www.ChinaSourcingReports.com

Vietnam supplier profi lesDetailed profi les of 18 suppliers with verifi ed manufacturing and export credentials

Product gallerySpecifi cations and full-color images of 165 top-selling export products ranging from decorative boxes to table napkins

Industry trendsCoverage of current issues, plus insights into supply centers, products and pricing

December 2013US$150

Global Sources is off ering this series of Developing Country Sourcing Reports as part of its corporate social responsibility undertakings in partnership with the Hinrich Foundation, a philanthropic development organization whose mission is promoting sustainable global trade.

The aim is to give international buyers new sourcing opportunities from experienced exporters, generating orders and creating lasting jobs in developing economies.

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Essential sourcing intelligence

Wicker Baskets

HANOI

Laos

Thailand

Cambodia

Ho Chi Minh City

China

VIETNAM

Binh Duong

Nam Dinh

NAM

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WICKER BASKETSSupplier capability in Vietnam

Objective, methodology & scope

Key findings

Executive Summary

In this report

• 18 in-depth company profi les• 165 top-selling export products• Supplier demographics• Supplier survey• Industry statistics and charts

The wicker baskets industry in Vietnam is adopting strategies to boost the management of raw materials and design capability of suppliers. Trade associations, individual manufacturers, the national government and various stakeholders have established a program whereby the basketware sector is provided means to ensure the availability of inputs such as bamboo.

This approach, along with a few others, is expected to further develop the industry, which has been registering fluctuating overseas revenue in recent years. Economic difficulties in key markets abroad have resulted in declining demand for nonessential products such as handicrafts.

The US and the EU remain to be the largest foreign destinations for Vietnam-made wicker baskets. To supplement flat revenue from these locations, makers plan to expand their reach in the Asia-Pacific region in 2014.

1. Due to the dwindling supply of bamboo and rattan, makers are experimenting with other natural materials, particularly water hyacinth, seagrass, liana vine and fern. Demand for sustainable baskets and surging production expenses are also driving companies to incorporate alternative inputs.

2. Foreign sales over the next 12 months are expected to generally climb, with the majority of featured enterprises anticipating an increase of at least 11 percent. Most will continue to concentrate on the EU and the US, although a growing number are focusing on alternative markets.

3. About three-fourths of suppliers in this report plan to maintain prices over the next six months to retain buyers and attract orders. The rest

will raise quotes to accommodate escalating manufacturing costs, particularly electricity expenditure. Adjustments will be generally kept within 10 percent.

4. Hanoi, Ho Chi Minh City, and the provinces of Binh Duong and Dong Nai are the key supply hubs in the country. Manufacturers in these areas specialize in baskets made of bamboo, rattan, water hyacinth and seagrass. The ready availability of raw materials and access to shipping ports make these zones attractive to handicraft makers.

5. The main roadblock in the industry’s continued progress is low supply of workers with export-oriented skills. As a result, suppliers are compelled to pay higher salaries to artisans who are more experienced in creating handicrafts for the global market.

This Vietnam Sourcing Report is part of a series designed to provide buyers with information on new products from export manufacturers in supply markets that specialize in handmade merchandise.

The Developing Country Sourcing Report series is part of Global Sources’ corporate social responsibility initiatives. It is offered in conjunction with the Hinrich Foundation, whose mission is promoting sustainable global trade. One of its objectives is to help create jobs in developing Asia through export promotion.

To produce this report, large, midsize and emerging manufacturers, all with substantial export experience, were surveyed. The selection of suppliers is designed to reflect the composition of the industry in Vietnam in terms of geographic location, materials used and range of products offered.

For in-depth profiles, our researchers visited the facilities of each company and interviewed senior executives who discussed their recent performance and provided forecasts for the next 12 months. All other makers in this report were either visited or contacted by phone.

In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials, including a breakdown of exports by product type and market. Suppliers also participated in a survey designed to provide insight into the industry.

This report covers different classifications of wicker baskets available in Vietnam, including bamboo, rattan, natural material and plastic models. Each product category has its own price guide that describes features of the low end, midrange and high end.

The Industry Overview section discusses key issues affecting export manufacturers. It provides statistics and insight on the composition of the industry, and elaborates on the important supply centers within Vietnam.

