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 Tạp chí KHOA HỌC & CÔNG NGHỆ 133(03)/1: 25 - 31 25 SOLUTIONS OF HUMAN RESOURCE TRAINING AND DEVELOPMENT FOR SMALL AND MEDIUM ENTERPRISES IN THE HANDICRAFT VILLAGES, TRADITIONAL HANDICRAFT VILLAGES IN BAC NINH PROVINCE Phuong Huu Khiem 1* , Vuong Quoc Tuan 2 , Do Anh Tai 1 , Nguyen Ngoc Ly 3 1Thai Nguyen University, 2Youth Union of Bac Ninh Province, 3College of Economics and Business Administration - TNU SUMMARY Handicraft villages in general, enterprises (SMEs) in particular have made important contributions in the development of Bac Ninh province, helping to change the rural areas of the province. The development of SMEs in the handicraft villages, traditional handicraft villages not only serves to create jobs but also contributing for the preservation, conservation of traditional cultural values in the handicraft villages, traditional handicraft villages of the province. However, at present, production and business activities of SMEs in the handicraft villages of Bac Ninh province have met difficulties and limitations which restrict the level of human resources. To develop SMEs in particular, handicraft villages, traditional handicraft villages, it requires practical solutions for training skills and improving levels for workers. This paper proposes solutions for training and development of human resources for SMEs in the handicraft villages, traditional handicraft villages in Bac Ninh province. Keywords: Enterprises, training, human resources INTRODUCTION * In any field, human has always been the central factor in determining the success, or failure of any business. In fact today, handicraft villages, especially traditional handicraft villages are faced with numerous difficulties; however, they have not met major difficulties in terms of ordinary labor force participating in production. That shows craft plays a huge role in creating local jobs. However, laborers who have high technical level of production are severely lacking. It can be seen that, although the force is abundant, but the handicraft villages lack skilled workers. These are factors that lead to main competition of the handicraft products on the market. The government is also interested in issues of human resource development and support training activities. However, the priority is to focus on the industry. Therefore, there must be an effective mechanism to develop human resources for arts and crafts industry. Therefore, it needs further studies on the training of technical staff and personnel * Tel: 0945 855085 involved in product development in order to overcome these disadvantages, such as technical limitations and the lack of information of handicraft villages in general, SMEs in handicraft villages in particular. In the past years, SMEs in the handicraft villages of the province have contributed significantly to the training, vocational training for rural workers. In fact, today, in the province there is a strong attraction from large-scale enterprises, enterprises with foreign investment, this leads small and medium enterprises, especially enterprises of handicaft villages of Bac Ninh province are very difficult to attract workers, especially highly skilled workers. On the other hand, now handicraft villages to survive and develop, they must search the market for export to foreign countries with high level of development. For export of handicraft villages’ products, it requires products have highly sophistication, high aesthetic... Therefore, SMEs must directly participate in vocational training, for workers. Besides the results obtained in human resource training and development of SMEs Phương Hữu Khiêm và Đtg Tạp chí KHOA HỌC & CÔNG NGHỆ 133(03)/1: 25 - 31 26 in handicraft villages in the province, this activity still has some limitations such as: Resources for production and vocational training are missing and outdated; lack of incentives for skilled labor especially artisan villages; miss forms of linkage in vocational training; vocational training institutions are not formal planning; awareness of SMEs’ owners on human resource training and development in handicraft villages still incompleted; ... Stemming from the practical requirements of raising skill levels for workers, the training and development of human resources for SMEs in handicraft villages, traditional handicraft villages in the province is extremely essential. RESEARCH METHODOLOGY Information Collection Methods Information needed for analysis, processing is mainly secondary information. Secondary data were collected as follows: A source of secondary information is mainly derived from statistical yearbook of Bac Ninh province in 2013, the resources on the Internet, books, newspapers, magazines and the results of scientific research that some authors have been published. Methods of information analysis - We used synthetic, inductive, interpretation methods to analyze secondary information selected to achieve the research