Solutions of human resource training and development for small and medium enterprises in the handicraft villages, traditional handicraft villages in Bac Ninh province

Phương Hữu Khiêm và Đtg<br /> <br /> Tạp chí KHOA HỌC & CÔNG NGHỆ<br /> <br /> 133(03)/1: 25 - 31<br /> <br /> SOLUTIONS OF HUMAN RESOURCE TRAINING AND DEVELOPMENT FOR<br /> SMALL AND MEDIUM ENTERPRISES IN THE HANDICRAFT VILLAGES,<br /> TRADITIONAL HANDICRAFT VILLAGES IN BAC NINH PROVINCE<br /> Phuong Huu Khiem1*, Vuong Quoc Tuan2, Do Anh Tai1, Nguyen Ngoc Ly3<br /> 1<br /> <br /> Thai Nguyen University, 2Youth Union of Bac Ninh Province,<br /> 3<br /> College of Economics and Business Administration - TNU<br /> <br /> SUMMARY<br /> Handicraft villages in general, enterprises (SMEs) in particular have made important contributions<br /> in the development of Bac Ninh province, helping to change the rural areas of the province. The<br /> development of SMEs in the handicraft villages, traditional handicraft villages not only serves to<br /> create jobs but also contributing for the preservation, conservation of traditional cultural values in<br /> the handicraft villages, traditional handicraft villages of the province. However, at present,<br /> production and business activities of SMEs in the handicraft villages of Bac Ninh province have<br /> met difficulties and limitations which restrict the level of human resources. To develop SMEs in<br /> particular, handicraft villages, traditional handicraft villages, it requires practical solutions for<br /> training skills and improving levels for workers. This paper proposes solutions for training and<br /> development of human resources for SMEs in the handicraft villages, traditional handicraft<br /> villages in Bac Ninh province.<br /> Keywords: Enterprises, training, human resources<br /> <br /> INTRODUCTION*<br /> In any field, human has always been the<br /> central factor in determining the success, or<br /> failure of any business. In fact today,<br /> handicraft villages, especially traditional<br /> handicraft villages are faced with numerous<br /> difficulties; however, they have not met major<br /> difficulties in terms of ordinary labor force<br /> participating in production. That shows craft<br /> plays a huge role in creating local jobs.<br /> However, laborers who have high technical<br /> level of production are severely lacking. It<br /> can be seen that, although the force is<br /> abundant, but the handicraft villages lack<br /> skilled workers. These are factors that lead to<br /> main competition of the handicraft products<br /> on the market.<br /> The government is also interested in issues of<br /> human resource development and support<br /> training activities. However, the priority is to<br /> focus on the industry. Therefore, there must<br /> be an effective mechanism to develop human<br /> resources for arts and crafts industry.<br /> Therefore, it needs further studies on the<br /> training of technical staff and personnel<br /> *<br /> <br /> Tel: 0945 855085<br /> <br /> involved in product development in order to<br /> overcome these disadvantages, such as<br /> technical limitations and the lack of<br /> information of handicraft villages in general,<br /> SMEs in handicraft villages in particular.<br /> In the past years, SMEs in the handicraft<br /> villages of the province have contributed<br /> significantly to the training, vocational<br /> training for rural workers. In fact, today, in<br /> the province there is a strong attraction from<br /> large-scale enterprises, enterprises with<br /> foreign investment, this leads small and<br /> medium enterprises, especially enterprises of<br /> handicaft villages of Bac Ninh province are<br /> very difficult to attract workers, especially<br /> highly skilled workers. On the other hand,<br /> now handicraft villages to survive and<br /> develop, they must search the market for<br /> export to foreign countries with high level of<br /> development. For export of handicraft<br /> villages’ products, it requires products have<br /> highly sophistication, high aesthetic...<br /> Therefore, SMEs must directly participate in<br /> vocational training, for workers.