Solutions to enhance handicraft export activity to US market of thuy anh co ,ltd

ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMIC AND FINANCE GRADUATE INTERN REPORT Topic: “Solutions to enhance handicraft export activity to US market of Thuy Anh Co.,ltd.” Teacher : Phạm Mỹ Hằng Phương Student : Hoàng Thị Mai Oanh Code : 5063106024 Class : 6.1 Hà Nội, June 6/2019 PREFACE To complete this graduation internship report, I have received enthusiastic guidance and help from teachers in the School of Policy and Development First of all, I would like to thank the teachers who have devotedly taught me during my studies at the School of Policy and Development! I would like to express my deep gratitude to the teachers in the International Training Department, in particular, Ms THS Pham My Hang Phuong has dedicated and supported me so I can finish this graduation thesis At the same time, I would also like to express my sincere thanks to the members of Thuy Anh Co., Ltd for helping me during the internship Thanks to the internship and instructions of the teacher and the company's staff, I can this final thesis Although I tried to perfect my graduation thesis, due to limited knowledge and experience, I could not avoid errors Therefore, I look forward to receiving comments from teachers Thank you! Hanoi, 20th March, 2019 Student Hoàng Thị Mai Oanh INTRODUCTION Back ground In the process of industrialization and modernization of the country, Vietnam has determined that exports are a breakthrough in economic restructuring, contributing to the successful implementation of the commune economic objectives Assembly Over the past years, exports of handicraft goods have brought great benefits not only in economic terms but also in culture and society, contributing to changing the appearance of rural Vietnam Handicraft products are the crystallization of physical and spiritual labor, it is created by talented hands and creativity of craftsmen with national cultural values from products Handicraft goods are no longer merely goods but they become cultural products with high art Some are considered symbols of national cultural traditions Export of handicraft goods has both high economic efficiency and take advantage of available resources, create jobs and stable income for a large number of rural laborers and contribute to preserving and promoting cultural and social values, preserving traditional skills Over the past years, Vietnam has achieved some encouraging results in producing and exporting handicraft goods, gradually building prestige and brand in the international market America is an important economic partner of Vietnam in recent years, especially after Vietnam joined the World Trade Organization (WTO) and negotiated the Strategic Economic Partnership Agreement across Thai Binh Ocean Vietnam's export turnover to the US market has continuously increased in recent years In particular, handicraft items are one of Vietnam's key products exported to the US market Over the past few years, a number of businesses have focused on investment in manufacturing handicrafts for export and have achieved some remarkable successes In which, there is a significant contribution of Thuy Anh Co., Ltd America is considered by the company as a potential market However, the export turnover of handicraft products of the company to the US market is small, not really commensurate with the potential of exporting handicrafts of the company Therefore, I chose the topic: "Solution to promote the export of handicraft items to the US market of Thuy Anh Co., Ltd." as the research topic for my graduation thesis Research objective - Research Question: How are export situations and what are the solutions to US handicraft market of Thuy Anh Co., Ltd? - General Objectives: The topic of analyzing and evaluating the export of handicraft products and proposing solutions to boost the export of handicraft products of Thuy Anh Co., Ltd Research object - Company: Thuy Anh Co., Ltd - Action: Export Research Scope - Time limited: 2015 - 2018 Research methods - Literature Review - Data Analysis - Descriptive qualitative research Research Structure External Introduction and Conclusion, the topic has been organized into chapters Chapter 1: LITERATURE REVIEW Chapter 2: EXXPORT ACTIVITIES OF THUY ANH CO., LTD Chapter 3: EVALUATION AND RECOMMENDATIONS CHAPTER 1: LITERATURE REVIEW 1.1 Overview of Export and Import 1.1.1 Some definitions  Export definition According to master Troy Segal from Harvard College, the concept of export (updated Apr 14, 2019 on Investopedia) is defined as follows: “Export is a function of international trade whereby goods produced in one country are shipped to another country for future sale or trade Exports are a crucial component of a country’s economy, as the sale of such goods adds to the producing nation's gross output” According to the Commercial Law 2005, the concept of export is defined as follows: “Export of goods means that the goods are taken out of the territory of Vietnam or brought into a special area in the territory of Vietnam, it is considered a zone separate customs area in accordance with the law” In this thesis, I understand export in international trade is a good or service produced in one country that is bought by someone in another country Export of goods often requires involvement of customs authorities Exports, along with imports, are a key element in a country’s trade balance as the sale of exported goods increases a nation’s gross output Many countries encourage exports as a way to increase employment, disposable income, and consumer spending Furthermore, the more products a country exports, the