Export of handmade textiles slumps
Export of handmade textiles slumps
The government and private sector have reported that Lao exports of woven textile products and handicrafts are decreasing each year because there is a general drop in demand in the world market.
The Lao Handicraft Association (LHA) reported on Friday that the export of textiles via the association was just over 1.4 billion kip (US$178,900) in 2014, less than half of the 3 billion kip (US$367,800) value exported in 2013.
“It was also lower than the export figure for 2012 which reached almost 2 billion kip (US$249,400),” the statement noted.
The Ministry of Industry and Commerce reported that the export of handicrafts (via the ministry) was about 7.5 billion kip (over US$937,802) in fiscal year 2012-13 which increased sharply to more than 42.44 billion kip (US$5.3 million) in 2013-14.
“However, the export value will drop to about 18.8 billion kip (over US$2.3 million) in this fiscal year, 2014-15,” the ministry's report noted.
One of the LHA counsellors, Ms Chinda Phommasathit, said exports were dropping because the industry cannot compete with cheaper Chinese textiles.
She said Chinese products are cheaper because they are made by machine, which results in a lower production cost.
“Ours are more expensive because they are handmade. We have to use skilled labour to produce them and take time to ensure the product is perfect,” she said. “That's why we cannot match their lower price.”
To solve the problem, the LHA is working with a Japanese organisation (JETRO) on ways to streamline production to create a new style of product.
She said this will produce a more modern product, such as a woven textile combined with other materials.
Woven textiles are currently being exported throughout Asia and most of Europe where they are sold to France, Switzerland, Germany, UK, Italy, Spain, Czech Republic, Belgium, Netherlands and Portugal. They are also going to other markets such as Australia and Canada.
The LHA, the main body representing handicraft artisans in Laos, was established as a non-profit organisation in April 1998. It operates in Vientiane under the supervision of the Lao National Chamber of Commerce and Industry. The LHA has offices in many provinces as well as its head office in Vientiane.
It provides services to members including workshops and seminars on business management, marketing and product development, study tours, networking opportunities and the annual Lao Handicraft Festival.
The overseas exhibitions that LHA members attend include trade fairs in Asia and Europe.
Its main functions are to preserve handicraft traditions, bring small entrepreneurs together for collaborative opportunities of mutual benefit, promote and develop products in terms of quality, and strengthen producers' skills.
It aims to promote and develop local handicraft products that are unique and represent the Lao identity and ensure that the Lao handicraft industry is growing in both quantity and quality.
Lao handicraft products include textiles such as silk and cotton and non-timber forest products that are being exploited in a sustainable manner including rattan, bamboo, paper and other fibres.
Many handicrafts are also made of waste products such as those fashioned from scraps of wood and iron, silver jewellery and precious metals, gold ornaments, jewellery, souvenirs, cultural products, wood carvings and pottery.
