wohnidee - Wohnen und Leben

Interior decoration, gifts

www.wohnidee.de

Elle Decoration

Fashion, culture

www.elle.de

UNITED KINGDOM Tableware International

Houseware, tableware, gifts

www.dmgworldmedia.com

English Homes

Home and lifestyle

www.international-homes.com

The English home

Interior design and decoration

www.theenglishhome.co.uk

FRANCE Art & Decoration

Decoration, hobby and art

www.art-decoration.fr

Cuisines & Bains

Kitchen and bathing

www.cuisinebain.com

63

http://www.cuisinebain.com/

http://www.art-decoration.fr/

http://www.theenglishhome.co.uk/

http://www.international-homes.com/

http://www.livingathome.de/

http://ldbinteriortextiles.com/topnav_test.htm

http://www.furnituretoday.com/

http://www.hometextilestoday.com/

http://www.hfnmag.com/

http://www.furniturestyle.com/

http://www.accessorymerchandising.net/

http://www.homeaccentstoday.com/


Elle Decoration France

Fashion, beauty, interior decoration,

home

www.elle.fr

ITALY Elle decor

Fashion, beauty, interior decoration,

home

www.elle.it

Spazio Casa

Style, interior decoration, home

www.spazio-casa.it

THE NETHERLANDS Eigen huis & interieur

Living, home decoration

www.vtwonen.nl

Ariadne at home

Living, home decoration

www.ariadneathome.nl/

Home & garden

Garden and home decoration

www.homeandgarden.nl

SPAIN Casa diez

Home decoration

www.casadiez.wanadoo.es/

Asian market

AUSTRALIA Australian Country Craft &

Decorating

www.expresspublications.com.au

Pottery in Australia www.ozemail.com.au/~potinaus

Australian Giftguide Magazine www.intermedia.com.au

TAIWAN House of Living Art www.hola.com.tw/

You can refer to many other useful magazines like: Cosmopolitan, Home Décor, Australian

Home Beautiful, Luxury Home Design, House & Garden, Ethan Allen, Mark & Spencer

Home, Vogue Living, Wallpaper, Architect, Sunset Magazine, Country Home, Furniture

Style, Residential Lighting, East Bay Home & Design...

Other websites with information on market trends:

Reference for furniture and accessories designs

Modern designs, a wide range of products, European

taste

www.habitat.net/uk/main_uk.htm

www.gloster.com/home.php

www.chaplins.co.uk

www.homedepot.com

www.global-furniture.uk.com

Suppliers and importers of home furniture and www.ibolili.com

64

http://www.global-furniture.uk.com/

http://www.homedepot.com/


accessories www.viamotif.com

www.furniture-cni.com

www.palecek.com

Japanese style in home decoration www.tatamiroom.com

Useful magazines and materials for understanding lifestyle in America

Name Information

ELLE DECORATION Life style decoration magazine which has been sold in 18 countries,

understanding market trend in the world

MARTHA STEWART Living

Home living magazine edited by Martha Stewart who is a charismatic

designer, simple and functional sense

REAL SIMPLE Life style magazine which has been targeted "Simple design", supported by

ordinal American people

HOME Life style magazine which can provide various useful information / idea,

useful for analyzing life style

Domino Magazine for shopping, showing inquiry address by each products, useful

for analyzing strong seller products

INSIDE OUT Home decoration magazine for people who living in city area, for

understanding of interior design trend

THE WORLD OF

INTERIORS

Interior magazine which has been targeted classical design, targeted to old

generation

WILLIAM-SONOMA Famous kitchenware store, available catalogue sales, useful for analyzing

general life style in USA

POTTERYBARN Famous Home interior design shop, management by William Sonoma,

useful for analyzing interior design trend

West elm Sense oriented home interior shop, supported by all generations, useful for

analyzing life style in city area

RESTORATION

HARDWARE

Famous Home interior design shop, useful for analyzing contemporary life

style

BO concept Europe taste Interior furniture shop, useful for analyzing life style of

younger elite people.

IKEA Home related products chain store, useful for analyzing life style of ordinal

people in USA.

The Container Store Specialty chain store selling all container products, useful for analyzing

ordinal life style in USA

Crate & Barrel

Interior product store which is selling low price products, useful for

analyzing general interior products trend

Not Neutral Catalogue published by product design company in LA, can see design

65


trend in USA

NATUZZI Leather sofa products manufactured by Italian company, very popular in

USA

The land of Nod

Interior catalogue for Kids, useful for analyzing general design trend

FRONTGATE Catalogue sales for garden interior products, classical design

Grandinroad Catalogue sales for garden interior products, classical design

Splash Catalogue sales for pool, garden related products

Accessory Merchandising Material which was delivered in Gift show, can get information of

exhibitors

Home fashion & FURNITURE

TREND

Materials which was delivered in Gift show

Food & Mood Trendy restaurant information magazine

ELLE Readers are fashion oriented women, urban trend fashion magazine

Harper's BAZAR This magazine is showing fashion trend, designer's trend

In Style Fashion sense is not so high, but for general customers

Lucky Magazine for shopping, showing inquiry address by each products, useful

for analyzing strong seller products

Neiman Marcus Catalogue sales of high prestige department store, for fashion oriented rich

women

NORDSTROM Catalogue sales of department store which is targeted customer satisfaction

No1,

COACH Bag catalogue for working women, useful for analyzing price point of

leather products

ANTHROPOLOGIE Proposal type life style store for 20-30 years old generation, useful for

analyzing product trend for young

CHICO'S Catalogue sales chain store for Mrs generation, not so high grade but

increasing demands

TIFFANY & CO. The most famous jewellery shop in US, simple design

NIKE Sports wear company, can see trend of sport wear

BOSTON PROPER Catalogue sales for targeting Mrs generation, can see overall product trend

Brooks Brothers Traditional American fashion wear store, useful for fabric analyzing

J.CREW Casual wear chain store in USA, is supported by younger generation in

USA

WOOLRICH Casual wear catalogue sales of American country wear, not so fashionable.

PAUL FREDRICK Catalogue sales of men's ware, not so related fashion, but useful for

analyzing price point

Dickies Catalogue sales of working wear, popular in Japan as a casual wear

66


LAND'S END Catalogue sales of casual wear, not so fashionable but can see general life

style in USA

L.L.Bean The biggest catalogue sales of outdoor products, can see outdoor style in

USA

REI Catalogue sales of specialty outdoor products

Pataginia Specialty outdoor products store, famous for protection of natural

environment policy

Baby style Catalogue sales of baby wear and maternity wear

TEXTILE report Magazine for future article of colour trend and textile trend in 2006

