HO CHI MINH NATIONAL ACADEMY OF POLITICS
INSTITUTE OF POLITICAL ECONOMICS

PhD. Student NGUYỄN LÊ THU HIỀN
TRADITIONAL CRAFT VILLAGE FOR TOURISM
IN THUA THIEN HUE PROVINCE
Major : Political Economics
Code : 62 31 01 01
SUMMARY OF PhD. THESIS IN ECONOMICS
HANOI 6/2014
Works completed in the
Ho Chi Minh National Academy of Politics
Supervisor: Ass. Prof. Dr. Nguyen Thi Nhu Ha
Opponent 1:
Opponent 2:
Opponent 3:
This thesis shall be defended at the academy-level thesis evaluation
council at Ho Chi Minh National Academy of Politics.
At… o’clock on day…month….2013
This thesis can be seen at: National library and Library of Ho Chi
Minh National Academy of Politics
1
INTRODUCTION
1. The urgency of the thesis
In the historical development process of Thua Thien - Hue, since the
Nguyen Dynasty Hue was selected as the land for urban settlement, the
rural village system of Thuan Hoa - Phu Xuan at that time had some
motions together with the advent of the malls, docks especially, the
demand for commodity exchange created premises to promote the
development of handicraft industry; then the formation and development
process of handicraft villages was also the narrowing down of agricultural

tourists to visit, evaluating traditional values and purchasing the typical
goods of those traditional villages. This raises an inevitable requirement
that is to build and develop a number of traditional villages with
characterized, unique traditional values, with a lot of development
potential associated with the tourism sector.
In Thua Thien Hue province, the system of traditional villages is
abundant and diverse, converging several factors suitable to build into
traditional villages associated with the tourism sector. This is considered a
prominent advantage of Thua Thien Hue province in the process of
developing the tourism industry into a key economic sector. However, the
restoration and development of the traditional craft villages is still
generally spontaneous, based on the nature of the craft villages which are
simply of production quality, not conversed to serve tourism. From that it
has not timely met the needs of sightseeing, experiencing of visitors as
well as failing to meet the market needs for the kinds of tourism products.
This practice raises an urgent need for Thua Thien Hue in the socio-
economic development process, being objective, in line with the trend of
the times that is to restore and develop the system of traditional craft
villages associated with tourism service in a sustainable manner.
For this reason, the PhD student has chosen the theme: "Traditional
craft villages for tourism in Thua Thien Hue province" as her economic
doctoral thesis.
2. Objectives and research tasks of the thesis
2.1. Objectives of the study
Analysis and evaluation of traditional craft villages for tourism in
Thua Thien Hue province to determine the direction and propose some
solutions to develop traditional craft villages (TCV) for tourism in Thua
Thien Hue province by 2020.
2.2. Research tasks
To accomplish this goal, the thesis has the following main tasks:

market economy in socialist-oriented market economy and international
economic integration.
- In addition, the PhD student also uses the sample selection survey
methodology using questionnaires to collect the opinions of visitors,
artisans and producers, businessmen in TCV for tourism in Thua Thien
Hue province on issues relating to TCV for tourism. Due to limited time
and funds, the thesis only surveyed 151 craftsmen, 300 production
business units and 245 visitors to TCV for tourism in Thua Thien Hue
province. There is also the use of expert method to communicate directly
with a number of scientists, producers and businessmen in TCV for
tourism to further clarify the theoretical issues and practices related to the
thesis.
5. New contributions of the thesis
First, the thesis put forward the concept and characteristics, the role of
TCV for tourism on the basis of inheriting some of the views of the
previous studies of TCV in general and constructing criteria and factors
affecting the traditional craft villages for tourism.
Second, through researching the experience of developing TCV for
tourism in a number of countries and a number of localities, the thesis
4
draws on experience lessons in developing TCV for tourism for Thua
Thien Hue province.
Third, on the basis of analyzing, evaluating TCV for tourism in Thua
Thien Hue province over the reported figures of competent authorities and
practices in the survey questionnaire of the PhD student, the PhD student
makes assessments on the achievements, constraints and causes of the
limitations in the development process of TCV for tourism in Thua Thien
Hue province.
Fourth, the dissertation proposes directions and solutions to develop
TCV for tourism in Thua Thien Hue province by 2020.

