On May 7, at Hamlet 2, Tra Linh Commune, Da Nang City, SAMSAM Group and PDA Group officially signed an investment cooperation agreement for a project on the cultivation, care, and protection of Ngoc Linh ginseng. The event marks a new step in the strategy to develop large-scale medicinal herb areas, contributing to the preservation and enhancement of the value of Vietnam’s “national treasure.”
The event took place as the Government is accelerating the implementation of Decision No. 463/QD-TTg on the development of a medicinal herb industry center in Quang Nam, with Ngoc Linh ginseng identified as the key crop. It also aligns with the development orientation for medicinal herb-growing areas in Da Nang, following the expansion of the city’s development space.
According to representatives of the two enterprises, the overarching message of the cooperation program is “Developing Ngoc Linh ginseng cultivation areas—Preserving Vietnam’s ‘national treasure,'" with the goal of building a sustainable value chain spanning seed varieties, raw material areas, deep processing, and product commercialization.
Under the signed agreement, the two sides will cooperate in investing in the development of a Ngoc Linh ginseng cultivation area in Plot 6, Sub-zone 886, Hamlet 2, Tra Linh Commune. In the initial phase, the project will be implemented on an area of more than 1 hectare, with a scale of up to 60,000 ginseng seedlings. The cooperation cycle will last from five to six years, in line with the growth, development, and harvesting characteristics of Ngoc Linh ginseng.
In the next phase, the project is expected to expand the cultivation area by 2-3 hectares annually, with the aim of establishing a large-scale concentrated raw material zone. Notably, PDA Group has committed to purchasing the entire output of Ngoc Linh ginseng to serve the research and production of high-tech healthcare and medicinal products. The project’s total estimated investment capital is approximately VND200 billion (US$7.6 million).
According to the participating parties, the project’s distinguishing feature lies in the combination of each enterprise’s core strengths. SAMSAM Group is currently recognized as one of the pioneering enterprises mastering ginseng propagation technology, possessing a stringent disease control system for ginseng plants as well as genetically standardized raw material areas. The company has also invested in a 2.5-hectare processing plant meeting required standards in Tam Thang Industrial Park, in Ban Thach Commune, Da Nang City, creating a foundation for deep processing and enhancing the added value of ginseng-based products.
Meanwhile, PDA Group has strengths in high-tech agricultural investment and the research and development of specialized products derived from Ngoc Linh ginseng. The company also cooperates with Korean experts and partners in the fields of ginseng and healthcare. PDA Group’s participation in the value chain is expected to help expand consumption markets, enhance commercial value, and gradually bring Ngoc Linh ginseng to international markets.
Mr. Nguyen Duc Luc, Chairman of the Board of Directors of SAMSAM Company Limited and Chairman of the Quang Nam Ngoc Linh Ginseng Association, said that beyond economic objectives, the project also aims to fulfill the important mission of preserving precious genetic resources and maximizing the medicinal properties of Ngoc Linh ginseng—a medicinal herb regarded as a source of national pride for Vietnam. The cooperation model is also built on the spirit of linkage among the “State – Farmers – Scientists – Investors,” thereby creating a sustainable development ecosystem for the medicinal herb industry.
The partnership between the two enterprises to invest in a large-scale cultivation area in Tra Linh is expected not only to pave the way for a high-quality ginseng raw material center in the Central region, but also to contribute to realizing the strategy of developing Ngoc Linh ginseng into a national product capable of competing in regional and global markets national product capable of competing in regional and global markets.