COLLEZIONI TRENDS Trend forecast magazine in 2006

PREMIERE VISION Colour trend forecast include colour sample in 2006

67


Appendix No.6

Chambers of Commerce & Trade Agencies

INTERNATIONAL International Chamber of Commerce: www.iccwbo.org

International Trade Centre UNCTAD/ WTO: www.intracen.org

AUSTRIA Austria Federal Economic Chamber: www.wko.at

BELGIUM Belgian Chambers of Commerce: www.fedcci.be

DENMARK The Danish Import Promotion Office for products: www.commerce.dk

FINLAND The Central Chamber of Commerce of Finland: www.keskukauppakamari.fi

FRANCE Federation of French Chambers of Commerce: www.cci.fr

Coleacp: www.coleacp.org

GERMANY Federal Office of Foreign Trade Information, Germany: www.bfai.de

German Chambers of Industry and Commerce: www.diht.de

GREECE Athens Chamber of Commerce and Industry (ACCI): www.acci.gr

IRELAND Chambers of Commerce of Ireland: www.chambersireland.ie

ITALY Italian Union of Chambers of Commerce: www.unioncamere.it

ICE - National Institute for Foreign Trade: www.ice.it

JAPAN Japan External Trade Organization: www.jetro.go.jp/

NETHERLANDS CBI: www.cbi.nl

Netherlands Chamber of Commerce: www.kvk.nl

NORWAY Chamber of Commerce: www.chamber.no

PORTUGAL Portuguese Chamber of Commerce: www.port-chambers.com

SPAIN Spanish Chamber of Commerce: www.camerdata.es

SWEDEN Chamber of Commerce: www.chamber.se

SWITZERLAND SIPPO (Swiss Office for Trade Promotion): www.sippo.ch

U. KINGDOM www.britishchambers.org.uk

USA U.S. Department of Commerce: www.usatrade.gov

Vietnam’s Trade Agencies in Foreign Countries

No Country Address Contact

1 Argentina 11 De Septiembre 1442 Capital

Federal Argentina

Tel:5411- 4783 1802

Fax:5411- 4899 1819

2 Australia 797 Bourke St. Redfern

Sydney, NSW 2016 Australia

Tel:612- 93101872

Fax:612- 93101929

[email protected]

68


http://www.usatrade.gov/

http://www.diht.de/

http://www.fedcci.be/

http://www.wko.at/

http://www.intracen.org/


3 Belgium Av. Bel Air, 29

1180 Bruxelles

Tel:32-2 343 62 95

Fax:32-2 347 03 35

canh.cô[email protected]

4 Bulgaria Sofia 1113, Iuri Gagarin Str.,

Block 154A, Ap.3 – Bungaria

Tel:359-2 963 31 82/ 971 45 97

Fax:359-2 963 31 73

(1) [email protected]

(2) [email protected]

5 Canada 153 Gilmour street, Ottawa, Ontario,

K2P 0N8-Canada

Tel:1613- 2373816

Fax:1613- 2373858

[email protected]

6 Cambodia 67, Samdech Pan (ex. 214 st.) Phnom

Penh, Cambodia

Tel:85512- 852 533

Fax:85523- 362 682

[email protected]

7 China 32 Guang Hua Lu

Jian Guo Men Wai-Beijing

Post Code : 100600

Tel:8610- 65325415

Fax:8610- 65325415/65325720

[email protected]

8 Cuba Cable16 # 514 E/S ta, 7mn Miramar

– Lahabana

Tel:537- 241525

Fax:537- 2453333

[email protected]

9 Czech-Slovakia Step¸nsk¸ 4/534, 12 00 Praha 2 Tel:4202. 24942135

Fax:4202. 24942132

[email protected]

10 Egypt 23, Kambez street

Dokki - Giza – Cairo. A.R.E

Tel:202- 3485721

Fax:202- 3485721

[email protected]

11 France 44, Avenue de Madrid 92.200

Neuilly Sur Seine

Tel:331- 46248577/46248078

Fax:331 -46241258

[email protected]

12 Germany Burohaus Storkower Str. 158/109

10407 BERLIN

Tel:49-30-2298198/2292374

Fax:49-30-2291812/2292374

[email protected]

13 Hongkong 17/F., Golden Star Building

20, Lockhart Road, Hongkong

Cable : VINACOR HONGKONG

852- 2529 3721

Fax:852- 2865 7573

[email protected]

14 Hungary 1068 Budapest VI

Benczór utca 18.

Hunggary

Tel:36-1 352 7956

Fax:36-1 343 3836

[email protected]

69












15 India 17, Kautilya Marg, Chanakyapuri

New Delhi - 110 021

Tel:9111-3012123

Fax:9111-3017714

[email protected]

16 Indonesia 25, JL. Teuku Umar Jakarta

Indonesia

Tel:62- 21 3100359

Fax:62- 21 3100359

17 Iraq AL Mansour-

71/7/17 Dauodi Str., Baghdad – Iraq

Tel:9641- 5439510

Fax:9641- 5411388

18 Iran 180 Lavasani str., Tehran – Iran Tel:9821- 2293530

Fax:9821- 2830876

[email protected] 19 Italia Via, Po, 22, 00 198 Roma Tel:390- 684 13913

Fax:390- 684 140 72

[email protected]

20 Korea Rep. Rm 401, Byuksong Bldg. 13/3/4

Changchon-dong

Mapo-gu, Seoul, Korea

Tel:822- 322 3660

Fax:822- 322 3770

[email protected]

21 Kuwait P.O. Box 425. Saimiya

Kuwait

Tel:965- 5615977 Fax:965- 5645305

[email protected]

22 Japan 50-11, Motoyoyogi-cho

Shibuya-ku Tokyo 151-0062

Tel:813-3466-3315/3436

Fax:813-3466-3360

[email protected]

23 Malaysia No 4 Pesiaran stonor

50450 Kuala Lumpur, Malaysia

Tel:603- 2414692

Fax:603- 2414696

[email protected]

24 Myanmar 15 (F), Thantaman Str., Dagon

Township, Yangon, Myanmar

Tel/Fax:95-1-228376

[email protected]

25 Laos 76-Sisangvone Road

Bane Naxay, Vientiane-Laos

Tel:856- 21 413410

Fax:856- 21 413115

26 Philippines Unit 3B, LPL Center, 130 Alfaro st,,

Salcedo Village, Makati City,

Philippines

Tel:632- 813 4048

Fax:632- 750 0161

[email protected]

27 Poland Ul, Polna 48 M. 21

00-644 Warszawa

Tel:48-22 825 81 63

Fax:48-22 825 81 06

[email protected]

28 Romania B-dul lancu de Hunedoara nr.66 Bl.

12B, Sc. B, Et. 4, Ap.46-49 Sector 1,

Bucuresti

Mobil:094577710

Fax:401 -2113738

29 Russia No 30-1st TVERSKAYA Tel:7095- 251 22 85/250 08 48

70






YAMSKAYA Str, Moscow 125047 Fax:7095- 250 05 34

[email protected]

30 Singapore No.10, Leedon Park

Singapore 267887

Tel:65 4683747

Fax:65 4670458

[email protected]

31 Sweden Upplandsgatan 38 5th Floor 11328

Stockholm Sweden

Tel:468 - 322666

Fax:468- 321580

[email protected]

32 Switzerland 18A, ch. Francois-Lehmann

1218-Le Grand Saconnex

Geneva (Suisse)

Tel:4122- 7982485

Fax:4122- 7980724

[email protected]

7, ch, Taverney

128-Le Grand Saconnex

Geneva (Suisse)

Tel:4122- 7887023

Fax:4122- 7887024

33 South Africa

Rep.