Scientia Geographica Sinica Journal No.2, China, pp.21. 4) Kirsty
Blackstock (2005), A Critical look at Community Based Tourism,
Community Development Journal No.1, Oxford Univ Press, pp.39 - 49. 5)
Che Zhenyu, Bao Jigang (2006), Research on Tourism Development of
Traditional Villages and the Change of Form, Planners Journal No.6,
China, pp.13 etc.
1.1.2. Status of research of issues related to the theme of the
dissertation in the country.
Related to research issue of the dissertation, in the country there have
been a lot of scientists doing research with multiple angles and different
approaches, aiming to solve many different goals for traditional villages in
general in Vietnam which is divided into groups of scientific works
specifically as follows: 1) Group of scientific works researching TCV
history including works such as: Nguyen Huu Thong (2004), Hue craft and
traditional craft villages", Thuan Hoa Publishing House, Hue; Pham Con Son
(2004), Vietnamese traditional craft villages, Ethnic Cultural Publishing
House, Hanoi; Author Le Nguyen Luu (2/2013), Hue Traditional Craft
Villages, ancient and modern Hue magazine 2) Group of scientific works
which have codified basic theories relating to TCV such as: Mai The Hon
(2000), Developing traditional villages in the process of industrialization and
modernization in the environs of Hanoi capital, PhD Economics Thesis, Ho
6
Chi Minh National Academy of Politics; author Tran Minh Yen (2003),
Development of traditional villages in rural Vietnam in the process of
industrialization and modernization, PhD Economics Thesis, Ho Chi Minh
National Academy of Politics. 3) Group of the scientific works studying the
recovery process and the development of TCV of localities and in the
world including the works: Vietnam Institute of Social Sciences and
Northeast Asia Research Institute (2004), Conservation and development of
traditional craft villages in Japan, Ha Noi; Author Bui Van Hung (2006),

(2013), Developing craft villages, professions connected with tourism,
7
Proceedings of the "Workshop on Hue Festival of Craft and traditional craft
villages”, Hue, pp. 39 – 47, etc.
1.2. RESEARCH RESULTS OF PROJECTS DISCLOSED THAT
THE THESIS WILL HAVE INHERITANCE AND GAPS IN
RESEARCHING TCV FOR TOURISM THAT THE THESIS WILL
CONTINUE.
The PhD student draw the results of scientific works that have been
published that the thesis can inherit as:
- A number of issues related to traditional villages have been clarified
such as: the basic theory of traditional villages, the fundamental role of
traditional villages in the overall economic development and tourism
development in particular; overall assessment of the historical elements of the
formation of traditional villages in general, and traditional values of traditional
craft villages in Vietnam; identifying the important role of the restoration,
preservation and conservation of traditional values in general and traditional
values of Vietnam traditional villages in the process of development of
economy and tourism.
- The idea of developing tourism with many different forms of travel
combined with local TCV.
The research results of the scientific works published above, on the one hand,
has solved many problems of theoretical and practical importance related to
the recovery process and development of TCV in the world and in Vietnam;
on the other hand, with the trend towards modern development, international
integration, it has raises a critical need to continue to study the issues related to
TCV in new condition (associated with serving tourism) . Thus, the thesis
supposes that there are some issues that need to continue studying as follow:
- Clarifying the concept, features, the role of TCV for tourism in new
conditions of the country and the world.