The Products & Prices section details the features and price ranges of wicker baskets. It also examines the design and manufacturing processes, emerging aesthetic trends, main materials used, and sourcing centers where components are procured.

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CONTENTS

Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses. Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed. The author and the publisher of this report (and the publisher’s affi liates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, “Contents”), whether as to the accuracy, completeness, quality, fi tness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or defi ciency in, or for any use of or reliance on, such Contents (or any portion thereof ).

All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. Products that are not the specifi c topics of editorial articles are shown for illustrative and/or demonstrative purposes only. We, our affi liates, and our affi liates’ respective directors, offi cers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof ) which infringe on any intellectual property or other rights of a third party.

Copyright 2013 Trade Media Limited. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited.

Published by Publishers Representatives Limited (on behalf of Trade Media Limited)4th Floor, Century Yard, Cricket Square, Elgin Avenue, P.O. Box 32322 SMB, George Town, Grand Cayman, Cayman Islandsc/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong

ISBN 978-988-8245-04-8

Contents

EXECUTIVE SUMMARY 3 Key fi ndings Objective, methodology & scope

INDUSTRY OVERVIEW 11 Exports Export markets

Products & prices 13 Production & export statistics Typical parts & components Price guides

Supplier survey 19 Export prices Export sales Export markets Major challenges R&D focus

SUPPLIER PROFILES 23 Supplier matrix: Comparison of supplier location, sales revenue & export capability Profi les of 18 verifi ed suppliers

PRODUCT GALLERY 67 Bamboo baskets Rattan baskets Natural material baskets Plastic baskets

4 Vietnam Sourcing Reports

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erifi ed supplierssuppliers

UCT GALLERY AL ppmboo basketsmboo basketsRattan baskets n baskets Natural material basketsNatural material baPlastic basketsPlastic basket

Industry Overview

Industry Overview

Value$ million

2010 2011 2012 2013*

203

Exports

*January-OctoberSource: General Statistics Office of Vietnam

203

Bamboo baskets19%

Rattan baskets

15%

Synthetic material baskets

17%

Natural material baskets49%

Includes HS codes 460211, 460212, 460219 & 460290Source: International Trade Centre

Segments

201 212

172

Taking steps to ensure sustained development, the wicker baskets industry in Vietnam is implementing schemes aimed at improving raw material management and design capability.

Faced with the diminishing local supply of bamboo and rattan, domestic trade organizations and government agencies have collaborated to establish the Vietnam Rattan Network. The program intends to foster cooperation among suppliers, exporters, researchers and other relevant parties involved in the production of wicker baskets. Under the plan, members undergo training on planning and managing resources, cultivation techniques, innovation, and environment-friendly processing methods. It also provides members with updated market information.

The scheme is spearheaded by the Vietnam Handicraft Exporters Association or Vietcraft, Vietnam Handicraft Research and Promotion Center, Ministry of Agriculture and Rural Development or MARD, and Ministry of Industry and Commerce. Stakeholders conceived it in response to the inability of raw bamboo and rattan vendors to keep up with rising demand over the years, particularly in the last decade. Although there are roughly 1.4 million hectares of bamboo and rattan plantations in Vietnam reserved for commercial and industrial uses, the country had to procure 33,000 tons of unprocessed materials in 2013 from Laos and Cambodia. This has triggered an increase of 15 to 20 percent in manufacturing costs. In addition, the government forecasts the industry to require 100,000 tons of raw inputs annually by 2020, making material sustainability an even more pressing concern to be addressed by the program.

Besides bamboo and rattan, efforts to improve the availability of natural inputs

are being undertaken. Wicker basket makers are putting more investment in alternative components such as water hyacinth, seagrass, fern, banana leaf, maize and liana vine. These fibers are versatile to be woven in various combinations and allow companies to differentiate their products better from those that are mass-manufactured in other sourcing hubs in Asia.

Seagrass and water hyacinth are often paired with bamboo and rattan to enhance texture and lower fabrication costs. Plastic baskets are likewise woven with other natural materials to diversify designs, and boost durability and resistance to insect infestation. In terms of finishing, suppliers are adopting nontoxic chemicals in compliance with the EU’s REACH policy, which requires exporters to identify the substances used in finished items.