479 Lukas Str., Lukasrand Pretoria

0181, The Republic of South Africa

Tel:27-12 343 7673

Fax:27-12 343 2110

[email protected]

34 Taiwan 3F., No. 65, SUNG CHIANG Road,

TAIPEI, TAIWAN

Tel:8862- 25166626

Fax:8862- 2504 1761/2516 6625

35 Thailand 83/1 Wireless Road Bangkok

10330, Thai Lan

Tel:662-6508 454

Fax: 662- 2526 950

[email protected]

36 Turkey Istanbul Turkey

Gayrettepe Besiktas, Hattat Halim

Sok 17.D3

Tel:90212-2748 009

Mobile 090 5357 687 094

Fax:90212-2747881

[email protected]

37 U.K 12-14 Victoria Road London W8

5RD

Tel:44-020 793 731 74

Fax:44- 020 793 846 25

38 Ukraine Ukraine, 01011, Kiev

Leskova Str. 5

Tel:380-44 294 8116

Fax:380-44 294 8116

[email protected]

39 U.S.A 1730 M ST, Suite 501, NW. Wahing

ton DC. 20036

Tel:202-463-9425

Fax:202-463-9439

[email protected]

40 Uzbekistan Tashkent, 700060

Nukus str., 16-7

Tel:371- 1339673/1338817

Fax:371- 1339673

[email protected]

71




Appendix No.7

Trade Fairs

A) Databases of International Trade Fairs

AUMA – Association of German trade fair organizers

www.auma.de

Comprehensive database with search-engine for trade fairs worldwide, including trade fair

calendar, detailed search filter and basic information on each trade fair. Free of charge.

Trade Show News Network

www.tsnn.com

Database with listings of trade fairs world-wide. Search filters include product group, country,

trade fair name and keyword. Free of charge.

Exhibitions-World

www.exhibitions-world.com

Database with listings of trade fairs worldwide, including trade fair news. Registration is free

of charge.

Eventsource

www.eventsource.com

Contains a database of 55,000 trade shows, events and seminars.

Expo Base

www.expobase.com

Offers a multilingual directory of 15,000 trade fairs and over 25,000 service providers

Trade Show Centre

www.tscentral.com

Covers 20,000 trade shows, 35,000 conferences and seminar and 500 vendors.

72


B) Handicraft Trade Fairs

EU market

GERMANY Ambiente (February)

Table art, kitchen and housewares, gourmet

shop, table decoration and

accessories, interior design, giftware,

jewelry, accessories.

www.ambiente-frankfurt.de

Tendency (August)

Table art, kitchen and housewares, gourmet

shop, table decoration and

accessories, interior design, giftware,

jewelry, paper ware, perfume, accessories.

www.tendence-frankfurt.de

Heimtextil (January)

Specialised trade fair for home textiles

www.heimtextil-frankfurt.de

UNITED

KINGDOM

Spring Fair Birmingham (February)

General giftware, jewelry, watches, china

and glass, fashion accessories, leather,

frames and fine art.

www.springfair.com

FRANCE Maison & Objet (January and September)

International home decoration, and textiles,

fragrances, arts and crafts,

games, and stationery.

www.maison-objet.com

www.decoplauet.com

ITALY MACEF (September and January/February)

Tableware, kitchenware, glass, artificial

flowers and plants, wickerwork, candles,

gifts, home decoration, ceramics, porcelain,

pictures, frames and home textiles

www.macefautunno.biz

THE

NETHERLANDS

Huishoudbeurs (March)

Home decoration, mode and accessories,

table- and kitchenware

www.huishoudbeurs.rai.nl

SPAIN Expohogar Regalo otoño (September)

International trade fair for gifts, house and

home: gifts, arts, crafts,

crystal, glass, china, pottery, tableware,

furnishings, lighting and household

appliances.

www.expohogar.com

73

http://www.decoplauet.com/


DENMARK Formland

International home accessories and gift

articles trade fair with focus on the

Scandinavian market

www.formland.dk

US market

New York New York international gift fair

General giftware, tabletop and decorative,

home and personal accessories, traditional

and contemporary crafts

www.nyigf.com

North Carolina International home furnishing center,

USA

The largest wholesale home furnishings

show in the world. Traditional to

contemporary furniture, international

furnishings, home and decorative

accessories, upholstery, lighting, wall

decor, bedding, rugs, and home textiles

www.ihfc.com

Chicago International home and Housewares

show

www.housewares.org/ihshow/

about_chicago.asp

Atlanta Atlanta International Gift & Home

Funishing

Garden and home decorative accessories.

Other products include giftware,

jewellery and fashion accessories,

collectibles and seasonal.

www.americansmart.com

Atlanta International Area Rug

Market

The largest area rug show in the US.

International and US manufactured and

hand-women rugs, in all price points and

categories.

www.americasmart.com

Mississippi Holidome and Roadway Show

Wholesale jewellery, gemtones, silver

and gold jewellery

www.tucsonshow.com

California The California Gift Show

Contemporary and traditional giftware,

accessories, tabletop, home accents.

www.carliforniagiftshow.com

74

http://www.carliforniagiftshow.com/

http://www.tucsonshow.com/

http://www.americasmart.com/

http://www.americansmart.com/


Strong in multicultural products and

handicrafts of all categories

San Francisco San Francisco International Gift Fair

General giftware, tabletop, decorative,

home decor, jewellery and personal

accessories, ethnic, traditional, and

contemporary crafts, contemporary

design, garden, and casual furniture.

www.sfig.com

Dallas Dallas International Lighting and

Accessories market

Only trade show of lighting and lighting

accessories category in the US Lamps,

chandeliers, wall, table, contemporary,

kitchen and bath, showroom and

landscape lighting

Asian market

Hong kong Hongkong gift fair www.hkgiftspremiumfair.com

Hongkong Housewares fair www.hkhousewarefair.com

Thailand Bangkok International Gift Fair &

Bangkok International Housewares Fair

www.thaitradefair.com/fairin/big06

India Indian Handicrafts & Gifts Fair India Expo Centre, Noida, Uttar

Pradesh, India.

China Canton Fair www.cantonfair.org.cn/en/index.asp

Australia Australian Gift Fair www.giftfair.com.au

Japan Giftshow Tokyo, Japan www.giftshow.co.jp/english/58tigs/

framepage1.html

Giftshow Fukuoka, Japan www.giftshow.co.jp

All Japan Gift Festival in Tokyo Tel: (03)3847-0691

Fax: (03)3847-06

Japan DIY (do-it-yourself)Show in Tokyo

/ Osaka

www.diy.or.jp

International Housewares Show (HIS) www.gmc.or.jp/housewares

Ambiente Japan Tel: (03)3262-8441

Fax: (03)3262-8442

Tokyo International Gift Show www.giftshow.co.jp

Osaka International Gift Show www.giftshow.co.jp

Fukuoka International Trade Fair www.fukuokafair.com

75

http://www.fukuokafair.com/



http://www.gmc.or.jp/housewares

http://www.diy.or.jp/


http://www.giftshow.co.jp/english/58tigs/framepage1.html

http://www.giftshow.co.jp/english/58tigs/framepage1.html

http://www.biztradeshows.com/trade-events/handicraft-gift-fair.html

http://www.sfig.com/


International Furniture Fair Tokyo (IFFT) www.idafij.or.jp

76

http://www.idafij.or.jp/


Appendix No.8

Major Freight Forwarders and Shipping Companies in Vietnam

1 APL Shipping Agency Co. Ltd.

Địa chỉ: 802, Diamond Plaza Bldg., 34

Le Duan St., Dist.1, Ho Chi Minh City

Tel: 84-8-8221199

Fax: 84-8-8239677

E-mail: [email protected]

