Lai Chau ginseng strategy: 'Selling value, not just roots'

According to Dr. Pham Quang Tuyen from the Viet Nam Academy of Forest Sciences, many studies show that Lai Chau ginseng has high scientific value due to its rich saponin content. In plants aged 5-7 years, total saponin content ranges from 17.68% to 19.71%, significantly higher than in many other medicinal plants such as wild notoginseng or Panax bipinnatifidus. Many samples also show promising MR2 index levels, providing an important foundation for developing high-value healthcare products.

"Beyond its scientific value, Lai Chau ginseng also embodies strong cultural value and indigenous knowledge. The Ha Nhi, Dao, H’Mong, and many other ethnic communities in Lai Chau have used this plant for generations under names such as black notoginseng, red notoginseng, or ‘energy-boosting root.’ Traditionally, it has been used for recovery, treating colds, and restoring health after childbirth. This long history of use has built a strong traditional reputation for the product," Dr. Tuyen shared.

At both central and local levels, Lai Chau ginseng has received growing support. The product has been granted certification trademarks, plant variety protection, and expanded international cooperation with South Korea and Japan.

In terms of commercialization, the Lai Chau ginseng market has grown rapidly since 2020. A wide range of processed products has emerged, including red ginseng, ginseng tea, nutritional beverages, functional foods, and cosmetics. According to Dr. Pham Quang Tuyen, development should follow the principle of “selling value, not just roots”, meaning not merely trading raw materials, but building a diverse, branded product ecosystem. The Lai Chau Ginseng Association and specialized trade fairs have also gradually taken shape, helping position Lai Chau ginseng as a new economic and cultural symbol of the province.

Market potential remains substantial, as domestic demand for medicinal materials is currently only about 25% met, with an estimated market value of around USD 400 million per year. Meanwhile, the global market for medicinal herbs and ginseng-derived products reached approximately USD 230 billion in 2021 and is projected to grow to USD 430 billion by 2028.

Regarding the role of Lai Chau ginseng in the under-forest economy, Dr. Pham Quang Tuyen noted that cultivating ginseng helps increase forest value without deforestation, creates suitable jobs for households, women, the elderly, and local labor, and reduces labor migration. Therefore, Lai Chau ginseng is considered a solution for “protecting forests through economic value,” balancing natural resource conservation with local economic development.

In addition, Lai Chau ginseng holds significant potential for eco-tourism and wellness tourism. Experiential tours involving ginseng cultivation, harvesting, and processing, combined with exploration of indigenous culture, relaxation, and healthcare services, can create new value chains. The development of a “Viet Nam ginseng cultural space” in Lai Chau is seen as a promising direction to elevate the local brand.

To ensure sustainable development, Dr. Pham Quang Tuyen proposed that Lai Chau ginseng cultivated under forest canopies should be identified as a strategic sector, integrating forestry, traditional medicine, and eco-tourism. The province should promote breeding and selection, conserve endemic genetic resources, and apply GACP-WHO standards in cultivation. It is also necessary to plan growing areas in alignment with the three forest categories, develop production along value chains based on four stakeholders linkage of government, scientists, businesses, and farmers and position the brand toward a combination of conservation, commercialization, and eco-tourism, with a view to export markets.