In addition to experimenting with plant-based fibers, makers are trying to keep up with global handicraft trends, which often change according to the season. Investment in R&D, however, remains a low priority among suppliers, which reduces competitiveness. To encourage companies to innovate, the Vietnam Rural Industries Research and Development Institute and Vietcraft regularly conduct training related to sustainable handicraft designs and

marketability. A team of foreign stylists commissioned by the International Trade Centre and Vietnam Cleaner Production Center also offers free courses to local enterprises. These include creating new product lines that are fashionable, commercially viable and environment-friendly.

ExportsThe industry is considered by the MARD as one of Vietnam’s fastest-growing segments under handicrafts. In 2012, it contributed 10 percent to total global basketware turnover, making the country the second-largest manufacturer of this product type. The sector, however, has been experiencing fluctuating revenue over the past four years as a result of sluggish demand from traditional markets suffering from economic difficulties.

General Statistics Office of Vietnam groups the industry under bamboo, rattan, rush and carpet items. This segment is forecast to climb to $214 million in 2013, up by only 1 percent compared with last year. In 2012, overseas revenue increased by 5 percent, which is a recovery from the 1-percent drop registered the previous year.

Statistics from the International Trade

www.ChinaSourcingReports.com 11

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Supplier Profiles

SUPPLIER MATRIX

Company Year established

Head office location

Factory location(s)

Ownership Full-time employees

Part-time employees

ANC 2005Cau Giay (Hanoi)

Phu Xuyen (Hanoi)

Locally owned

20 150

Artistic Decor 2012District 2

(Ho Chi Minh City)

Bien Hoa (Dong Nai), Chau Thanh

(Ben Tre)

Locally owned

60

Bamboo World 2003Tu Liem (Hanoi)

Phu Xuyen (Hanoi)

Foreign-invested

50

Bao Vy 2009District 2

(Ho Chi Minh City)Tan Uyen

(Binh Duong)Locally owned

50

Chat Viet 2012District 1

(Ho Chi Minh City)Bien Hoa

(Dong Nai)Locally owned

50 50

Chuc Son 1993Chuong My

(Hanoi)Chuong My

(Hanoi)Locally owned

100 3,000

Da Ly Huong 1999District 2

(Ho Chi Minh City)District 2

(Ho Chi Minh City)Locally owned

10 40

Doanket I 2003Dong Da (Hanoi)

Chuong My (Hanoi)

Locally owned

100

Etop 1995Ha Dong (Hanoi)

Phu Xuyen (Hanoi)

Locally owned

100

GG Concept 2013District 1

(Ho Chi Minh City)Tan Uyen

(Binh Duong)Locally owned

20 100

Giao Chau 2007Chuong My

(Hanoi)Chuong My

(Hanoi)Locally owned

20 50

Hien Luong 1998Phu Xuyen

(Hanoi)Phu Xuyen

(Hanoi)Locally owned

30 20

Hong Duong 1995Chuong My

(Hanoi)Chuong My

(Hanoi)Locally owned

50

Khang Viet 2012Phu Loi

(Binh Duong)Di An

(Binh Duong)Locally owned

25 30

Kim My Tuyen 2009Bien Hoa

(Dong Nai)Bien Hoa

(Dong Nai)Locally owned

25 10

Lien Thang 2006Dong Da (Hanoi)

Thai Binh (Thai Binh)

Locally owned

30 200

Orient Handicraft 2003District 7

(Ho Chi Minh City)Go Cong

(Tien Giang)Locally owned

18 52

Thuan Thuong 2004Binh Thanh

(Ho Chi Minh City)

District 12 (Ho Chi Minh City),

Trang Bang (Tay Ninh)

Locally owned

150

24 Vietnam Sourcing Reports

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Locallo

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Supplier ProfileSupplier Profiles

Capability

Contact details

ANC Co. Ltd

Annual sales $350,000 Share of total sales 100% Annual export sales $350,000 Total monthly capacity 7,000 pieces Average monthly output 5,000 pieces Capacity utilized 71% Average monthly exports 5,000 pieces Export ratio 100%