<br /> Besides the results obtained in human<br /> resource training and development of SMEs<br /> 25<br /> <br /> Phương Hữu Khiêm và Đtg<br /> <br /> Tạp chí KHOA HỌC & CÔNG NGHỆ<br /> <br /> in handicraft villages in the province, this<br /> activity still has some limitations such as:<br /> Resources for production and vocational<br /> training are missing and outdated; lack of<br /> incentives for skilled labor especially artisan<br /> villages; miss forms of linkage in vocational<br /> training; vocational training institutions are<br /> not formal planning; awareness of SMEs’<br /> owners on human resource training and<br /> development in handicraft villages still<br /> incompleted; ...<br /> Stemming from the practical requirements of<br /> raising skill levels for workers, the training<br /> and development of human resources for<br /> SMEs in handicraft villages, traditional<br /> handicraft villages in the province is<br /> extremely essential.<br /> RESEARCH METHODOLOGY<br /> Information Collection Methods<br /> Information needed for analysis, processing is<br /> mainly secondary information. Secondary<br /> data were collected as follows: A source of<br /> secondary information is mainly derived from<br /> statistical yearbook of Bac Ninh province in<br /> 2013, the resources on the Internet, books,<br /> newspapers, magazines and the results of<br /> scientific research that some authors have<br /> been published.<br /> Methods of information analysis<br /> We<br /> used<br /> synthetic,<br /> inductive,<br /> interpretation methods to analyze secondary<br /> information selected to achieve the research<br /> objectives outlined.<br /> - Results of the analysis are the basis for us to<br /> propose solutions and proposals to boost<br /> human resource training and development of<br /> SMEs in handicraft villages, traditional<br /> handicraft villages in the province.<br /> OVERVIEW<br /> OF<br /> HANDICRAFT<br /> VILLAGES<br /> AND<br /> SMEs<br /> IN<br /> THE<br /> HANDICRAFT VILLAGES IN BAC NINH<br /> PROVINCE<br /> Bac Ninh province has the largest number of<br /> handicraft villages, traditional handicraft<br /> 26<br /> <br /> 133(03)/1: 25 - 31<br /> <br /> villages in the whole country (about 5% of the<br /> country's handicraft villages). Pursuant to<br /> guidance Circular No. 116/2006/TT-BNN of<br /> the Ministry of Agriculture and Rural<br /> Development to date 31/12/2013, Bac Ninh<br /> province has 133 handicraft villages, in which<br /> 31 traditional handicraft villages, 62<br /> handicraft villages and 40 new handicraft<br /> villages with 53 villages of industrial<br /> production and handicrafts. Focus mainly on<br /> manufacturing and businessing sectors such<br /> as: Wood (Dong Ky, Huong Mac - Tu Son);<br /> Paper (Phong Khe - Yen Phong, Phu Lam Tien Du); Iron (Da Hoi); Aluminum (Yen<br /> Phong); Copper (Dai Bai - Gia Binh);<br /> Bamboo and Rattan (Tien Du, Gia Binh);<br /> Textiles (Tuong Giang - Tu Son)... The<br /> villages in the province have created jobs and<br /> income stability for tens of thousands of<br /> workers in the locality and surrounding areas.<br /> The handicraft villages have an important<br /> contribution to socio-economic development<br /> of the locality with handicraft villages’ annual<br /> production value is trillion Vietnam Dong.<br /> With 133 handicraft villages is distributed in<br /> the districts, towns, cities, which concentrate<br /> most in Tu Son town with 36 handicraft<br /> villages, Yen Phong district with 26<br /> handicraft villages. The manufacturing<br /> industries in the handicraft villages is divided<br /> into 42 different industries and are classified<br /> under the following categories: Processing<br /> and storage of agricultural, forestry and<br /> fishery has 19 villages (14.3%), production of<br /> wood has 23 villages (18%), manufacturing<br /> rattan has 7 villages (5.3%), manufacture of<br /> steel, aluminum bronze casting has 7 villages<br /> (5.3%), manufacture of pottery has 3 villages<br /> (accounting for 2.2%), textiles with 7 villages<br /> (5.3%), paper is 3 villages (representing<br /> 2.2%), bonsai business with 1 village (0.8%)<br /> building has 26 villages (accounting for<br /> 20.3%), other industries is 37 villages<br /> (26.3%); in which 62 villages have been<br /> recognized. In these villages, there are 50%<br /> effective production handicraft villages and<br /> <br /> Phương Hữu Khiêm và Đtg<br /> <br /> Tạp chí KHOA HỌC & CÔNG NGHỆ<br /> <br /> create jobs for about 80% of the local<br /> workforce.