Introduction
Rationale and significance of the study
1.1.1 Tourism and community economic development
Tourism is one of the fastest-growing global industries, significantly influencing economies beyond its direct contributions According to the World Tourism Organization (WTO), the tourism sector accounted for 9% of the global GDP in 2014, generating over $1.4 trillion in exports and supporting 1,087 million jobs in 2013 Additionally, international tourist arrivals are projected to grow by 3.3% annually from 2010 to 2030, reaching an estimated 1.8 billion by 2030.
Many less-developed countries (LDCs) view tourism as a key strategy for economic development in rural and peri-urban areas, contributing to poverty alleviation Research indicates that tourism can provide additional earnings for impoverished populations and is promoted as an effective development strategy to enhance technology transfer, employment opportunities, and GDP growth.
Tourism has significant potential to drive economic development in impoverished rural communities, as highlighted by various researchers (Goodwin, 2008; Mitchell & Ashley, 2010; Scheyvens & Russell, 2012) Numerous studies have explored how the sale of handicrafts can enhance the benefits experienced by local populations.
P a g e | 2 communities receive from tourism (Mairna, 2011; Nedelcheva, Dogan, Obratov- Petkovic, & Padure, 2011; Tsuji & Van, 2002)
Local cultural experiences significantly influence tourists' decisions to visit destinations globally By selling local cultural products and services to visitors, rural and peri-urban communities can generate additional income and engage in the tourism exchange Research by Chok, Macbeth, and Warren (2007) suggests that enhancing tourists' understanding of traditional handicraft village activities can lead to greater economic benefits rather than merely increasing tourist numbers Studies have highlighted the importance of local community participation and the positive effects of traditional handicrafts in boosting tourism benefits for these communities.
P Murphy, 1983; Taylor, 1995) Tourism destinations that focus on local cultural products have the potential to increase the chances for local economic growth (Ashley, Haysom, Poultney, McNab, & Harris, 2005a) For that reason, many LDC governments are putting considerable effort in the promotion, protection and preservation of the culture of traditional handicraft villages (i.e villages that have at least one traditional handicraft)
The tourism industry is inherently interconnected with various economic sectors, necessitating collaboration for its growth According to Spenceley et al (2009), tourism encompasses all economic activities related to the production and sale of products or services Mitchell and Ashley (2009) highlight that value chain analysis (VCA) is effective in helping rural communities in developing countries enhance their engagement with tourism, offering insights into the interconnected sectors that shape the tourist experience The VCA approach identifies critical points for intervention, enabling local communities and tourists to benefit from expanded opportunities and structural changes in service and product chains However, critics argue that VCA often overlooks the perspectives of multiple stakeholders, particularly the role of consumers, leading researchers to adapt the approach for a more comprehensive understanding of visitor experiences (Ateljevic, 2000; Spenceley et al., 2009).
P a g e | 3 or evolved dimensions that reflect different contexts and needs (Frommenwiler & Varga, 2015; Romero & Tejada, 2011; Song, Liu, & Chen, 2012; Wash, 2011)
1.1.2 The case of Phuoc Tich village
The research presented in this thesis centers on Phuoc Tich pottery village in Thua Thien Hue province, renowned for its traditional pottery crafts and well-preserved ancient houses that have stood for 500 years These structures exemplify the unique architectural and cultural heritage of central Vietnam With approximately 950 traditional handicraft villages across the country, Phuoc Tich, like many others, is actively seeking strategies to boost income and employment opportunities for its residents while addressing the challenge of youth migration to urban areas.
Traditional handicraft villages in Vietnam, such as Tuong Binh Hiep for lacquer ware, Battrang for ceramics, Van Phuc for textiles, Dong Ho for folk paintings, and various locations for wood and stone carving, primarily focus on producing goods for local and domestic markets.
The severe competition from inexpensive imported goods, limited access to production technologies, and a lack of investment capital have led many traditional handicraft villages to reduce production, putting old skills and products at risk of extinction The Vietnamese government recognizes the importance of strengthening connections between tourism and traditional handicrafts as a crucial strategy for alleviating poverty in rural and peri-urban areas However, significant challenges exist in establishing these linkages, which has motivated the focus of this thesis on understanding and overcoming these obstacles.
Research aim and questions
This thesis contends that a comprehensive understanding of various stakeholders' perspectives is essential for enhancing the connections between tourism and traditional village handicraft industries The primary objective of this doctoral study is to analyze the advantages and disadvantages of employing the Value Chain Analysis (VCA) approach to explore the economic relationships among tourism, pottery, and community economic development in Phuoc Tich Heritage village in Central Vietnam The research is guided by specific questions aimed at uncovering these critical linkages.
1 What are the current value chains for pottery production and for the tourism industry at Phuoc Tich Heritage village? At what points do the chains interconnect?
2 What are the characteristics of the key stakeholders (i.e the tourists, the local community, the local producers, the entrepreneurs: suppliers, tourism operators, and the key informants: planners and government officials) in the Phuoc Tich tourism–pottery value chain?