greater the competitive advantage as it gains expertise in producing goods and services that foreign countries want to use  Import definition According to master Troy Segal from Harvard College, the concept of export (updated Apr 30, 2019 on Investopedia) is defined as follows: “Import is a good or service brought into one country from another The word "import" derives from the word "port" since goods are often shipped via boat to foreign countries Along with exports, imports form the backbone of international trade If the value of a country's imports exceeds the value of its exports, the country has a negative balance of trade (BOT), also known as a trade deficit” According to the Commercial Law 2005, the concept of import is defined as follows: “Import of goods means that the goods are brought into the territory of Vietnam from foreign countries or from a special area located in the territory of Vietnam which is considered a separate customs area in accordance with the law.” In this thesis, I understand an import is a good brought into a jurisdiction, especially across a national border, from an external source The party bringing in the good is called an importer An import in the receiving country is an export from the sending country Imports, along with exports, are a key element in a country’s balance of trade as the lower the value of imports, the more positive the balance of trade in Import Countries that have high import levels face a trade deficit, and they need to increase their reserves to pay for the imported goods Furthermore, there are countries, mostly in the under-developed or the developing economies, which rely on imports of basic commodities, such as oil and industrial materials Generally, countries tend to import goods or services that they cannot produce at the same low cost or with the same efficiency that other countries can Importation and exportation are the defining financial transactions of international trade In international trade, the importation and exportation of goods are limited by import quotas and mandates from the customs authority The importing and exporting jurisdictions may impose a tariff (tax) on the goods In addition, the importation and exportation of goods are subject to trade agreements between the importing and exporting jurisdictions  Definition of export promotion As Wikipedia, the concept of Trade promotion is defined as follows “Trade promotion is an umbrella term for economic policies, development interventions and private initiatives aimed at improving the trade performance of an economic area Such an economic area can include just one country, a region within a country, or a group of countries involved in an economic trade area Specific industries may be targeted Improvement is mainly sought by increasing exports both in absolute terms and relative to imports When specific industries are targeted, trade promotion policies tend to target industries that have a comparative advantage over their foreign competitors Trade promotion can also include expanding the supply of key inputs in a country's strongest industries, via import expansion If successful, such a tactic would lead to pro-trade biased growth” As an economic policy with the ultimate goal of increasing domestic welfare, trade promotion comprises a large set of policy instruments One notable tactic is the provision of trade intelligence to domestic enterprises in order to reduce transaction costs and provide them with a competitive advantage vis-à-vis foreign companies Many countries all over the world have set up special agencies, most of them in the public domain, to implement trade promotion policies and provide support services to domestic enterprises Some international organizations provide assistance to so-called developing countries to help them promote their exports, most prominently the International Trade Centre in Geneva, which is a subsidiary of the World Trade Organization and the United Nations with a mandate to providing traderelated technical assistance to those countries 1.1.2 Export forms  Direct export Direct export methods in international trade can be done anytime, anywhere Buyers and sellers directly meet (or via correspondence, telegrams ) to agree on goods, prices, transaction conditions, payment methods without going through intermediaries Buyers and sellers are often based in different countries The payment currency may be a foreign currency for either party, the goods are the object of the transaction, being moved across the border of a country Advantages of direct export: - A direct discussion is easy to lead to unity, less misunderstanding - Reduce intermediate costs - Conditions to penetrate the market, promptly receive customers' opinions, overcome shortcomings - Proactive in the process of production and consumption of goods Limitations of direct export operations: - The surprise in the new market - The company is often forced to reduce prices while selling - The volume of goods that need to be traded, must be large to pay expenses such as papers, travel expenses, investigation fees to understand the market  Entrusted export In trust export - a form of intermediary trading, the relationship between the seller and the buyer and the terms and conditions of the sale must be through a third party This third party is called a middleman The popular intermediaries in the world market are agents and brokers The use of commercial intermediaries (agents and brokers) has the same benefits: - The intermediaries often have a clear understanding of the local market, law and culture situation, so they are able to promote trade and avoid risk to the trustee - The