value-chains-vietnam_final_highres.pdf

8/13/2019 value-chains-vietnam_final_highres.pdf

1/44

Greening Value ChainsFor Sustainable HandicraftsProduction in Viet Nam


2/44

This document has been produced without formal United Nations editing. The designations employed and the presentationof the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of theUnited Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city orarea or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree ofdevelopment. Designations such as developed, industrialized and developing are intended for statistical convenienceand do not necessarily express a judgment about the stage reached by a particular country or area in the development

process. Mention of rm names or commercial products does not constitute an endorsement by UNIDO.

Although great care has been taken to maintain the accuracy of information herein, neither UNIDO nor its Member Statesassume any responsibility for consequences which may arise from the use of the material.

This document may be freely quoted or reprinted but acknowledgement is requested.


3/44

Greening Value ChainsFor Sustainable

Handicrafts Production

in Viet Nam

June 2013


4/44


5/44


6/44

4 UNIDO GREEN INDUSTRY

I. List of Figures

Figure 1. Resource Efcient and Cleaner Production ....................................................................................................9Figure 2. UNIDO Green Industry Themes ....................................................................................................................10Figure 3. Lung Bamboo and Post-harvest Transpiration .............................................................................................17Figure 4. Manual Splitting of Bamboo and Outer Skin Peeled from Lung Bamboo ..................................................17Figure 5. Drying Material Outside the Factory .............................................................................................................18Figure 6. The 'Interlocking' and 'Lace' Collections ......................................................................................................19Figure 7. Sedge Mat Weaving Using a 'Go' and Seagrass Cord ................................................................................22Figure 8. Seagrass Cord Weaving Equipment and Drying Chamber ..........................................................................23Figure 9. Mat Made from Bundles of Seagrass Waste and Stenciled Yoga Mat .......................................................23Figure 10. Manual Reeling and Weaving ......................................................................................................................26Figure 11. Wet Sanding and Finishing of Lacquer Paintings .......................................................................................33Figure 12. Old Cement and New Stainless Steel Tanks ..............................................................................................35Figure 13. Lampshade and Stationery from the 'Button-up' Collection .....................................................................36

II. List of Text Boxes

Box 1. Viet Nam Country Prole ...................................................................................................................................12Box 2. About Handicrafts ..............................................................................................................................................12Box 3. The Pilot Provinces ............................................................................................................................................14Box 4. About Bamboo and Rattan ...............................................................................................................................16Box 5. Bamboo Waste Recovery in Dien Van Cooperative, Nghe An Province .........................................................18Box 6. Environmentally Sustainable Bamboo and Rattan Preservation .....................................................................19Box 7. Vocational Training of Bamboo and Rattan Weavers .......................................................................................20Box 8. About Seagrass .................................................................................................................................................21Box 9. About Sericulture and Silk .................................................................................................................................25Box 10. Vocational Training in Natural Dyeing Techniques..........................................................................................27Box 11. Improved Dilk Dyeing Lam Giang Mulberry Silkworm Company ..................................................................28Box 12. Advanced Vocational Training in Dyeing and Weaving ..................................................................................29Box 13. About Lacquer .................................................................................................................................................30Box 14. Improved Lacquer Sap Processing ................................................................................................................32Box 15. About Handmade Paper .................................................................................................................................34Box 16. Towards a Branding Scheme for Vietnamese Handicrafts ............................................................................38

III. List of Acronyms

BAT Best Available TechnologyBEP Best Environmental PracticeBOD Biological Oxygen DemandCOD Chemical Oxygen DemandCSR Corporate Social ResponsibilityHRPC Vietnam Handicraft Research and Promotion CentreHUST Hanoi University of Science and TechnologyHRPC Handicraft Research Promotion CentreR&D Research and Development

MARD Ministry of Agricultural and Rural DevelopmentMOIT Ministry of Industry and TradeMONRE Ministry of Natural Resources and EnvironmentMPI Ministry of Planning and InvestmentMSMEs Micro, Small and Medium-sized EnterprisesMSW Municipal Solid WasteNFTP Non-timber Forest ProductPOP Persistent Organic PollutantsRECP Resource Efcient and Cleaner ProductionRUDEC Rural Development Centre, MARDSCP Sustainable Consumption and ProductionSME Small and Medium-sized EnterprisesTOE Tonnes of Oil Equivalent

VIETCRAFT Vietnam Handicraft Exporters Association

VIETRADE Viet Nam Trade Promotion Agency VIRI Viet Nam Rural Industries Research and Development Institute VNCPC Viet Nam Cleaner Production Centre VND Vietnamese DongUP-POP Un-intentionally Produced Persistent Organic Pollutants

VCCI Vietnam Chamber of Commerce and Industry VCA Vietnam Cooperative Alliance


7/44

5GREENING VALUE CHAINS FOR SUSTAINABLE HANDICRAFTS PRODUCTION IN VIET NAM

IV. On Green Industry and Greening Handicraft Value Chains

Handicrafts are uniquely placed to draw full advantage from a countrys natural and

cultural resources while transforming and adding value to non-timber forest products.By promoting crafts production we can reduce poverty and improve livelihoods in rural and remote areas and at the same time protect precious natural resources. Under thisMDG-F Joint Programme, UNIDO worked with its sister agencies in Viet Nam to offer

innovative and holistic solutions for the handicrafts sector from the cultivation andcollection of raw materials to production and marketing through to the identicationof triple-bottom-line development opportunities. It is imperative that developing coun-tries fully explore the potential that can be unlocked from a value chain perspective.

At the same time, identifying and capturing resource efciency opportunities is vitally important in promoting development. As we continue to move ever closer to ecological boundaries, the question of how to address the impacts of the unabated consumptionof natural resources calls for immediate attention. By taking only the level of resources

needed and extracting the maximum value-added from them, development can be made sustainable, resilient and inclusive. Not only is it no threat to growth, it actually helps achieve it.

Kandeh K. Yumkella, Director-General, UNIDO

Trade has been a key driver of economic growth in Viet Nam since the inception ofthe Doi Moi reforms. Faced with increased environmental degradation, the threat ofclimate change and the urgent constraints in the supply of natural resources, a new

paradigm for development is needed and it must prioritise Green Growth. By launching

its Green Growth Strategy in 2012 which emphasized the importance of green produc-tion and green technologies, the Socialist Republic of Viet Nam acknowledges thatenvironmental sustainability cannot be a goal secondary to socio-economic develop-

ment and that the two must be pursued in tandem.

In realizing this strategy, industrys role is absolutely vital and the handicrafts sectors should not be overlooked given the large amounts of precious natural resources itconsumes and the informal and scattered nature of its operations. Upgrading and

greening value chains ensures the continued competitiveness of the Vietnameseeconomy, that the well-being of future generations is not forsaken by the short-sight-edness of the present and that, ultimately, growth does not have to be at the expenseof environmental sustainability.

DO Thang Hai, General Director, VIETRADE, Ministry of Industry and Trade


8/44


Handicrafts stand out as an important part of a Vietnams cultural heritage, the industry is a source of productive activities, incomes and livelihoods in rural areas throughoutthe country, with women and ethnic minorities among the greatest beneciaries.

Facing increased competition and saturation in global markets and with it, downward pressure on prices, handicraft producers need not only ensure that their products are attractive but also that their production methods are sustainable.

Resource efcient and cleaner production methods like those demonstrated underthe Joint Programme not only protect natural resources but also improve bottom lines

so that farmers, households and companies alike save money and producing more products from the same amount of raw materials they also make more money. Making such changes throughout the value chain would not only give Vietnamese crafts anedge over their competitors but would also have wider ripple effects on agriculture,

industry and beyond.

DO Nhu Dinh, Chairman, VIETCRAFT


9/44


V. Acknowledgements

This report was prepared by Catherine WONG, UNIDO, under the overall guidance

and direction of Ren VAN BERKEL, Project Manager and Chief of UNIDOs Cleanerand Sustainable Production Unit. It made use of in-depth research, analysis, andeld-work conducted by national and international experts including: BACH TrongPhuc, Alfons EILIGMANN, HOANG Thi Linh, KIEU Pham Huyen, NGUYEN Ang Phong,Rebecca REUBENS, TA Thi Phuong Hoa, THANH Nguyen and TUONG Trang Hieu.We are deeply grateful for their tremendous efforts in making the Joint Programme asuccess and for all their assistance in drafting this paper.

We take this opportunity to thank our excellent counterparts: VIETRADE-MOIT, VIETCRAFT, HUST, VNCPC, and HRPC for their cooperation under this JointProgramme.

We are also thankful to UNIDO Programme Ofcer, HOANG MAI Van Anh and Head ofIn-Companies Services Section at VNCPC, THINH le Xuan for their overall coordinationof UNIDO activities under the Joint Programme and to Lauren BRASSAW, UNIDO, forhis invaluable assistance with the graphic design and typesetting of this report.

