This initiative aims to lay the groundwork for the industrialization of the medicinal herbs sector, thereby fostering socio-economic development not only within Quang Nam Province but also contributing to Vietnam's ambition of becoming a regional hub for high-value pharmaceutical production.
The medicinal herbs industry in Quang Nam Province is well-positioned for growth, given the province's significant potential, which includes 832 varieties of medicinal herbs found across diverse terrains from coastal areas to mountainous regions. Notably, Ngoc Linh ginseng has been recognized as a national product and is regarded as a national treasure of Vietnam.
Current statistics indicate that the province boasts a pharmaceutical development area of approximately 90,000 hectares, with plans to extend this to an additional 50,000 hectares by incorporating neighboring provinces.
By prioritizing the cultivation of medicinal plants in its midlands and mountainous regions, Quang Nam province has reaped significant benefits. The cultivation of medicinal plants like Ngoc Linh ginseng and Morinda officinalis has lifted many ethnic minority households out of poverty and into prosperity. Some villages, like Tra Linh Commune in Nam Tra My District, have transformed from the nation's poorest to affluent communities, with residents purchasing cars and building homes through Ngoc Linh ginseng cultivation.
The cultivation and processing of medicinal herbs in Quang Nam Province has yet to progress beyond initial processing stages. Aside from direct sales to traders, medicinal products are primarily processed into simple derivatives such as dried tea, honey-soaked preparations, or wine.
The absence of deep-processing facilities and significant economic players in the region forces local producers to accept lower prices from traders during harvest seasons.
Ho Van Bong, a Ngoc Linh ginseng grower in village 2 in Tra Linh Commune in Nam Tra My District shared that currently, ginseng is mainly sold by his family to traders, so the output is unstable. During the harvest season, leaves or roots are often forced down in price. The people's wish is for a large enterprise to come and buy them so that they are no longer forced down in price, and people can feel more secure in investing in caring for precious ginseng plants.
Chairman Tran Duy Dung of Nam Tra My District People's Committee, acknowledged that the range of processed medicinal products such as Ngoc Linh ginseng and dangshen, currently available in the area is still narrow.
Raw medicinal material prices fluctuate during harvest seasons due to oversupply, as local processing enterprises, primarily small and medium-sized, lack the capacity to absorb the entire market.
To ensure stable outcomes, large corporations should invest in the local medicinal plant sector to foster sustainable development, as there remains significant potential for growth in this industry within the region. The district anticipates that the provincial authorities and the Government will implement more effective and targeted policies to attract investment.
This initiative is expected to enhance the quality of life and stimulate the local economy, particularly in a district facing considerable challenges, as stated by the Chairman of the Nam Tra My District People's Committee.
Quang Nam Province possesses a significant area suitable for the cultivation of Ngoc Linh ginseng and other medicinal plants; however, its developmental potential remains constrained. The existing mechanisms and policies aimed at fostering the local medicinal plant industry are insufficient, resulting in limited capacity to attract investment and establish processing facilities or industrial parks dedicated to medicinal plants.
Currently, the processing of these plants is primarily at a basic level, lacking advanced processing techniques, and the products do not boast a sufficiently robust brand identity.
Furthermore, the availability of human resources dedicated to the research and development of Ngoc Linh ginseng and medicinal plants is notably inadequate.
Vice Chairman Ho Quang Buu of the People's Committee of Quang Nam Province shared that Quang Nam Province has initiated a project to establish a Center for Medicinal Materials Industry, with Ngoc Linh ginseng as the primary crop. This effort aims to bolster the province with robust policies and resources, enabling it to maximize the potential of raw material areas and attract substantial enterprise investments.
During a working session with Quang Nam Province leaders in 2022, Prime Minister Pham Minh Chinh approved the policy and tasked the Ministry of Health with coordinating with other ministries, branches, and localities to develop a project for establishing a Center for Medicinal Materials Industry in Quang Nam Province.
This initiative lays a solid foundation for Quang Nam Province to fully leverage its strengths and potential in developing extensive medicinal material areas. The project is currently underway in Quang Nam Province with plans to expand raw material areas to the South Central Coast and Central Highlands provinces.
The project has now been finalized by the People's Committee of Quang Nam province, in consultation with relevant ministries and local authorities, and is currently being presented to the Government for approval. The establishment of the Center for Medicinal Materials Industry is anticipated to leverage all existing strengths derived from practical experience, human resources, investors, and advancements in science and technology. It is hoped that the Center for Medicinal Materials Industry in Quang Nam will evolve in accordance with expectations and extend its influence throughout the region.
Furthermore, Mr. Ho Quang Buu added that the development of this project aligns with the Strategy for the Advancement of the Vietnamese Pharmaceutical Industry and supports the Quang Nam Provincial Planning, which has been sanctioned by the Prime Minister, including the initiative to create a National Center for Medicinal Materials Processing.