intermediaries, in particular, agents often have stable facilities, so when hiring them, the mandate helps to invest directly abroad - Thanks to intermediary services in the selection, sorting, packaging, mandators can reduce transportation costs However, the use of intermediaries has disadvantages such as: Import-export trading company loses direct contact with the market; Companies also often have to meet agency or broker policies; Profit sharing  Counter-trade Counter-trade is a method of exchanging goods, exporting activities in a way that closely integrates with imports, the seller is also the buyer, the amount of goods delivered is worth commensurate with the quantity received The purpose of export is not to collect foreign currency, but to collect another commodity of equivalent value Counter- trade has long appeared in the history of goodscurrency relations, in which the earliest "barter" There are many types of counter-trade such as: barter, compensation, counterpurchase, offset, buy-backs  On-spot Export This is a form of local export enterprises to collect foreign currency through delivery or sales to businesses that are operating in the territory of Vietnam under the designation of foreign parties; or selling goods to export processing zones which are operating in the territory of Vietnam Characteristics of on-spot export: The signing contract is a foreign trade contract; Goods and materials are objects of sale and purchase of contracts, not exported out of Vietnamese territory; Enterprises must fully carry out customs procedures for on-the-spot export (opening customs declarations on-the-spot) and other procedures for a tax refund  International outsourcing International processing is a method of commercial business in which one party (called the outsourcer) assigns (or sells) materials or semi-finished products to another party (called the processor) for processing the finished product is re-delivered (or resold) to the processes and receives remuneration (called processing fee) For outsourcers, this method helps them take advantage of cheap raw materials and labor of the country that receive processing For outsourced parties, this method helps them to create jobs for domestic workers or receive new equipment or technology in their countries, in order to build a national industry  Re-export transactions Re-export is a form of export of goods previously imported and unprocessed in the country of re-export Re-export is a method of trading that the re-exporter does not aim to serve domestic consumption but only temporarily import and then re-export to make a profit Participating in the re-export CHAPTER 3: EVALUATION AND RECOMMENDATIONS 3.1 Assessing the status of exporting handicraft products to the US market of Thuy Anh Co., Ltd 3.1.1 Swot Analysis  Strengthens - Since the company has been set up, revenue growth is continuously increase High, the company always research and launch new products, better operation - Minimizing costs, as well as cheap human resource, cheap material,… manufaturing products which has the price to meet the market demand and consumer tastes is not a big problem - The unity of the workers make a unified and strong team Thuy Anh, the company hire the young, enthusiastic employees to work the best everytime - The company has good reputation, good feedback from customers and has not broken any contracts, always be satisfied by customers, the percentage of customers returning to the company is high  Opportunities - The US is expected to have adverse policies for China such as increasing import tax on goods China is the largest supplier to the United States, however, this may change when the taxes on Chinese goods that are imported into the US increase, enabling other countries - The policy of State capital support, especially support for innovation activities of small and medium enterprises will increase This is an opportunity for enterprises and units producing handicraft products to 57 access to the State's capital, thereby renewing technologies and developing their production and business activities - Particularly for the two groups of products such as bamboo and rattan and ceramics, Decision No 11/2011 / QD-TTG of the Prime Minister on policies to encourage the development of rattan and bamboo industry, and Decision No 11119 / QD- The MOIT issued in 2014 approved the development plan for Vietnamese ceramics and glass industry to 2020, with a vision to 2030, which will create conditions for enterprises to promote the production of these products  Threats - Although Vietnam has been entering a more stable stage, the Vietnamese economy has generally suffered from the global financial crisis and global economic recession, climate change and floods, extreme weather events, prolonged droughts, have impacted on economic development, social stability and life - Competition with neighboring countries, especially ASEAN countries such as the Philippines, will increase when tariff barriers are removed for all ASEAN countries, especially if handicraft products Fine art does not really have significant changes in design and quality - Labor costs will increase when the State continues to apply the annual minimum wage increase This will create a huge burden for production units of handicraft items that use a lot of labor, especially manual labor - The constantly rising cost of raw materials These rising costs are the combined effect of a number of different factors: the continuous depletion of resources without replacement, the seasonal nature of raw materials 58  Weakness - Company is still faces many difficulties when the capacity of warehouses and machineries, equipment