The Joint Programme was funded under the Development and the Private SectorThematic Window of the Millennium Development Goals Achievement Fund.

Heinz LEUENBERGERDirectorEnvironmental Management Branch, UNIDO

Patrick GILABERTRepresentativeUNIDO Country Ofce Vietnam


10/44


VI. Abstract

Bamboo, rattan, seagrass and other raw materials used in handicrafts production are

an important part of Viet Nams natural capital. These are valuable resources that needto be protected, harvested and utilized in a sustainable manner to ensure a vibrantcrafts sector now and for future generations. The environmental impacts of craftsproduction by households and Micro, Small and Medium Enterprises (MSMEs) areoften considered negligible given the scale of their operations, yet taking into accounttheir sheer number, use of natural materials and limited capabilities, their productionpractices should also be appropriately addressed. Piecemeal interventions just at theproduction cultivation or stages, will only produce equally limited results. A compre-hensive and integrated approach is needed to make green and clean-up the entirevalue chain, starting from raw materials collection, processing, crafts production andtransportation, right up to nal markets. Coordinated interventions to make green vevalue chains were supported in Viet Nam, respectively in the: bamboo and rattan,seagrass, sericulture and silk, lacquerware and handmade paper sectors.

Using simple equipment and techniques, signicant amounts of waste generated inthe production of bamboo, rattan and seagrass crafts can now be recovered assecondary resources to make new value-added products. With a view to reducingbamboo losses, a linseed-based preservation treatment has been developed, trialedand successfully demonstrated to industry. Collaboration with academia and industryin Japan and China has allowed for the transfer of the Kurome rening process sothat lacquer can now be rened by local producers in Viet Nam. In the sericulture andsilk sector, the development of which has suffered due to very high overheads, lackof know-how and underinvestment; optimisation of production processes in silk reeling,dyeing and weaving, etc. will help improve competitiveness throughout the sector.

Focused vocational skills-based training and hands-on guidance in cleaner productionhas contributed to new jobs and higher incomes for grassroots producers in all vesectors. With the concerted efforts and application of local and international knowl-edge, cleaner production techniques were made practical, applicable and cost-effectivefor crafts-producing households and MSMEs. Practical examples were developed ofbetter product design, in harmony with the principles of sustainability and which provedto be attractive to the local market and international buyers. A further option lies insustainability based branding and marketing, for which a practical assessment andlabeling scheme have been developed.

In conclusion, a strategic focus on making the most out of Viet Nams rich naturaland cultural resources is required to ensure sustainable incomes and jobs in thehandicrafts sector. Across the ve value chains, this calls for sustainable manage-ment and cultivation of the natural resource base, better techniques for materialpreparation that avoid and reduce material losses and environmental impacts,enhancement of craft-making skills, and creative product designs that embracecultural values and sustainability at large.


11/44


1. INTRODUCTION

1.1 Green Industry

In 2008, UNIDO launched the Green Industryinitiative as an organization-wide strategic priorityto foster sustainable industrial development indeveloping and transition countries. As rapidindustrialization has proven to be a key driver foreconomic growth and poverty eradication in VietNam and throughout the developing world,sustainable industrial development is required tomeet global aspirations for sustainable develop-ment, as reected in the Agenda 21, adopted at

the Rio Summit, and the Johannesburg Plan ofImplementation, adopted at the World Summit onSustainable Development. 1

Green Industry is based on proven methods,strategies and tools and ultimately endeavoursto decouple economic growth from increaseduse of natural resources (resource decoupling)and aggravated environmental impacts (impactdecoupling). It provides a two-pronged approachfor industrialization that is robust in the contextof worsening environmental degradation, climatechange and resource constraints:

Firstly, Green Industry, through the greeningof industries achieves, on an ongoing basis,reductions in the use of natural resources andof the generation of waste and pollution in anybusiness, including through such provenapproaches as Resource Efcient and CleanerProduction (RECP) (see Figure 1), industrialenergy efciency, and chemicalsmanagement.

Secondly, through the creation of greenindustries, Green Industry realizes the supply

FIGURE 1: Resource efcientand cleaner productionRECP refers to the application ofpreventive environmentalmanagement practices inindustrial products, processesand services with the triple aimof improving resourceproductivity, environmentalmanagement and humandevelopment.See: www.unido.org/cp

Production Efficiency EnvironmentalManagement

Human Development

Resource Efficientand Cleaner

Production (RECP)

of high quality environmental goods and

services in an effective and industrial manner,including, for example, for renewable energy,waste recycling and resource recovery, andenvironmental advisory services.

Green Industry is the sectoral strategy forachieving Green Economy and Green Growth inthe manufacturing and related productivesectors. It assures the security of naturalresources by alleviating the pressure on alreadyscarce resources such as water, materials andfuels, contributes to mitigation of and adapta-tion to climate change by reducing greenhousegas (GHG) emissions from energy and non-energy sources and at the enterprise-level,better environmental management and indus-trial and chemical safety. However, beyond this,achieving Green Industry is much more than

just a question of environmental sustainability.It unlocks many more additional developmentopportunities, as a driver of competitivenessand sustainable business as enterprises improvetheir resource productivity and environmentalperformance. While also a catalyst for techno-logical innovation, Green Industry is not just anew paradigm for industrial development, it alsooffers triple bottom-line benets, serving as aclear strategy with dened pathways forachieving sustainable development.

UNIDO furthers the Green Industry agendathrough action in three areas, as illustrated inFigure 2. Practical support is provided toscale-up both the greening of industries, throughfocused activities on resource productivity,pollution prevention and chemicals manage-ment, and the creation of green industries, bysupporting the supply of goods and services for

1 UNIDO (2011). UNIDO Green Industry Initiative for Sustainable Development


12/44


renewable energy, materials recovery and pollu-tion control. Both require an enabling frame-work, under which UNIDO is addressing policyand strategy, technology transfer, nancialinstruments and capacity building.

In specic, concrete terms, Green Industry isachieved through concerted actions that yieldresource efciency through the dematerializationof products and value chains; making use ofmaterials with a longer service lifetime; recy-cling, reuse and recovery of materials, energyand water thereby reducing exploitation of virginmaterials. Through improvements in processoperations and application of advanced process

technologies with higher efciency and speci-city, Green Industry minimizes the generationof waste and emissions. Employing of BEPs andBATs prevents the unintentional production ofPOPs and other hazardous pollutants whilereplacement of chemical by non-chemicalprocesses translates into real reductions in risksassociated with chemicals and (hazardous)wastes. Equally important in this strategy is thecreation and expansion of (new) green indus-tries, in which there are numerous opportunitiesto exploit from recycling and resource recoveryto B2B support in promoting and deployingindustrial energy efciency and renewableenergy solutions in addition to the collection,management and disposal of hazardous wastes.

Green Industry cuts across the policy domainsof competitiveness, innovation and trade. The use

of scal policy, regulatory and market-basedinstruments to mainstream and embed GreenIndustry in industrial and related policies andstrategies, along with the fostering of industrybased initiatives, ensures that enterprises haveaccess to affordable nancing, that human andinstitutional capacity is developed in a systematicmanner and that technology diffusion and deploy-ment are supported at the enterprise level.

UNIDO, in cooperation with the United NationsEnvironment Programme, launched the GreenIndustry Platform during the United NationsConference on Sustainable Development (alsoknown as Rio+20). This multi-stakeholderplatform will enable the scaling-up and main-streaming of Green Industry policies and prac-tices throughout the global manufacturingindustry. In this regard, the Government of VietNam was one of the rst countries to join theGreen Industry Platform (www.greenindustry-platform.org), signing the Statement of Supporton 16 June 2012.

1.2 UNIDO Achievements

UNIDO has undertaken environment and energyrelated projects in the manufacturing and relatedsectors in Viet Nam since the late 1990s. Theirprime focus has been on the greening of indus-tries, most of these falling under the umbrellaof RECP (Figure 1).

Enabling Green Industry Framework

Greening of Industries Creating Green IndustriesResource

Productivity(materials, water

& energy)

PollutionPrevention

(waste &emissions)

ResponsibleChemicalsSolutions

Renewableand Efficient

Energy

MaterialsRecovery

(3Rs)

PollutionControl

(POPs, e-waste)

Environmental

Services

Policy and Strategy

Capacity Building

Technology Cooperation Financial Instruments

FIGURE 2: UNIDO Green Industry Themes


13/44


A landmark has been the support for establish-ment and operation of the Viet Nam NationalCleaner Production Centre (VNCPC) since 1998.