developing into specific, outstanding occupations for production business,
associated with tourism activities, and providing travel products of TCV for
tourism to serve tourists, contributing to increased income for workers in TCV
from the sales of those tourist products.
2.1.2. Characteristics of traditional craft villages for tourism.
1) The business production organization operations of TCV for tourism
are associated with tourism activities; 2) Develop diversely in size, industrial
career structure and other services at TCV for tourism; 3) The tourist products
of TCV for tourism is concretized into handicraft products and other forms of
tourism services, very rich and diverse, driving to satisfy the needs of visitors;
4) The labor force in the traditional craft villages for tourism include skilled
artisans, holding the unique secret of the craft villages and skilled workers, the
apprentice; 5) TCV for tourism serve as the crystallization age-old cultural
values of the nation.
2.1.3. The role of traditional craft villages for tourism
9
TCV for tourism has an important role for the development of tourism,
economy and society in the localities specifically as follows:
First, TCV for tourism contributes to exploiting the resources about
tourism resources, investment capital, technical infrastructure and human
resources for the tourism development in the locality.
Second, TCV for tourism contributes to increasing supply and
diversifying tourism products locally.
Third, TCV for tourism contributes to create typical tourist destinations,
expanding forms of association and cooperation in the development of tourism
in the locality.
Fourth, TCV for tourism contributes to maintaining national identity in
Vietnam.
2.2. THE CRITERIA AND FACTORS AFFECTING
TRADITIONAL CRAFT VILLAGES FOR TOURISM.

workers in TCV for tourism, infrastructure in TCV for tourism.
2.3. EXPERIENCE FOR DEVELOPING TRADITIONAL CRAFT
VILLAGES FOR TOURISM AT HOME AND ABROAD.
2.3.1. Experience for developing TCV for tourism abroad
2.3.1.1. Experience of Oita province, Japan on developing sustainable
TCV
Oita is a province in southwestern of Japan, about 500 km from Tokyo.
The younger generation after graduating from universities, colleges,
vocational training schools will not want to return to the rural areas where they
were born and grew up, but want to stay in the cities and industrial centers.
This situation led to the devastation and severe reduction of the population in
rural areas in general and Oita in particular – almost only old people and
children in this area. Facing this situation, there are many proposals of a
number of initiatives to restore the economy of Oita, including the movement
"One Village One Product". A series of legal regulations were created to
restore production and career development of traditional handicrafts which
were referred to as "traditional occupation law."
2.3.1.2. Thailand's experience in tourism development in close
connection with traditional villages
In Thailand, the reorganization of the traditional village plays an
important role in the socio-economic development of the country, such as
contributing to preserving and enhancing skilled artisans, preserving
traditional values of the nation, creating jobs in rural areas, preventing
migration to large urban centers, creating products for export, tourism
products for developing TCV associated with serving tourism. From there,
promote the TCV associated with the development of tourism service, the
Thai government launched the program "One Tambon, One Product" also
known as "Thai Tambon Project" (in Thai language, "Tambon" means
"Village").
2.3.2. Experience of developing TCV for tourism domestically

create the attraction for TCV; 4) Gradually build the product brand for each
TCV for tourism under the motto "each village each product" by:
- Approving TCV for tourism products accurately to accredit the product
brands of those TCV.
- In certain periods, there must be guaranteed policies for TCV for
tourism products.
- Encourage and enhance the creativity of artisans for the construction and
development of TCV for tourism products.
- Development of TCV for tourism products to meet the requirements of
the laws of the market economy.
- There are many ways to harmonize tourism activities with TCV for
tourism to serve tourism effectively.
12
Chapter 3
STATUS OF TRADITIONAL VILLAGES
FOR TOURISM IN THUA THIEN HUE PROVINCE
3.1. POTENTIAL FOR DEVELOPING TRADITIONAL CRAFT
VILLAGES FOR TOURISM IN THUA THIEN HUE.
3.1.1. Status of traditional villages in Thua Thien Hue province.
In localities in Thua Thien Hue province there are now a total of 88
villages, of which 25 TCV for tourism are divided into 6 TCV groups
associated with specific products such as bamboo and rattan products, leaf
conical hats, confetti and paper paintings, terracotta pottery, wood carving,
bronze casting.
3.1.2. The main resources created to facilitate the development of
traditional craft villages for tourism in Thua Thien Hue
3.1.2.1. Cultural, human characteristics in TCV for tourism in Thua
Thien Hue province.
3.1.2.2. The tourism potential.
3.1.2.3. Infrastructure.