and technology has not kept pace with the competition - Marketing strategies is not really efficient Selling products bases on a lot on the reputation of brand name - 60% -70% of the machine for manufacturing are still exported from foreign countries - For artisans in the craft village, where the company has set up a factory, the company has no policy to help them grasp the tastes of foreign consumers but they are the main designers , directly make products Therefore, the company's products cannot meet perfectly as customers' demands for designs, designs, and animation Due to the fact that there are many intermediaries leading to difficulties in quality control of output, the cost of monitoring corporate governance is relatively high, weak financial investment strategy 3.2 Achievements Firstly, in terms of export turnover over the years: Although the company is active in a strong competitive market, the market is fiercely competitive with big competitors but a positive thing with the company's export activities is the annual export turnover always increases Although this number has not increased yet, this is a positive and commendable sign In 2016, the company exported handicraft products to the US market reached 75,234 USD, in 2018 this number increased to 106,948 USD This shows that despite facing many strong competitors, the company still works well, positive and optimistic growth in the 59 US market This is the inevitable result of the company's relentless efforts over the years Secondly, the structure of export products: In the period from 2016-2018, the company exported to the US market the products of rattan, ceramics and Painting Material In the coming time, the company will actively seek, expand business scale to bring to the US market more types of goods, to meet additional needs but currently, the Company has not enough resources to expand Thirdly, the prestige and brand of the whole company: Maintaining longterm business relationship with partners because during the course of its operation, the company always keeps the prestige for its partners, because So the company is always reputable to customers and is a solid foundation for the company to promote its export activities to different markets around the world The fourth is to create social efficiency, contribute to economic development in Vietnam: Thuy Anh Co., Ltd with business development has contributed to job creation and stable income for company employees In the coming time, scaling up activities are created, from there, the company must recruit more workers, contributing to solving employment problems for society and improving business efficiency to bring resources higher income, better working regime 3.3 Major limitations Firstly, in terms of export scale: The output and export turnover of the company has increased over the years, this year is higher than the previous year but the growth rate of output and export turnover of the Company tends to slow down or very little increase Regarding export turnover to the US market, in 2016, USD 75,234 reached 6.99% of the total export turnover of the company By 2017 this ratio is 7.2% of the total export turnover But by 2018, the 60 company's export turnover to the US market was only 7.099% compared to the total export turnover The company is limiting the introduction of its products into the US market Secondly, about the distribution network: Currently, the number of agents and customers of the company in the US market is still relatively small This is a major disadvantage of the Company when it does not focus on exploiting agency business to expand the market Thirdly, about marketing, sales promotion: This activity of the company is not really effective The sales promotion activities, product advertising has not been organized, implemented much, has not caused the brand impression 3.4 Causes of limitations The cause of these limitations is the company's human resources Thuy Anh Co., Ltd is still a small company, inevitably lack of fever in the organizational structure as well as in the way and method of operation is limited The qualification of employees is limited, allowing the company to conduct small-scale market research activities only to avoid errors as well as to lose opportunities and opportunities for business On the other hand, the company does not have a Marketing department: While the company exports a lot of products to many different markets, the problem of market research as well as product marketing requires high expertise and must be taken seriously In fact, the company lacks highly trained professionals on this issue, so the company has not implemented a complete marketing plan This makes the research and forecast of the market still limited, the information collection of the company is very limited, the information sources are often incomplete and inadequate, so the company 61 sometimes passive in responding to market fluctuations and ignoring many opportunities Information is always an important factor, determining the success or failure of the business However, the company's information system has not been given due attention due to limitations in foreign language proficiency as well as specialized statistical software and import and export databases of a few years 3.5 Development trend and export target of Thuy Anh Co., Ltd in the coming period 3.5.1 General development targets For an exporter, the export goal is what they aim to For Thuy Anh Co., Ltd., the company leadership aims to improve the export value of the company, in order to contribute to improving the income of employees in the company, helping employees improve their lives The