3 What specific roles do these stakeholders play in the value chain? What are the linkages between stakeholders and how might these be understood, facilitated and enhanced?
4 What are the strengths and weaknesses of the value chain analysis approach in this particular case study setting?
5 How can the value chain analysis approach be strengthened further, especially with respect to non-economic dimensions?
This thesis employs a combination of mixed and embedded interpretive research methods to gather insights from various stakeholders, including planners, public officials, local residents, entrepreneurs, tourism operators, and tourists Utilizing mixed methods, particularly a single case study approach, is effective for capturing diverse perspectives, elucidating causal relationships in real-life interventions, and facilitating a thorough exploration of the underlying dynamics.
This thesis aims to enhance the understanding of tourism's role in boosting local economies through increased engagement with local handicrafts It addresses a gap in research by exploring the connections between tourism and community economic development (CED) in handicraft villages from a multi-stakeholder perspective Building on previous Pro-Poor Tourism Pilot Projects conducted in Africa from 2002 to 2005, as well as more recent global applications, this study highlights the significant developmental benefits of localizing the procurement of food, handicrafts, and services Additionally, it offers practical insights on effectively implementing these strategies.
To enhance corporate supply chains, it is essential to integrate local micro- and small entrepreneurs, highlighting the necessity for a comprehensive grassroots approach that involves multiple stakeholders Strengthening and developing Value Chain Analysis (VCA) can offer valuable insights and contribute to Community Economic Development (CED) in rural and peri-urban regions, including Vietnam.
Organisation of the thesis
Chapter Two offers a comprehensive literature review on value chain analysis and its relevance to tourism research, emphasizing the tourism industry's contribution to Community Economic Development (CED) It highlights the critical role of various stakeholders in CED and examines the current state of Vietnam's tourism sector, along with the strategic poverty alleviation objectives set by the Vietnamese government Additionally, the chapter discusses the significance of traditional handcraft villages and their relationship to CED in Vietnam.
Chapter Three details the methodology employed in the study, emphasizing the interpretive paradigm and mixed methods approach that combines qualitative and quantitative data collection It explains the rationale for selecting this mixed methodology, including the embedded data collection process, and provides an overview of the case study destination The chapter outlines the overall study design, highlighting the semi-structured interview process with stakeholders and the questionnaires utilized for data gathering Both data collection methods were implemented concurrently, with their findings integrated in the results analysis Finally, the chapter addresses the challenges of interpreting the data and the ethical considerations surrounding the confidentiality of information disclosed during key informant interviews.
Chapter Four delves into the revival of traditional handicrafts within local tourism development in Vietnam, particularly in Thua Thien Hue province, highlighting the case of Phuoc Tich Heritage village It examines the current tourism landscape in Phuoc Tich and the connections between the tourism industry and traditional pottery Additionally, the chapter emphasizes the importance of community collaboration and stakeholder involvement in the revival of traditional handicrafts.
P a g e | 6 and local tourism development The last section of the chapter identifies opportunities to enhance the ways in which the local community activities can participate in the global tourism chain
Chapter Five profiles the tourists visiting Phuoc Tich village, highlighting their involvement in local daily activities It delves into the characteristics and motivations of these tourists both prior to and during their visit Understanding the appealing and less attractive aspects of Phuoc Tich Heritage village is crucial for planning and developing community economies that integrate traditional handicrafts with tourism.
Chapter Six explores local residents' perceptions of the benefits derived from traditional handicrafts and their potential integration into tourism It assesses the extent and nature of local participation in the tourism sector Additionally, the chapter addresses community-related challenges in enhancing the connections between tourism and the traditional handicraft industry.
Chapter Seven delves into 'external stakeholders' associated with the traditional handicraft and tourism industries, highlighting their significant influence on the economic future of Phuoc Tich This group, which includes hotel managers and government officials, operates outside the village yet plays a crucial role in its development The chapter further investigates the integration of traditional handicrafts with tourism through the lens of Community Economic Development (CED) and addresses the perceived constraints that hinder the connections between these two vital sectors.
Chapter Eight synthesizes the findings by highlighting key themes that emerged across various stakeholder groups discussed in previous chapters It identifies critical cross-cutting themes and explores how these can enhance the connection between traditional handicrafts and tourism, ultimately contributing to community economic development (CED).
Chapter Nine summarizes the thesis's contributions to the literature on the Value Chain Analysis (VCA) approach, emphasizing the connections between tourism, traditional handicrafts, and community economic development It concludes that tourist participation in the traditional handicraft production chain, along with direct interaction, significantly enhances their tourism experience and benefits the local community economically.
The article suggests a future research agenda focused on exploring the integration of traditional handicrafts into tourism as a means to foster community economic development, with implications for Vietnam and other regions.