2 Binh Thuan Shipping Co.

Địa chỉ: 5 Tu Van Tu St., Phu Trinh Ward,

Phan Thiet City, Binh Thuan

Tel: 84-62-8223361

Fax: 84-62-827124

3 APM-Saigon Shipping Co., Ltd.

Địa chỉ: 17 Ton Duc Thang St., Dist. 1,

Ho Chi Minh City

Tel: 84-8-8230015 / 8230173

Fax: 84-8-8230013


4 Bonex Shipping Corp.

Địa chỉ: Fl. 6, OSIC Bldg., 8 Nguyen Hue St.,

Dist. 1, Ho Chi Minh City

Tel: 84-8-8245142, 8245144

Fax: 84-8-8245143

5 APM-Saigon Shipping Co., Ltd,

Haiphong branch

Địa chỉ: 4 Tran Phu St., Ngo Quyen

Dist., Hai Phong

Tel: 84-31-841717

Fax: 84-31-841718

6 China Ocean Shipping Co.

Địa chỉ: 47 Pho Duc Chinh St., Nguyen Thai

Binh Ward, Dist.1, HoChi Minh City

Tel: 84-8-8215688

Fax: 84-8-8217125

7 Baikal Shipping Co.

Địa chỉ: 2E Tran quang Khai St., Hong

Bang Dist., Hai Phong City

Tel: 84-31-821087

Fax: 84-31-842975

8 Danang Ocean Shipping and Trading Co.

Địa chỉ: 156 Bach Danh St., Hai Chau 1 Ward,

Hai Chau Dist., Da nang City

Tel: 84-511-827316, 822068

Fax: 84-511-834796

9 Bien Dong Ocean Shipping Co.

Địa chỉ: 28 Tran Hung Dao, Hoan Kiem

Dist., Hanoi

Tel: 84-4-9346079, 9342448

Fax: 84-4-8240577


10 Dong Nam A Shipping Co.

Địa chỉ: 3 Nguyen Tat Thanh St., Dist.4, Ho

Chi Minh City

Tel: 84-8-8253559, 8253608

Fax: 84-8-8253629


11 Bien Dong Shipping Co.

Địa chỉ: 52 Nguyen Truong To St., Dist.

4, Ho Chi Minh City

Tel: 84-8-8255239

Fax: 84-8-8261887

12 Eastern Dragon Shipping Co., Ltd.

Địa chỉ: 338 Lach tray St., Ngo Quyen Dist.,

Hai Phong

Tel: 84-31-728107, 728503

Fax: 84-31-728117, 728055


77





13 Flight Dragon Shipping Co.

Địa chỉ: 338 Lach tray St., Ngo Quyen

Dist., Hai Phong

Tel: 84-31-728284, 728189, 829013

Fax: 84-31-728285


14 Quang Ninh Shipping Agent

Địa chỉ: 70 Le Thanh Tong St., Hon Gai

Ward, Ha Long City, Quang Ninh

Tel: 84-33-826425

Fax: 84-33-827264

15 Hai phong Shipping Agent

Địa chỉ: 25 Dien Bien Phu St., /5 To

Ward, Ngo Quyen Dist., Hai Phong

Tel: 84-31-551231

Fax: 84-31-551279

16 Saigon Ocean Shipping Co.

Địa chỉ: 9 Nguyen Cong Tru St., Dist. 1, Ho

Chi Minh City

Tel: 84-8-8296320

Fax: 84-8-8225067


17 Heung-A shipping Co.,

Địa chỉ: 74 Nguyen Du St., Hai Ba

Trung Dist., Hanoi

Tel: 84-4-9424487, 8229484

Fax: 84-4-8220599


18 Southern Vietnam Container Shipping JSC.

Địa chỉ: 11 Nguyen Hue St., Dist.1, Ho Chi

Minh City

Tel: 84-8-8263991

Fax: 84-8-9140571


19 Khanh Hoa Ocean Shipping Co.

Địa chỉ: 40/1 Tran Phu St., Vinh Nguyen

Ward, Nha Trang City

Tel: 84-58-881073

Fax: 84-58-881074

20 Southern Vietnam Container Shipping JSC,

Hanoi

Địa chỉ: 97 Tran Quoc Toan St., Hoan Kiem

Dist., Hanoi

Tel: 84-4-8223996

Fax: 84-4-8223998


21 MOL (Vietnam) Shipping Agent.

Địa chỉ: Room 1003, Fl. 10, 115 Nguyen

hue St., Dist. 1, Ho Chi Minh City

Tel: 84-8-8219121

Fax: 84-8-8219123

22 Vietnam National Shipping Lines

Địa chỉ: 201 Kham Thien St., Dong Da Dist.,

Hanoi

Tel: 84-4-8517750

Fax: 84-4-8517746


23 North Container Shipping Co.

Địa chỉ: 11 Vo Thi Sau St., /5 To Ward,

Ngo Quyen Dist., Hai Phong City

Tel: 84-31-836705, 836706

Fax: 84-31-836104


24 Vietnam Ocean Shipping Co.

Địa chỉ: 215 Tran Quoc Toan St., Dang Giang,

Ngo Quyen Dist., Hai Phong City

Tel: 84-31-731090, 731033

Fax: 84-31-731007


78


25 Vietnam Shipping Agent

Địa chỉ: 7 nguyen Hue St., Dist. 1

Tel: 84-8-8294162, 8290138

Fax: 84-8-8293626


26 Vung Tau Shipping and Service Co.

Địa chỉ: 87 Ly Thuong Kiet St., Ward 1, Vung

Tau City

Tel: 84-64-852185, 859003

Fax: 84-64-858919

27 Vung Tau Shipping and Service Co.,

Ho Chi Minh

Địa chỉ: 43 Pasteur St., Ben Nghe Ward,

Dist. 1, Ho Chi Minh City

Tel: 84-8-8211857

Fax: 84-8-8211874


28 Nghe An Ocean Shipping and Trading Co.

Địa chỉ: 26 Nguyen Van Troi St., Ben Thuy

Ward, Vinh City, Nghe An

Tel: 84-38-855528/855670

Fax: 84-38-855364

29 Wallem Shipping Vietnam

Địa chỉ: Lf.6, #3 nguyen Tat Thanh St.,

Ward 12, Dist. 1

Tel: 84-8-8265161

Fax: 84-8-8265167


30 An Giang Shipping Co., Ltd.

Địa chỉ: 65 Pho Duc Chinh St., Nguyen Thai

Binh Ward, Dist.1, HoChiMinh City

Tel: 84-8-8210651, 8-9140520

Fax: 84-8-8217708


31 Vinatrans

Địa chỉ: Số 2 Bích Câu, Quận Đống Đa,

Hà Nội

Tel: 84-4-7321090, 4-7321970

Fax: 84-4-7322635


32 Orient Overseas Container Line Địa

chỉ: 201 Khâm Thiên, Đống Đa, Hà Nội

Tel: 84-4-8519017, 4-8517750 Fax: 84-

4-8518551 TLX:

411294 GMTHN VT

33 Thami Shipping & Airfreight Co.,Ltd.

Địa chỉ: 161 Khánh Hội, Quận 4, T.P.

