Transforming Quang Nam into a center for the medicinal herb industry

The Government approves the project to develop a medicinal herb industry center in Quang Nam with Ngoc Linh ginseng as the key crop.

Prioritizing the development of Ngoc Linh ginseng and medicinal herbs

Deputy Prime Minister Le Thanh Long signed Decision No. 463/QĐ-TTg on February 28, 2025, approving the project "Development and Establishment of a Medicinal Herb Industry Center in Quang Nam Province, with Ngoc Linh ginseng as the key crop."

The project's objective is to systematically develop medicinal herb cultivation areas along with a comprehensive processing, production, business, and scientific research system. This initiative aims to gradually transform Quang Nam into the country's leading center for the medicinal herb industry. By leveraging the potential of Ngọc Linh ginseng, a national product, and other valuable medicinal herbs in the region, the project seeks to elevate Vietnam’s medicinal herb industry into a high-value economic sector.

In the phase 2025 - 2035, the project aims to maintain and develop an appropriate cultivation area for raw materials; it prioritizes the development of Ngoc Linh ginseng and other medicinal herbs that have competitive advantages and economic value, possess a market, and suit the ecological conditions of each locality.

It will establish and develop an integrated chain for producing seeds, cultivating, processing, manufacturing, and consuming medicinal herb products, in compliance with the principles and standards of Good Agricultural and Collection Practices (GACP) as set by the World Health Organization (WHO).

Before 2030, the project seeks to complete land use planning and related plans, determine suitable locations, and gradually invest in infrastructure development for the medicinal herb industry center within industrial zones in Quang Nam province - initially concentrating at the Chu Lai Open Economic Zone. This phase also includes upgrading and perfecting regional infrastructure and transportation connections, thereby facilitating development and attracting investment in the medicinal herb industry.

In the phase 2036 - 2045, the goal is to complete a synchronized, modern infrastructure system that meets the requirements of the local medicinal herb industry; to diversify medicinal herb products and derivatives with Ngọc Linh ginseng as the key product, ensuring their quality meets domestic consumption standards and integrates into the global medicinal herb value chain, with many high-value export products.

Based on a review of legal regulations, programs, projects, and initiatives already approved related to medicinal herb development (such as the Vietnam Ginseng Development Program, the National Strategy for the Pharmaceutical Industry, the Domestic Industrial Development Program, and the Pharmaceutical Industrialization Development Program), the project proposes to implement a comprehensive system of tasks and solutions, including: establishing institutional frameworks and policies, finalizing planning, promoting investment attraction, developing medicinal herb cultivation, advancing scientific research, technology transfer, marketing, and trade promotion.

Establishing a aupply chain for cultivation, preliminary processing, processing of medicinal herbs

Regarding institutional policies: enterprises, investors, organizations, and individuals involved will benefit from incentive mechanisms, preferential policies, and support in accordance with current legal regulations. Additionally, policies will be reviewed, studied, and introduced to align with the specific characteristics and development needs of establishing a medicinal herb industry center in Quang Nam province. This includes exceptional incentive policies aimed at attracting investment, particularly in developing Ngoc Linh ginseng as a national product and other promising sectors with strong potential for growth.

Regarding the development of cultivation areas: The medicinal herb cultivation zone will be expanded, with Ngoc Linh ginseng as the primary crop, along with other high-value medicinal plants in Quang Nam and Kon Tum provinces, in accordance with the provincial planning approved by the Prime Minister. The focus will be on increasing cultivation areas and applying advanced quality management processes to the cultivation of Ngoc Linh ginseng and other large-scale medicinal crops such as Ba Kich (Morinda officinalis), Dang Sam (Codonopsis pilosula), and Sa Nhan Tim (Amomum longiligulare).

A network of production linkages will be developed, forming a supply chain that integrates the cultivation, preliminary processing, and processing of medicinal herbs in Quang Nam province, connecting with neighboring provinces and across the country. The processing and deep processing of medicinal herbs will be concentrated in the medicinal herb industrial center in Quang Nam.

Efforts will be made to ensure conservation and sustainable development of Ngoc Linh ginseng and other medicinal plant genetic resources. Strict quality control measures will be enforced for Ngoc Linh ginseng seedlings and other medicinal plants, along with appropriate support and the promotion of advanced quality management practices in medicinal herb cultivation and development.