The Centre has a strong record in delivery, asdocumented by the independent evaluation ofits performance conducted on behalf of itsfounding donor (Government of Switzerland) andUNIDO. Published in February 2012, the reporttook stock of 340 consultancy projects imple-mented VNCPC in the form of Cleaner Production

Assessments (CPAs), Technology Gap Assessments (GAPs), Clean Technology Assessments (CTAs), Cleaner TechnologyImplementation (CTI), Financial EngineeringProposals (FEPs) and Sustainable Product

Innovation (SPIN). VNCPCs enterprise supporthad beneted numerous companies in diversesectors from metals (19 per cent), food processing(18 per cent), textiles (14 per cent), handicrafts(11 per cent), pulp and paper (11 per cent), andconstruction materials (1 per cent). In addition,the Centre has trained many cleaner productionspecialists who have also continued to serve thelocal market. While it is difcult to quantify, inexact terms, the indirect beneciaries, there are,according to the General Statistics Ofce, morethan 2,000 manufacturing companies applyingcleaner production and potentially many more innon-manufacturing sectors.

The project funded by the Global EnvironmentFacility (GEF) on Introduction of BAT and BEPmethodology to demonstrate reduction or elimi-nation of releases of unitentional ProducedPersistent Organic Pollutants from industry in

Viet Nam (2009-2011), addressed the reductionof UP-POPs from the waste incineration, cementkiln (co-processing), pulp and paper, and ironand steel sectors through the introduction ofbest available techniques (BAT) and best envi-ronmental practices (BEP). The project alsoestablished the rst database on dioxin emis-sions from industry in Viet Nam and builtcapacity for dioxin sampling and analysis inindustrial emission samples.

As industry in Viet Nam contributes two-fths ofgreenhouse gas emissions (GHG), industrialenergy efciency is all the more important.UNIDO is therefore implementing theGEF-nanced project: Promoting IndustrialEnergy Efciency through System Optimization

and Energy Management Standards in Viet Nam(2010-2014). The project promotes industrialenergy efciency through system optimization

and ISO energy management standards in food,textile, rubber and pulp and paper sectors.

The EU SWITCH-funded UNIDO project: Helping Vietnamese SMEs Adapt and Adopt CorporateSocial Responsibility (CSR) for ImprovedLinkages with Global Supply Chains inSustainable Production (2009-2013) targeted thetextile/garment, leather/footwear, and electric/ electronics sectors (www.csrvietnam.eu). Itraised awareness and built a pool of expertswho serve the local market as a source of CSRknow-how and practice. At the same time, theproject created an online platform and resourcematerials to facilitate information exchange, andexperience on CSR implementation, amongenterprises and CSR experts.

During 2011-2012, with support from the One UNFund, UNIDO developed and proposed a policyframework and guiding quantitative goals for theimprovement of resource productivity and envi-ronmental performance to facilitate wide-scaledeployment of Green Industry (UNIDO, 2012). 2 Inthe rst of three policy pilots, benchmarkingagainst good international practices in the Electric

Arc Furnace steel sector was combined withdevelopment of a sectoral voluntary agreementand a technology roadmap. Responding to thedetermination of the local government to developan Eco-City in Hoi An by 2030 in the secondpolicy pilot, a Green Industry Action Plan wasdevised to help improve environmental amenityand foster economic growth. Last but not least,Binh Yen Village in Nam Dinh Province was takenas a case in point for an in-depth investigationinto micro-scale (aluminium) recycling in ruralvillages around Viet Nam with the aim ofpromoting replicable zero-emissions models.

1.3 Towards Green Growth in Viet Nam

Embarking on a sweeping series of market-oriented reforms (known collectively as the DoiMoi policy) in 1986, the Socialist Republic of VietNam has since witnessed remarkable progress.

Annual growth rates have only been second toChina in the Asia-Pacic region, industrial devel-opment driven by export-led growth and diver-sication achieved in its economic base.

Absolute poverty fell drastically from 29 per centin 2000 to 14 per cent in 2009 while during this

2 UNIDO (2012). Towards Green Growth Through GreenIndustry Development


14/44


same period Viet Nams population increased by10.3 million. Joining the World Trade Organizationin 2007, the country was also reclassied by the

World Bank, moving into the lower-middleincome bracket in 2010.

Key industries in Vietnam, at present, includefood processing, garments and apparel,machinery, mining, coal, steel, cement, chemicalfertilizers, glass, tires, oil and paper. However,while industry accounts for 40.7 per cent ofGDP, it only contributes to 22.4 per cent ofemployment. Agriculture, at 21.5 per cent ofGDP still accounts for some 48 per cent of

jobs. Viet Nam has a large population ranking

14th globally and also one of the highestpopulation densities in the world. The gapsbetween the rich and the poor, and betweenurban and rural areas persist. In remote andmountainous areas more pronounced inequali-ties along with pockets of absolute povertyremain, with an estimated 20.7 per cent of thepopulation still living below the national povertyline (World Bank, 2010).

Handicrafts Industry in Viet Nam

The Vietnamese have traditionally produced a largevariety of craft products which form a key part ofcultural traditions and have also been widely usedas household goods. Handicrafts production canplay an important role in poverty alleviation andpro-poor growth, in particular, in rural and remoteregions with relative abundance of natural materials

for crafts production.

Many clusters of handicraft villages are located

in proximity to the Red River Delta in Northern Viet Nam and Mekong Delta in the South-West.However, Central Viet Nam is also endowed with

an abundant supply of natural materials. According to a survey by Japan InternationalCooperation Agency and Ministry of Agricultureand Rural Development (MARD) (2005), there are2,017 villages that have engaged in handicraftproduction for more than 100 years. The handi-craft industry is labour intensive, employing anestimated 1.4 million people, of which, morethan 60 per cent of workers are women,increasing to 80 per cent in embroidery andfabric weaving. Crafts production can comple-ment seasonal agricultural work to provide jobsthat elevate living standards while also helpingto preserve ancient traditions and skills. Manyof the villages have leveraged their advantagesin this area and become tourist destinations,bringing other additional benets. Protection ofcultural heritage aside, promoting the handi-crafts industry in Viet Nam is part of the govern-ments plan to foster economic developmentacross all regions of the country, reducingunemployment especially in the rural areas andboosting exports.

BOX 1: Viet Nam Country Prole

Capital City: Ha Noi

Population: 90.5 million (14 th mostpopulous country in theworld)

Area: 321,210 km 2

GDP per cap: US $1,2 24/ low er- midd leincome country (WorldBank, 2010)

HDI: 0.593/ranked 125 of 187(UNDP, 2011)

BOX 2: About Handicrafts

Handicrafts are a cultural expression of thetraditions, heritage and aesthetic values of anation and represent an important engine foragrarian transformation and regional develop-ment. Such development has been rapid withthe availability of resources: skilled labour,quality raw materials, designs and markets.The investment costs are also low, relative toother industrial sectors. Labour-intensive andoften highly dispersed, handicrafts provide

additional incomes in times of low labourdemand in agriculture, exports of which canalso be an important source of foreign earnings.

The International Labour Organization (ILO)describes the common characteristics ofhandicrafts specically and of the informalsector, in general, as economic activities wherethere is a reliance on locally available resourcesand skills, family ownership, small-scale opera-tions, simple and traditional technology, inter-generational skills acquired outside the formal

schooling system, informal organization ofproduction and competitive markets.


15/44


Vietnamese-made handicrafts include woodenfurniture, porcelain, lacquerware, silk, embroi-dery, candles, jewellery, articial owers and

glass products. The economic value generatedis relatively small compared to other such indus-tries as textiles or mining, etc. Yet despite theirsmall scale of operations, the value of totalproduction is not insignicant. Export turnoverof handicrafts was estimated at US$ 1.6 billionin 2012, with the USA, Japan and the EUcomprising the top overseas markets.

Apart from the apparent bottlenecks in socio-economic development, progress towards envi-ronmental sustainability also faces critical

hurdles. The National State of the EnvironmentReport 2010 published by MONRE in 2011 3 high-lighted sources of stress on the environmentincluding: the number of industrial zones whichincreased from 131 in 2005 to 249 in 2009;municipal solid waste which increased by150-200 per cent between 2003-2009 withcollection rates reaching just 80 per cent in innercities and lagging still at 70 per cent in industrialzones and 40-55 per cent in rural areas. Notseparated at source, most solid waste is disposedof in the same landlls. Parts of Viet Nam areexperiencing soil degradation (desertication,seawater intrusion and pollution by agriculturaland industrial efuents). Land use changes alsoresult in 74,000 hectares of losses in arable landeach year. Overall, the World Bank estimates thatthe losses of up to 5.5 per cent of GDP a yearcould be incurred unless environmental pollutionis appropriately addressed. Those most pressingissues identied in the report include: increasingenvironmental pollution, loss of biodiversity andenvironmental mismanagement.

Viet Nams Green Growth Strategy

During the United Nation Conference onSustainable Development in June 2012, govern-ments agreed on the need to transition towardsa green economy. Thereafter, on 25 September2012, the Prime Minister of Viet Nam approvedthe Vietnam Green Growth Strategy, the Prime-Ministerial Decision noting that green growthhas already become "a decisive tendency insustainable economic development."