strategic plan of the company is also built by the management of the company for its employees to be the driving force Besides, being an export company, it is very important to have specific target orientations for the export sector, affecting the overall goal of the company Here are the goals that company management aims to achieve: First, the company tries to maintain its growth target, at least until 2021 Profit is always the first goal of any business company Profits help turn around capital, the company continues to ensure the source of goods to maintain customers, improve the working environment and improve the company's income Studies on the US market and competitors in the field of handicraft exports Besides, the profit target will be to improve the country's GDP as well as strengthen diplomatic relations with the US 62 Secondly, it is also very important to maintain a firm place in the export market of handicrafts As a newly established company, this is essential and can be said to be a vital factor for any company The company's management aims to maintain competitive products with domestic handicraft export companies as well as other companies from countries exporting handicrafts to the market American school Third, the expansion of new markets helps promote the export of handicraft products of the company This will help the company's products become more widely known Sometimes, maintaining relationships with longterm partners will help the company get new partners in the future Finally, it is the quality assurance and safety in exporting handicrafts and is ready to perform any contract with any delivery facility conditions in the Incoterm 2000 and 2010 The number of employees in the company is small, but with a view from the management that the company is capable of fulfilling all the requirements of delivery This can cause a lot of company revenue to change, especially for Group F delivery conditions 3.5.2 Orientation to promote export of handicraft products to the US market until 2021 Enterprises exporting handicrafts of Vietnam are all oriented to the US market - the largest import market in the world Therefore, the export of handicraft products to the US market has been explored and prepared, the company has also experienced in exporting this item It can be said that the company does not face any big difficulties affecting the export of handicraft goods to the US market However, competition is indispensable for any business The company has many customers familiar with regular orders For these customers, they often not like the change in partners and suppliers, so the 63 company must make positive efforts to improve the quality of products and services to support customers positive, increasingly perfect, bringing long-term cooperation relationship In addition, the US market is a potential market for the company during the market economy today, with the advent of more and more import-export companies in the field of exporting handicrafts That will increase the competitiveness between export companies Therefore, the company's current goal is to increase export turnover to this market to minimize the risk of price competition from the US market The company proceeds to reallocate resources, focus on marketing activities and ensure the quality of exports in accordance with increasingly strict import standards of the US market 3.6 Some solutions to promote the export of handicraft items to the US market of Thuy Anh Co., Ltd 3.6.1 Solutions for company Enterprises should actively seek new export markets, especially Asian countries As analyzed above, the Asian market, especially countries with a distance not far from Vietnam, has become attractive markets for handicraft production and export enterprises’ technology This is clearly reflected in Vietnam's export figures  Marketing Export marketing solutions are market research and application of product strategies, prices, distribution channels and export support Previously, Thuy Anh Co., Ltd always applied to export goods separately However, to achieve high export efficiency in the US market, the company needs to apply this method meticulously and have specific plans The company needs to improve the efficiency of USA market research In order to this well, the company needs a thorough research investment, 64 effectively penetrating the market In addition, the company needs to synthesize news to provide business orientation and make a right and timely decision Document research is a popular market research method that is currently being used by many companies Although the method has high reliability, it is not expensive and suitable for Thuy Anh Co., Ltd The company can transfer research through modern methods such as research through the Internet, trade promotion organizations or Vietnam Chamber of Commerce and Industry To improve the efficiency of exporting handicraft products to the US market, Thuy Anh Co., Ltd should pay more attention: • Determining the forecast of the demand for handicraft goods of the US market, making specific plans with unexpected changes • Identify potential handicrafts that US partners need to import through statistical data and forecasts, customer surveys, sample products,… • Determine the desires of the US market for our country's handicraft products in terms of designs, designs, standards and quality, to meet the needs of the US market in a timely manner • Quickly discover new tastes of the US market to promptly produce and respond promptly • Pay attention to the terms of the Vietnam Agreements signed with the US Besides, Thuy Anh Co., Ltd also needs to assess the fluctuation of demand for handicrafts and