The Tourism Industry, Value Chain Analysis and Community
The Tourism industry
2.1.1 Alternative tourism and its characteristics
Governments of least developed countries (LDCs) and various global agencies, including the Netherlands Development Organisation (SNV), the Overseas Development Institute (ODI), the World Bank (WB), and the Asian Development Bank (ADB), are prioritizing tourism as a crucial element in their development strategies to meet the United Nations' Millennium Development Goals (MDG) This approach highlights tourism as a vital tool for pro-poor initiatives and poverty alleviation efforts.
Tourism is increasingly recognized by governments in less-developed countries (LDCs) as a key strategy for economic development in rural and peri-urban areas, contributing to poverty alleviation The Asian Development Bank (2008) highlighted tourism's potential to provide additional earnings for impoverished populations Numerous studies indicate that tourism can significantly enhance economic development for local communities Furthermore, research has shown that handicraft sales can amplify the benefits that these communities derive from tourism, reinforcing the argument that evolving tourism trends can effectively generate income and employment opportunities in handicraft-focused villages.
In the early 1990s, the New Age tourism movement gained attention as an increasing number of 'alternative' tourists sought unique and authentic experiences, emphasizing individualism in their travel choices (Telfer & Sharpley, 2008).
Tourism is fundamentally about the interactions between tourists and local communities, with visitors consuming cultural products and services on-site (2008) This interaction not only enhances the tourist experience but also provides additional income for people in rural and peri-urban areas According to Chok et al (2007), promoting traditional handicraft villages and their activities can significantly benefit destinations, offering a strategic alternative to simply increasing tourist numbers Local cultural experiences serve as key attractions that draw visitors, emphasizing the importance of authentic engagement in tourism development.
P a g e | 10 tourists’ initial decision to travel to destinations around the world (Telfer & Sharpley,
Research indicates that local community involvement and traditional handicrafts significantly enhance tourism benefits for local populations Destinations that emphasize local cultural products are more likely to experience economic growth Consequently, many governments in less developed countries are actively working to promote, protect, and preserve the culture of traditional handicraft villages.
The tourism industry significantly influences the economy through key sectors such as accommodation, restaurants, transportation, entertainment, tours, and retail trade These sectors generate direct economic benefits, highlighting the vital role of tourism in driving financial growth and stability.
Foreign exchange receipts alone do not capture the full economic impact of tourism due to various indirect connections to supporting sectors (2000) By minimizing leakages and utilizing locally sourced goods and services, tourists can financially benefit the communities they visit, ultimately enhancing the country's economy (Ashley et al., 2007; Spenceley & Meyer, 2012) Tourism also highlights local specialties, such as cultural and agricultural products, allowing communities to leverage their comparative advantages for economic gain Additionally, tourist interest can revitalize cultural customs, crafts, and events, helping to preserve traditions that may otherwise fade away (Spenceley et al., 2009) Moreover, tourism provides visitors with the opportunity to experience the traditional lifestyles of local villagers while simultaneously safeguarding local culture (Mbaiwa).
2011), and increasing the income people generate from it (Ashley et al., 2009).
Traditional handicrafts and the tourism value chain
The concept of the value chain, introduced by Michael Porter in his 1985 book "Competitive Advantage: Creating and Sustaining Superior Performance," outlines the activities an organization undertakes and their connection to competitive positioning Porter identified two categories of activities: primary and support Primary activities, which directly relate to the creation or delivery of products or services, encompass five key areas: inbound logistics, operations, outbound logistics, marketing and sales, and service Each of these primary activities is interconnected, playing a crucial role in the overall value chain.
Support activities play a crucial role in enhancing the effectiveness and efficiency of organizations According to Porter (1985), these activities encompass four key areas: procurement, technology development, human resource management, and infrastructure, which includes systems for planning, finance, quality, and information management.
Kaplinsky and Morris (2001) describe the value chain as the comprehensive set of activities needed to take a product or service from its initial conception through various production phases, culminating in delivery to consumers and eventual disposal (p 4) Numerous academic studies have explored the value chain's relevance to tourism and local communities, including research by Ashley, Goodwin, and McNab (2005), Frommenwiler and Varga (2015), Mitchell (2012), Romero and Tejada (2011), and Tejada, Santos, and Guzmán (2011).
Value chain analysis (VCA) is a method for dissecting a production chain to understand its structure and functioning, focusing on the inter-linkages between producers across various sectors, which reveals dynamic economic, organizational, and coercive activities on a global scale This approach has gained traction among NGOs and donor agencies due to its comprehensive analysis of chain activities and end products VCA operates at multiple spatial levels—local, national, regional, and global—though it may emphasize different concepts depending on the scale Over the past decade, VCA has evolved into a significant development tool, attracting attention from development workers and policymakers alike.
Understanding the distinctions between supply chains, production chains, and commodity chains is crucial, as each has a unique focus yet shares significant overlaps and lacks consensus on definitions (Hoermann et al., 2010) This research will adopt specific definitions for key terms related to Value Chain Analysis (VCA) approaches, as outlined in Table 2.1.