The Vietnam Green Growth Strategy aligns wellwith UNIDOs Green Industry initiative as itfocuses on three priorities: GHG mitigation,

green production, and green lifestyle. Amongthe solutions identied, common themes can befound including the construction of necessaryinfrastructure, technological innovation and thecreation of an enabling environment through theelaboration of appropriate policy mechanisms,standards, technical regulations and rational useof natural resources including fossil fuels.Moreover, citing the Strategy on CleanerProduction in Industry Towards 2020 (Decisionno.1419/QD-TTg) endorsed by the Prime Ministerin 2009, the mainstreaming of cleaner produc-

tion is explicitly mentioned as a solution.

Industrial clusters, by virtue of their size, possessa signicant and recognized threat to the envi-ronment. On the other hand, household levelproduction is not immediately seen as an envi-ronmental threat, yet should not be underesti-mated. The environmental sustainability ofhousehold-level production should be given itsdue consideration in light of the sheer numberof actors and their general lack of knowledgeon environmental techniques and practices

relative to more formalized enterprises. Moreover,their limited resources, capacities and infra-structure, the vulnerability of local communitiesin which they operate and the natural environ-ments from which they source raw materialsalso warrant concern.

1.4 Greening Handicraft Value Chains in Viet Nam

Handicrafts are an important sector for povertyalleviation and economic development. Yet itsaccelerated development also presents itschallenges in terms of environmental andcommunity impacts. Jointly with four UN sisteragencies, UNIDO developed the JointProgramme entitled Green Production andTrade to Increase Income and EmploymentOpportunities for the Rural Poor (www.green-trade.org.vn). It was implemented during 2010-2013 with funding from the Development andthe Private Sector Thematic Window of theMillennium Development Goals AchievementFund (MDG-F) established by the Government

of Spain. In the programme, UNIDO tookresponsibility for the greening of handicraftsproduction, addressing key determinants of

3

According to Article No. 101 of the Environment Law (1993,amended in 2005), the State of the Environment Report isto published each ve years in line with the governmentsnational socio-economic development plans


16/44


17/44


living in rural areas with less than VND 200,000per month are considered to be poor house-holds). Of the four provinces, Phu Tho had the

lowest GDP per capita.

With a focus on poverty alleviation, theprogramme targeted ve important handicraftvalue chains relevant to the 25 target communes:(i) bamboo and rattan, (ii) sericulture and silk,(iii) seagrass, (iv) lacquerware, and (v) handmadepaper. Twelve communes were involved in thebamboo and rattan value chain, eight in sericul-ture, two in seagrass, another two in lacquer-ware and one in handmade paper. In each ofthe targeted communes, the collection and

processing of natural raw materials from forestareas into handicrafts constituted the mostimportant source of additional income for ruralhouseholds, without which they would not beable to lead a life above the poverty line.

To address the complex and interlinked chal-lenges faced in the ve sectors, a value chainmethodology was adopted. The work of UNIDO(2009) and partner agencies conrms that valuechain thinking and development is an effectivestrategy for sector and market development. It

considers the relations (including procurementand sales, etc.) between each successive actorin the value chain, from raw material collection,to pre-processing, production, distribution andtrade, all the way to the nal consumer. Whiletraditional value chain analysis has focusedexclusively on value creation (and henceincomes and jobs) at each stage, it is nowunderstood that a broader array of aspectsneeds to be considered, including environment,occupational health and safety and impacts oncommunity development (UNIDO, 2011).

In view of this, UNIDO applied RECP principlesand methodologies (as summarized in Figure 1)and to ensure a systematic and holisticapproach these were extended beyond thescope of processing and production throughoutthe value chain. Capacity building and tech-nology transfer enabled enterprises to funda-mentally change their operations. Additionalsupport in business management and brandingwere provided. However, over and above this,it was seen that the challenges the sector faced

went beyond that of just marketing and theDesign-for-Sustainability approach was adoptedto redesign products that were sustainable.

In collaboration with ILO, UNIDO commissionedthe Handicrafts Research and Promotion Centre(HRPC) to conduct surveys at the project incep-

tion and upon completion in regards to income, jobs, techniques, raw materials and environ-ment and labour practices and work conditions.The needs for cleaner production and Design-for-Sustainability were then assessed by the

Viet Nam Cleaner Production Centre (VNCPC)both at the level of grassroots householdproducers as well as SMEs. Next, VNCPCtrained 65 trainers in household cleaner produc-tion techniques, who went on to deliver intro-ductory hands-on training to 1,430 grassrootsproducers. Moreover, HRPC provided groupbased skills training to 261 household producers.In parallel, UNIDO focused on the specic tech-nology needs for lacquer processing, silkdyeing and bamboo treatment, and throughinternational cooperation new environmentallysound techniques were proposed and trialed.Moreover, UNIDO assisted with the provision ofappropriate tools and equipment in communesand enterprises. In connection with the 2011and 2012 Lifestyle Viet Nam Exhibitions organ-ized by VIETCRAFT in collaboration with

VIETRADE and at various trade fairs in China,UNIDO also supported 20 enterprises toredesign products using sustainability princi-ples, and following thereon proposals weredeveloped for the introduction of a greenbranding system for handicrafts. 4 As of January2013, US$ 100,000 of sales revenues havebeen generated directly from products devel-oped with UNIDO assistance under the JointProgramme. Technical and promotional docu-ments were produced for the ve sectors anddisseminated at a national workshop.

This summary report complements the detailed

technical reports by providing an overview of theprogress made in the greening of each of theve value chains.

4 UNIDO (2013). Achieving, Assessing and CommunicatingSustainability A Manual for the Vietnamese HandicraftSector.


18/44


2. BAMBOO AND RATTAN

2.1 Introduction

Bamboo and rattan are commonly used togetherin the crafting of basketry and similar householditems. Viet Nam has around 1.4 million hectaresof bamboo forests (occupying 10.5 per cent oftotal forest area) and another 81,500 hectares ofplantations. Total rattan resources includingnatural forests and cultivated rattan are esti-mated at 380,000 hectares. Locally grownresources are insufcient and some rattan andbamboo materials are imported to meet the gapin local supply. An estimated 723 or one thirdof the countrys ofcial 2,017 villages are

engaged in bamboo and rattan craft in VietNam. Government statistics estimate the valueof exports at around US$ 300 million in 2012.

Several varieties of bamboo and rattan are usedfor handicrafts in Viet Nam. UNIDO targetedlung bamboo ( Bamboosa sp. or Bamboosa

longisima sp. Nov ) and garden rattan. 5

Under the Joint Programme, UNIDO supportedthe bamboo and rattan sectors in Hoa Binh,Nghe An, Phu Tho and Thanh Hoa Provinces

with:

Cleaner production assessments in23 SMEs and preparation of cleanerproduction guidelines;

Training of trainers, including prepa-ration of technical guidelines andinformation pamphlets forhouseholds;

Introductory training of cleanerproduction methods to 690 grass-roots producers;

Product design support to 17 SMEs; Skills training in 186 people from in

seven communes in Hoa Binh, Nghe An, Phu Tho and Thanh HoaProvinces;

Provision of improved tools andequipment to three communes andsix enterprises/cooperatives; and,

Development of a natural linseed-based preservation process.

2.2 Greening the Value Chain

Raw Material Supply

The lung bamboo variety grows naturally inforests. Collection of bamboo by farmers is notregulated, and farmers lack information andtraining on sustainable collection of raw mate-rials and bamboo resources are now becomingscarcer. The bamboo culms are cleaned in theforest and the waste is left behind. The stemsare then transported to the enterprises forfurther processing.

An international review of bamboo processingidentied several improvements in bambooharvesting that reduce sugar and water contentand hence improve bamboo raw materials bymaking them less susceptible to mould andinsect attacks. Specically:

Harvest at the beginning of the dryseason and at dawn, cutting above atleast the rst node taking care toavoid collateral damage, picking onlythose culms six to eight metres in

height and leaving behind at leastthree culms per clump. Select only mature bamboo bamboo

BOX 4: About Bamboo and Rattan

Bamboo is a fast-growing grass which produces

new shoots each season and can be harvestedevery few years. Its extensive rhizome rootsystem protects against soil erosion and land-slides, in particular on riverbanks. The composi-tion of bamboo high in lignin and cellulosemakes bamboo forests good carbon sinks.Bamboo is extremely versatile, apart from smallhousehold furnishings, it can also be made into,for example, plywood, paper, composite beams,whilst its shoots are also edible. Globally thereare some 1,250 species belonging to 75 genera.

Supercially resembling bamboo, rattan is thegeneric name for approximately 600 varieties ofclimbing palms indigenous to tropical regions in

Africa, Asia and Australasia. Vine-like, it doesnot grow free standing. Although rattan andbamboo are different species, both grow well ina variety of eco-systems. They are easy toharvest, transport and process together and ina similar way to make crafts products and alsopresent similar concerns in terms of preserva-tion and processing, etc.

