Thanh Hoa's gotu kola targets global value chains

As Viet Nam transitions toward a modern agricultural sector, many businesses are choosing to create greater value rather than simply expand production. In the central province of Thanh Hoa, gotu kola - a plant long familiar in the daily lives of local communities, is gradually being developed through value-added processing, meeting international standards and targeting integration into global supply chains.

THQueenFarm is pursuing this strategy by establishing standardized raw material production areas, investing in advanced processing technologies, and expanding partnerships with international collaborators to unlock the full value of gotu kola.

The initiative is led by Tran Van Tan, born in 1979 and raised in a farming family in Thanh Hoa Province. After many years working in the irrigation sector, he observed that most local agricultural products were still sold in raw form, generating limited added value and remaining highly dependent on market fluctuations.

Motivated by this reality, he chose gotu kola as the company's flagship crop. Although widely recognized for its nutritional and medicinal properties, the plant had long been underutilized despite its considerable potential. The company's objective extends beyond developing new products; it also seeks to improve farmers' incomes through value-added processing while building a strong regional agricultural brand.

Investing in technology and standardized raw material production

To meet the requirements of international export markets, THQueenFarm has focused on establishing an integrated value chain, from raw material production to processing.

The company has invested in demonstration cultivation areas to refine production practices while partnering with local farmers by providing seedlings, transferring cultivation techniques, monitoring production processes, and guaranteeing product purchases. Farming practices are implemented in accordance with standards such as VietGAP and GlobalGAP, with a long-term goal of achieving organic production and ensuring full product traceability.

Alongside the development of standardized cultivation areas, the company has adopted water-saving irrigation systems, weather monitoring technologies, and climate adaptation measures to reduce production risks and improve resilience.

Its commitment to sustainable development is also reflected in its processing operations, where priority is given to clean raw materials, reduced chemical use, energy efficiency, and the utilization of by-products to support a circular agriculture model.

By investing in quality management systems that comply with international standards, including ISO 22000, HACCP, and Halal certification, together with comprehensive traceability systems, THQueenFarm has developed a range of value-added products such as gotu kola powder, gotu kola tea, and processed products made from other indigenous medicinal herbs.

According to the company, these products have entered several Asian markets, including Japan.

The economic benefits of value-added processing are significant. One hectare of certified gotu kola can produce around 50 tonnes of fresh leaves annually, which yields approximately 5 tonnes of dried product after freeze-drying. The value increases further when the dried material is processed into refined products such as powder and tea. Looking ahead, the company is researching the extraction of saponins, bioactive compounds with applications in cosmetics, nutraceuticals, and pharmaceuticals, opening opportunities to join higher-value global supply chains.

International partnerships and inclusive agricultural development

A distinguishing feature of THQueenFarm's business model is its integration of technological innovation with social impact.

Within the company's production network, approximately 45% of participating farming households are headed by elderly farmers. According to THQueenFarm, these growers bring extensive farming experience, carefully follow technical production protocols, and play an important role in maintaining the consistent quality of the raw material supply.

Enabling older farmers to remain actively engaged in agricultural production not only helps improve rural incomes but also aligns with Viet Nam's broader efforts to harness human resources as the country enters an era of population aging.

In parallel with expanding its raw material production areas, THQueenFarm has strengthened international partnerships to further enhance the value of gotu kola.

The company is currently collaborating with partners in Niigata Prefecture, Japan, to develop beverages made from gotu kola and other medicinal herbs. At the same time, THQueenFarm is working with QFF Japan on research into seed irradiation technology to develop gotu kola varieties with higher saponin content, targeting applications in the cosmetics and healthcare industries.

These collaborative projects are expected not only to increase the economic value of gotu kola but also to create new opportunities for Viet Namese agricultural products to integrate more deeply into global value chains through science, technology, and innovation.

As Viet Nam's agricultural sector shifts from a production-oriented approach to an agricultural economy driven by value creation, THQueenFarm's development model demonstrates the potential of transforming indigenous crops through advanced processing technologies, standardized production systems, and expanded international cooperation.

Once regarded primarily as a fresh, locally consumed herb, Thanh Hoa's gotu kola is gradually being positioned as a high-value raw material with applications across multiple industries, including food, pharmaceuticals, nutraceuticals, and cosmetics.

According to Vu Tien Dung, Vice Chairman of the Thanh Hoa Farmers' Association: "This model demonstrates the potential of applying science and technology, developing standardized raw material production areas, and strengthening international cooperation to enhance the value of local agricultural products. It is also well aligned with Viet Nam's goal of building a green, sustainable, and internationally integrated agricultural sector."