Table 2.1: Major terms given to value chain analysis approaches
“A network of labour and production processes whose end result is a finished commodity.”
A supply chain is a network of organizations, individuals, activities, information, and resources that work together in a value-adding process, starting from raw materials and culminating in the final product.
Ashley, Goodwin, et al., 2005; Gereffi, Humphrey, Kaplinsky, & Sturgeon, 2001; Petry et al., 2011; Tapper, 2001
A focus on the international production networks in which multinational corporations act as global network flagships
Coe, Dicken, & Hess, 2008; Ernst & Kim, 2002; Gereffi et al., 2001
The internal governance structure of supply chains plays a crucial role in distinguishing between producer-driven and buyer-driven models Diverse lead firms significantly influence the establishment of global production and sourcing networks, shaping the dynamics of how goods are produced and distributed worldwide.
In the 1960s, a collection of studies focused on the filière, or chain of activities, to analyze agricultural export commodities, primarily examining local production systems and consumption However, aspects such as international trade and processing were largely neglected until the 1980s, highlighting a shift in research focus over time.
The value chain concept highlights that competitive advantage is influenced more by location-specific conditions than by the factor-cost differentials emphasized in neoclassical theory Porter's analysis underscores the significance of local rivalry and unique demand conditions in shaping this competitive edge.
Transnational corporations are undergoing a transformation by redefining their core competencies to prioritize innovation, product strategy, and high-value segments in manufacturing and services This shift involves minimizing direct ownership of non-core functions, such as generic services and mass production.
Barham, Dorry, & Schamp, 2007; Gereffi, Humphrey,
All the services enjoyed by a segment of the tourist market, the international and national businesses that serve them, to suppliers and workers, as well as support institutions
The globalisation of tourism markets among the different participating agents in a value chain
M P Tejada & Linan, 2009; P Tejada et al., 2011
The analysis of a commodity chain reveals how social relations influence the stages of input acquisition, manufacturing, distribution, marketing, and consumption (Gereffi & Korzeniewicz, 1994; Hopkins & Wallerstein, 1986) Within this framework, specific elements of the commodity chain can be visualized as interconnected nodes, each representing critical processes such as sourcing raw materials, production, labor management, transportation, and distribution channels This interconnectedness culminates in the final consumption of the product An example of this is illustrated in Figure 2.1, which depicts the commodity chain for brocade production.
Figure 2.1: A simple commodity chain for brocade production
Mulberry plays a crucial role in silkworm production, as its leaves are the sole food source for these insects In various climates, including tropical, subtropical, and temperate regions, enhanced mulberry species yield higher quantities and superior quality leaves The quality of silk yarn is closely linked to both mulberry cultivation and silkworm rearing practices Additionally, individual leaf picking is often utilized for feeding silkworms, making it a viable practice for small-scale households (Matsuura, 2012).
Silk yarns are often blended with other materials to reduce costs, and local artisans utilize various natural resources such as leaves, roots, bark, and flowers from trees like mango, almond, guava, coffee, tea, and jackfruit to dye silk and cotton yarns The dyeing process is influenced by several factors, including temperature, heating time, water quality, rinsing methods, the quantity of yarn per batch, and the precise mixture of water, dye, and ash used to fix the color After dyeing, the finished products undergo multiple stages of processing to ensure quality.
The commodity chain involves various distribution channels, including exporters and traders, before products reach the final consumers (Matsuura, 2012) Key stakeholders in this chain include raw material suppliers, artisans, intermediaries, and end users.
2.2.2 Tourism value chain and traditional handicraft value chain
Value chain analysis (VCA) is an essential tool for assessing the connections and economic dynamics related to tourism Based on Porter’s (1985) framework, VCA primarily focuses on business applications, making it a valuable resource for enhancing management decisions and executive strategies (Van den Berg et al., 2008).
Tourism, stakeholders and community economic development (CED)
Stakeholder involvement and support is a key factor in successful implementation of sustainable tourism development in a community (Byrd, 2007; Frommenwiler & Varga,
Engaging with the local community during the planning and implementation of tourism and community economic development (CED) projects is essential for ensuring their long-term success and sustainability Researchers emphasize the importance of stewarding local resources and balancing the demands of tourism with the community's other needs and priorities when developing a destination.
When transforming an area into a tourism attraction, it is crucial to recognize the roles of various stakeholders and their collaboration to enhance local benefits Sustainable development in tourism destinations necessitates the involvement and efforts of multiple stakeholders with diverse interests.
To effectively understand the influence of culture and power on tourism-related stakeholders, it is essential to conduct detailed studies of the systems, processes, and interactions involved in tourism (2007) This approach requires examining how tourism integrates into existing businesses by analyzing individuals' overall livelihood profiles and determining how tourism activities align with their lives (Iorio & Corsale, 2010; Tao & Wall, 2009).
Collaboration, as defined by Monypenny (2008), refers to the various ways individuals work together to meet their goals and strategize for the future, often encompassing terms like partnerships, cooperation, and networking Each stakeholder contributes unique resources, including knowledge, expertise, and capital, which play a crucial role in the collaborative process (Bramwell & Lane).