In 2011
In 2012
Criteria
P
R
(%)
P
R
(%)
P
R
(%)
P
R
(%)
P
R
(%)
1. Revenue from product
direct sales channel, in
which:
24.2
99.6
25.4
99.6
28.5
99.3
35.5
99.2
42.9

0.4
0.2
0.7
0.3
0.8
0.5
1.2
Total
24.3
100
25.5
100
28.7
100
35.8
100
43.4
100
(Source: Department of Planning and Investment Hue 2012)
3.2.1.2. The quantity and quality of tourism services of TCV for
tourism in Thua Thien Hue province.
A survey of 245 visitors with nationalities of Vietnam, Britain and
France to visit TCV for tourism in Thua Thien Hue province location on
the types of consumption of travel services of TCV for tourism in Thua
Thien Hue is shown in Table 3.5 below:
Table 3.5: Status of various types of consumption of travel
services in TCV for tourism in Thua Thien Hue province
Tourist service forms of TCV for tourism
Consumer tourists
(visits)

20
8.2
Difficult to answer
5
2.0
Total
245
100
(Source: Survey of the PhD student in 2012)
3.2.2. Workforce of TCV for DL serving in Thua Thien Hue province.
In Thua Thien Hue province there are 2,380 production facilities operating in 25
different TCV for DL, with 4,920 employees participating in as regular employees
and 2,760 employees participated as seasonal, mainly distributed mostly in 3 districts
in Quang Dien, Huong Thuy and Phu Vang with the corresponding percentage of
32.3%, 22.5% and 28.2%. And in Phong Dien, Huong Tra district and Hue City, the
number of craft villages are allocated fewer, with the corresponding ratio of 6.2%,
7.1% and 3.7%. At TCV for tourism in Thua Thien Hue province, the number of
artisans, skilled workers accounted for a too low rate of approximately 1.32% (67
people), 6.28% were artisans apprentice, equivalent to about 309 people, the
remaining was 92.4% of skilled workers, including about 4,544 employees,
representing specifically in table 3.9 as follows:
Table 3.9: Classification of labor by age and skill levels
Of TCV of DL in Thua Thien Hue province
Artisans
Highly skilled
workers
Skilled workers
Apprentice
Age group
Q (ppl)

0
0
31
0.6
27
0.5
30
0.60
18-49
0
0
25
0.5
3,590
73
199
4.05
15-18
0
0
0
0
909
18.5
80
1.63
Total
1
0.02
66

much
Criteria
No.
observed
(person)
No. Odv
(ppl)
R
(%)
No.
Odv
(ppl)
R (%)
No.
Odv
(ppl)
R (%)
No.
Odv
(ppl)
R (%)
Artisans
1
0
0
0
0
0
0
1

15
30.0
(Source: Survey of the PhD student in 2012)
3.2.3. Funds for developing TCV for tourism in Thua Thien Hue
Investment funds of the entity engaged in production in TCV for tourism
in Thua Thien Hue province have tended to increase over the years with an
average growth rate of capital investment for these TCV from 2008 to 2012
fluctuated in the range of 0.50% - 17%, in which capital investment for
business travel of TCV for tourism in Thua Thien Hue province in the period
2008-2012 was as follows:
Table 3:12: Investment capital for travel business of TCV for tourism
16
in Thua Thien Hue
Unit: million dongs
Investment capital for tourist business of traditional craft village for
tourism
In 2008
In 2009
In 2010
In 2011
In 2012
Names of product
groups of TCV for
tourism
Q
R
(%)
Q
R
(%)