agents directly affecting that fluctuation to have appropriate export strategies Actively participate in the association of Vietnamese handicraft exports (VIETCRAFT) Vietnam Handicraft Export Association was established on April 2, 2007 At the moment, the association has more than 1000 members As a member of the association, the company will receive many benefits as follows: 65 Vietcraft helps businesses in promoting trade promotion activities The association has supported businesses to participate in many major handicraft fairs in the world over the years Therefore, Thuy Anh Co., Ltd can collect enough information to build its own strategy • Vietcraft Executive Board has built a new product showroom to develop design designs to support handicraft exporters Experts will support businesses in designing their products • Vietcraft has programs to survey raw materials for export handicraft products of rattan, bamboo and rattan enterprises, etc to assess the quantity and propose the Government's support This is extremely beneficial for new companies like Thuy Anh Co., Ltd Besides, Exporters should also coordinate with associations and craft villages to promote connections between artists and artists In particular, in order to increase the ability to connect and spread products to countries around the world, businesses can join the existing connection programs, typically, the New for Old program of the British Council This program is implemented in Southeast Asian countries, with the aim of supporting and developing handicraft industry, making this industry become sustainable and developed, thereby creating an operating environment for designers, businesses and communities The program has been implemented since 2014, bringing a lot of opportunities to train, coordinate, connect and exchange ideas between artists and artists In addition, businesses can absolutely get support from funds to promote this connection activity better One of the funds that have been and are supporting these activities is the "Future of hands made by hands" fund, Prince Claus With the motto of supporting creative and pioneering entrepreneurs in Vietnam, artists groups and organizations in Vietnam want to preserve, develop and reimagine 66 traditional handicrafts, the fund will create things, law which suits for businesses, especially enterprises to export handicraft products to improve design and product designs to meet the increasing demands of consumers  Human resources Human resource development is always considered a key and long-term task of every business In the business activities of enterprises, human factors have a decisive meaning Therefore, human resource is to ensure the sustainable development of the business Human resource training will be effective in the long term In terms of Thuy Anh Co., Ltd., the training of human resources should pay attention to the following points: • Selecting the best personnel, in charge of the company's main departments, helping the director with important jobs of the public • New human resource training must be associated with the long-term strategic goals of enterprises Training needs must be associated with the importance of work Subjects for training must also be classified to suit the job • The HR department of the company needs to propose the establishment of a fund for training, retraining and developing human resources, creating conditions for the conduct of training to take place smoothly • Human resources should be used in the right position, expertise, and qualifications to maximize their ability 3.6.2 Solutions for products Enterprises may pay attention to the export of commodities belonging to the group of Gold and Silver Industries These products are not new, but are becoming attractive to importing countries, especially in the mid-year period (around May-June) Therefore, in order to promote the export of this product, 67 businesses should also pay attention to the time of year to prepare for the product stages Quality is the leading factor in business, so it is necessary to focus on and recognize its importance in business, contributing to building a prestigious brand for Vietnamese enterprises and limited liability company Thuy Anh The company actively improves the competitiveness of products by increasing the quality of goods, effectively meeting environmental standards when exporting handicrafts to the US market The deployment of IT applications in management business has been implemented within the past few years such as building a LAN or the company's Website These applications have contributed to the saving of transaction costs, creating close and convenient coordination among departments within the company However, the application of information technology in the company still has many restrictions that need to be overcome The company needs to build clear views on Internet exploitation and use, such as using the network to research, provide information, provide training programs, buy and sell online.