5

The other two main types of bamboo which are used inhandicrafts production in Viet Nam are Luong(Dendrocalamus membranaceus Munro ) and Nua(Neohouzeau a Dulloa ).


19/44


20/44


that are 20 times higher, along with greateraccuracy, which results in higher yields andmaterials more suitable for weaving (Box 5.).

Natural drying depends entirely on the weather,in case of insufcient space or during rainyperiods, if the material is not adequately driedand stored, it grows mould easily. Unnecessarymaterial loss occurs due to incomplete dryingwhich is common in particular in the rainy season.Of greatest concern, however, is pre-treatment,

which is needed to remove pentose and waterand thereby protect against mould and infesta-tion. The simplest form of preservation involves

BOX 5: Bamboo waste recovery in Dien VanCooperative, Nghe An Province

The Dien Van Cooperative employs 30 peopleon-site and outsources the weaving of itsproducts to nine households in the community.Under the Joint Programme, UNIDO providedthem with two sets of splitting equipment (belowleft) and square and round tooth pick/joss stickmakers (below right) to process waste bamboomaterials. Splitting the bamboo and rattan in thecompany means that the households can focuson just weaving and they are more productiveand able to make more products. They takehome about 30 per cent more in commissions

as a result. From bamboo waste, they are ableto make some 120 kilograms of toothpicks andincense sticks a day and they also buy andreprocess waste bamboo for extra income.

The Joint Programme also helped connect themwith collectors (via trainings) who they were ableto buy directly from at VND 1,800 per kilograminstead of VND 2,000 per kilogram, therebycutting out the middlemen. They also used tosell to exporters through an intermediary, butduring the Lifestyle Viet Nam Exhibition in 2012,they made direct contact with an exportingcompany with whom they now trade directly.

submerging bamboo in waterways for an extendedperiod of time (weeks) to leach out the sap, yetthis process results in degradation and pollutionof waterways. Chemical treatments are thereforemost common, in particular sulphur fumigationand oil curing (i.e. boiling in diesel oil), whichleaves workers exposed to chemicals, pollute theenvironment if not handled properly, and leavesundesired chemical residues on the otherwisenatural materials.

The greening of materials preparation starts withproper sourcing of raw materials, which are rela-tively lower in pentose that is, mature bambooharvested in right manner (as per the previous

section on raw material collection). An interna-tional review pointed in direction of a naturallinseed-based process. This was further devel-oped and trialed with technical support of theHanoi University of Science and Technology(HUST). The process proved itself, and turned outto be benecial in terms of reduced shrinkageand linseed oil treatment offered protectionagainst moisture re-entry (see Box 6.). Furtherwork is ongoing to demonstrate the process toindustry and get it accepted by buyers, topromote widespread uptake.

Weaving and Finishing of Products

The prepared bamboo slivers are then woveninto nal products, most commonly using splitrattan as frames, as per customer specica-tions. Final products are shaped by hand (some-times using steam) and transferred back to thecompanies where they might be nished withpaint (by means of spray guns) or by carbonizingor dyeing. Thereafter products are inspectedand packed for shipment to customers.

Craftsmanship and level of skill are key deter-minants in weaving. The more highly skilled,

FIGURE 5: Material drying outside the factory


21/44


the more complex (and higher priced) theproducts that can be produced and the lowerthe rates of rework and/or rejection. This was

clearly demonstrated through the provision ofadvanced training (Box 7.) for householdproducers. In addition to improving weavingskills, household producers also learnt aboutbest practice in pre-processing, materialspreservation, good chemicals managementand recovery of raw materials. Moreover, theweaving of new products was demonstrated,such as bags and purses, bowls, boxes,curtains, jewellery, lampshades, mats and pethouses, etc. some of which made use ofbamboo and rattan waste and cores.Participants learnt also for the rst time howto make products to specication from tech-nical drawings which gave them a new inspira-tion and perspective on product design. Theyalso shown how to calculate their costs (rawmaterials, electricity, water and labour, etc.)and thereby better price their products.

Waste Utilization

Typically the inner core as much as 70 percent of the bamboo material becomes waste.

Introduction of mechanized splitting producesmore uniform pieces of bamboo waste, that canbe recovered and used to make toothpicks,incense sticks and bamboo plywood.

Product Design

Product design is a key determinant for marketdevelopment and acceptance. Seventeen SMEstherefore received design support from interna-tional and national experts to redevelop someproduct lines with sustainability in mind. Several

collections were prepared and demonstrated atthe Lifestyle Exhibitions in 2011 and 2012.

BOX 6: Environmentally Sustainable Bambooand Rattan Preservation

The Joint Programme aimed to nd a suitableenvironmentally friendly method for treatingbamboo, in general, and for lung variety, inparticular. HUST laboratories looked for asolution that would be convenient, relied onlocally available materials, was low cost, wouldbe effective in the long-run, have low environ-mental impact and would yield a smooth andnatural nish. Companies mostly handled splitsand so boiling was therefore faster than soakingalso giving better results.

With these criteria in mind, the use of two naturalpreservatives was explored:

Linseed oil , which derived from axseed,is readily available in Viet Nam. High in fattyacids (58 per cent) and inedible for beetlesand insects, it is a plasticizer and can makebamboo more exible, prevent shrinkage,reduce weight loss by sap displacement.Hydrophobic, it can protect bamboo againstre-entry of moisture and fungi duringstorage. Full oleo-thermal treatment wouldnot be cost effective, but diluted with water,benets were still apparent.

Neem ( Azadirachta indica A. Juss ) extractis rich in essential oils (found in stems,branches, but most concentrated in seeds),possesses natural anti-bacterial and anti-fungal properties, and is valued in traditionalmedicine. One tree may give more than 50kilograms of fruit, leaves and owers, whichare also edible. In rural areas, people burndried neem leaves as a natural mosquitorepellent or place leaves in rice storagehouses to protect against pests.

Tests were run on each both separately andtogether and then compared to the results oftreating in boiled water alone. It was found thatcuring in a linseed oil-neem extract solution gavethe best results and could be used for both greenand dried bamboo. Colour was preserved, and inaddition, shrinkage and weight loss were reducedby means of sap displacement which also helpedprotect the bamboo against the re-entry ofmoisture. Moreover, antifungal and antibacterialeffects were still apparent more than six monthsafter curing. 6

6 Ta Thi, P. H. (2013). Cleaner Production Options forImproved Bamboo Treatment

FIGURE 6: The Interlocking and Lace Collections, photosby Rebecca Reubens


22/44


23/44


3. SEAGRASS

3.1 Introduction

Due to favourable climate conditions, seagrasshas been cultivated for many years in coastalareas in Viet Nam. There is a long local traditionof sedge grass weaving, for example, the NgaSon District which is well-known throughout VietNam for its hand-woven mats. In some placesit represents the sole source of incomes andlocal livelihoods. Recently the industry issomewhat in decline and quality can vary fromprovince to province, even for the same species.Production was at its highest during the 1980s-1990s, when split seagrass was exported to

China, Japan and Korea at seven to eight-foldthe value of rice cultivated in the same area.

Viet Nam has an estimated 12,523 hectares ofseagrass meadows as of 2008. Yields average8.7 tons per hectare. Processing takes place inclose proximity to areas where there cultivationincluding in Thanh Hoa Province 8 which is thelargest producer in Viet Nam with around 5,000hectares of seagrass meadows. Seagrass can bewoven into a variety of different products,including: mats, shoes, baskets and hammocks.These are sold both in domestic and internationalmarkets. Apart from handicrafts, seagrass is alsoused to make fertilizer and as fodder for animals.Low quality raw materials are sometimes used asroong in the construction of traditional houses,paper powder making and also burnt as fuel.

Close to the sea in the North of Thanh HoaProvince, Nga Son District had approximately1,570 hectares of seagrass meadows as of 2009,equivalent to 30 per cent of the total cultivatedarea in the Province. An estimated 30,400 tonsof seagrass is processed in the district, 19,100tons of which is grown locally and the remainingsourced from elsewhere. The seagrass growersin the two targeted communes Nga Tan and NgaThai are specialized in and dependent solely onseagrass cultivation and sedge weaving.

Under the Joint Programme, UNIDO supportedthe seagrass sector in Nga Son District in ThanhHoa province between 2010-2013 with:

Cleaner production assessments inve SMEs and preparation of sector

specic cleaner productionguidelines;


Introductory training on cleanerproduction methods to 50 grassrootsproducers;

Product design support to three

SMEs; Skills training provided to 35 grass-roots producers Nga Tan Commune;and,

Provision of improved tools andequipment to the commune and oneother enterprise, respectively.


Raw Material Supply

At present, overexploitation of seagrass resources

and land degradation are already evident inplaces. Seawater intrusion has also adverselyaffected plantations and increased alluvial

8 Other provinces with large amounts of seagrass resourcesinclude: Hai Phong, Thai Binh, Quang Ninh, Nam Ha andNinh Binh.