Hồ Chí Minh

Tel: 84-8-8263662

Fax: 84-8-8263581


34 Hyundai Merchant Marine Co.,Ltd. Địa

chỉ: 201 Khâm Thiên, Đống Đa, Hà Nội

Tel: 84-4-8510360, 4-8519524 Fax:

84-4-8519329

35 CMA-CGM Group

Địa chỉ: 201 Khâm Thiên, Đống Đa, Hà

Nội

Tel: 84-4-8519217, 4-8518313

Fax: 84-4-8519162

36 SIMBA Logistics Địa chỉ:

Tầng 7, 142 Lê Duẩn, Hà Nội Tel: 84-4-

5185161, 4-5183496 Fax: 84-4-5183496

E-mai: [email protected]

37 Germatrans (Vietnam) Ltd.

Địa chỉ: 201 Khâm Thiên, Đống Đa, Hà

Nội

38 Wanhai Lines Ltd. Địa

chỉ: 53 Quang Trung, Hoàn Kiếm, Hà Nội

Tel: 84-4-6225602 Fax:

79




Tel: 84-4-8519217, 4-88519014

Fax: 84-4-8519162

84-4-8228384

39 Mitsui O.S.K Line

Địa chỉ: 23 Phan Chu Trinh, Hoàn Kiếm,

Hà Nội

Tel: 84-4-9332359

Fax: 84-4-9332358

40 Maersk – Sealand Địa

chỉ: 17 Ngô Quyền, Hoàn Kiếm, Hà Nội

Tel: 84-4-9363695

Fax: 84-4-9363694

41 Vosa Group of Companies

Địa chỉ: 65 Nguyễn Trường Tộ, Ba

Đình, Hà Nội

Tel: 84-4-8434042, 4-8468171

Fax: 84-4-8237379

42 K’Line

Địa chỉ: 74 Bà Triệu, Hoàn Kiếm, Hà Nội Tel:

84-4-9437709 Fax: 84-

4-9437706

43 Dai Viet Foreign Trade Forwarding

Địa chỉ: 1W Living Quarter 30-4, Dien

Bien Phu St., Ward 25, Binh Thanh,

HCM

Tel: 84-8-8991444

Fax: 84-8-8991273

44 Haiphong Import-Export and Forwarding

Co.

Địa chỉ: 53 Luong Khanh Thien St., Ngo

Quyen Dist., Hai Phong City

Tel: 84-31-921232

Fax: 84-31-921902

45 Atlantic Forwarding Ltd.

Địa chỉ: Room 2A2, Fl.1, Han Nam

Office center, 65 Nguyen Du St., Dist. 1,

HCM

Tel: 84-8-8224372

Fax: 84-8-88224390

46 Haiphong Joint-stock Commerce, Service

and Warehouse

Địa chỉ: 4 Tran Phu St., Ngo Quyen Dist. Hai

Phong City

Tel: 84-31-859881

Fax: 84-31-859802


47 Berkman Forwarding Co.

Địa chỉ: 345E Tran Hung Dao St., Dist.1

Tel: 84-8-8365640

Fax: 84-8-8352768


48 International Freight Forwarding &

Container

Địa chỉ: Room 104, Kim Do Business Center,

123 Le Loi St., Dist. 1, HCM City

Tel: 84-8-8218101, 8218179

Fax: 84-8-8210218


49 Foreign Trade Warehousing and

Forwarding

Địa chỉ: 5A Hoang Van Thu St., Minh

Khai ward, Hong bang Dist., Hai Phong

Tel: 84-31-842421

50 International Freight Forwarding &

Container

Địa chỉ: 47 Cua Dong St., Hoan Kiem Dist.

Hanoi

Tel: 84-4-8259185

80


Fax: 84-31-842227 Fax: 84-4-8454819


51 General Forwarding Agent JSC.

Địa chỉ: 35 Nguyen Hue St., Dist.1

Tel: 84-8-8214440, 8214441

Fax: 84-8-8214435


52 Jacky Maeder International Forwarding

Ltd.

Địa chỉ: 2 Ngo Duc Ke St., Dist. 1

Tel: 84-8-8299890, 8258733

Fax: 84-8-8299812

E-mail:

[email protected]

53 Jupiter Pacific Forwarding J.V.C.

Địa chỉ: 112 Hong Ha St., Ward 2, Tan

Binh Dist., Ho Chi Minh City

Tel: 84-8-8450068

Fax: 84-8-8450085


54 Raf International Forwarding Inc.

Địa chỉ: 99 Nguyen Van Troi St., Phu Nhuan

Dist.

Tel: 84-8-8448368

Fax: 84-8-8447965


55 Vietnam National Foreign Trade

Forwarding Co.,

Địa chỉ: 13 Ly Nam De, Hoan Kiem

Dist., Hanoi

Tel: 84-4-8457417

Fax: 84-4-8455829


56 Vietnam Transport and Freight

Forwarding JSC.

Địa chỉ: 31 Nguyen Cong Tru St., Nguyen

Thai Binh Ward, Dist. 1, HCM City

Tel: 84-8-8213084

Fax: 84-8-8212902

57 Vinako Forwarding JSC.

Địa chỉ: 46 Truong Son St., Tan Binh

Dist., Ho Chi Minh City

Tel: 84-8-8485353

Fax: 84-8-8485355

58 Vinaforwarding Địa

chỉ: 100-102 Dien Bien Phu , Dakao Ward,

District 1, HCM City.

Tel: 84.8.8207120

Fax: 84.8.8207121

59 M.T.L Co., Ltd.

Địa chỉ: 5Fl, 62A Pham Ngoc Thach St.,

Dist. 03, Hochiminh City, Vietnam

Tel: 84 8 8208093

Fax: 84 8 8208091 / 8209040

60 Round-The-World Logistics Vietnam

Địa chỉ: 15-01 Prime Centre Building

53 Quang Trung St, Hanoi

Tel: (84.4) 9437830/9437398

Fax: (84.4) 9437397

81


Appendix No. 9

Large Stores in the US, EU and Japan

EU Market

Variety Stores Name Website

Woolworth (UK) http://www.woolworths.co.uk

Marks & Spencer (UK) http://www.marksandspencer.com

Monoprix/Prisunic (F) http://www.monoprix.fr/

Tati (F) http://www.tati.fr/

Upim (I) http://www.upim.it/upim/box.html

Blokker (NL) http://www.blokker.nl/

Department

Stores

KarstadtQuelle ((G) http://www.karstadtquelle.com

Galeria Kaufthof (G) http://www.galeria-kaufthof.de

John Lewis (UK) http://www.johnlewis.com/

Allders (UK) http://www.allders.com/

El Corte Ingles (SP) http://www.elcorteingles.es/

Vroom & Dreesman (NL) http://www.vroomendreesmann.nl/

Furniture

Outlets

IKEA (S) http://www.ikea.com

Habitat (UK) http://www.habitat.net/

Conforama (F) http://www.conforama.fr

Divani & Divani (I) http://www.divaniedivani.it/

Merkamueble (SP) http://www.merkamueble.com/

MFI Furniture (UK) http://www.mfi.co.uk/mfi/default.asp

Gift shops The Gadget Shop (UK) http://www.thegadgetshop.com

Nanu Nana (G) www.nanu-nana.de

Das Depot (G) www.das-depot.com

Garden

Centers

Obi (G) http://www.obi.de/de/

Intratuin (UK) http://www.intratuin.nl/

US Market

Asia Society Gift Shop Good example of high-end ethnic in a good marketing

situation : www.asiastore.org

Crate & Barrel Contemporary, youthful mid-priced housewares,

furniture, accessories: www.crateandbarrel.com

West Elm Division of Pottery Barn, lower priced, hip, young

contemporary urban

82

http://www.intratuin.nl/

http://www.mfi.co.uk/mfi/default.asp

http://www.elcorteingles.es/

http://www.allders.com/

http://www.galeria-kaufthof.de/

http://www.upim.it/upim/box.html

http://www.tati.fr/


www.westelm.com

TJ Maxx Off-price, closeouts, fashion knock offs

www.tjx.com

Container Store Storage: inexpensive to expensive, all types, natural

materials. www.containerstore.com

Bed Bath & Beyond The leading housewares chain

www.bedbathandbeyond.com

Hold Everything

7th Ave 16th

Storage: mid-priced to expensive, all types, natural

materials, has expanded into furniture and other

categories, owned by Williams- Sonoma.

