Viet Trang

South Asia
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Viet Trang was formed in the 1970s as a household business in Nga Son district, Thanh Hoa province, and was officially registered in 2001 as Viet Trang Handicraft Company. The company specializes in handicraft products made from natural materials such as seagrass, jute, water hyacinth, and corn leaves. The whole company is an inclusive business model.

Inclusive Business Model

The company’s business strategy, is to work directly with farmers, and not through agents, thus sharing the risks and profits directly with the farmers. To ensure employment and income for the farmers, the company is willing to accept lower profit margins. Viet Trang provides the farmers with materials, training, and tools. The company aims to empower local women and disadvantaged groups, protect natural resources and preserve traditional craftsmanship through the creation of high quality and sustainable natural fibre handicraft products. Thanks to the good cash flow (clients deposit 30 per cent of the order as upfront payment) and no outstanding loans, the company has a good bankability.


The company works with 500 supplying households in the traditional craft village of Nga Son district in Thanh Hoa province and employed 30 full-time staff. Supplying households may double to about 1,000 by 2023, if the company achieves the envisaged growth rates. Most (85 per cent) of the suppliers are women, and most of them are young women working part time due to other family obligations while elderly women mostly work full-time. While the company has no specific targeting mechanism and does not maintain data on the income of its suppliers and the use of such income, the management estimates that these are low-income households. The company generates 40 per cent additional income for these households. On average, households working part time could earn VND 3-4 million and full-time craft workers could earn a monthly salary of VND 4 million per month. Their income has increased 50 per cent compared with 3 years ago. In high seasons, Viet Trang can pay the craftsmen 15 per cent higher than the market rate, but in low seasons prices are lower and income earning opportunities also.