21
410.1
22
2. Leaf hat
- Total investment level
1,710.8
100
1,712.5
100
1,793.4
100
1,861.9
100
1906.6
100
- Investment capital for
tourism business
171.1
10
205.5
12
233.1
13
279.3
15
343.2
18
3. Paper pictures and
paper flowers
- Total investment level

1,532.0
100
1,630.0
100
- Investment capital for
tourism business
112
7
141.3
9
16.07
10
168.5
11
244.5
15
5. Fineart carpentry
- Total investment level
1,466.7
100
1,710.0
100
1,774.3
100
1,804.0
100
1,774.0
100
- Investment capital for
tourism business

283.8
8
335.6
9
(Source: Department of Trade and Industry Hue 2012)
3.2.4. The level of scientific and technological application in the
production process in TCV for tourism in Thua Thien Hue province.
Common characteristics of TCV for tourism in Thua Thien Hue is the
manufacturing facilities are associated with housing, primarily using
manual labor. Except for some industries such as bronze casting, wood
carving, the owners can produce using some machinery, with an addition
17
of building part of the premises for production but not great, just
temporary housing. From the above characteristics, the level of scientific
and technological application in the production process in the TCV for
tourism is divided as per product groups in Thua Thien Hue has marked
difference, as shown in Table 3:15 below:
Table 3:15: The level of scientific and technological application in
TCV for tourism by product groups in Thua Thien Hue
Unit:%
Name of product goods of TCV
for tourism
Hand-
made
Semi-
mechanical
Mechanical
1. Rattenware
92
8

evaluating the preservation of uniqueness of craft production technology,
about the guidance for visitors during experience, about the
18
appropriateness of the application of modern science and technology in the
manufacturing process as well as efficiency and enjoyment for the
organization of experiencing activities during the time the tourists visit,
listening to the instructions and are directly involved in producing
handicraft products in TCV for tourism in Thua Thien Hue is expressed as
follows:
Table 3:16: Assessment of business production subjects towards
the traditional production technology in TCV for tourism in Thua
Thien Hue
Criteria
Selection
Quantity
R %
Not satisfied
140
46,7
Satisfied
100
33,3
Very satisfied
50
16,7
Difficult to
answer
10
3,3
Degree of keeping the peculiar

Very satisfied
50
16,7
Difficult to
answer
10
3,3
Showing tourists to see directly
how finearts handicraft products are
produced of TCV for tourism.
Total
300
100
Not satisfied
125
41,6
Satisfied
95
31,7
Very satisfied
60
20,0
Difficult to
answer
20
6,7
Degree of efficiency and
excitement of the combination between
traditional production technology and
modern production technology.

(%)
Q
R
(%)
Q
R
(%)
Q
R
(%)
Q
R
(%)
1.Total visitors visiting Hue
a. International pax
b. Domestic pax
1.680
790
890
100
47
53
1.450
650
800
100
44,8
55,2
1.500
600