objectives outlined. - Results of the analysis are the basis for us to propose solutions and proposals to boost human resource training and development of SMEs in handicraft villages, traditional handicraft villages in the province. OVERVIEW OF HANDICRAFT VILLAGES AND SMEs IN THE HANDICRAFT VILLAGES IN BAC NINH PROVINCE Bac Ninh province has the largest number of handicraft villages, traditional handicraft villages in the whole country (about 5% of the country's handicraft villages). Pursuant to guidance Circular No. 116/2006/TT-BNN of the Ministry of Agriculture and Rural Development to date 31/12/2013, Bac Ninh province has 133 handicraft villages, in which 31 traditional handicraft villages, 62 handicraft villages and 40 new handicraft villages with 53 villages of industrial production and handicrafts. Focus mainly on manufacturing and businessing sectors such as: Wood (Dong Ky, Huong Mac - Tu Son); Paper (Phong Khe - Yen Phong, Phu Lam - Tien Du); Iron (Da Hoi); Aluminum (Yen Phong); Copper (Dai Bai - Gia Binh); Bamboo and Rattan (Tien Du, Gia Binh); Textiles (Tuong Giang - Tu Son)... The villages in the province have created jobs and income stability for tens of thousands of workers in the locality and surrounding areas. The handicraft villages have an important contribution to socio-economic development of the locality with handicraft villages’ annual production value is trillion Vietnam Dong. With 133 handicraft villages is distributed in the districts, towns, cities, which concentrate most in Tu Son town with 36 handicraft villages, Yen Phong district with 26 handicraft villages. The manufacturing industries in the handicraft villages is divided into 42 different industries and are classified under the following categories: Processing and storage of agricultural, forestry and fishery has 19 villages (14.3%), production of wood has 23 villages (18%), manufacturing rattan has 7 villages (5.3%), manufacture of steel, aluminum bronze casting has 7 villages (5.3%), manufacture of pottery has 3 villages (accounting for 2.2%), textiles with 7 villages (5.3%), paper is 3 villages (representing 2.2%), bonsai business with 1 village (0.8%) building has 26 villages (accounting for 20.3%), other industries is 37 villages (26.3%); in which 62 villages have been recognized. In these villages, there are 50% effective production handicraft villages and Phương Hữu Khiêm và Đtg Tạp chí KHOA HỌC & CÔNG NGHỆ 133(03)/1: 25 - 31 27 create jobs for about 80% of the local workforce. The handicraft villages in Bac Ninh province has made great contributions to the production value of the whole province in general as well as the value of industrial production, handicraft in particular. The average production value of handicraft villages occupy about 20% of industrial and handicraft production value. Table 01. Synthesis of handicraft villages, traditional handicraft villages in Bac Ninh province in the period 2010 – 2013 Year Handicraft villages Unit 2010 2011 2012 2013 1.Total handicraft villages Village 86 133 133 133 - Traditional handicraft villages Village 31 31 31 31 - Handicraft villages Village 27 55 55 62 - New handicraft villages Village 28 47 47 40 2. Village production value Billion VND 2.453,5 2.770,0 2.417,2 8.270,0 3. Number of labors in handicraft villages People 117.074 132.380 139.050 142.037 (Source: Bac Ninh Department of Trade and Industry) In handicraft villages in Bac Ninh, there have many various types of business production including: Enterprises (mostly SMEs), cooperatives, production households in which production households account for the highest number (95%). Therefore, the present handicraft villages often in the state of lacking capital for production, small scale, low access to the market, outdated technology, monotonous product, poor efficiency production and environmental pollution. Cooperatives and enterprises accounts for only a small proportion (5%), which kind of enterprises has mobility and flexibility will be the nucleus for the preservation and development of handicraft villages in the next time. In recent years, in handicraft villages of Bac Ninh province have appeared many enterprises with small and medium scale participate in production activities of handicraft villages, in which most of them developed from small business production facilities. Production scale of enterprises is much larger than production scale of households. The fact that enterprises have many advantages to invest and expand production scale, access to capital, marketing, product design, invest modern machinery... Table 02. Number of SMEs in the handicraft villages of Bac Ninh province Bac Ninh in the period 2010 - 2013 Unit: Facilities Year Criteria 2010 2011 2012 2013 1. Handicraft villages’ production facilities 49.121 48.829 46.350 47.999 - SMEs in handicraft villages 1.880 1.940 1.860 2.437 - Other types 47.241 46.889 44.490 45.562 (Source: Bac Ninh Department of Trade and Industry) Type of SMEs tends to increase because