www.holdeverything.com

Pier 1 Imports

71 5th Ave. at 15th

Low priced, ethnic inspired, factory production

www.pier1.com

Pottery Barn

600 Bdwy, Houston

40’s-60’s consumer, mid-priced, classic but more modern

styling

www.potterybarn.com

Z Gallerie

443 Bdwy

Mid and higher priced, higher quality, well designed.

www.zgallerie.com

The 50 leading US companies in retailing furniture and home décor

Rank Name of

company

Head office/Website Estimated turnover

(billion in US$)

Change Number

of shops

2004 2003 2004 2003

1 Wal-Mart Bentonville-Ark

www.wal-mart.com

6,100 5,840 4.5% 3,066 2,949

2 Lowe’s Mooresville, N.C

www.lowes.com

1,855 1,650 12.4% 1,087 952

3 Home Depot Atlanta

www.homedepot.com

1,475 1,350 9.3% 1,675 1,635

4 Target Minneapolis

www.target.com

1,345 1,200 12.1% 1,308 1,225

5 Bed Bath &

Beyond

Union,N.J

www.bedbath.com

1,105 940 17.6% 686 575

6 Pier 1 Imports Forth Wirth, Texas

www.pier1.com

www.pier1kids.com

1,009 880 14.7% 1,122 1,062

7 Pottery Barn San Francisco 865 735 17.7% 263 245

83

http://www.tjx.com/


www.potterybam.com

8 Michaels Stories Irving, Texas

www.michaels.com

800 757 5.7% 800 763

9 Federated

Department

Stories

Cincinati

www.federated-fds.com

778 750 3.7% 459 459

10 Hobby Lobby

Stories

Oklahoma city

www.hobbylobby.com

725 680 6.6% 335 315

11 Kohl’s Menomonee Fall,Wis

www.kohls.com

650 570 14.0% 637 542

12 Linens’N Things Clifton, N.J

www.linesnthings.com

650 577 12.7% 468 423

13 The Longaberger

Company

Newark, Ohio

www.longaberger.com

612 645 -5.1% NS NS

14 Expo Design

Center

Atlanta

www.homedepot.com

590 630 -6.3% 54 54

15 May Department

Stories

St.Louis

www.maycompany.com

582 600 -3.0% 430 428

16 Ikea Plymouth Metting, PA

www.ikea.com

580 512 13.3% 21 18

17 QVC West Chester,PA 550 509 8.1% 8 8

18 T.J.Maxx/

Marshalls

Framiingham, Mass

www.tjmaxx.com

550 530 3.8 1,468 1,418

19 Big Lots Columbus, Ohio

www.biglots.com

545 500 9.0% 1,459 1,385

20 JCPenney Plano, Texas

www.jcpenney.com

545 550 -0.9% 1,017 1,020

21 Tuesday Morning Dallas

www.tuesdaymorning.

com

530 495 7.1% 662 577

22 Homegoods Framing, Mass

www.homegoods.com

498 425 17.2% 216 182

23 Ross Stories Pleasanton, Calif

www.rosstores.com

445 412 8.0% 649 568

24 Partylite Plymouth, Mass

www.partlite.com

435 495 -12.1% NS NS

25 Crate & Barrel Northbrook, ILL

www.crateandbarrel.com

406 355 14.4% 136 123

84


26 Kirkland’s Jackson, Tenn

www.kirklands.com

394 369 6.8% 320 280

27 Sam’s Club Bentonville, Ark

www.samsclub.com

390 375 4.0% 551 538

28 Restoration

Hardware

Corte Madera, Calif

www.restorationhardwar

e.com

388 328 18.3% 100 100

29 The Bombay

Company

Fort Worth, Texas

www.bombayco.com

348 348 0.0% 446 415

30 Costco Issaquah, Wash

www.costco.com

345 315 9.5% 330 318

31 Home Interiors &

Gift

Carrollton, Texas

www.homeinteriors.com

322 380 -15.3% NS NS

32 Cost Plus World

Market

Oakland , Calif 314 277 13.4% 237 204

33 Sears Hoffman Estates, ILL

www.sears.com

310 325 -4.6% 873 871

34 Berkshire

Hathaway

Furniture

Division

Omaha, Neb

www.berkshirehathaway.

com

300 270 11.1% 31 30

35 Cracker Barrel

Country

store

Lebanon, Tenn

www.crackerbarrel.com

295 285 3.5% 516 451

36 Garden Ride Houston

www.garenridge.com

290 326 -11.0% 35 44

37 Burlington Coat

Factory

Burlington, NJ

www.coat.com

285 275 3.6% 314 320

38 Yankee Candle Whately, Mass

www.yankeecandle.com

284 267 6.3% 345 286

39 Ethan Allen Danbury, Conn

www.ethanallen.com

280 278 0.7% 282 283

40 The Great

Indoors

Hoffman Estates, ILL

www.thegreatindoors.co

m

265 290 -8.6% 17 18

41 Kmart Troy, Mich

www.kmart.com

218 250 -12.8% 1,480 1,511

42 Rooms To Go Seffner, Fla 199 200 -0.5% 98 95

85

http://www.crackerbarrel.com/


www.roomstogo.com

43 Jo-Ann Stories Hudson, Ohio

www.joann.com

190 175 8.6% 851 892

44 Family Dollar Mathews, N.C

www.familydollar.com

189 175 8.0% 5,600 5,175

45 Dillard’s Little Rock, Ark

www.dillards.com

185 190 -2.6% 329 328

46 Havertys Atlanta

www.havertys.com

158 158 0.0% 117 113

47 Anthropologie Philadelphia

www.anthropologie.com

155 105 47.6% 65 52

48 A.C.Moore Arts

& Crafts

Berlin, N.J

www.acmoore.com

152 148 2.7% 96 81

49 Southern Living

At Home

Birmingham, ALA

www.southernlivinggath

ome.com

150 120 25.0% NS NS

50 Stein Mart Jackson, FLA

www.steinmart.com

139 148 -6.1% 26 261

Japanese market

No Company Name Location Website

1 Cainz Co., Ltd. Gunma www.cainz.co.jp/english_Site/e_index.html

2 Konan Shoji Co., Ltd. Osaka www.hc-kohnan.com/hc/foreign/engindex.html

3 Homac Corp. Sapporo www.homac.co.jp

4 NAFCO Corporation Fukuoka www.nafco.tv/index.html

5 Keiyo Co. Ltd. Chiba www.keiyo.co.jp

6 Komeri Co. Ltd. Niigata www.komeri.com

7 Kahma Co., Ltd. Aichi www.kahma.co.jp

8 Shimachu Co., Ltd. Saitama www.shimachu.co.jp

9 Joyful Honda Ibaragi www.joyfulhonda.com/english/index.htm

10 Tokyu Hands Inc. Tokyo www.tokyu-hands.co.jp

86


Appendix No.10

Cultural Factors

If you hope to profit from your travel abroad, you should learn about the history, culture, and

customs of the countries to be visited. Flexibility and cultural adaptation should be the

guiding principles for traveling abroad on business. Business manners and methods, religious

customs, dietary practices, humor, and acceptable dress vary widely from country to country.

Consider the following:

Never touch the head of a Thai or pass an object over it; the head is considered sacred in

Thailand.

