Abstract: Traditional craft villages are facing fierce competition in the context of globalization and industrialization. In order to survive and develop, the application of science and technology in the production and business process is an inevitable trend. This study aims to evaluate the effectiveness of the application of science and technology in improving production processes, enhancing product quality, expanding markets and sustainable development to increase competitiveness in the modern economic environment for traditional craft villages through a typical case study. The author used research methods such as analyzing available documents and in-depth interviews with artisans in the traditional lacquer craft village of Tuong Binh Hiep, a typical traditional craft village in Vietnam. The research results show that the application of science and technology, including automation, e-commerce and software production management, has helped traditional craft villages improve productivity, reduce costs and expand international markets. This has made an important contribution to enhancing the competitiveness of craft villages in the context of economic globalization and industrialization. However, to maintain the momentum of development and ensure sustainability in the future, long-term and comprehensive solutions are needed to optimize the effectiveness of science and technology while adapting to new global market challenges. From the opinions and analysis of the application of science and technology in Tuong Binh Hiep Lacquer Craft Village, a number of important conclusions can be drawn, showing the path of sustainable development of traditional craft villages in the context of integration. From the above issues, the objective of this study is to evaluate the effectiveness of applying science and technology to improve production processes, enhance product quality, and expand markets to help traditional craft villages in Vietnam increase their competitiveness in the modern economic environment.