Turning Lai Chau ginseng into a symbol of green economy

Speaking about Lai Chau’s vision for developing its forest economy through an integrated, multi-value approach, Nguyen Van Dien, Deputy Director General of the Department of Forestry and Forest Protection under the Ministry of Agriculture and Environment, said the province’s tropical highland monsoon climate in Viet Nam’s northwestern region, characterized by warm days, cool nights and limited exposure to storms, provides favorable conditions for cultivating fruit trees, flowers, vegetables and, in particular, medicinal plants.

To date, Lai Chau has developed more than 23,000 hectares of medicinal plant cultivation, including economically valuable species such as Lai Chau ginseng, Paris polyphylla, codonopsis, angelica, cinnamon, black cardamom, amomum, turmeric and ginger. Of this area, roughly 9,100 hectares consist mainly of black cardamom and amomum cultivated under natural forest canopies.

“These crops have expanded rapidly across many northern mountainous provinces in recent years, but sustainable development strategies are needed to avoid negative impacts on forest ecosystems,” Dien said.

He noted that limited production remains a major obstacle to deep processing, product diversification and large-scale brand development for Lai Chau ginseng.

In recent years, several companies have invested in medicinal herb cultivation in the province, particularly Lai Chau ginseng. Cooperatives have also emerged to connect businesses with households and local communities in production and processing activities, including the Lai Chau Ginseng Conservation and Development Cooperative. According to Dien, these developments indicate that the province’s medicinal herb sector has begun attracting investors and gradually forming value chains from cultivation and processing to market distribution.

Expanding Lai Chau ginseng cultivation beyond forests

According to the Department of Forestry and Forest Protection, Lai Chau possesses all the necessary conditions to develop a large-scale medicinal herb industry, with Lai Chau ginseng positioned as a flagship product.

The province has extensive forest resources, with natural forests accounting for 95.5 percent of total forest area. Its ecosystems range from lowland to high-altitude mountains, creating diverse climatic zones suitable for temperate and subtropical medicinal plants. Officials say this provides a rare advantage for cultivating high-value species such as Lai Chau ginseng, notoginseng, Paris polyphylla and Anoectochilus orchids.

In addition, ethnic minority communities including the Dao, Tay and Nung retain valuable indigenous knowledge related to the cultivation, harvesting and use of traditional medicinal plants. Combined with dramatic natural landscapes and a growing tourism sector, the province sees opportunities to promote and market its medicinal products more broadly.

Transport infrastructure is also improving, particularly with the future completion of the Bao Ha–Lai Chau Expressway (CT13), which officials believe will provide a major boost to investment and trade.

On development strategies, Dien said Lai Chau needs clearer planning for cultivation zones and priority medicinal crops to avoid fragmented development and instead focus on specialty products with competitive advantages. In cooler high-altitude areas, he recommended prioritizing Lai Chau ginseng, notoginseng and other high-value medicinal plants, while also establishing conservation zones within protected forests to preserve valuable genetic resources for long-term production.

“For Lai Chau ginseng, in addition to forest-based cultivation, the province should study expanding cultivation outside forests on suitable agricultural land,” Dien said, describing this as a key solution to overcome limitations associated with forest cultivation, including difficulties in mechanization, intensive farming, low productivity and fragmented output.

According to Dien, greenhouse and net-house cultivation models similar to those used in South Korea could help Viet Nam improve productivity and secure a stable supply of raw materials for deep processing. South Korean experts estimate that achieving yields of 4–6 tons per hectare after six years, comparable to Korean ginseng production, would require changes in cultivation methods, higher productivity per unit of land and larger-scale farm development. South Korea currently has approximately 15,000 hectares of ginseng cultivation, producing more than 23,000 tons annually.

Building a complete value chain

In terms of production organization, Dien said Lai Chau should diversify partnership models between local farmers and businesses, strengthen cooperatives and cooperative groups, and attract major investors into the medicinal herb sector, particularly Lai Chau ginseng.

“With its forest resources, natural conditions and ethnic cultural identity, Lai Chau has every opportunity to build a strong medicinal herb industry, with Lai Chau ginseng at its core, helping improve local incomes and promote socio-economic development,” he said.

At the processing and marketing stage, Dien said the province should develop a wide range of medicinal herb products, including pharmaceuticals, functional foods, cosmetics and spices, while building a complete value chain covering seed production, cultivation, harvesting, preliminary processing, advanced processing and market distribution.

For Lai Chau ginseng specifically, he emphasized the importance of building a national brand and diversifying products while preserving the plant’s unique connection to local culture and communities. He said the herb has the potential not only to become a premium medicinal product but also a symbol of the province’s green economy.

Dien also proposed integrating medicinal herb development with ecotourism by creating experiential tours focused on ginseng cultivation, harvesting and processing, alongside cultural festivals, cuisine and traditional medicine exhibitions.

“This is an approach South Korea has implemented very effectively with its ginseng industry,” he said.