Rural economic development: [1] When areca leaf sheaths become circular economy product

Making money from areca leaf sheaths

Known as the "areca capital" of Quang Land, Thanh Binh commune (Da Nang City) has long been famous for its vast, lush areca gardens, which are closely associated with local residents' lives. In addition to the value of its fruit, the areca palm provides an abundant source of raw material from areca leaf sheaths, an agricultural by-product often discarded after each harvest.

Capitalizing on this distinctive advantage, Dat Quang Green Areca Cooperative has turned agricultural by-products into valuable handicraft products. The model not only increases the value of areca palms but also creates jobs and raises incomes for rural workers, contributing to livelihood improvement, poverty reduction, and economic development goals under the National Target Program.

According to Ms. Vo Thi Thu Thoi, Director of Dat Quang Green Areca Cooperative, the Cooperative was established in 2023 and has since developed more than 25 handicraft products made from areca leaf sheaths, including handbags, baskets, trays, gift boxes, lanterns, and decorative items. Among them, the areca leaf sheath handbag has been recognized as a 3-star OCOP product, becoming one of the Cooperative's key products.

To make a finished product, collected areca leaf sheaths are first soaked in water to soften them, then split into strands, sun-dried, machine-dried, and hand-woven. The products are subsequently dried and treated with bioglue to enhance durability and prevent mold growth. Through the skillful hands of local residents, areca leaf sheaths once considered of little value have been transformed into aesthetically appealing, environmentally friendly products that bear the distinctive imprint of the midland region of Quang Land.

Thanks to their diverse designs and alignment with the green consumption trend, the Cooperative's products are now sold in many localities across Da Nang City, as well as in Hanoi, Ho Chi Minh City, and numerous other provinces and cities. Some product lines have also attracted the interest of foreign partners, who have placed orders.

In addition to selling its products through online platforms, the Cooperative regularly participates in OCOP fairs, exhibitions, festivals, and green tourism forums both at home and abroad. These events provide opportunities to promote the Cooperative’s brand and expand its market while helping the Cooperative better understand consumer demand and further improve product design.

"Every time we participate in a trade fair, many customers are excited to see products that are both attractive and environmentally friendly. Consumer interest motivates the Cooperative to continue researching and developing new designs," Ms. Thoi shared.

Although it has only 20 official members, the Cooperative provides regular and seasonal employment for around 100 local workers. Most are women, older people, or farmers with spare time between farming activities. After receiving technical training, they can take raw materials home to work on and then deliver the finished products to the Cooperative.

Depending on their skills and workload, each worker can earn an average income of around VND 100,000/day, equivalent to nearly VND 3 million/month. Those with more advanced skills or who undertake more complex products can earn VND 4-5 million/month. For many rural households, this represents a significant source of income during the agricultural off-season. During the summer, some students can also take part in simple production stages to earn additional money to cover their educational expenses.

Prioritizing investment in OCOP products

According to Mr. Phan Hong Phat, Vice Chairman of the Thanh Binh Commune People's Committee, OCOP products in general, and areca leaf sheath-based products in particular, have helped create jobs and generate additional income for many local workers.

"Local residents not only harvest areca fruit but also make use of the leaf sheaths to produce handicrafts. Tourists are currently quite interested in these products, thereby creating an additional source of income for some underemployed workers," Mr. Phat said.

Identifying OCOP as one of the key solutions for implementing the National Target Program, Thanh Binh commune has issued a plan to develop OCOP products for the 2026-2030 period. To date, the commune has nine OCOP products, including one 4-star product and eight 3-star products. These products represent an important resource for the locality to make more effective use of its distinctive products, increase the value of agricultural products, and promote rural economic development.

According to Mr. Phat, developing OCOP products contributes to job creation, higher incomes, poverty reduction, and the strengthening of local production organizations. It also provides a foundation for the commune to gradually meet the criteria and targets set out in the National Criteria for New Rural Communes for the 2026-2030 period, particularly those related to the economy, labor, income, production organization, and the environment.

Under the plan, in 2026, the commune will continue to support the development of six new OCOP products and upgrade one product from three stars to four stars. The products will focus on leveraging the locality’s distinctive raw materials, including herbal products made from lemon, soapberry, and lemongrass, as well as handicrafts from areca leaf sheaths, such as basket sets, lanterns, and handbags.

In the coming time, Thanh Binh commune will continue supporting subjects in improving product designs, enhancing quality, completing supporting documentation, and expanding markets. The locality also plans to link OCOP products with rural tourism, community-based tourism, and cultural destinations in the area.

This approach will not only increase product value but also establish linkage across the entire chain, from production and processing to experiences and consumption. When tourists can visit, learn about the crafting process, and purchase products on-site, local residents will gain additional income from both goods production and tourism services.

Using the locality’s distinctive raw materials, Thanh Binh residents have created valuable OCOP products, thereby generating additional jobs and livelihood opportunities in their hometown. This is a concrete testament to the effectiveness of the OCOP Program in unlocking local potential, raising incomes, and supporting the locality in implementing the National Target Program in a substantive and sustainable manner.

“The OCOP Program has laid an important foundation for rural economic development. However, in the next phase, there needs to be a strong shift from quantity-driven development toward improving product quality, efficiency, and added value,” said Mr. Nguyen Xuan Dai, Chief of the Office of the Central Coordination Office for the National Target Program.

$ 1 = VND 26,480 - Source: Vietcombank.