Company facts

Year established 2005 Head offi ce location Cau Giay (Hanoi) Factory location(s) Phu Xuyen (Hanoi) Ownership Locally owned Full-time employees 20 Part-time employees 150 Total annual sales (all products) $350,000

Sales & output: Wicker baskets

Processes performed Material treatment ✓

Cutting ✓ Weaving ✓

Shaping ✓

Painting ✓

Polishing ✓

Exports by product Bamboo baskets 70%Rattan baskets 20%Natural material baskets 10%Plastic baskets –

Exports by market North America 30%EU 40% Europe (non-EU) –Asia-Pacific 30%Middle East –Other –

Established in 2005, ANC manufactures handicrafts made of natural materials.

The entire wicker basket output is sent abroad. The EU accounts for 40 percent of shipments, with the UK and France as the main destinations. Equal portions of the remainder go to the US and Japan.

Products in the line include storage, laundry and picnic baskets, serving trays, plates, bowls, and planters.

The midrange and high-end price segments are targeted. Quotes are from $3 to $40. Bamboo baskets are offered for $3 to $6. Rattan models are available for $4 to $20.

Key materials, including bamboo and rattan, come from various parts of the country. Minor components such as seagrass, palm leaf, water hyacinth and fern are bought from Hanoi, and Hoa Binh and Nghe An provinces. Laminated bamboo procured from

Nam Dinh province is also adopted.

The company has two designers who can release 100 new models per year. Samples are finished in 10 days.

ANC has a 500sqm workshop in the Phu Xuyen district of Hanoi. Although most manufacturing processes are done manually, cutting and drying machines are also used. Weaving and molding are subcontracted to 150 home-based artisans in the vicinity.

Twenty permanent employees handle finishing stages, including painting and treatment against pests. Up to 7,000 pieces are produced monthly.

Three QC personnel conduct inspections on all items prior to packing.

Cartons are normally used as packaging. The minimum order requirement is 100 pieces. Delivery is within 45 days, depending on shipment volume.

Business contactNGUYEN Hoai Giang

Phone(84-4) 3769-0186

Fax(84-4) 3769-0186

E-mailancsupplier@vnn.vn

URLwww.ancsupplier.com

Address1109 Vimeco Building, Pham Hung Street, Cau Giay, Hanoi, Vietnam

28 Vietnam Sourcing Reports

INQUIRE NOW

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Supplier Profile Executive Sum-Supplier Profiles

Popular export models

Model: ANC-SA58-2MOQ: 100 piecesPackaging: CartonDelivery: 45 daysPrice: $3 to $9Description: Laundry basket; bamboo body and cotton lining; natural color; 36x36x45 or 40x40x48cm

Model: TQB 1493WMOQ: 100 piecesPackaging: CartonDelivery: 45 daysPrice: $3 to $5Description: Storage basket; bamboo; white; 10.2x11cm

Model: TQB 1491MOQ: 100 piecesPackaging: CartonDelivery: 45 daysPrice: $3 to $4Description: Storage basket; bamboo; black; 16.9x23cm

Model: ANC-SA55-3MOQ: 100 piecesPackaging: CartonDelivery: 45 daysPrice: $3 to $6Description: Laundry basket; bamboo body and cotton lining; 36x51, 40x56 or 46x59cm

Model: ANC-NDT38705MOQ: 100 piecesPackaging: CartonDelivery: 45 daysPrice: $4 to $8Description: Laundry basket; bamboo; 0.9 to 1.8kg capacity; 30x24 or 40x35cm; in various colors

Model: ANC-HT4195-3MOQ: 100 piecesPackaging: CartonDelivery: 45 daysPrice: $3 to $5Description: Storage basket; bamboo; tricolor; 63x43x31cm basket and two 39x32x27cm removable compartments

www.ChinaSourcingReports.com 29

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TQB 1491491100 pieces100 pieces

kaging: CartonCartonDelivery:ery: 45 days 45 daysPrice:e: $3 to $4 $3 toDescription:cription: Storage b black

For other inquiries E-mail: service@globalsources.comTelephone Hotline: (65) 6547-2800

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