SMEs have many advantages and is a key factor contributing to the restoration and development of handicraft villages. In the handicraft villages, there are two types of enterprises, they are private enterprise and Company Limited. As at 31/12/2013, there are 2,437 SMEs in handicraft villages of the province, in which private enterprises which are 622 facilities and Company Limited are 1,815 facilities. Phương Hữu Khiêm và Đtg Tạp chí KHOA HỌC & CÔNG NGHỆ 133(03)/1: 25 - 31 28 CURRENT SITUATION AND LIMITATIONS IN HUMAN RESOURCE TRAINING AND DEVELOPMENT OF SMEs IN HANDICRAFT VILLAGES Recently, SMEs in handicraft villages have collaborated with Bac Ninh Centre for Promotion, vocational training centers in the districts, towns, cities, and through the promotion program of the province have devoted resources as well to applied many measures to supplement human resources, high quality human resource for production. In 2013, SMEs in handicraft villages have collaborated with Bac Ninh Center for Promotion and Industrial Development Consultant to organize vocational training, supply skilled manpower for businesses and households activities in handicraft villages in the areas: Export garment, wooden handicrafts, carpentry, production rattan, bamboo... (Examples of SMEs such as Bac Ninh Carpet Sewing Corporation, Thuan Thanh Fashion International Joint Stock Company... collaborated with Bac Ninh Centre for Promotion held 10 training courses for 300 industrial sewing workers in Bac Ninh City, Gia Binh, Thuan Thanh district). In addition, SMEs in handicraft villages offer on-site training for approximately 600 rural workers in the province... In the period 2008-2012, SMEs in handicraft villages coordinated with Bac Ninh Centre for Promotion and spent considerable funds for vocational training. There were 12,600 rural workers, workers in handicraft villages in the province passed vocational training and skill improvement. The training classes were organized mainly in the form of job training, short-term training under 1 year and associated with traditional craft production facilities: Ceramics, wooden handicrafts, carpentry, embroidery... Notably, the vocational training classes for workers in the villages are organized according to the principles of collaborating 3 parties: Management agency - enterprises - laborers, in which SMEs are subject of recruitment, reception and product consumption for laborers. Accordingly, in addition to companies active in training, there are high-quality human resources, laborers are guaranteed output, ensured the living by following vocational training. In addition to the training initiative, the training of SMEs in handicraft villages, the active support and effective promotion of the province recently has helped SMEs in the province gradually remove constraints of labor resource, help enterprises boost production, increase revenue. Also promote the introduction of new production facilities including SMEs in handicraft villages, through which continue to create jobs for workers in rural areas and contribute to promoting and developing rural industries of the province. SMEs in handicraft villages in the province not only provide direct training, vocational training for rural workers, in addition, they have important contribution to nurture, develop artisans and contribute to retain skilled artisans continue to stick with handicraft villages. In 2011-2012, Bac Ninh province has awarded artisans to 9 to nine individuals of the handicraft villages include: 2 artisans of Dong Ho Painting village, Thuan Thanh District; 1 artisan of Dai Bai bronze casting village, Gia Binh district; 2 artisans of Dong Ky handicraft wooden village; 2 artisans of Phu Khe handicraft wooden village, Tu Son town; 1 artisan of Khuc Xuyen wooden painting puzzle, Bac Ninh city, 1 artisan of pagoda restoration and preservation in Xuan Hoi Lac Ve, Yen Du district. SMEs in the handicraft villages continues to complete the profile to submit Provincial People’s Committee for awarding 13 other artisans in handicraft villages in Bac Ninh city, districts of Thuan Thanh, Que Vo, Tien Du and Gia Binh and recognition for skilled workers for 46 workers in Thuan Thanh district, Que Vo. Phương Hữu Khiêm và Đtg Tạp chí KHOA HỌC & CÔNG NGHỆ 133(03)/1: 25 - 31 29 In addition to achieved results, the training and development of human resource in SMEs of handicraft villages still has some limitations such as: Overlap in the management of vocational schools: Although the Ministry of Labour, Invalids and Social manages vocational schools, but in fact many departments, sectors or provincial People's Committee and the Department of Labour, Invalids and social co- participate in management. Lack of courses for handicraft vocational training, results of the survey showed that in handicraft villages, only a few schools have vocational training course in handicrafts. Production techniques are taught primarily in formal courses in vocational schools. The