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The EU spends a major concern to handicrafts with fair trade certification. Photo: Phan Thu

A modest quantity

Fair Trade is an international movement applying the equality principle in production and business, respecting the sustainable living environment. This is an international certification operated by the The Fair Trade Labelling Organization International – FLO.

According to the Trade Promotion Department (MOIT), the fair trade program is a closed chain from exporters, importers, processing enterprises, distribution enterprises to consumers with very strict standards. To join in this program, enterprises or cooperatives have to pay fees for foreign organizations and are accredited. Every year, these organizations send their experts to the enterprises or cooperatives for examination, if enterprises or cooperatives violate, they will be stopped the issuance of certification.

To be certified, an enterprise’s products must be manufactured according to the principles of environmentally friendly, sustainable development and ensure that there is no discrimination or inequality between the producers and workers.

Currently, this certification has been awarded for Vietnam enterprises operating in the field of coffee, tea, and handicrafts. But the number of enterprises achieving this certification is quite low. Nguyen Huy Hung Coffee Company (Kon Tum province) is one of the first 2 coffee companies achieving fair trade certification in Vietnam. According to Mr. Dao Duy Tung, deputy director of this company, when the foreign partners know that the company’s products have been fair trade certified, the ability of contracting is highly successful. For example, the EU importers and the US importers are increasingly stricter on goods standards so they believe in the companies which have fair trade certification.

In the field of handicrafts, there also have some companies achieving fair trade certification. Mr. Do Van Tha, residing at Phuong La Village, Thanh Phuong commune, Hung Ha District, Thai Binh said that being supported by the Craft Link Center, the products such as towels, silk goods of his group were exported to many fastidious markets such as Japan, Korea, US, Germany, Australia and Italy, etc. Many Japanese and European businesses came to his village to review the compliance with the fair trade criteria of the village group to decide the order. As same as this view, Mr. Le Ba Ngoc, Deputy chairman of Vietnam Handicraft and Gift Export Association said that the EU importers are very interested in fair trade certified handicrafts in the world with purchasing power increasing by 13% per year.

Difficult to meet the criteria

With the shares of enterprises, we can see that fair trade certification has brought many benefits for businesses in the access to markets, importing partners, and this is also the channel helping enterprises increase export turnover, expand the market, especially fastidious markets such as the EU and US.

In fact, consumers, especially European consumers are willing to pay a high price for an item, if the item has a clear origin and does not cause negative impact on society and the environment. Therefore, experts said that when the EU - Vietnam Free Trade Agreement is signed, it will provide an opportunity to apply fair trade, helping Vietnam goods easier access to European consumers.

However, according to reflections from businesses, they are facing difficulties in meeting the fair trade criteria. As a non-profit and fair trade organization the Craft Link Center is supporting 70 groups in Vietnam to meet 10 fair trade criteria. But, Mrs. Tran Tuyet Lan, Director of the Center said, the most difficulty is production conditions of the group which must be invested more in manufacturing factory and tools to help them make the products, yet ensuring the safety for environment so that the products can be exported.

According to Mr. Do Van Tha, in 10 criteria, the most difficulty is meeting environmental criteria. The biggest obstacle for the villages in manufacture is dyeing wastewater and flying cotton treatment “We suggest that the State and people and social organizations in combination together to refresh and ensure environmental safety” Mr. Tha suggested.

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Besides, many experts also believed that we don’t deny that most of tea, coffee and handicrafts enterprises and cooperatives in Vietnam have small scale, less capital, that will meet many difficulties in achieving fair trade certification. Not to mention, they have to perform the procedures in English. This requires the enterprises to understand the international trade procedures and take time and fees for translation, notarization.