<br /> <br /> 133(03)/1: 25 - 31<br /> <br /> general as well as the value of industrial<br /> production, handicraft in particular. The<br /> average production value of handicraft<br /> villages occupy about 20% of industrial and<br /> handicraft production value.<br /> <br /> The handicraft villages in Bac Ninh province<br /> has made great contributions to the<br /> production value of the whole province in<br /> <br /> Table 01. Synthesis of handicraft villages, traditional handicraft villages<br /> in Bac Ninh province in the period 2010 – 2013<br /> Year<br /> Handicraft villages<br /> 1.Total handicraft villages<br /> - Traditional handicraft villages<br /> - Handicraft villages<br /> - New handicraft villages<br /> 2. Village production value<br /> 3. Number of labors in handicraft<br /> villages<br /> <br /> Unit<br /> <br /> Village<br /> Village<br /> Village<br /> Village<br /> Billion VND<br /> People<br /> <br /> 2010<br /> <br /> 2011<br /> <br /> 2012<br /> <br /> 2013<br /> <br /> 86<br /> 31<br /> 27<br /> 28<br /> 2.453,5<br /> <br /> 133<br /> 31<br /> 55<br /> 47<br /> 2.770,0<br /> <br /> 133<br /> 31<br /> 55<br /> 47<br /> 2.417,2<br /> <br /> 133<br /> 31<br /> 62<br /> 40<br /> 8.270,0<br /> <br /> 117.074<br /> <br /> 132.380<br /> <br /> 139.050<br /> <br /> 142.037<br /> <br /> (Source: Bac Ninh Department of Trade and Industry)<br /> <br /> In handicraft villages in Bac Ninh, there have many various types of business production<br /> including: Enterprises (mostly SMEs), cooperatives, production households in which production<br /> households account for the highest number (95%). Therefore, the present handicraft villages<br /> often in the state of lacking capital for production, small scale, low access to the market, outdated<br /> technology, monotonous product, poor efficiency production and environmental pollution.<br /> Cooperatives and enterprises accounts for only a small proportion (5%), which kind of<br /> enterprises has mobility and flexibility will be the nucleus for the preservation and development<br /> of handicraft villages in the next time.<br /> In recent years, in handicraft villages of Bac Ninh province have appeared many enterprises with<br /> small and medium scale participate in production activities of handicraft villages, in which most<br /> of them developed from small business production facilities. Production scale of enterprises is<br /> much larger than production scale of households. The fact that enterprises have many advantages<br /> to invest and expand production scale, access to capital, marketing, product design, invest<br /> modern machinery...<br /> Table 02. Number of SMEs in the handicraft villages of Bac Ninh province<br /> Bac Ninh in the period 2010 - 2013<br /> Unit: Facilities<br /> Year<br /> 2010<br /> Criteria<br /> 1. Handicraft villages’ production facilities<br /> - SMEs in handicraft villages<br /> - Other types<br /> <br /> 2011<br /> <br /> 2012<br /> <br /> 2013<br /> <br /> 49.121<br /> 48.829<br /> 46.350<br /> 47.999<br /> 1.880<br /> 1.940<br /> 1.860<br /> 2.437<br /> 47.241<br /> 46.889<br /> 44.490<br /> 45.562<br /> (Source: Bac Ninh Department of Trade and Industry)<br /> <br /> Type of SMEs tends to increase because SMEs have many advantages and is a key factor<br /> contributing to the restoration and development of handicraft villages. In the handicraft villages,<br /> there are two types of enterprises, they are private enterprise and Company Limited. As at<br /> 31/12/2013, there are 2,437 SMEs in handicraft villages of the province, in which private<br /> enterprises which are 622 facilities and Company Limited are 1,815 facilities.<br /> 27<br /> <br /> Phương Hữu Khiêm và Đtg<br /> <br /> Tạp chí KHOA HỌC & CÔNG NGHỆ<br /> <br /> CURRENT<br /> SITUATION<br /> AND<br /> LIMITATIONS IN HUMAN RESOURCE<br /> TRAINING AND DEVELOPMENT OF<br /> SMEs IN HANDICRAFT VILLAGES<br /> Recently, SMEs in handicraft villages have<br /> collaborated with Bac Ninh Centre for<br /> Promotion, vocational training centers in the<br /> districts, towns, cities, and through the<br /> promotion program of the province have<br /> devoted resources as well to applied many<br /> measures to supplement human resources,<br /> high quality human resource for production.