ABSTRACT
Vietnam has been changing rapidly since the introduction of Doi Moi in the 1980s. The aim of the reforms is to create a hybrid third way, a socialistoriented market economy which is in between a planning system and capitalism (Smith and Scarpaci, 2000). The economic reform programmes have included opening up to international capital which has contributed to annual growth rates averaging about 9 per cent for most of the 1990s. Vietnam still has single party rule, though, and the state continues to control a large proportion of national production (Dixon, 2003). The development of nonagricultural activities in the countryside and rural industrialisation are central policies of the Vietnamese government. The aim is to boost the incomes of rural households, stimulate demand for consumer products, and above all create jobs and limit the rural exodus to the towns and cities (Anh, 2005). One such policy is the promotion of handicrafts in rural areas. Handicrafts are considered an effective measure to create in situ employment, reducing poverty and the income gap between urban and rural regions which in turn should help curb the flow of workers to urban areas. The Ministry of Agriculture and Rural Development has the target of helping to develop a particular craft in each village which should contribute a large part of the inhabitants’ annual income. Since Doi Moi was introduced, a large number of rural households have developed new craft and industrial activities, or have diversified existing handicraft production, as a consequence of these policies.