BOX 8: About Seagrass

Seagrass belongs to the Cyperaceae familywhich are known collectively as sedges. Thereare 5,500 species belonging to 109 genera.Often mistaken for algae (seaweed), they areactually a type of grass (producing owers, fruitsand seeds) which grow in shallow coastal marineareas, salt marshes and estuaries. They alsoproduce food by photosynthesis and like terres-trial plants they have roots and their extensiverhizome root systems can help prevent againstsoil erosion.


24/44


25/44


dipping results in excessive use of glue, andshould ideally be replaced by spraying in aclosed and controlled environment. Otherwise,

options for recovery and reuse of glue wasteshould be considered.

Weaving and Finishing

Some 35 per cent of all households in thebeneciary communes are engaged in seagrassweaving. Mats are still most commonly wovenby hand, using a traditional device known as aGo (Figure 7.). Two people can typically weavefour mats a day. Most weavers are women from

poor households, few are very skilled, andcould in principle weave more complex productsif demand existed. Household producers do nothave a good knowledge of chemicals or dyeing.Most will dye without dispersants and stabi-lizers, etc., which takes a lot longer, results ina loss of dyeing chemicals and does not

produce good colours. Production is also veryad-hoc, plans frequently change and materialsthen need to be re-dyed. Wastewater from the

process is discharged directly into the environ-ment without treatment.

Prices for mats range anywhere from VND55,000 per piece to VND 250,000 per piece,depending on thickness, appearance and qualityin general. Those made in Nga Son normallyfetch between VND 120,000 -180,000 per piece.

As the value chain is short and supply of rawmaterials limited, the price differences reect thequality of the raw materials, the amount usedand the craftsmanship. Making sure that cultiva-

tion and production are green through theabove-mentioned measures can reduce costsand ensure that the quality of the materials andnal products are the highest possible.

Due to lack of skill and innovation in the sector,and the unpredictable quality and supply of rawmaterials, only 30 per cent of Vietnameseseagrass is currently used for domestic craft andhousehold goods production. The remaining 70per cent is exported to neighbouring Asian coun-tries, in particular, China for further processing.Training provided under the Joint Programmeimparted practical skills, for example, weavingand knitting techniques originating from differentregions, the use of a mixture of materials and acombination of different techniques in designingnew products. Grassroots producers were shownhow to make different shaped door stoppers andhigh quality mats for children from low qualityseagrass which would otherwise end up as wasteor be burned as fuel. Feedback was positive andtrainees saw immediate benets, including new

FIGURE 8. A woman using seagrass drying equipment (top),and a drying chamber, both provided by UNIDO

FIGURE 9: Mat made from bundles of seagrass waste (left)and stenciled yoga mat


26/44


designs and guidance in developing new productsand those they made on site were also sold to alocal company.

Waste Materials

Traditional sedge mat weaving makes use of themiddle and more uniform, long sections of theseagrass reed. The top and bottom ends typicallygo to waste. There is, however, a great scope torecover and make good use of the ends andshorter lengths which together comprise 20-30per cent of raw materials. Simple twisting equip-ment provided by UNIDO allowed producers to

use lower quality materials previously disposedof as waste into seagrass cord (see Figure 7.).Coarse and rope-like in appearance, althoughmuch ner, seagrass cord can be used as stringto pack goods or to make other new products,such as rugs and baskets, etc.

In facilitating Design-for-Sustainability, effortsfocused on developing new products from thisseagrass waste including this mat (Figure 9.)under the Bundles Collection and in additionhigher value products including yoga mats which

made use of the theme of health and wellbeingsector and traditional Vietnamese stencilingtechniques (also Figure 9.). 9

3.3 Outlook

A limited and somewhat unpredictable supply of

raw materials and evidence of soil degradation,are key concerns to the development of seagrasssector. At the same time, this has had a knock-oneffect on incomes and grassroots producerswith limited cash have therefore tended to focuson immediate returns. The solution, as demon-strated in the simple comparison between thedifferent quality seagrass mats (above), is tomake green the value chain. This starts withsustainable agricultural practices and goodpreservation and storage of materials to keepthem dry and mould free. Use of twisting equip-ment can recover off-specication seagrasslengths as cord, which can be used for a varietyof new products.

This integrated greening solution is one whichreects the latest market trends, in particular,demand for higher quality products and thosemade in an environmentally sustainable manner.To its advantage, Nga Son District is alreadywell-known in Viet Nam for its hand-wovensedge mats. Building on this reputation, goodquality and well-branded products can provideadditional revenues without further depletingseagrass resources.

9 UNIDO (2012). Final Repor t Design for Sustainabil ity:Handicrafts Sector.


27/44


28/44


29/44


Weaving

In communes, despite low levels of produc-

tivity, manual weaving is the norm and issustained by the local market and also thedemand for handmade products by tourists.However, the quality of silk yarn is poor andthe supply can be intermittent. Although enter-prises engaged in weaving have automatedequipment, it is often obsolete (Figure 10). Theyfrequently encounter problems in operationsand energy consumption is high. Overall,designs tend to be basic and lack diversity.

DyeingThe small-scale private sector has concentratedon pre-processing and due to a lack of know-how

and equipment, many companies do not dyetheir silk yarn and typically sell it on to otheroverseas operators with more advanced tech-

nology for further processing. Those companiesthat engage in dyeing, typically do so in openvats without adequate process control. Theresulting colour fastness is very low, and thisindeed is one of the limiting factors for furtherdevelopment of the silk sector in Viet Nam.

Communes, on the other hand, dye both fabricand yarn. Good potential exists here forimproving the dyeing process and achieving abetter product quality whilst also reducing envi-ronmental impact. Better chemicals manage-ment can greatly help improve dyeing processes.Using a mild alkali, soda ash (sodium carbonate)also in dyeing silk, colours can be xed faster,

BOX 10: Vocational Training in Natural DyeingTechniques

Households in the four cooperatives, respec-tively, Pa Co Cooperative (Hoa Binh Province),Hoa Tien Cooperative (Nghe An Province), VanPhuc Cooperative (Ha Noi) and Nha Xa Village(Na Nam Province) are all engaged in dyeing. 10 Hoa Tien, Van Phuc and Nha Xa all use syntheticdyes and produce very small batches of silkitems, although Hoa Tien has experience inusing some natural dyes. Silk yarn is acquiredby all three cooperatives from sources in andoutside Viet Nam. The Pa Co Cooperative, onthe other hand, uses Indigo powder to dyecotton which is a very complex process andfabric needs to be dyed several times and it cantake anywhere between 10-20 days dependingon the weather.

Overall, their dyeing techniques could bedescribed as rudimentary. They processedonly small batches of up to half a kilogram ofyarn which was tedious and inefcient. Theresulting colours were neither consistent norfast and their management of chemicals waspoor. Households from all four cooperativeswere trained to use natural dyestuffs to replacesynthetic dyes for different fabric mediumsand how to control processes to dye effec-tively using both types of dyes. Through thetraining, they learnt to reduce dyeing timesand chemical consumption and also ensure

colour fastness. Tests conducted showed thatthe colours produced were indeed stable andwould not fade.

10

Other households in the cooperatives are engaged in otherparts of the sericulture and silk value chain including, mulberrytree cultivation, silkworm rearing, reeling and throwing, etc.

Under the Joint Programme, households in thePa Co Cooperative were provided by UNIDOwith simple manually operated dyeing equip-ment which they were shown by an instructorhow to use. The tanks can be heated with woodor coal, are easy to handle, allow for fasterdyeing times, are more energy efcient and dyes

can be easily recovered.The Hoa Tien Cooperative were also providedwith dyeing equipment, suitable for silk andcotton yarn and with a capacity of three to vekilograms of yarn per batch. The process ismuch faster taking just 30 minutes to dye onebatch. Training was provided so that they coulduse equipment efciently and safely. With thenew equipment they can dye 10-15 kilograms ofyarn each week, enough for 40-60 families toweave up to 200 scarves.


30/44


better and at lower temperatures. Hydrogenperoxide is much gentler and therefore preferredto liquid bleach (i.e. sodium hypochlorite) which

can actually damage the broin protein threads.From an environmental perspective, it is alsobetter, degrading naturally as it only produceswater and oxygen as by products, however,silicate-based compounds are needed to stabi-lize and control quality). Optical brighteners (alsoknown as uorescent whitening agents) couldalso be used to reduce the need for harshersubstances. Wastewater from dyeing andbleaching processes is high in BOD and COD,requiring treatment, which is still not practicedin the handicrafts enterprises.

