Awakening Muong Khuong land of agricultural treasures

Risk of "border closures mean produce goes to waste"

According to Mr. Pham Duc Trung, Vice Chairman of the Muong Khuong Commune People's Committee in Lao Cai, tea, bananas, and mandarins are the three key crops that have transformed the commune's rural landscape. The commune currently has around 2,000 ha of tea plantations. Tea is not only a commercial crop but also a long-term asset. Once tea-growing areas are established, farmers only need to care for and harvest them for generations, unlike many other crops that provide only short-term yields.

Alongside tea, banana growing has become another key driver of prosperity for farmers in Muong Khuong, with a total area of nearly 1,200 ha. Bananas generate high economic value, with average yields reaching 27 tons/ha. At times, the banana prices range from VND 15,000–16,000/kg, while prices during the Lunar New Year (Tet) can climb to VND 26,000/kg. Well-managed intensive plantations are capable of generating revenues of more than VND 300 million/ha.

More than 500 ha of the commune's banana-growing area have been granted planting area codes, meeting export requirements. Of the total output, 90% is officially exported to China through produce traders, while the remaining 10% is sold on the domestic market. 

Complementing the lush tea fields and banana plantations are concentrated sweet mandarin orchards in Muong Khuong Town and the former Nam Chay Commune, covering around 800 ha and producing nearly 9,000 tons annually.

Muong Khuong is also home to a range of distinctive indigenous specialties. One notable example is its 30-ha chili-growing area, which underpins the renowned Muong Khuong chili sauce brand. Although chili is a short-day crop, farm-gate prices can reach VND 40,000/kg of fresh fruit, providing farmers with a high and stable source of income.

The commune also boasts a variety of high-value agricultural products, including Seng Cu rice, purple cardamom, yellow soybeans, crisp persimmons, and VH6 pears, alongside indigenous livestock breeds such as black chickens and black pigs.

Despite its vast raw material areas and distinctive local products, Muong Khuong continues to face significant challenges in strengthening value chains and ensuring the sustainable development of its key agricultural products.

Currently, productivity of the commune's staple crops remains relatively low. Tea yields reached only 11.5 tons/ha, bananas reached 27 tons/ha, sweet mandarins reached 12 tons/ha, and chili reached 6 tons/ha. In addition, product quality and appearance do not always meet the stringent standards of demanding export markets, resulting in low selling prices.

Besides, production and consumption linkages also remain weak. For example, with nearly 2,000 ha of tea plantations, Muong Khuong currently has only two major buyers, including Thanh Binh Tea JSC and Muong Khuong Tea Cooperative in Ban Lau Commune, along with several small local collectors. The absence of deep-processing facilities within the locality leaves tea growers constantly uncertain about market outlets.

The vulnerability is even more pronounced for commodities such as bananas and purple cardamom. At present, 100% of purple cardamom output and 90% of banana production depend entirely on the Chinese market through cross-border traders. Without long-term off-take contracts and with local buyers lacking sufficient purchasing capacity, Muong Khuong's agricultural products are constantly exposed to the risk that border closures mean produce goes to waste.

In addition, the commune's rugged terrain and unpredictable highland climate frequently bring droughts, hailstorms, strong winds, and landslides, causing annual losses worth tens of billions of dong on local farmers. Furthermore, the overuse of chemical fertilizers and pesticides by some farmers remains a major obstacle to exporting agricultural products and accessing domestic consumption channels with strict requirements.

Towards a prosperous agriculture

The Party Congress of Muong Khuong Commune, term 2025–2030, has reaffirmed its goal of developing a commodity-oriented agricultural sector, applying advanced science and technology associated with deep processing to build prosperous agriculture, a modern countryside, and wealthy farmers.

To achieve this vision, the commune's first priority is to boldly restructure crop production by replacing less efficient crops. Thousands of ha of maize, cassava, and single-crop rice grown under unstable conditions will gradually be replaced by high-value crops with competitive advantages and stable output, including tea, vegetables, fruit trees, and medicinal plants.

According to Mr. Pham Duc Trung, the commune has developed a strategy to establish specialized production zones tailored to each area. Under the plan, banana growing will be expanded to 1,200 ha, concentrated in the Thanh Binh and Nam Chay areas. The commune aims for 100% of commercial banana plantations to obtain planting area codes, increase average yields to 30 tons/ha, and maintain more than 90% of output through official exports backed by more stable contractual arrangements.

For tea production, the commune plans to encourage farmers to plant an additional 250 ha, bringing the total tea-growing area to 2,100 ha. Efforts will focus on strengthening agricultural extension services, expanding farmer training, and increasing investment in intensive cultivation to raise tea yields to 13 tons/ha. In particular, the commune will develop 300 ha of VietGAP-certified tea plantations in the Thanh Binh and Nam Lu areas to improve product quality and meet export market requirements.

The commune plans to develop an 800-ha sweet mandarin growing area, concentrated primarily in the Muong Khuong and Tung Chung Pho areas, with 100 ha cultivated in accordance with VietGAP standards. The remaining orchards will undergo proper pruning and canopy management, combined with appropriate fertilization and crop care, to improve productivity, enhance fruit quality, and ensure food safety. The commune will also step up trade promotion activities to attract businesses to invest in pre-processing, processing, and consumption linkages.

Plans are also in place to expand crisp persimmon cultivation to 300 ha in the Tung Chung Pho and Muong Khuong areas. Meanwhile, annual chili cultivation will be maintained at 50 ha, using high-quality varieties suited to local climatic and soil conditions while meeting raw material standards for the production of Muong Khuong chili sauce.

The commune also aims to expand Seng Cu rice cultivation to 300 ha in the Nam Lu and Muong Khuong areas, while strengthening consumption linkages, promoting intensive cultivation, and developing single-variety fields to generate large volumes of uniform commercial rice.

Building on its favorable natural conditions, highland cultural identity, and diverse specialty crops, Muong Khuong aims to develop modern, green, and smart agriculture, with the strong application of science, technology, and digital transformation throughout the entire value chain, from production and processing to consumption and product traceability.

In the coming times, Muong Khuong commune will continue expanding commodity production zones while scaling up VietGAP, organic, and circular agriculture models. At the same time, the locality will seek to attract business investment in deep processing and agricultural logistics, while further developing both domestic and export markets. Priority will also be given to building sustainable linkages among farmers, cooperatives, and businesses to increase the value of agricultural products and improve farmers' incomes.

$1 = VND 26,420 - Source: Vietcombank.