Avoid using triangular shapes in Hong Kong, Korea, and Taiwan; the triangle is

considered a negative shape.

The number 7 is considered bad luck in Kenya and good luck in Czechoslovakia, and it

has magical connotations in Benin. The number 10 is bad luck in Korea, and 4 means

death in Japan.

Red is a positive color in Denmark, but it represents witchcraft and death in many African

countries.

A nod means no in Bulgaria, and shaking the head from side to side means yes.

The "okay" sign commonly used in the United States (thumb and index finger forming a

circle and the other fingers raised) means zero in France, is a symbol for money in Japan,

and carries a vulgar connotation in Brazil.

The use of a palm-up hand and moving index finger signals "come here" in the United

States and in some other countries, but it is considered vulgar in others.

In Ethiopia, repeatedly opening and closing the palm-down hand means "come here."

Understanding and heeding cultural variables such as these is critical to success in

international business travel and in international business itself. Lack of familiarity with the

business practices, social customs, and etiquette of a country can weaken a company's

position in the market, prevent it from accomplishing its objectives, and ultimately lead to

failure.

Some of the cultural distinctions that you should pay close attention to are the differences in

business styles, attitudes toward development of business relationships, attitudes toward

punctuality, negotiating styles, gift-giving customs, greetings, significance of gestures,

meanings of colors and numbers, and customs regarding titles.

In some countries, business people have a very direct style, while in others they are much

more subtle in style. For example, in the Middle East, engaging in small talk before engaging

87


in business is standard practice.

Attitudes toward punctuality vary greatly from one culture to another and, if misunderstood,

can cause confusion and misunderstanding. Romanians, Japanese, and Germans are very

punctual, whereas people in many of the Latin countries have a more relaxed attitude toward

time. The Japanese consider it rude to be late for a business meeting, but acceptable, even

fashionable, to be late for a social occasion. In Guatemala, on the other hand, one might arrive

anytime from 10 minutes early to 45 minutes late for a luncheon appointment.

When cultural lines are being crossed, something as simple as a greeting can be

misunderstood. Traditional greetings may be a handshake, a hug, a nose rub, a kiss, placing

the hands in praying position, or various other gestures. Lack of awareness concerning the

country's accepted form of greeting can lead to awkward encounters.

People around the world use body movements and gestures to convey specific messages.

Sometimes the same gestures have very different meanings, however. Misunderstanding over

gestures is a common occurrence in cross-cultural communication, and misinterpretation

along these lines can lead to business complications and social embarrassment.

Proper use of names and titles is often a source of confusion in international business

relations. In the United Kingdom, France, and Denmark it is appropriate to use titles until use

of first names is suggested. First names are seldom used when doing business in Germany.

Visiting business people should use the surname preceded by the title. Titles such as "Herr

Direktor" are sometimes used to indicate prestige, status, and rank. Thais, on the other hand,

address each other by first names and reserve last names for very formal occasions and

written communications. In Belgium it is important to address French-speaking business

contacts as "Monsieur" or "Madame," while Dutch-speaking contacts should be addressed as

"Mr." Or "Mrs." To confuse the two is a great insult.

Customs concerning gift giving are extremely important to understand. In some cultures gifts

are expected and failure to present them is considered an insult, whereas in other countries

offering a gift is considered offensive. Business executives also need to know when to present

gifts - on the initial visit or afterwards; where to present gifts - in public or private; what type

of gift to present; what color it should be; and how many to present.

Gift giving is an important part of doing business in Japan, where gifts are usually exchanged

at the first meeting. In sharp contrast, gifts are rarely exchanged in Germany and are usually

not appropriate. Gift giving is not a normal custom in Belgium or the United Kingdom either,

although in both countries, flowers are a suitable gift when invited to someone's home.

88


Customs concerning the exchange of business cards vary, too. Although this point seems of

minor importance, observing a country's customs for card giving is a key part of business

protocol. In Japan, for example, the Western practice of accepting a business card and

pocketing it immediately is considered rude. The proper approach is to carefully look at the

card after accepting it, observe the title and organization, and acknowledge with a nod that the

information has been digested, and perhaps make a relevant comment or ask a polite question.

Negotiating - a complex process even between parties from the same nation - is even more

complicated in international transactions because of the added chance of misunderstandings

stemming from cultural differences. It is essential to understand the importance of rank in the

other country; to know who the decision makers are; to be familiar with the business style of

the foreign company; and to understand the nature of agreements in the country, the

significance of gestures, and negotiating etiquette.

It is important to acquire, through reading or training, a basic knowledge of the business

culture, management attitudes, business methods, and consumer habits of the country being

visited. This does not mean that the traveler must attempt to exercise all local customs when

conducting business abroad. It does mean that the traveler should be sensitive to the customs

and business procedures of the country being visited.

Before traveling to a new market, you should learn as much about the culture as possible to

avoid embarrassing situations. For example, in Mexico it is customary to inquire about a

colleague's wife and family, whereas in many Middle Eastern countries it is taboo. Patting a

U.S. colleague on the back for congratulations is a common practice, but in Japan it would be

discourteous. Clothes, expressions, posture, and actions are all important considerations in

conducting international business.

Another important consideration is religious and national holidays. Trying to conduct

business on the Fourth of July in the United States would be difficult, if not impossible.

Likewise, different dates have special significance in various countries. Some countries have

long holidays by U.S. standards, making business difficult. For example, doing business is

difficult in Saudi Arabia during the month of fasting before the Ramadan religious festival.

Try to obtain cultural information from business colleagues who have been abroad or have

expertise in a particular market. A little research and observation in cultural behavior can go a

long way in international commerce. Likewise, a lack of sensitivity to another's customs can

stop a deal in its tracks.

89


Appendix No.11

Information Sources about Market Entry Requirements

Japanese market

Detailed customs procedure when exporting to Japan:

http://www.customs.go.jp/index_e.htm

Details for tariffs in Japan: http://www.apectariff.org/ (Asia Pacific Tariff Database-APEC)

Japan Specifications for Apparatus and Containers/packages made of Glass, Ceramic, or

Enamel:

http://www.ffcr.or.jp/zaidan/FFCRHOME.nsf/7bd44c20b0dc562649256502001b65 e9/a8 67

f8867f281c6b49256f0f001ed0b9/$FILE/Appendix9.pdf

Standards on materials in general:

http://www.ffcr.or.jp/zaidan/FFCRHOME.nsf/7bd44c20b0dc562649256502001b65e9/

a867f8867f281c6b49256f0f001ed0b9/$FILE/standards%20on%20materials.pdf

and http://www.ffcr.or.jp/zaidan/FFCRHOME.nsf/pages/e-links-j

Food Sanitation Law (for products in direct contact with food):

http://www.mhlw.go.jp

Electrical Appliance and Materials Safety Law (for lightings):

www.ul.com

US market

U.S. Customs web site:

www.customs.ustreas.gov

U.S. customs regulations and USDA entry requirements:

http://www.cbp.gov/xp/cgov/import/

Exporting to the US:

http://www.cbp.gov/xp/cgov/import/communications_to_industry/diduknow.xml

Vietnam tarrifs/duties/ etc. when exporting to States:

http://dataweb.usitc.gov/scripts/user_set.asp

U.S Regulations for ceramics: cadmium contamination:

http://www.fda.gov/ora/compliance_ref/cpg/cpgfod/cpg545-400.html

Regulations for ceramics: lead contamination:


Import procedure for ceramics:

http://www.cfsan.fda.gov/~lrd/import.html

90

http://www.cfsan.fda.gov/~lrd/import.html



http://dataweb.usitc.gov/scripts/user_set.asp

http://www.cbp.gov/xp/cgov/import/communications_to_industry/diduknow.xml

http://www.cbp.gov/xp/cgov/import/

http://www.ffcr.or.jp/zaidan/FFCRHOME.nsf/pages/e-links-j

http://www.ffcr.or.jp/zaidan/FFCRHOME.nsf/7bd44c20b0dc562649256502001b65e9/a867f8867f281c6b49256f0f001ed0b9/$FILE/standards%20on%20materials.pdf

http://www.ffcr.or.jp/zaidan/FFCRHOME.nsf/7bd44c20b0dc562649256502001b65e9/a867f8867f281c6b49256f0f001ed0b9/$FILE/standards%20on%20materials.pdf

http://www.ffcr.or.jp/zaidan/FFCRHOME.nsf/7bd44c20b0dc562649256502001b65%20e9/a8%2067%20f8867f281c6b49256f0f001ed0b9/$FILE/Appendix9.pdf

http://www.ffcr.or.jp/zaidan/FFCRHOME.nsf/7bd44c20b0dc562649256502001b65%20e9/a8%2067%20f8867f281c6b49256f0f001ed0b9/$FILE/Appendix9.pdf

http://www.apectariff.org/

http://www.customs.go.jp/index_e.htm


EU market

Legislative and market requirements for gifts, decorative articles and jewellery in EU

http://www.cbi.nl/accessguide/?cbiRef=yes

http://europa.eu.int/comm/food/food/chemicalsafety/foodcontact/leg_files/84_500_en.pdf

http://europa.eu.int/comm/food/food/chemicalsafety/foodcontact/legisl_list_en.htm

Information about regulations and export tariffs to EU can be found at

http://export-help.cec.eu.int/ or http://europa.eu.int/comm/taxation_customs

International quality standards ISO and the European Committee for Normalisation

www.iso.ch

www.cenorm.be

Information about environment, social, health and safety issues:

www.cbi.nl/accessguide www.europa.eu.int/eur-lex

www.ilo.org (labour/health)

www.octrooibureau.nl (patents)

www.newapproach.org (product safety)

www.foodnet.fic.ca (food safety)

No specific regulations exist for gift and handicraft articles as this term covers a broad variety

of very different products. However, some gift and handicraft articles could be subject to the

EU product legislation concerning the content of hazardous substances, especially if the

products are to be used in connection with provisions. According to the CBI market survey on

gift and decorative articles, the most important dangerous substances that an exporter of gift

and handicraft articles should be aware of are:

Azo dyes

Benzene used as stabilizers in plastic

Formaldehyde used as glazing or bonding agent

Pentachlorophenol (PCP) used to prevent fungal growth in wooden toys

Polychlorinated biphenyl (PCB) and terphenyl (PCT) used as softeners in plastic products

Phthalates added to PVC

Asbestos used as filling material in plastics

Cadmium used as pigment or stabilizer in paints, plastics, ceramics and glassware

Nickel

Mercury

CFCs and halons used as foaming agents

91

http://www.cenorm.be/

http://www.iso.ch/

http://export-help.cec.eu.int/

http://europa.eu.int/comm/food/food/chemicalsafety/foodcontact/legisl_list_en.htm

http://europa.eu.int/comm/food/food/chemicalsafety/foodcontact/leg_files/84_500_en.pdf

http://www.cbi.nl/accessguide/?cbiRef=yes


Appendix No.12

List of Supporting Policies for Handicraft Exporters

Issue Regulation and Decision Agency

Regional

Development

Decision No. 132/2000/QD/TTg of November 24, 2000 on a

Number of Policies to Encourage the Development of Rural Trades

Government

Circular 84/2002/TT-BTC dated 26 September, 2002 Giving

guidance on financial incentives to encourage the development of

craft industries

Ministry of Finance

(MOF)

Official letter No.670/BNN– TCBC dated 26 March, 2003 Giving

guidance on training and development of rural craft industries

Ministry of

Agriculture and Rural

Development

(MARD)

Decision No. 132/2001/QD-TTg of September 7, 2001 on Financial

Mechanisms for the Implementation of the Programs on Developing

Rural Traffic Roads, Infrastructure for Aquaculture and

Infrastructure in Rural Craft Villages

Ministry of Finance

(MOF)

Investment

Promotion

Decision No.3/1998/QH10 of May 20, 1998, The Law on Domestic

Investment Promotion (amended)

Government

Decree No. 51/1999/ND-CP of July 8, 1999 Detailing the

Implementation of Law No. 03/1998/QH10 on Domestic Investment

Promotion (amended)

MPI

Circular No 02/1999/TT-BKH dated 24 September, 1999 Instructing

procedures for granting investment incentives in compliance with the

Decree No 51/1999/ND-CP

Ministry of Planning

& Investment

Circular No 22/2001/TT-BTC dated 3 April , 2001 on Instructing the

implementation of tax exemption and deduction for the objects of

these investment incentives in compliance with the Decree No

51/1999/ND-CP dated 8/7/1999 of the Government.

Ministry of Finance

Export Promotion Decision No. 195/1999/QD-TTg by the Prime Minister on

Establishment of Export Promotion Fund

Prime Minister

Decision No. 46/2001/QD-TTg of April 4, 2001 on the Management

of Export and Import Goods in the 2001-2005 Period

Ministry of Trade

(MoT)

Decision No.02/2001/QD-TTg dated 2 January, 2001 on Policies to

support investment from Development Assistance Fund toward

export processing projects

MPI

92


SME Promotion Decree No. 90/2001/ND-CP of November 23, 2001 on Support for

Development of Small and Medium Enterprises

MPI

Decree No. 02/2000/ND-CP of February 3, 2000 on Business

Registration

MPI

Preservation of

Traditional Crafts

Decision No. 124/2003/QD-TTg of June 17 2003 approving cultural

preservation and development for minority groups in Vietnam to

fully utilize traditional crafts

Ministry of Culture

and Information

(MOCI)

93


Appendix No.13

References

1. EU Market survey 2005, Gifts and Decorative articles – CBI

2. Your Image Builder, SIPPO and CBI

3. Japanese Market report, Household products, JETRO

4. A Basic guide to exporting, US Department of Commerce

5. Your Show master, CBI

6. Product Costing and Pricing: Artisan as Entrepreneur Training Module (ITC 2000)

7. A Guide to Exporting Solid wood product, United States Department of Agriculture

8. Your Guide to market research, CBI

9. Market Research for Exporting handicrafts to USA, JETRO (in Japanese)

10. Promotion and Export development of Asian Artisanal Products in EU (ITC, 2001)

11. Promotion and Export development of Asian Artisanal Products in the United States,

(ITC, 2001)

12. Handicrafts in Denmark, Denmark Import Promotion Office for products from developing

countries (DIPPO)

13. Handicrafts in Canada, Trade Facilitation Office Canada (TFOC)

14. State of the Sector Report on Philippine in Housewares, 2004, Pearl2

15. Gift and Handicraft Articles in Swedish Market, 2004, Chamber of Commerce of East

Sweden

16. Vietnam Handicrafts and Traditional Craft Villages, VIETRADE

17. The study on Artisan craft Development plan for Rural industrialization in Vietnam,

JICA

94

export marketing guidelines arts and crafts- edited

Documents

export export costing

export increases

export turnover

invoicing export costing

exporting craft products

potential crafts exporters

creative vietnamese

international markets