technical courses are often inconsistent with the students learn the craft. The reason is that the training of skilled technical craftsmen at vocational schools and a number of other organizations arranged unfavorably in terms of time because both the instructors and the students are busy participating in agricultural activities, difficult to take the time to attend the courses in towns or city center. Moreover, craftsmanship technique is usually calculated by blood or inherited from family, so often passed to the house’s members. Most programs teach skills to enhance market transaction, negotiation and management capabilities for managers of SMEs are run by organizations that provide business development services provided. In the villages, craftsmen often simultaneously are managers of small production facilities, thus, increase knowledge for craftsmen should not be limited in production techniques, but also to enhance the knowledge of business management with human resource training programs for handicraft villages. Implement marketing strategies is a necessary work to develop the product. It requires capablity of coordinate and connects the development of products to market, while fostering capable individual to participate. Currently, the training and design facility focuses on training designers, unleash their creative abilities. However, due to the field of design is expanded, the design with models have increasingly important roles. Therefore, educational and training institutions need to adjust curriculum to conform to this new trend. The resources for training activities (capital, machinery...) still lacked and weak: At present, vocational training institutions in the province have not been equipped with modern machinery; the machineries are backward and not updated with the required level of sophistication of handicraft villages. The investment capital for vocational training institutions is limited and not meets the demand for training. There is a lack of incentives to attract and retain skilled workers, especially artisans of handicraft villages. The fact shows that a team of highly qualified workers and handicraft villages’ artisans has an important role in the training and vocational training for labors. However, over time, SMEs in particular, handicraft villages in general have less emphasis on incentive policies to attract this subject. Aside from bestowing, honoring the artisan of handicraft villages, there is no special priority mode for this team. The system for training, vocational training is not specific for each group of occupations and not tied to training needs and development goals of SMEs in handicraft villages, traditional handicraft villages. Awareness of SMEs owners on the needs to train and improve the skills of the laborers associated with the conservation and preservation of handicraft villages’ value is limited, no foresight that only serves the immediate goals. The linkage form in vocational training among SMEs lacks and not effective. There have not reward policies for SMEs who perform well in training, vocational transfer. Phương Hữu Khiêm và Đtg Tạp chí KHOA HỌC & CÔNG NGHỆ 133(03)/1: 25 - 31 30 SOLUTIONS OF HUMAN RESOURCE TRAINING AND DEVELOPMENT FOR SMEs IN THE HANDICRAFT VILLAGES, TRADITIONAL HANDICRAFT VILLAGES IN BAC NINH PROVINCE On the basis of current situation and limitations in human resource training and development of SMEs in handicraft villages, traditional handicraft villages in the province, to promote training and development of human resources for SMEs in particular, to handicraft villages in general, in the next time it requires more suitable solutions. On the basis of understanding the real situation of SMEs in handicraft villages, traditional handicraft villages in Bac Ninh province, the authors propose the following solutions: Firstly, continuing to implement training schemes for rural workers in the period 2011- 2015, driven by 2020. It is expected that in 2015 will train 12,000 labors, in which there are 9,000 rural labors. Set priorities for investment on training skilled rural labors in order to create real change in quality. Secondly, strengthening infrastructure equipment, techniques for production associated with vocational training in SMEs and training facilities. SMEs and training facilities must be equipped with modern machinery, updated with the progress of science and technology in the world. However, these machines apart from increasing labor productivity must still ensuring sophistication of handicraft villages’ products. In particular, it may better support SMEs in training for employees. Thirdly, strengthening the incentives for handicraft villages’ artisans and skilled labors. Handicraft villages’ artisans and skilled workers have an important role in the training and vocational teaching for labors in SMEs as well as handicraft villages. Therefore, there should be incentives for these subjects such as: Honoring ceremony held annually, with a