The economic form of trading village has played an important role in the socio-economic development of Binh Dinh, creating jobs for about 10,000 households covering around 46,000 laborers.  

As released by statistics, there are 54 trading village units including 46 traditional trading villages specialised in agro-sylvan processing, seafood processing, art and handicraft products, construction materials, other tools and consumption products. The development of trading villages in Binh Dinh created special products which have become popular and potential near and far such as Huyen Market roll (Tuy Phuoc District), Bau Da wine (in Nhon Loc, An Nhon), Phu Gia hat (Phu Cat), Nhan Thap wooden lathed and carved products (Nhon Hau, An Nhon), Tam Quan coconut matting (Hoai Nhon), Phu Phong brick and tile (Tay Son)… Particularly, five trading villages in Binh Dinh are being put under planning and investment to exploit trading village tourism, they are Western Phuong Danh forging village in Dap Da town, Anh Nhon; Phu Gia hat village in Cat Tuong, Phu Cat; Ha Ri brocade weaving village in Vinh Thanh; Nhan Thap wooden lathed and carved products village in Nhon Hau, An Nhon and Bau Da wine village in Nhon Loc, An Nhon. 

Under the strict requirement of WTO, manufacturing and business facilities shall be entitled to less protection and no direct support from the State. The lack of capital and new technology is another problem. Trading village’s products with low technique and technology proportion shall suffer the hash international competition in terms of trademark, quality, model and price. Additionally, a lot of inadequacy and inconsistency remains in the legal frame and policies on banking, finance and credit. Despite the big number of jobs provided by trading villages in Binh Dinh, their economic effectiveness stays low and their production value accounts for a modest proportion, only 3 percent of the province’s industrial production value.

With the view to preserve and develop traditional trading village in the local socio-economic development strategy, Binh Dinh’s authority has approved the Planning on development of trading villages within the territory of the province till 2010 and vision to 2020. The planning specifies the province’s development viewpoint: Trading village development must be relevance to the socio-economic development planning and the industry and small sized industry development planning of the province; in attachment to the preservation and development of national cultural value of the products and to the tourism development; trading villages must be developed in line with the agricultural and rural industrialization and modernisation; attached to the ecological environment protection; ensuring the effective and sustainable development. Business lines of the villages must be developed in attach to labour attraction, job creation, contributing to the conversion of the rural economic structure, increasing income and improving the living standards of the rural habitats.

Binh Dinh People’s Committee has issued the Regulations on trading village recognisation criteria to serve as a basis for localities to strive for set up trading villages within their territories. The Committee also provides trading village encouragement policies to facilitate and support their development. By the annual industrial encouragement programmes, the provincial authorities and the Central provide budget support to programmes of vocational training, production technique performance, new career introduction, career wide spreading and career development to improve the skillful work force in the rural and mountainous areas, contributing to the development of trading villages. In combination with the production force development, the province has paid attention to the investment in rural infrastructure development, the implementation of rural electricity system upgrade and enhancement project and facilitating the development of the small size industry and trading village in rural area.

Source: Vietnam Business Forum