<br /> In 2013, SMEs in handicraft villages have<br /> collaborated with Bac Ninh Center for<br /> Promotion and Industrial Development<br /> Consultant to organize vocational training,<br /> supply skilled manpower for businesses and<br /> households activities in handicraft villages in<br /> the areas: Export garment, wooden<br /> handicrafts, carpentry, production rattan,<br /> bamboo... (Examples of SMEs such as Bac<br /> Ninh Carpet Sewing Corporation, Thuan<br /> Thanh Fashion International Joint Stock<br /> Company... collaborated with Bac Ninh<br /> Centre for Promotion held 10 training courses<br /> for 300 industrial sewing workers in Bac<br /> Ninh City, Gia Binh, Thuan Thanh district).<br /> In addition, SMEs in handicraft villages offer<br /> on-site training for approximately 600 rural<br /> workers in the province...<br /> In the period 2008-2012, SMEs in handicraft<br /> villages coordinated with Bac Ninh Centre for<br /> Promotion and spent considerable funds for<br /> vocational training. There were 12,600 rural<br /> workers, workers in handicraft villages in the<br /> province passed vocational training and skill<br /> improvement. The training classes were<br /> organized mainly in the form of job training,<br /> short-term training under 1 year and<br /> associated with traditional craft production<br /> facilities: Ceramics, wooden handicrafts,<br /> carpentry, embroidery...<br /> Notably, the vocational training classes for<br /> workers in the villages are organized<br /> according to the principles of collaborating 3<br /> parties: Management agency - enterprises 28<br /> <br /> 133(03)/1: 25 - 31<br /> <br /> laborers, in which SMEs are subject of<br /> recruitment,<br /> reception<br /> and<br /> product<br /> consumption for laborers. Accordingly, in<br /> addition to companies active in training, there<br /> are high-quality human resources, laborers are<br /> guaranteed output, ensured the living by<br /> following vocational training.<br /> In addition to the training initiative, the<br /> training of SMEs in handicraft villages, the<br /> active support and effective promotion of the<br /> province recently has helped SMEs in the<br /> province gradually remove constraints of<br /> labor resource, help enterprises boost<br /> production, increase revenue. Also promote<br /> the introduction of new production facilities<br /> including SMEs in handicraft villages,<br /> through which continue to create jobs for<br /> workers in rural areas and contribute to<br /> promoting and developing rural industries of<br /> the province.<br /> SMEs in handicraft villages in the province<br /> not only provide direct training, vocational<br /> training for rural workers, in addition, they<br /> have important contribution to nurture,<br /> develop artisans and contribute to retain<br /> skilled artisans continue to stick with<br /> handicraft villages.<br /> In 2011-2012, Bac Ninh province has<br /> awarded artisans to 9 to nine individuals of<br /> the handicraft villages include: 2 artisans of<br /> Dong Ho Painting village, Thuan Thanh<br /> District; 1 artisan of Dai Bai bronze casting<br /> village, Gia Binh district; 2 artisans of Dong<br /> Ky handicraft wooden village; 2 artisans of<br /> Phu Khe handicraft wooden village, Tu Son<br /> town; 1 artisan of Khuc Xuyen wooden<br /> painting puzzle, Bac Ninh city, 1 artisan of<br /> pagoda restoration and preservation in Xuan<br /> Hoi Lac Ve, Yen Du district. SMEs in the<br /> handicraft villages continues to complete the<br /> profile to submit Provincial People’s<br /> Committee for awarding 13 other artisans in<br /> handicraft villages in Bac Ninh city, districts<br /> of Thuan Thanh, Que Vo, Tien Du and Gia<br /> Binh and recognition for skilled workers for<br /> 46 workers in Thuan Thanh district, Que Vo.