To enhance tourism destinations and improve living conditions for residents, stakeholders must collaborate effectively (Ashley et al., 2005) This collaboration can involve various combinations of public and private entities, as well as community engagement, fostering cross-sector planning and collective decision-making (Okazaki, 2008) Pongponrat (2011) emphasized that developing countries require deeper stakeholder involvement in tourism initiatives compared to developed nations Raising awareness about the tourism industry through dialogue, idea exchanges, and shared experiences is crucial for empowering stakeholders to engage meaningfully in local tourism development.
Community-based tourism practitioners emphasize the importance of collaboration among various stakeholders and the necessity for diverse policy and planning initiatives According to Davies and White (2012), collaboration involves stakeholders working together in priority setting, as well as in the planning, implementation, and evaluation phases Potts and Harrill (1998) support this perspective by considering tourism planning and development as a collective effort that requires active participation from all involved parties.
P a g e | 24 a political process within which the numerous stakeholders representing the community, industry and environmental interests can strive together for common objectives” (p
Joint decision-making and collaboration among stakeholders are crucial for achieving sustainable tourism development outcomes By fostering cooperation among diverse groups, such as government, the private sector, NGOs, and local communities, a deeper understanding of tourism challenges can be developed This collaborative approach not only enhances tourism initiatives but also has significant potential to alleviate poverty Key players in this process include local residents, authorities, entrepreneurs, and tourists, all of whom contribute to community economic development through tourism.
The skills and knowledge of a community are vital for both tourism and community development, as highlighted by Aref, Redzuan, and Gill (2010) and Robinson and Picard (2006) Telfer and Sharpley (2008) emphasize that local communities are increasingly recognizing the unique products and experiences they can offer to tourists seeking new destinations According to Cheong and Miller (2000), community members can be both proactive and resistant, actively negotiating the development direction to protect their rights and interests Since tourists often lack familiarity with new destinations, the host community plays a crucial role in meeting their needs, even when those needs are not explicitly articulated.
Tourists prioritize accessibility and safety, especially during the rainy season, and seek high-quality services and products Research by Patterson and Pegg (2009) indicates that senior tourists favor experiences over material goods, prompting the need for tourism offerings to be marketed as challenging, exciting, and authentic To accommodate older travelers, many tour operators have adjusted their trips by reducing daily travel distances, utilizing lighter backpacks, and providing alternative activities like rowing on white-water excursions Additionally, Reisinger and Turner (2003) emphasize the importance of the host community in bridging the gap between tourists' expectations and the actual experiences offered at the destination.
P a g e | 25 prior to their arrival Close interactions between local communities and tourists can create conditions that dispel potentially damaging myths and stereotypes on both sides (Robinson & Picard, 2006).
Tourism can significantly contribute to poverty alleviation in rural areas by offering economic opportunities and involving small and medium-sized tourism enterprises (SMEs) in decision-making processes According to Cooper et al (1993), local entrepreneurs play a crucial role in connecting buyers and sellers, thereby enhancing market efficiency While SMEs have the potential to differentiate themselves through customized products and personalized service for tourists, many large organizations often operate with minimal competition from these smaller enterprises.
In their 2009 study, Ashley and Mitchell emphasized the importance of recognizing market-driven entrepreneurs who can influence product and market development Local entrepreneurs, particularly tour operators and hoteliers, play a crucial role in helping local producers create authentic, unique, high-quality, and innovative products.
The presence of tourism entrepreneurs in a community largely determines the pace and success of tourism development overall (McGehee & Kline, 2008) Forstner
In 2004, it was emphasized that targeted policies for tourism-related ventures are essential for fostering local development, and these should be integrated into broader rural development frameworks Many governments promote cooperative business models to enhance economic sustainability while providing sociocultural and environmental advantages to members (Mohamad & Hamzah, 2013) However, Telfer and Sharpley (2008) critiqued some local entrepreneurs, labeling them as "the local elite" who, acting as "gatekeepers" to distant markets, may exploit the local economy (p 115).
Public sector policy instruments play a crucial role in shaping tourism development, which varies significantly across different local authorities and governance structures at community, regional, national, and international levels Przeclawski (1997) emphasizes that tourism administrations bear responsibility not only for the economic impacts but also for the social, cultural, and educational outcomes of tourism development.
To enhance tourism income, local governments must implement programs that engage local communities in all aspects of the tourism industry and its interconnected sectors (Tapper, 2001) However, Ashley (2006a, p 8) argues that government policies have primarily concentrated on increasing hotel capacity and visitor numbers, neglecting to shape the quality of tourist experiences and expenditures.
