Traditional handicrafts are not only important for preserving cultural heritage but also play a significant role in local socio-economic development. In Hanoi, traditional handicrafts and craft villages have been classified as “creative industries” by the cultural industry development project. To promote economic development and the potential of traditional craft villages in and around Hanoi, Hoan Kiem district has leveraged the inherent value of traditional products and creative designs for innovation and development. The conservation and promotion of heritage values in the streets of the Old Quarter and Nam Huong temple have allowed young artists to contemplate Hang Trong folk paintings and create works based on traditional values. To transform traditional handicrafts into popular souvenirs for tourists, it is necessary to promote trade and design packaging and labels that meet the needs of customers. Localities have also assisted craft villages in building introduction and display spaces for their handicraft products, souvenirs, and gifts to improve the tourist experience.