<br /> <br /> Phương Hữu Khiêm và Đtg<br /> <br /> Tạp chí KHOA HỌC & CÔNG NGHỆ<br /> <br /> In addition to achieved results, the training<br /> and development of human resource in SMEs<br /> of handicraft villages still has some<br /> limitations such as:<br /> Overlap in the management of vocational<br /> schools: Although the Ministry of Labour,<br /> Invalids and Social manages vocational<br /> schools, but in fact many departments, sectors<br /> or provincial People's Committee and the<br /> Department of Labour, Invalids and social coparticipate in management.<br /> Lack of courses for handicraft vocational<br /> training, results of the survey showed that in<br /> handicraft villages, only a few schools have<br /> vocational training course in handicrafts.<br /> Production techniques are taught primarily in<br /> formal courses in vocational schools. The<br /> technical courses are often inconsistent with<br /> the students learn the craft. The reason is that<br /> the training of skilled technical craftsmen at<br /> vocational schools and a number of other<br /> organizations arranged unfavorably in terms<br /> of time because both the instructors and the<br /> students are busy participating in agricultural<br /> activities, difficult to take the time to attend<br /> the courses in towns or city center.<br /> Moreover, craftsmanship technique is usually<br /> calculated by blood or inherited from family,<br /> so often passed to the house’s members. Most<br /> programs teach skills to enhance market<br /> transaction, negotiation and management<br /> capabilities for managers of SMEs are run by<br /> organizations<br /> that<br /> provide<br /> business<br /> development services provided. In the<br /> villages, craftsmen often simultaneously are<br /> managers of small production facilities, thus,<br /> increase knowledge for craftsmen should not<br /> be limited in production techniques, but also<br /> to enhance the knowledge of business<br /> management with human resource training<br /> programs for handicraft villages.<br /> Implement marketing strategies is a necessary<br /> work to develop the product. It requires<br /> capablity of coordinate and connects the<br /> development of products to market, while<br /> <br /> 133(03)/1: 25 - 31<br /> <br /> fostering capable individual to participate.<br /> Currently, the training and design facility<br /> focuses on training designers, unleash their<br /> creative abilities. However, due to the field of<br /> design is expanded, the design with models<br /> have increasingly important roles. Therefore,<br /> educational and training institutions need to<br /> adjust curriculum to conform to this new trend.<br /> The resources for training activities (capital,<br /> machinery...) still lacked and weak: At<br /> present, vocational training institutions in the<br /> province have not been equipped with modern<br /> machinery; the machineries are backward and<br /> not updated with the required level of<br /> sophistication of handicraft villages. The<br /> investment capital for vocational training<br /> institutions is limited and not meets the<br /> demand for training.<br /> There is a lack of incentives to attract and<br /> retain skilled workers, especially artisans of<br /> handicraft villages. The fact shows that a<br /> team of highly qualified workers and<br /> handicraft villages’ artisans has an important<br /> role in the training and vocational training for<br /> labors. However, over time, SMEs in<br /> particular, handicraft villages in general have<br /> less emphasis on incentive policies to attract<br /> this subject. Aside from bestowing, honoring<br /> the artisan of handicraft villages, there is no<br /> special priority mode for this team.<br /> The system for training, vocational training is<br /> not specific for each group of occupations and<br /> not tied to training needs and development<br /> goals of SMEs in handicraft villages,<br /> traditional handicraft villages.<br /> Awareness of SMEs owners on the needs to<br /> train and improve the skills of the laborers<br /> associated with the conservation and<br /> preservation of handicraft villages’ value is<br /> limited, no foresight that only serves the<br /> immediate goals.<br /> The linkage form in vocational training<br /> among SMEs lacks and not effective.<br /> There have not reward policies for SMEs who<br /> perform well in training, vocational transfer.<br /> 29<br /> <br />