Craft village economy and the digital transformation

Digital transformation, e-commerce, and craft village tourism can become a sustainable development model that preserves the characteristics of traditional crafts and folk culture, while also promoting local infrastructure development and increasing residents’ incomes.

The current state of transformation towards tourism-oriented craft villages

Ha Thai is a lacquerware craft village with over 200 years of history, but its brand recognition remains modest compared to its potential. Most production and business households in Ha Thai operate on a small, fragmented scale based on orders, without campaigns to promote the village’s unique characteristics. Moreover, competition from products of other regions has further narrowed the market. Many young workers have left their hometowns to seek jobs in the cities.

According to a survey by the EkoCenter Community Support Center in Hanoi (run by Coca-Cola Vietnam), Duyen Thai Commune has an industrial cluster supporting 238 production households and businesses. However, currently, only 138 households (58%) continue with lacquerware, while 100 households (42%) have switched to other trades.

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Ha Thai lacquerware products displayed at the fair.
Photo: Pioneer Marketing & Public Affairs

At the end of 2024, EkoCenter Hanoi collaborated with the Duyen Thai Commune Women’s Union to organize a series of e-commerce training sessions for production households in Ha Thai Village, Duyen Thai Commune, Thuong Tin District, Hanoi City.

Each training session attracted over 100 participants and focused on “hands-on” learning, where instructors provided basic knowledge and students practiced directly in class with their own products.

E-commerce is a necessary trend to help Ha Thai sustain and develop its traditional craft, but application remains very limited. Most production households still focus on subcontracting semi-finished products rather than selling directly to consumers.

Additionally, the traditional business mindset — relying heavily on personal networks and fulfilling pre-existing orders — has become deeply ingrained, further limiting market expansion and sustainable growth.

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An e-commerce training session for lacquerware production households in Ha Thai.
Photo: Pioneer Marketing & Public Affairs

On another note, Ha Thai lacquerware is receiving increasing attention from local authorities. Duyen Thai Commune, home to Ha Thai Village, has been selected for development into a Creative Design Center, an OCOP (One Commune One Product) Promotion, Marketing, and Exhibition Hub, and a craft village associated with tourism in Hanoi.

Accordingly, Hanoi will focus on training village residents to become tour guides, encouraging travel agencies to collaborate, mobilizing social resources to improve tourism infrastructure, enhancing locals’ service capabilities, and promoting cultural tourism.

Currently, five households in Ha Thai Village have implemented a model combining lacquer-making experiences with showrooms to welcome domestic and international tourists. However, much remains to be done to truly develop craft village tourism.

At present, many households lack the necessary skills and knowledge to professionally host tourist groups, effectively promote lacquerware products, or compellingly introduce traditional crafts.

Moreover, the village lacks a dedicated space to showcase and promote its signature products, and there is no dedicated website or distinct online brand presence yet.

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A villager during a training session, learning to use video and image editing applications and to list products on e-commerce platforms. Photo: Pioneer Marketing & Public Affairs

E-commerce is not only about selling

Currently, traditional craft villages face many challenges in the modern market, even well-known ones like Bat Trang pottery village or Van Phuc silk village in Hanoi.

Competition from mass-produced goods, shifting consumer tastes, and limited market access threaten the sustainability of traditional industries. However, these challenges also present opportunities for innovation and development.

According to Mr. Bui Quang Cuong, a member of the Executive Committee of the Vietnam E-commerce Association (VECOM), local production households are still operating individually; although some households have improved their sales, developing a shared brand systematically would create even greater opportunities.

He suggests that local authorities could establish a dedicated team to build a unified brand for Ha Thai Village. Villagers could also leverage the internet and AI tools to analyze customer segments, create suitable products, and improve designs. Although the products are handcrafted, applying technology to certain stages could significantly speed up production, allow for larger-scale manufacturing, and optimize costs.

Digital transformation and e-commerce are also aimed at strengthening brand promotion and product visibility online, attracting broader community attention, and creating new business opportunities. Moreover, production households and artisans could become professional digital content creators, attracting thousands of followers.

The increasing demand for craft village tourism experiences will also boost related services such as dining and experiencing, thus raising incomes and attracting greater investment in infrastructure.

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Ha Thai production households learned how to set up online stores on e-commerce platforms.
Photo: Pioneer Marketing & Public Affairs

The digital transformation of craft villages requires a shift in mindset — not just marketing products, but fundamentally changing the business model. Craft villages should use promotion as a gateway to tourism, offering both visits and experiences.

In parallel with digital transformation, green transformation is also a necessity for sustainable development. According to data from the World Travel and Tourism Council (WTTC), 69% of global tourists are actively seeking sustainable travel options. Therefore, environmental conservation and worker health protection must be priorities for craft villages.

Craft villages can also partner with businesses, NGOs, and government programs to access essential support in training, financing, market access, and skill development — helping them improve productivity and reach new customers. Collaboration between artisans, businesses, and organizations can create a supportive ecosystem, fostering traditional craft sustainability and growth.

Conversely, organizations working with craft villages must engage deeply and practically, focusing not on what enterprises want, but on what the community needs, avoiding superficial or insincere “greenwashing” practices.

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Ha Thai lacquerware artisans diligently keep the ‘flame’ alive for the 300-year-old craft village.
Photo: Pioneer Marketing & Public Affairs

Returning to the series of e-commerce business training sessions under the EkoArt project at EkoCenter Hanoi, production and business households in Hạ Thái lacquerware village had the opportunity to access and practice skills in sales, promotion on social media, and e-commerce platforms, helping to improve their livelihoods.

According to the post-training report, among 351 trainees, 67% applied AI tools such as ChatGPT and CapCut to enhance efficiency, and 13% successfully set up stores on the Shopee e-commerce platform.

Training sessions like these will serve as a foundation for production and business households in the craft village to make significant changes in business mindset and digital transformation. When mindsets change, actions will also be renewed.

By Phuong Tran – Pioneer Marketing & Public Affairs

The article published in The Saigon Times, please click the link to read the full article!

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