Spenceley et al (2009) highlighted that local authorities play a crucial role in shaping discussions and setting expectations for tourism destinations, emphasizing the importance of local linkages, community consultation, and the integration of local perspectives, biodiversity, and culture into development planning Furthermore, governments aim to guide the national tourism sector towards specific markets and diversify tourism offerings through various strategies, including product development, marketing, policy formulation, and investment (Forstner, 2004; ADB, 2005) Aref et al (2010) also noted that government departments and local authorities serve as vital support mechanisms, connecting communities with external resources to enhance tourism development.
The current status of tourism and community economic development in
Vietnam, located on the eastern side of the Indochinese peninsula, is a narrow country shaped like the letter 'S' It shares borders with Laos and Cambodia to the west, China to the north, and is flanked by the East Sea and the Pacific Ocean to the east and south.
P a g e | 29 total length from north to south is 1650 kilometres, and it has 3260 kilometres of coastline
Vietnam's diverse geography is characterized by three-quarters of its territory being mountainous, divided into four distinct zones: the north-eastern zone from the Red River to the Gulf of Tonkin, the north-western zone near the China-Vietnam border, the south Truong Son mountain zone along the south-central coast, and the Central Highlands, known for its fertile basalt soil The country is also home to two major deltas: the Red River Delta in the north, spanning 15,000 square kilometers and formed by alluvial deposits, and the Mekong River Delta in the south, covering approximately 40,000 square kilometers and recognized as Vietnam's largest rice-growing region due to its fertile land and favorable climate Together, these geographical features contribute to Vietnam's rich agricultural heritage and wet rice civilization.
Vietnam's climate is characterized by a tropical temperate environment influenced by both continental and equatorial ocean air streams, shaped significantly by the Asian monsoon The northern region experiences two distinct seasons: a hot season from May to October and a cold season from November to April In contrast, the central and southern regions are predominantly warm year-round, with a dry season from December to April and a rainy season from May to November, both influenced by the summer monsoon.
Since the launch of the ‘doi moi’ (renovation) process in 1986, Vietnam has experienced significant economic growth, with an average annual GDP increase of 7.5% since 1993 The poverty rate has dramatically decreased from 58% in 1993 to just 13% in 2008 Over the past two decades, the country has continued to make substantial advancements in both social and economic development, maintaining an impressive average annual GDP growth rate of over 7.1% in the last ten years.
In the period from 2003 to 2013 (see Table 2.2), GDP increased from US$39.5 billion to more than US$171.4 billion, taking the country out of the world’s less-
Vietnam's economic growth has demonstrated positive trends despite annual fluctuations Between 2004 and 2013, the GDP per capita rose significantly from $492 to $1,910, contributing to enhanced living standards in both rural and urban regions.
The construction and industrial sectors have demonstrated the highest growth among the three main contributors to GDP, while agricultural production has seen the least growth Although inflation has been managed effectively, the average annual growth rate from 2004 to 2013 was 10.9% Various factors, such as the significant inflation rate and the global recession during 2009 and 2010, have contributed to the declining growth indicators.
Table 2.2: Macroeconomic development in Vietnam 2004–2013
Source: General Statistics Office of Vietnam (GSO) (2011a, 2014)
Vietnam has seen a remarkable decrease in its average poverty rate, plummeting from 58% in 1993 to 13% in 2008 However, challenges persist in alleviating poverty and enhancing livelihoods, especially in rural and peri-urban regions, where disparities remain pronounced In 2010, the poverty rate stood at 17.4% in rural areas compared to just 6.9% in urban areas The government's poverty line for the period 2011–2015 set thresholds at US$20 per capita per month for rural residents and US$25 for those in urban settings Despite an impressive 80% reduction in poverty over the last 15 years, Vietnam continues to grapple with significant inequalities, particularly affecting rural communities.
2.4.2 An outline of tourism development in Vietnam
Tourism in Vietnam is one of the largest and fastest-growing industries, significantly contributing to foreign exchange earnings, income generation, job creation, and GDP share The economic and social impacts of the tourism sector are substantial, serving as a vital tool for enhancing connections among various sectors of the national economy and helping to alleviate local poverty.
The recent national socio-economic development programme emphasizes the importance of tourism, aligning with the Government's commitment to the United Nations' Millennium Development Goals (MDG) This integration of tourism as a supporting strategy offers significant potential for poverty alleviation As tourism flourishes, it enhances the local environment, improves living standards for residents, and stimulates demand for local goods and services, thereby generating job opportunities Additionally, tourism plays a crucial role in revitalizing folk festivals, preserving traditional handicrafts, and fostering cultural exchanges between different regions.
The 2005 Law on Tourism in Vietnam emphasizes the development of tourism in remote areas to boost local employment and reduce poverty The tourism industry is generally viewed as beneficial, contributing to job creation, economic growth, and community transformation Provinces like Hanoi, Thua Thien Hue, and Khanh Hoa have recognized tourism as a vital socio-economic driver However, despite the state's control over visitor attractions, there is a concern that the sector is not significantly aiding local poverty alleviation efforts.