UNIDO supported two pilots on improveddyeing. The rst trial was aimed at promoting

natural dyeing process in four communes (Box10). Training and on-site guidance was providedon extracting dyestuffs from locally available

fruits, barks and leaves, etc. In addition, small-scale dyeing equipment was piloted and all ofthe communes trained to dye under controlledconditions. Moreover, working with a nationalexpert, the communes were able to produce arange of light colours with good colour fastness.The second trial supported Lam Giang Mulberryand Silkworm Company in chemical dyeing (Box11). An integrated dyeing machine was providedto undertake dyeing under controlled conditions,a requirement to achieve replicable results andhigh colour fastness. Additional training andhands-on support was provided to developstandard operating procedures, and the companywas able to greatly improve the quality of its

BOX 11: Lam Giang Mulberry and SilkwormCompany, Nghe An Province

Mr. Ngyuen Kim Lung, a former army captain,retired several years ago and returned to hishometown wanting to make a contribution to itsdevelopment. A nearby river basin and fertilesoils ensure that there are good mulberry trees

resources in close proximity and sericulture iswell-established in the area.

His company, buying cocoons from local house-holds, engages in semi-automated reeling andtwisting. Directly employing 20 workers, manymore jobs created outside the factory as a resultthrough cultivation of mulberry trees and rearingof silkworms. In terms of efciency, it takes 7-10kilograms of cocoons to make one kilogram ofyarn. He sells raw silk yarn for VND 950,000 perkilogram, almost all of which more than 95 per

cent is exported to Laos for dyeing with justve per cent sold locally.

He wanted to move into dyeing and equipmentprovided by UNIDO enabled him to do so.Following training provided by instructors, he hassince been working with staff to optimizeprocesses. Dyeing by machine, it takes 1.5 hoursto dye a batch of 4-5 kilograms. Once productionis resumed, the company will have a capacity of700 kilograms a month. He hopes to expandproduction in future and be able to buy moreequipment. The gate at the Laotian border just 40kilometres away will open soon and this shouldmake access to Laos more easier in future.

Lam Giang is exploring new markets, new tech-niques and the use of natural dyes and otheropportunities for by products made frommulberry leaves. They also hope in future tocooperate with the Dien Kim Commune nearbyand also assisted under the Joint Programme.


31/44


dyed fabrics including their colour fastness andbrightness, etc.

Product Development

Understanding consumer tastes and designingproducts which reect market trends ensuresmarketability, yet remotely located cooperativeswere found to lack access to market informationand ideas for new products. This was particu-larly the case for Hoa Tien Cooperative in Nghe

An Province, where women produced, in smallscale, brocade and batik products, making useof locally grown/available guava leaves, jackfruitand woods to dye silk naturally. However, littleattention was given to pattern choice, etc.,

resulting in low market interest and sales. Inorder to expand opportunities for this coopera-tive, a national expert worked with household

producers, with the dual aim of improving bothtechniques (natural dyeing, batik and brocademaking) and products (Box 12).

4.3 Outlook

Despite its long tradition of sericulture and beinga one of the largest producers of silk yarn in theworld, Viet Nam still imports nished silk (dyedand processed) for domestic consumption. Thesector has suffered from underinvestment, lackof technology, know-how and imperfect informa-tion which have meant the loss of value-addition,with many enterprises simply selling low qualityand raw silk yarn overseas for further processing.The crafts sector, on the other hand, althoughpresent in all stages of the value chain, operateswith low levels of knowledge and techniques,resulting in both low productivity, as well as thelow quality of nished silk.

This can be countered through a coordinatedapproach based on greening each of the stepsin the value chain. Firstly, mulberry tree farming

needs to improve, in terms of productivity andsustainability. Next, better management insilkworm rearing will improve silk quality,including through the reliable supply of goodquality silkworms and a customized manage-ment regime reecting the different stages oftheir life-cycle. In yarn production there aremany options to minimize reeling losses andensure proper degumming. For fabric dyeing,high colour fastness and good fabric qualitiescan be achieved both with natural dyes as wellas synthetic dyes. Technology is part of the

solution, but the equipment is only as good asthose who operate it are skilled. Reducing theamounts of water consumed, improving energyefciency and better chemicals managementcan all help bring down costs and improve thecompetitiveness of the handicrafts producers. Inaddition, better product development, as demon-strated, can also be achieved through hands-onvocational training.

BOX 12: Advanced Vocational Training inDyeing and Weaving

Through vocational training, grassroots producersin Hoa Tien Cooperative in Nghe An Provincewere demonstrated advanced skills in brocadeand batik making. They learnt advanced dyeingtechniques using natural pigments and chemicaldyes, embroidery and weaving (the importanceof separating the two steps) and how to get the

maximum usage out of fabric (by making smalleritems from scrap pieces). Demonstrations weregiven to participants all women of moresustainable techniques such as those used byethnic minority groups in Thailand. They wereintroduced for the rst time, to more complexpatterns and techniques such as Ikat dyeing(also known as resist-dyeing which makes useof wax, stencils and stitching, etc., to selectivelyprevent parts of the fabric from being exposedto the dyes) to further add value to their products.


32/44


5. Lacquerware

5.1 Introduction

First introduced by the Chinese, the art of lacquer-ware is a centuries-old tradition in Viet Nam.Lacquer painting is long and complex, requiringgreat skill and patience. It involves the applicationof many layers of lacquer onto a prepared woodenboard, allowing each to dry in turn, detail can becreated by painting or inlaying mother-of-pearl,gold and silver leaf and eggshell, etc. The surfaceof the lacquer is then carved to reveal the coloursdesired, which become deeper with age and moreluminous. Vietnamese lacquer has a high-watercontent, is allergenic (causing induced contactdermatitis), cures only in high humidity and moreslowly compared to the Chinese and Japanesevarieties (Box 13), the latter of which dries evenin less temperate conditions.

Tam Nong District in Phu Tho Province hasaround 494 hectares of plantations and totalproduction is about 25.5 tons of lacquer sap peryear. Current levels of yields and an average priceof VND 95,000 per kilogram of sap make lacquera key source of income and employment in thearea (although prices can vary from anywherebetween VND 85,000 160,000 per kilogram).

Under the Joint Programme, UNIDO supportedthe lacquerware sector in Phu Tho Provincebetween 2010-2013 with:

Cleaner production assessments insix SMEs producing lacquerwareand preparation of cleaner produc-tion guidelines;


Introductory training on cleanerproduction methods to 60 grass-roots producers;

Transfer and trial of new lacquerrening technology and measure-ment instruments through engage-ment of international experts fromChina and Japan to one enterpriseand one cooperative.

BOX 13: About Lacquer

Lacquer is an organic viscous uid, derived fromthe lacquer tree belonging to Anacardiaceaefamily of which there are approximately 600species belonging to 70 genera. Three mainvarieties indigenous to Asia are the Rhus vernic-

ifera which grows in China, Japan and Korea,Melanorrhoea usitata found in Myanmar, Laos,Cambodia and Thailand and the Rhus succe-danea which grows in Vietnam and also Taiwan.

A deciduous, high latex plant, Rhus succedaneais mainly cultivated in mountainous areas in VietNam. Its active ingredient is the crystalline

phenol, laccol.11

Often confused with shellacwhich is derived from the lac beetle and unlikeother natural resins (i.e. mastic and dammar)which cure through solvent evaporation, it setsrather by oxidation and polymerization. Theresulting plastic-like coating is hard, durable andresistant to water, acid and heat. Sap is tappedfrom the lacquer tree much the same way latexis from a rubber tree, but instead using a musselnailed into the bark.

Lacquer sap is used in different forms. Apartfrom mixing with turpentine, coloured powderand other inorganic minerals to form lacquer, asabove, combined with elemi it can be used as avarnish, with sawdust as a glue for wooden furni-ture including rattan and bamboo. In industry, itis used to paint the shell of ships and boats,metallic lines for electrical isolation, in the foodindustry, to produce containers for liquids (i.e. shsauce, liqueurs and beverages).

11 Unlike Chinese and Japanese varieties, which are bothurushiol-based lacquers.


33/44



Cultivation of Lacquer Trees

Propagation and selection of lacquer varieties iscritical to improving quality and productivity.Yields in Tam Nong district average 230320kilograms per hectare a year compared to550-600 kilograms per hectare a year reportedin China and Korea. This would appear at leastin part due to farming practices, including insuf-cient fertilization, irrigation and mono-cropping,yet comparison is difcult due to the differencesin agro-ecological conditions.

Sap quality and yields can be unpredictable.Improving collection practices can increaseproductivity. First of all, tapping should startwhen the tree is mature at three years old. Thetree can continue to produce high quality sapfor another ve to six years, after which it shouldbe uprooted and new saplings planted. Thequality of the sap is best during the dry seasonwhen laccol content is at its highest and collec-tion should not be undertaken in wet weather.Scoring needs to be done with care, as scoringtoo deeply into the bark can kill the tree but notdeeply enough will reduce productivity. The sapshould not be exposed to direct sunlight toavoid oxidization and contamination by otherimpurities (dust and soot, etc.) should beavoided. Inter-cropping should be considered tohelp improve soil condition and while alsoproviding additional income.