… The company's website is still simple, not yet impressive The company should build an impressive, outstanding website, create attention, readability and complete information to offer a skillful way Advertise your company's image on other sites on the internet, companies need to look at Web sites that target potential customers to make decisions about which ads are most effective 3.6.3 Proposals for the Government  Effective support for handicraft exporters Information plays a very important role in the business of an import-export business Accurate, complete and timely information is always a prerequisite for 68 the success of businesses, for the ability to grasp market opportunities of enterprises Currently, most enterprises exporting Vietnamese handicraft products face difficulties in exploiting and seeking information The main cause of this situation is due to: Firstly, the scale of the international market is too wide, on the other hand, the market of handicraft goods changes very complicated, requires very high sensitivity, but this is the weakness of the majority Vietnam import-export company Secondly, the effort to learn information through newspapers, mass media, internet, but information about the market, the situation of export and import market is still small and rambling Therefore, in order to create favorable conditions for export business enterprises, the State should support enterprises in the direction: Firstly, the government should organize periodic information for businesses, issue publications on the market of handicraft goods in the world, trends of market movements for businesses Secondly, the government builts a trade information channel smoothly at Vietnamese business offices abroad If there is any fluctuation in the market, information can be transmitted directly to government organizations and then to enterprises in a short time, so that businesses can timely adjust business operations  Support businesses In order to help exporters can boost exports, the government needs to support businesses in trade promotion activities because it is a highly effective activity but requires a large cost Therefore, the role of government and related ministries is very important The government needs to support businesses in the following directions: 69 Organize more exhibitions and invite foreign guests to attend This is a good opportunity for businesses to advertise their strengths to foreign traders, opening new businesses In addition, this facilitates businesses to have the opportunity to bring products to exhibitions in foreign markets Here, businesses can introduce, offer and explore customer feedback, help customers have an overview of businesses and products of the business When customers need, they can contact the business to negotiate a contract The government should also provide general development directions for the handicraft industry in the coming period, especially towards 2030, which clarifies the support and incentives for the industry Draft decree amending and supplementing a number of articles of Decree No 66/2006 / ND-CP, issued on July 7, 2006 of the Government on rural career development, although it has been introduced, but not yet accepted Certainly, in the context of many changes in the domestic and world economy, the government will need to provide more suitable directions for the new period Because this item is associated with craft villages - the origin of Vietnamese tradition and culture, at the same time the production and production of handicraft products are creating a lot of police jobs for workers, immediate orientation is extremely necessary, especially when craft villages are gradually losing The government should create conditions to support more capital, towards the target of craft villages, production and export units of handicraft products Therefore, access to capital sources to continue production, especially to invest in improving designs, forms and improving product quality will be difficult for medium-sized companies and small, or household For that reason, so that producers can maintain operation and competition in the market, as well 70 as help craft villages survive, the special capital support for handicraft industry is extremely necessary State guarantees export credit: The State establishes export insurance funds to ensure the risks of losses to the credit that Vietnamese exporters reserve for foreign buyers The state never guarantees 100% of that credit because if the State guarantees 100%, the exporter has no motivation to pursue business and does not care about the nature of the risk Therefore the compensation is usually about 70-80% of the credit and depends on the nature of the item, the market and the nature of the risk Vietnam is an exporter of agricultural products such as coffee and pepper, but agricultural and handicraft products are characterized by very precarious prices, so there is a great risk Therefore, the Government has established funds for insurance for these export industries, for example: Export insurance fund for coffee and pepper The state should facilitate the connection between artisans and artists in the future The interconnection between artists and artists has begun to be done in Vietnam, but it is small and comes from a number of artists and artists In order to be able to build a better connection network in the future, the support of resources, especially financial support, is absolutely essential In addition, companies will need to support the management of specialized ministries such as the Ministry of Culture, Sports and Tourism so that the above activities can be implemented into chains, nationwide, as well as widely spread to other countries around the world 71 ... of Thuy Anh Co. , Ltd Thuy Anh Co. , Ltd is a company exporting handicraft items to foreign markets such as USA, EU, Japan The following table shows the total value of export products of Thuy Anh. .. really commensurate with the potential of exporting handicrafts of the company Therefore, I chose the topic: "Solution to promote the export of handicraft items to the US market of Thuy Anh Co. ,... flow Thuy Anh' s export distribution target is to expand the market, increase market share, bring handicraft products to customers in the US market and bring profits to businesses Thuy Anh Co. ,