To grasp the current state of tourism in Vietnam, it is essential to examine the industry's historical evolution and growth, particularly following the reunification of the country Since that pivotal moment, numerous tourism administrations and companies have emerged, shaping the landscape of travel and hospitality in Vietnam.
From 1975 to 1985, Vietnam's tourism industry faced significant challenges due to the destruction of infrastructure and landscapes caused by war, yet it successfully attracted visitors from socialist countries like Russia, China, and Eastern European nations Beginning in 1986, there was a notable increase in tourist arrivals from Western countries, including the USA Since the early 1990s, the tourism sector has continued to achieve remarkable growth and success.
The Vietnamese government recognizes tourism as a vital economic sector with significant cross-sectoral and social characteristics, capable of substantially contributing to GDP As a result, there is a strong commitment to developing the tourism industry to meet tourist demands while enhancing community welfare and supporting national socio-economic growth Various tourism policies and regulations have been established, improving the governmental framework from central to regional levels and enhancing management skills in the sector.
According to the General Statistics Office of Vietnam, international visitor arrivals have significantly increased over the past 12 years, surpassing 2 million in 2000, reaching 5.1 million in 2010, and hitting 6.8 million in 2012 The UNWTO reports that Vietnam's international visitor growth rate of 8.9% over the last decade has greatly exceeded the global tourism growth rate of 3.4%.
As Vietnam's per capita income has risen, there has been a notable increase in domestic tourism, with around 28 million Vietnamese residents traveling within the country in 2010 Additionally, the average duration of international visitors' stays grew from 5.5 days in 2001 to 6.7 days by 2010, while domestic travelers extended their trips from an average of 2.6 days.
An overview of Vietnamese traditional handicraft
2.5.1 The characteristics of Vietnamese traditional handicraft
The handicraft village is one of the characteristics of Vietnam’s rural areas (Phat, Dat,
Handicrafts produced by local residents during off-peak agricultural seasons have evolved into valuable goods for trade, enhancing household living standards These handicraft villages boast rich histories that intertwine with Vietnam's socio-economic, cultural, and agricultural development Notable examples include the 900-year-old bronze-casting village of Daibai in Bac Ninh province and the 500-year-old Battrang pottery village in Hanoi, showcasing the enduring legacy of traditional craftsmanship in the region.
Non Nuoc, established 400 years ago, is renowned for its handicrafts that originally served as household items and tools The production techniques have been handed down through generations, highlighting the village's deep connection to agriculture These handicrafts are an essential aspect of Vietnamese cultural heritage, reflecting the intertwined relationship between artisanal work and agricultural practices.
According to Decree No 66/2006/ND-CP from the Ministry of Agriculture and Rural Development (MARD), a traditional handicraft village is defined as one where at least 30% of households engage in handicraft production for a minimum of two years, adhering to government policies A traditional handicraft is characterized by its existence for at least 50 years, its reflection of regional cultural identities or its potential risk of loss, and the presence of at least one renowned artisan or the village's name associated with the craft.
Vietnam is home to numerous traditional handicraft village-based production centers where skilled artisans create daily use products, tools, and equipment for local markets (Thirumaran et al., 2014) The distribution and development of these handicraft villages are influenced by various factors, including geography, natural resources, population distribution, and socio-economic conditions, leading to uneven growth across the country Typically, these villages are situated in densely populated rural areas with limited agricultural land and surplus labor available after harvest seasons.
Vietnam is home to around 2,790 handicraft villages, with 60% located in the Red River Delta, 30% in central provinces, and 10% in the south These villages have undergone significant transformations to meet the demands of both domestic and export markets The process of industrialization, supported by government policies, has boosted production levels and increased local incomes Additionally, the Vietnamese Government has encouraged the establishment of new handicraft villages and complexes in rural areas to create more job opportunities and enhance the livelihoods of local communities.
Figure 2.8: The establishment of new handicraft villages in Vietnam
The new handicraft villages are not traditional ones; these villages have been established in the 1990s and 2000s due to:
Participation in outsourcing stages for export companies or big entrepreneurs,
Several households or handicraft villages catch the market’s demands and have resources for investment and production,
Self-establish based on the new market’s needs and the availability of input production materials
Handicraft villages can be classified in various ways, including traditional versus new handicraft villages, types of products produced, production scale, natural resource usage, and target markets The most recognized classification system is based on the work of Chi (2005) and the Ministry of Natural Resources and Environment (MoNRE).
In 2008, handicraft villages were classified into six distinct categories: (1) food processing, which encompasses animal husbandry and butchery; (2) textile production, including dyeing, silk production, and leather processing; (3) the production of construction materials and stones; (4) waste recycling; (5) handicraft fine art; and (6) other miscellaneous crafts Figure 2.9 illustrates the distribution of handicraft villages across these categories, as reported by the Ministry of Natural Resources and Environment (MoNRE).
