Building medicinal herb industry hub

Unlocking potential

Viet Nam is among the countries blessed with abundant medicinal herb resources, with more than 5,000 species of plants used for medicinal purposes. However, in recent years, Viet Nam’s medicinal herb sector has not fully harnessed its inherent potential, remaining largely focused on raw extraction with low added value and lacking strong competitiveness on the international market.

According to the Ministry of Health, the South Central Coastal and Central Highlands regions boast numerous valuable medicinal herbs with high economic and medical potential, suitable for cultivation and exploitation. These include species such as Bach bo (Stemona tuberosa), cau dang (Uncaria rhynchophylla), cau tich (Drynaria fortunei), cot toai bo (Drynaria roosii), danh danh (Gardenia jasminoides), day dau xuong (Tinospora sinensis), ha thu o (Fallopia multiflora), huyet giac (Dracaena cambodiana), ma tien (Strychnos nux-vomica), manh kinh (Vitex trifolia), sa nhan (Amomum villosum), thien nien kien (Homalomena occulta), tram (Melaleuca spp), tho phuc linh (Smilax glabra), binh voi (Stephania glabra), and ba kich (Morinda officinalis). Notably, Ngoc Linh ginseng, revered as a “national treasure,” ranks among the world’s rarest and most precious ginseng species, found only in the Ngoc Linh Mountain region of Quang Nam and Kon Tum provinces.

Currently, Ngoc Linh ginseng grows within a narrow ecological niche around the summit of Ngoc Linh Mountain, beneath the canopy of primary forests in three districts: Nam Tra My (Quang Nam), Dak Glei and Tu Mo Rong (Kon Tum). In Quang Nam, the plant has been successfully introduced to seven out of ten communes in Nam Tra My district.

In Nam Tra My district, procedures for forest environment leasing for Ngoc Linh ginseng cultivation have been completed, covering over 800 hectares. Of this, 533 households are cultivating 464 hectares, while 18 companies and organisations have leased more than 340 hectares, primarily concentrated in the communes of Tra Linh, Tra Nam and Tra Cang.

Meanwhile, in Kon Tum Province, nearly 3,000 hectares of Ngoc Linh ginseng are under cultivation. Tu Mo Rong district accounts for 2,883 hectares, involving around 1,650 households, 30 cooperative groups, and four enterprises engaged in ginseng cultivation. Kon Tum is also developing a High-Tech Centre for Seedling Production, Conservation and Development of Medicinal Herbs in Tu Mo Rong District, spanning about 60 hectares.

Ho Quang Buu, Vice Chairman of the Quang Nam People’s Committee, shared that in the past, local ethnic communities mainly used Ngoc Linh ginseng to soak in alcohol or honey. In recent years, besides these traditional products, Ngoc Linh ginseng has been processed into various distinctive products such as Ngoc Linh ginseng tea, ginseng-infused wine.

In recent years, using Ngoc Linh ginseng as a raw material, several enterprises have invested in equipment to produce a diverse range of products such as candies, biscuits, tea bags and functional foods.

All these products are manufactured using advanced technological processes and undergo rigorous assessment for quality, health benefits and safety, similar to health-supporting food.

Importantly, alongside efforts to encourage local people to expand ginseng cultivation areas, Nam Tra My district has focused on boosting trade and expanding markets for this unique ginseng. Beyond monthly ginseng markets and the annual ginseng festival, the district actively supports and calls for enterprises to participate in deeper processing of Ngoc Linh ginseng products. Thanks to the district’s support, most of the 25 provincial OCOP (One Commune One Product) products rated three or four stars in Nam Tra My district are made from Ngoc Linh ginseng raw materials.

Building production and business chain

To translate the Government’s policy into reality, Quang Nam province recently coordinated with the Ministry of Health to organise a conference to implement Decision No. 463/QD-TTg (dated 28 February 2025) issued by the Prime Minister, approving the project “Development and establishment of a medicinal herb industrial centre in Quang Nam province with Ngoc Linh ginseng as the flagship crop”. At the same time, the province has drawn up plans to develop and establish the medicinal herb industrial centre.

The key objective of the project is to develop synchronised medicinal herb raw material areas alongside systems for processing, production, business and scientific research, gradually transforming Quang Nam into the country’s leading centre for the medicinal herb industry. The initiative aims to unlock the potential of Ngoc Linh ginseng, a national product, and other medicinal herbs with regional strengths, thereby contributing to developing Viet Nam’s medicinal herb industry into a high-value commodity sector.

Ho Quang Buu, Vice Chairman of Quang Nam People’s Committee, noted that, under the task assigned by the Prime Minister, Quang Nam will soon coordinate with provinces and cities in the South Central Coastal region and the Central Highlands to devise and implement solutions for developing integrated chains for the production, processing and business of medicinal herbs and related activities concentrated around the medicinal herb industrial centre, as well as across the provinces and cities in the region.

Efforts will focus on developing medicinal herb cultivation areas, with Ngoc Linh ginseng as the flagship crop, along with other key medicinal plants such as ba kich (Morinda officinalis), dang sam (Codonopsis javanica) and purple sa nhan (Amomum longiligulare) in Quang Nam, Kon Tum and other provinces, as set out in provincial planning approved by the Prime Minister. Expansion will include increasing the cultivation area and applying advanced quality management procedures in growing Ngoc Linh ginseng and other key medicinal herbs on a large scale.

At the same time, Quang Nam will develop networks and establish integrated chains for the cultivation, preliminary processing and deep processing of medicinal herbs in Quang Nam, linking with neighbouring provinces and cities nationwide. Priority will be given to deep processing activities concentrated in the medicinal herb industrial centre in Quang Nam province.

In parallel, Quang Nam plans to step up research and apply modern technologies to develop cultivation and processing, diversify products, and promote the unique value of Ngoc Linh ginseng. This will support brand building and tourism promotion for the province.

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