Lesson 2: Great potential but underdeveloped

Despite the establishment of thousands of hectares of medicinal herb cultivation areas and the participation of several businesses, overall, the medicinal herb cultivation and processing industry in Lao Cai has not developed to its full potential. Many limitations and bottlenecks in the organization of production, processing, and supply to the market are hindering the process of increasing the value of the province's "green gold mine."

In recent years, the province has focused on issuing numerous mechanisms and policies to develop medicinal plants in conjunction with socio -economic development, especially in mountainous areas and ethnic minority regions. As a result, the area under medicinal plant cultivation has gradually expanded year by year; many models of linkages between farmers and businesses have been formed; and some businesses have applied science and technology to the cultivation, care, and preliminary processing of medicinal plants along the value chain. However, overall, the province's medicinal plant cultivation and processing industry remains fragmented, small-scale, and relatively technologically backward, failing to achieve significant breakthroughs.

Lao Cai has begun to develop large-scale medicinal herb cultivation areas.

According to a survey by the Ministry of Health , Lao Cai currently focuses on cultivating a few key medicinal plants such as cinnamon, hawthorn, artichoke, cardamom, and cardamom. Many other endemic medicinal plants, such as Gynostemma pentaphyllum, Coix lacryma-jobi, Polygonum multiflorum, Silybum marianum, Rhus chinensis, and Morinda officinalis, have very limited, scattered, and fragmented cultivation areas. This makes it difficult for people to sell their products, resulting in low economic efficiency. Several small-scale medicinal plant cultivation areas have been established in the province, mainly ranging from 1 to less than 10 hectares. Besides the spontaneous cultivation of medicinal plants by individual farmers, some medicinal plant production cooperatives have been established, but the number of members and participating households remains small, and income from medicinal plants is not yet stable or sustainable.

People are having difficulty selling their products, and the economic efficiency is not high.

Before the administrative boundary merger, Lung Phinh commune was a key area for the development of medicinal plants in the former Bac Ha district. Located at an average altitude of approximately 1,400 meters, the local climate and soil conditions are suitable for many types of medicinal plants. About 80% of the population are Mong ethnic people with extensive experience in cultivating and using medicinal plants. According to the overall plan until 2030, Lung Phinh commune aims to develop a medicinal plant cultivation area of ​​over 300 hectares, focusing on key plants such as Platycodon grandiflorus, Angelica sinensis, Amomum xanthioides, and Artichoke.

The model for cultivating Angelica sinensis in Lung Phinh commune.

Mr. Tran Hoang Tuan, Secretary of the Party Committee of Lung Phinh commune, said: "By 2025, the entire commune will have 171 hectares of medicinal plants, mainly Platycodon grandiflorus, Angelica sinensis, Amomum xanthioides, and artichoke. The commune has partnered with Nam Duoc Joint Stock Company to sign a commitment to purchase products from over 20 hectares of Platycodon grandiflorus, with an expected average income of 150 to 200 million VND/hectare. However, production activities in the locality are currently only at the planting and initial processing stages. Lung Phinh, like many other localities in the province, hopes that Lao Cai will soon establish a medicinal plant production and processing chain and have an industrial park specializing in medicinal plants to enhance economic value."

Sa Pa has great potential for cultivating and preserving endemic medicinal plant species of Lao Cai province. In addition, scientists have successfully transplanted and cultivated many valuable medicinal plants from other localities in Vietnam and abroad, such as Lai Chau ginseng, wild Panax notoginseng, Ngoc Linh ginseng, and artichoke. Particularly, the participation of Traphaco Sa Pa Co., Ltd. with its artichoke cultivation model has affirmed the effectiveness of the "four-party" linkage: the state, farmers, scientists, and investors. Currently, the company collaborates with approximately 300 households, creating jobs and incomes about five times higher than rice cultivation. The company's revenue in 2025 is projected to exceed 70 billion VND, creating stable jobs and livelihoods for thousands of local workers.

Businesses have become involved in the production and processing stages.

However, according to Mr. Do Tien Sy, Director of Traphaco Sa Pa One-Member Limited Company, the development of medicinal plants in Lao Cai still faces many difficulties. The source of medicinal plant seeds is not proactive and lacks uniformity; the cultivation techniques of the people are still limited, leading to inconsistent yields and quality. Processing activities are mainly limited to preliminary processing, lacking deep processing to create high-quality products for the international market. The consumer market is unstable, and domestic medicinal plant products face fierce competition from imported goods.

