Role of the ceramic industry in the economy

The ceramic industry provides jobs and income to a large number of laborers in some provinces. At present, it can answer 90% of domestic and exports demand. The annual exports turnover reaches USD 260 million, accounting for 5% of GDP. [Ministry of Industry, 2003]

Current development of the ceramic industry

Vietnamese ceramic products have been in a struggle with Chinese products. A large number of SMEs with backward technology has had to close down due to their weak competitiveness. Whereas, large enterprises with renovation technology have gradually firmed up their positions in both domestic and export markets.

Total output of domestic pottery was:

-          In 2000: 247.1 million products (227.4 million products were produced in the private sector)

-          In 2005: 439.9 million products, (346.2 million products were produced in the private sector)

[Yearly Statistical Book, 2005].

Location of ceramic manufacturing enterprises

Ceramic manufacturing enterprises are located mainly in Northern provinces of Hai Duong, Hung Yen, Bac Ninh, Ha Noi city and in Southern provinces of Binh Duong, Dong Nai, Vinh Long. Most of them belong to the private sector, and concentrate in traditional handicraft villages. At present, some enterprises are moving to industrial parks in efforts to expand production.

Ceramic industry development plan for the period to 2010 [Ministry of Industry, 2004]

Objectives:

In the next 5 years, it is planned that the ceramic industry will reach the average annual growth rate of 20-25%, respond to the domestic demand and promote the exports of high-class domestic, technical and ornamental products.

Directions:

For technology

Adoption of advanced technologies is essential for developing the sector in dept. Besides, it is necessary to choose suitable raw materials and enhance researches in order to improve product quality, save raw material and protect environment.

For production scale

For making high quality export products, large-scale enterprises should be established and equipped with modern technology and machinery. Existing enterprises can expand production capacity and diversify their products.

For allocation

• Zone 1: technical ceramic products will be developed
• Zone 2, zone 5: high class domestic ceramic, traditional ornamental, technical ceramic products will be developed
• Zone 3, 4, 6: decorative ceramic products will be developed

For investment mobilization

Resources in the society need to be mobilized for ceramic industry development. Decorative pottery and high quality glassware should be developed to become key products for export.

Home ware pottery production could be enlarged. Traditional craft ceramic villages need rehabilitation and further development.