Hue province 2012)
Though the survey of 245 tourists to TCV for tourism in Thua Thien
Hue province with nationalities of Vietnam, Britain and France on the
number of times visiting here, up to 71 people living in Hue, accounting
for 29%, the observers were mostly managers, professionals and some
employees who are engaged in the tourism business; there were 115
people, accounting for 47% to visit TCV for tourism in Thua Thien Hue
province once and most of these cases were international visitors. Besides,
the number of tourists visiting TCV for tourism twice and 3 times attained
a very low rate, specifically arriving twice there were only 13 people,
accounting for 5% and arriving 3 times there were only 10 people,
accounting for 4%. Thus, the tourism products of TCV for tourism in Thua
Thien Hue province do not have high quality, not really appeal to attract
tourists to visit TCV for tourism in the following times, which is shown in
Figure 3.4 as follows:
20
Chart 3.4: Proportion of the number of visitors arriving in TCV
for tourism in Thua Thien Hue
3.3. OVERALL ASSESSMENT OF TRADITIONAL CRAFT
VILLAGES FOR TOURISM IN THUA THIEN HUE PERIOD 2008-2012
3.3.1. The results achieved in the development process of TCV for
tourism in Thua Thien Hue province include: 1) Create more stable
seasonal jobs for idle labor, increasing income for workers at the locality;
2) vocational training has supported TCV for tourism in Thua Thien Hue
province such as bamboo, rattan, conical hats, wood carving improve
skills in the production of traditional products, decorative interior and
exterior products, finearts handicraft products catering for tourism and
exports; 3) Many new designs of handicraft products of TCV for tourism
in Thua Thien Hue province such as bamboo, rattanware, conical wooden
handicraft were improved; 4) Having created opportunities for hundreds of

transfer, job training, travel skills for the workforce in general and young
labor in particular in TCV for tourism in Thua Thien Hue province has not
yet been professional and efficient. 3) Due to the types of market of TCV
for tourism in Thua Thien Hue province such as the market of handicraft
products, the tourist market has not really and truly developed to meet
the practical needs of visitors. 4) Due to the construction of TCV for
tourism in Thua Thien Hue province under the motto "one craft village one
product" has not been uniform and also spontaneous. 5) Due to the
cooperation between TCV for tourism with other domestic and foreign
tourism businesses, and also associating with other forms of tourism in
Thua Thien Hue province has not been rigorous and effective, has not
really complied with the principle of sustainable development connected
with protecting the environment of craft villages and ecological
environment; 6) Due to the policies of the State and Thua Thien Hue
provinces related to TCV for tourism have not been established
specifically and in details, and not really associated with the practice.
22
Chapter 4
DIRECTION AND BASIC SOLUTIONS FOR DEVELOPING
TRADITIONAL CRAFT VILLAGES FOR TOURISM IN THUA
THIEN HUE PROVINCE
4.1. DIRECTION FOR DEVELOPING TRADITIONAL CRAFT
VILLAGES FOR TOURISM IN THUA THIEN HUE
4.1.1. Background and forecast of the development trend of TCV
for tourism in Thua Thien Hue province by 2020
In the context of the current economic crisis, the tourism sector is
assessed to be a pillar for sustainable economic development in the world.
On that basis, there are many forms of tourism development such as eco-
tourism, cultural tourism, community tourism, village tourism The TCV
in Thua Thien Hue province tends to grow in 2020 associated with serving

4.2.1.2. Development of handicraft products of TCV for tourism in
Thua Thien Hue
4.2.1.2. Development of the kinds of tourism services of TCV for
tourism in Thua Thien Hue
4.2.1.3. Brand promotion and marketing of tourism products of TCV
for tourism in Thua Thien Hue province.
4.2.1.4. Upgrading infrastructure, formation of shopping,
entertainment venues at traditional craft villages for tourism.
4.2.2. Investment and development TCV for tourism in Thua
Thien Hue
4.2.2.1. Capital investment for the development of TCV for tourism in
Thua Thien Hue province.
4.2.2.2. Development of TCV for tourism in Thua Thien Hue province
associated with sustainable environmental protection
4.2.3. Workforce training for TCV for tourism in Thua Thien Hue
4.2.3.1. Training and skills development for the workforce at TCV for
tourism in Thua Thien Hue
4.2.3.2. Training and improving tourism skills for the workforce in
TCV for tourism in Thua Thien Hue
4.2.4. Development of traditional craft villages for tourism
associated with other forms of tourism in Thua Thien Hue
4.2.5. Strengthen partnerships between TCV for tourism in Thua
Thien Hue province with the tourism businesses in other localities and
abroad.
4.2.6. Perfect mechanisms and policies of the State and Thua
Thien Hue province for traditional craft villages for tourism