The current processing activities are mainly limited to preliminary processing, lacking deep processing to create high-quality products for the international market.

In localities such as Púng Luông, Văn Chấn, Cảm Nhân, and Mù Cang Chải, although some models for cultivating medicinal plants like shallots, basil, lemongrass, milk thistle, stevia, and velvet leaf have been established, the area under cultivation remains small. Some businesses, such as Yên Bái Rubber Joint Stock Company, cultivate velvet leaf in Văn Yên; and the Agricultural, Forestry, and Fisheries Technical Services Company Limited cultivates stevia in Nghĩa Lộ and Văn Chấn, but they have only invested in small-scale preliminary processing plants, mainly focusing on drying and initial processing.

Despite initial achievements, the development of medicinal plants and processing technology in Lao Cai still faces many difficulties. The unstable and unstandardized seed sources result in inconsistent product quality. Production is small-scale and fragmented; linkages between farmers, cooperatives, and businesses are weak, making it difficult to apply high technology to establish standardized raw material areas. Deep processing, extraction, and refining technologies are weak, leading to low added value. The consumer market is unstable and heavily dependent on traders; attracting large investors remains limited due to a lack of sufficiently strong mechanisms and policies.

Although artichokes have become a major medicinal plant brand in Lao Cai, their full potential has not yet been realized.

Cinnamon processing technology in Lao Cai is still very manual.

In Lao Cai, indigenous knowledge about medicinal plants is currently mainly exploited through traditional healers and their inherited remedies, with the scope of use limited to village communities. Many valuable traditional remedies, imbued with unique indigenous knowledge, have not been researched, standardized, or applied for large-scale production, while modern medicine still has to import many medicinal materials from abroad. Regarding artichoke, although it has established a brand as a medicinal herb of Lao Cai, its potential remains largely untapped.

Conservation and development of medicinal plants in Hoang Lien National Park are facing numerous challenges, including a lack of a synchronized database system; small and fragmented conservation efforts; limited and short-term financial resources; ineffective connections with the community and businesses; continued pressure from illegal exploitation; and increasingly evident impacts of climate change and the environment. These issues necessitate a comprehensive, long-term strategy and synchronized investment in data, technology, resources, and policy mechanisms to ensure Hoang Lien National Park truly becomes a center for the conservation and sustainable development of valuable national medicinal plant genetic resources.

In its development plan for medicinal plants for the period 2020-2025, Lao Cai province has also identified common difficulties such as unstable and unstandardized sources of medicinal plant seeds; small-scale and scattered production; limited farming skills among the people; slow development of deep processing technology; weak extraction and refining capacity, resulting in low added value. The consumption market is unstable, and linkages in the value chain are weak; and the province has not attracted many large investors due to a lack of strong incentive mechanisms. The main reasons stem from the lack of decisive leadership and guidance in some localities; inadequate planning and investment attraction; and a shortage of specialized human resources.

There is a shortage of skilled personnel.

Currently, the province's medicinal plant growing area has expanded to over 6,500 hectares, with a production of more than 30,000 tons; the process of planting, caring for, harvesting, and preliminary processing is being gradually standardized according to GACP-WHO standards. However, reality shows that the development of medicinal plants in Lao Cai still faces many difficulties such as a lack of standard seed sources; the raw material areas are still small-scale and scattered; the farming skills of the people are not uniform; processing technology is mainly at the preliminary processing level with low added value; and there is a lack of close linkages throughout the entire value chain.

The province needs better policies to attract large enterprises to invest in the cultivation and processing of medicinal herbs.

Through field surveys in various localities, the majority of people, local authorities, and businesses have suggested that the province needs better policies to attract large enterprises to invest in the cultivation and processing of medicinal herbs, especially in large-scale processing plants applying modern technology to complete the development chain. At the same time, it is necessary to increase investment in scientific research, conservation of valuable medicinal plant genetic resources, and standardized breeding to develop sustainable medicinal herb raw material areas in the long term.

Developing medicinal plants is not just about expanding cultivation areas, but more importantly, about forming a complete value chain.

Developing medicinal plants is not just about expanding cultivation areas, but more importantly, about forming a complete value chain, from seeds and raw material sources to deep processing and consumption markets. This is the direction that Lao Cai province has identified to increase the added value and competitiveness of medicinal plant products.

Presented by HOANG THU

Final article: The need for a sustainable development strategy.

Source: https://baolaocai.vn/bai-2-tiem-nang-lon-nhung-phat-trien-chua-tuong-xung-post892802.html