The craft village was founded by Mr. Hoang Tien Phan, who was born and raised in Phung Xa village. He is the one who inspired the job and taught to households in the village. In the ancient days, the craft village introduced a variety of silk fabrics to the market.

Phung Xa Craft village is well-known in many places in Vietnam for their sophisticated craftsmanship, the products have a high artistic value and are able to compete with those of other craft villages.

The craft village expanded their activity to the production of jeans, handkerchiefs and satin silk. With production up to millions of meters of fabrics of all kinds, the craft village has not only met the domestic consumption demand but also exported to Eastern Europe and the former Soviet Union.

Thanks to the favourable economic development, locals of the village have invested heavily in machinery, the total number of machines was up to 1000 units at that time. Accompanied by the development of the industry, the craft village has met the needs of the market with more diverse models.

By responding to the wide needs of domestic and international markets, the locals have begun to promote the development of a more advanced industrial production model. In 2010, there were 35 manufacture plants in the village, the total labour force was up to 6000 on the peak.

Thanks to investment in advanced technology, the towel of the Village are not only widely distributed in many stores, supermarkets across Vietnam, but it was also exported to the US, Japan, Taiwan, and Korea in large volumes.