Figure 2.9: Classification of Vietnam’s traditional handicraft villages
Source: Ministry of Natural Resources and Enviroment (MoNRE, 2008)
Food processing including animal husbandry and butchery
Textile production including dyeing, silk production and leather processing
The production of construction materials and stones
Every main group can be divided into several subgroups:
Vietnam is home to a rich tradition of handicraft fine-art, with villages specializing in pottery, glassware, wood carving, bamboo rattan, lacquer ware, embroidery, and sleeping mats, accounting for 40% of the country's handicraft villages These communities boast a long history, producing items that reflect authentic local characteristics and hold significant market value Despite the passage of time, production processes have remained largely unchanged, with skilled craftsmen demonstrating exceptional levels of skill and creativity in their labor.
Food processing including animal husbandry and butchery: This group comprises
Vietnam is home to 20% of its handicraft villages, which are spread across the country Food processing in these villages provides significant employment opportunities following agricultural production, as it does not require highly skilled labor and relies on traditional technologies that have remained largely unchanged These villages often engage in cattle-breeding activities and are renowned for producing a variety of food items, including wine, vermicelli, green bean cakes, and glutinous rice cakes, primarily using ingredients such as rice, corn, cassava, beansprouts, and peanuts.
Textile production in Vietnam, encompassing dyeing, silk production, and leather processing, represents 17% of the country's handicraft villages and boasts a rich history with unique characteristics Renowned for its silks, brocades, and woven fabrics, this industry holds significant economic and cultural value Despite the passage of time, traditional production techniques remain largely unchanged, and the artisans involved possess exceptional skills.
The production of construction materials and stones in Vietnam's handicraft villages has a rich history spanning hundreds of years, primarily situated in resource-rich areas Characterized by manual labor, basic working methods, and minimal mechanization, these villages play a crucial role in meeting the growing demand for building materials as living standards rise Currently, they account for 5% of the country's handicraft villages, highlighting their significance in the local economy.
Waste recycling: This group accounts for 4% of Vietnam’s handicraft villages
Recently established and still limited in number, these recycling initiatives are rapidly growing and encompass various scales and types, including metal, paper, plastic, and textile recycling Additionally, machinery villages that utilize scrap iron and waste materials for production fall within this category, with the majority situated in the northern provinces.
The "Others" category encompasses villages renowned for producing essential agricultural tools, including ploughs, rakes, shovels, scythes, and ropes, which cater to local living and production demands These villages have a rich history, with skilled craftsmen ensuring that their handicrafts maintain consistent quality and quantity over time.
In Vietnamese society, rural areas are characterized by the formation of villages, while urban areas are defined by guilds, both of which have existed since the nation's inception (Chi, 2005; Tsuji & Van, 2002) These entities foster community stability and cohesion through their own regulations known as conventions, designed to uphold good customs in alignment with state laws (Son, 2012) Each village elects a management board comprised of respected and experienced members to address communal issues and represent the village Additionally, villages are distinguished by their unique agricultural fields or economic activities, often bordered by bamboo, and celebrate cultural festivities at communal houses or river wharves, reflecting intricate family relationships (Son, 2012; Thong).
The commune house serves as the central hub for discussions and organization of important village matters (Son, 2012) Adherence to village conventions is essential for all residents Cultural tourism thrives on the unique festivities that honor the founders of traditional handicraft industries Reflecting the Vietnamese saying, “When you eat a fruit, think of the man who planted the tree,” these worship and thanksgiving celebrations enhance the cultural offerings of Vietnam's tourism (Son, 2012, p 3).
Summary
This literature review examines the barriers to tourism development, the importance of collaboration among various stakeholders, and the connections between the tourism value chain and other sectors Researchers emphasize that the skills and knowledge of stakeholders are vital for advancing both tourism and community development However, the differing perspectives of these stakeholders have not been analyzed through the value chain framework This thesis aims to fill this gap by adopting a multi-dimensional approach, utilizing a case study from Vietnam.
Tourism and traditional handicrafts in modern Vietnam are gaining attention from various stakeholders, including policymakers, NGOs, and professionals focused on sustainable community tourism Understanding the intricate relationship between production and tourism is essential for unlocking economic potential in villages The Value Chain Analysis (VCA) approach serves as an effective tool for this purpose, but it must be integrated within the broader context of the tourism-pottery chain, which involves multiple stakeholders in both pottery production and the tourism value chain To effectively address the unique criteria of the study setting, a modified value chain analysis is necessary.
Understanding the connection between tourism and traditional handicrafts is crucial in the Vietnamese context, as it allows local producers to enhance their skills and access more profitable markets The growth of the tourism industry presents an opportunity to support the handicrafts sector, which can contribute to poverty alleviation and rural development To effectively link tourism and handicrafts for community economic development (CED), it is essential to navigate the challenges highlighted by Mitchell and Muckosy.
(2008) in their review of CED project failures, namely a lack of effective strategic
Effective management, strategic planning, and improved governance are essential for optimizing the local tourism supply chain To fully realize the potential for Community Economic Development (CED), it is crucial to understand the intricacies of this supply chain and explore opportunities for integration with other value chains.