high reward system besides their income in SMEs and handicraft villages. Fourthly, supporting finance for SMEs to expand production and thereby improve training for skilled workers. For SMEs can participate well in training for workers, there should be capital support policies which help SMEs to expand the scale of production and business and have conditions to recruit and train skills for workers. Fifthly, developing criteria for evaluating the ability of training skills, through which assess the training quality of SMEs to have the form of appropriate reward and encouragement for SMEs who have contributed actively in training for skilled workers. Currently, the province has not set evaluation criteria and policies to encourage SMEs in training for laborers. In the next time, to achieve targets for training workers in handicraft villages in particular, rural workers in general, it needs to implement this policy. Sixthly, often opening the contest between skilled occupations. In fact, recently workmanship contest was held very few and only organized across the district, provincial level and not organized in separate groups of occupations. In the coming time, it needs to strengthen the organization of skilled labor contest of SMEs in handicraft villages or handicraft villages which have the same professions such as wood, ceramics, paper... Seventhly, strengthening the role of linkage form in training for skilled workers in SMEs in handicraft villages. At the same time, expanding training links between training institutions in handicraft villages of the same kind in the country and aims to link training with foreign countries. Eighthly, checking, adjusting and planing training systems, vocational training in the direction of: Training by needs and development goals of SMEs in handicraft villages, traditional handicraft villages. Specially fitting vocational training for labors Phương Hữu Khiêm và Đtg Tạp chí KHOA HỌC & CÔNG NGHỆ 133(03)/1: 25 - 31 31 of SMEs in handicraft villages with national objectives of vocational training for rural workers. Ninely, raising awareness for SMEs’ owners on the needs of training and improving skills of the labors associated with value conservation and preservation handicraft villages. CONCLUSION Prior to the development trend of the handicraft villages, especially the competitiveness of handicraft products with a high level of sophistication, to embellish, preserve, conserve and develop the industry in Bac Ninh province currently and the coming time, the training of skilled workers for the SMEs in handicraft villages is very necessary. Besides the achieved results in training, vocational handing for laborers of SMEs in handicraft villages, in the next time it needs to make drastic synchronization solutions which respect the training at the SMEs. REFERENCES 1. Government (2012), Decision No. 1231/QD- TTg dated 07 Sep 2012 on "approve development plans of small and medium enterprises in the period 2011-2015". 2. Bac Ninh province’s Department of Trade and Industry (2012), Report on developing the strategic direction of the handicraft villages; investment current situation in handicraft villages and the development of handicraft villages in Bac Ninh province. 3. Bac Ninh province’s Department of Planning - Investment (2011), Development of small and medium enterprises in Bac Ninh province in 2011- 2015. 4. Bui Van Vuong (2002), Vietnam traditional handicraft villages. Culture and Information Publishing House, Hanoi. 5. Web portal of Bac Ninh province: TÓM TẮT GIẢI PHÁP VỀ ĐÀO TẠO VÀ PHÁT TRIỂN NGUỒN NHÂN LỰC CHO CÁC DNNVV TẠI CÁC LÀNG NGHỀ, LÀNG NGHỀ TRUYỀN THỐNG TRÊN ĐỊA BÀN TỈNH BẮC NINH Phương Hữu Khiêm1*, Vương Quốc Tuấn2, Đỗ Anh Tài1, Nguyễn Ngọc Lý3 1Đại học Thái Nguyên, 2Tỉnh đoàn Bắc Ninh, 3Trường Đại học Kinh tế & Quản trị kinh doanh – ĐH Thái Nguyên Làng nghề nói chung, doanh nghiệp nhỏ và vừa (DNNVV) nói riêng có đóng góp quan trọng trong quá trình phát triển của tỉnh Bắc Ninh, góp phần thay đổi bộ mặt nông thôn của tỉnh. Việc phát triển các DNNVV tại các làng nghề, làng nghề truyền thống không chỉ có vai trò tạo công ăn việc làm mà còn góp phần tôn tạo, gìn giữ, bảo tồn các giá trị văn hóa truyền thống trong các làng nghề, làng nghề truyền thống của tỉnh. Tuy nhiên hiện nay, hoạt động sản xuất kinh doanh của các DNNVV tại các làng nghề tại Bắc Ninh gặp nhiều khó khăn, hạn chế trong đó có hạn chế về trình độ nguồn nhân lực. Để phát triển DNNVV nói riêng, các làng nghề, làng nghề truyền thống thì cần có những giải pháp thiết thực về đào tạo tay nghề nâng cao trình độ cho người lao động. Bài báo đề xuất những giải pháp về đào tạo và phát triển nguồn nhân lực cho các DNNVV tại các làng nghề, làng nghề truyền thống trên địa bàn tỉnh Bắc Ninh. Từ khóa: doanh nghiệp, đào tạo, nguồn nhân lực Ngày nhận bài:23/9/2014; Ngày phản biện:03/10/2014; Ngày duyệt đăng: 03/4/2015 Phản biện khoa học: TS. Đỗ Thị Thúy Phương – Trường Đại học Kinh tế & Quản trị kinh doanh - ĐHTN * Tel: 0945 855085