Different grades command different prices. Redlacquer trees are known to produce higherquality sap but in smaller quantities, whereaswhite lacquer trees produce poor quality sap(i.e. with a high water content) but in larger

quantities. Sap from both varieties of trees isoften collected and stored together, whereasseparately storage of different lacquer gradeswould ensure the quality of the sap and makefor more efcient processing.

Lacquer Processing

The raw lacquer sap needs to be processed (orrened) to produce a high quality lacquer paintthat can be used in production of lacquerware.Unfortunately, there is little local expertise inlacquer sap processing. Most of the lacquer sapis therefore exported (at least around 80 percent) and rened in China upon which small

volumes of rened lacquer are re-imported bylacquerware producers.

Some sap is locally processed by ageing. Thelacquer sap is stored in bamboo barrels for betweenthree to ve years, after which different layers form.The matured lacquer can then be extracted andgraded. Yet this is a long process still with lowerquality then lacquer rened in China.

Lacquer sap is priced by traders on the basisof its water content, for which a very crudemeasurement method was used (heating the sapto evaporate water and then weighing theremaining condensed sap). This puts local

producers and collector at a disadvantage.Hence, simple electronic scales were providedby UNIDO to the beneciaries. The lacquer sapis stored and traded in double-layered plainplastic bags which can be easily damaged intransit and make it difcult to trace their origin.

A technical seminar on lacquer chemistry andtechnology was organized with inputs fromleading lacquer experts from Meji University inJapan. As a starting point, sap quality had to bebetter understood and entry of water and impuri-ties into sap controlled. Vietnamese lacquer isdifferent in terms of its chemical constituents andphysical properties compared to Chinese andJapanese lacquer. Moreover, as in other areas ofcultivation, sap chemistry and properties uc-tuate through the different seasons. Collaborativeresearch was initiated between HUST and MejiUniversity in Japan, which pointed to the poten-tial application of the so called Kurome processfor lacquer rening (which is essentially based onthe ne dispersion and mixing of the lacquer sap).Moreover a study tour was organized for lacquerindustry experts to lacquer processing centres in

China, under the guidance of Chinese Academyof Forestry. Thereafter national experts workedwith Vietnamese equipment manufacturers toprepare a simple Kurome unit, which was thentrialed and successfully transferred to Phu ThoLacquerware Cooperative and two othercompanies.

Lacquerware Production

In lacquerware production, the wooden orbamboo substructure needs to be appropriatelyprepared before painting can begin. Materialsmust be properly treated rst so they are notsusceptible to infestation and proper drying of


34/44


panels will help avoid shrinkage, cracking andwarping. It is then covered in cotton cloth andcoated in lacquer paint. It can take three to ve

days to fully dry and harden depending on theenvironmental conditions in which it is dried andup to 10-15 coats are needed. Between eachcoating, the surface must be polished usingwhetsone and sandpaper which requires signi-cant amounts of water.

Wastewater is high in pollutants (with BOD andCOD levels are 2-8 times the levels permitted in

technical regulations) and needs to be treated.Wet polishing (Figure 11) should be used in placeof dry polishing which would avoid creating dust

harmful to workers health.

A few clusters of households in the suburbsof Hanoi are also known to process sap whichis used for lacquer paintings locally, butproduction is only small-scale. Given the longdrying times and inconsistent quality manycompanies import Chinese lacquer. However,many lacquerware producers have also

BOX 14: Improved Lacquer Sap Processing

Cooperation between HUST and Meiji Universityfocused on analysing lacquer properties and vari-ability therein over the duration of the collectionseason. Processing parameters were also studied,in particular, with a view to cutting down dryingtimes. It was found that the addition of Chinesesap (which cures in less than nine hours comparedto Vietnamese sap which takes more than 24hours) or alternatively acetone or lactase werealso effective in this regard. In addition, it wasfound that at the laboratory scale the Kuromeprocess greatly improved the properties of the

Vietnamese lacquer. The Kurome process nelydisperses and mixes the sap under a slightlyincreased temperature to ensure that its chemicalconstituents are evenly distributed throughoutand then dehydrated. Although the Kuromeprocess is widely applied in Japan and China, itsoperating practices had to be customized to

Vietnamese sap properties.

Analysis at the Meiji laboratories showed thatthe sap samples taken from lacquer trees in DiNau and Tho Van Communes in Tam NongDistrict, Phu Tho Province, in September 2011,achieved after Kurome process an increasedviscosity and three-fold reduction in waterconcentration. 12 Although the resulting differencein hardness in the lacquer samples was onlynegligible, drying times for both the Di Nau andTho Van samples were faster, decreasing by 30to 50 percent. The detected gloss valuesincreased by a factor of two to four times.

Kurome equipment was not previously available in Viet Nam. Based on Chinese and Japanese expe-rience, the former on current practice at the

company level (observed during study tour), thelatter garnered from laboratory models and smalllacquerware workshops, HUST developed a

customized version suitable for use at thecommune level. A prototype was then built byNam An Mechanical and Environment Companyin Viet Nam and trialed and improved at laborato-ries of HUST. Given its good results it has sincebeen transferred to the programme beneciaries.

The equipment now retails at VND 25 million(around USD 1,250) and it is suitable for batchesof three to ve kilograms.

Kurome equipment used in Chinese company (top) and theprototype built in Viet Nam

12 Bach, T. P. (2013). Results of the Study on Chemical, PhysicalCharacterization and Processing, Rening of VietnameseLacquer Sap.


35/44


reverted to alternatives, including for example,cashew oil which offers a more consistentquality, dries quickly compared to lacquer, ismore easily sourced and can be purchased inbulk. The products are then nished off witha coating of lacquer.

New Products

In the exchanges with Japanese and Chineselacquer experts, it was found that income forfarmers could be increased by developing addi-tional products from the lacquer tree. It is inprinciple possible to produce soaps and candles

and extract natural dyes, etc. Whilst it was notpossible to pursue these opportunities so far,national support institutions have been madeaware, including HRPC, and are considering thepossibilities to support selected communes withthe development of such new products.

5.3 Outlook

Farmers grow the lacquer trees and collect sapbased on experience, without a good under-standing of breeding, selection, propagation andfarming practices that could improve yields andsap quality. Moreover grassroots producers hadvery little concept of sustainability, the bags inwhich saplings are packaged in, for example,are not disposed of properly and many can be

seen discarded in the elds. Moreover as virtu-ally no processing is taking place locally, mostof the value addition is lost. The importing ofprocessed lacquer also leaves local crafts work-shops at the whim of traders and exchangerates while also stiing technical innovation asa result.

Yet despite these problems witnessed throughoutthe value chain, there is good potential for devel-opment of the lacquer sector. FAO supportedfarmers with improved farming practices, andonce coupled with better sap processing prac-tices, the household producers can see animprovement in their incomes. This could evenbe further enhanced with development of addi-tional products from lacquer trees in future.Further development and widespread applica-tion of the Kurome process, can help reclaimthe value addition from lacquer rening andcould assist in re-establishing genuine lacquer-ware production with Vietnamese lacquer.

The various interactions with China showed thatChinese enterprises collaborated closely withresearch institutes and universities in order toimprove the quality of their products, integratecleaner production techniques, overcome bottle-necks in production and achieve innovation indesign. Needless to say, the Vietnamese lacquersector could benet from such support. Thereis a large scope for further research including:reducing induced-contact dermatitis, the produc-tion of lighter-coloured or UV-curable lacquerand alternative usages of lacquer sap, forexample in anti-corrosive coatings and cosmeticapplications, etc.

Apart from research institutes, opportunities for

cooperation should also be explored with privatecompanies. A visit by the Chinese delegation to

Viet Nam, facilitated under the Joint Programme,allowed both sides to further explore mutuallybenecial opportunities for trade and coopera-tion with Vietnamese partners in lacquer sapprocessing and lacquerware production in R&D.Continuous exchange helped cement relation-ships, with at least one partnership establishedbetween the Vietnamese L.V. Company, and itsChinese counterpart, an agreement on a joint-venture is being nalized between the two sides.

FIGURE 11: Wet sanding (top) and nishing of lacquerpaintings


36/44


6. HANDMADE PAPER

6.1 Introduction

Handmade paper in Vietnam dates back to the300AD and is used for drawing and calligraphyand other products include stationery, booksand photo frames. In the North-West Vietnam,it has also traditionally been used in local festi-vals or religious rituals (for more details, see Box15). An assessment by the Japan InternationalCooperation Agency in the Northwest of VietNam identied a high potential for paper produc-tion in the region which has, to date, grown asa traditional craft among ethnic minorities likesuch as the Hmong, Dzao and Muong. 13 Ethnicminority groups have used a variety of locallyavailable materials for paper production. WhileMuong people make use of use of the bark ofthe Duong and Do trees, the Hm

value-chains-vietnam_final_highres.pdf

Documents