Da Nang spends hundreds of billions of VND to develop Ngoc Linh ginseng and medicinal herbs.

During the period 2026-2030, Da Nang City will spend more than 136 billion VND to conserve and develop medicinal plants, with Ngoc Linh ginseng being the key crop.

On the afternoon of May 29th, at the 2nd session (special session) of the Da Nang City People's Council, 11th term, 2026-2031, a Resolution was passed promulgating regulations on the mechanism to encourage the conservation and development of Ngoc Linh ginseng and other medicinal plants in the city for the period 2026-2030.

The second session (special session) of the Da Nang City People's Council, 11th term, 2026-2031, held on May 29th, passed 55 resolutions to create momentum for economic development in the coming period.

It is necessary to enact mechanisms to encourage the development of medicinal plants.

At the meeting, Mr. Tran Chi Cuong, Vice Chairman of the Da Nang City People's Committee, stated that, recognizing the priority of promoting the cultivation of Ngoc Linh ginseng and other medicinal plants in the midland and mountainous areas for economic development, the former Quang Nam province (now Da Nang City) has issued many mechanisms to encourage the development and conservation of Ngoc Linh ginseng, Tra My cinnamon, and several other medicinal plants in the area.

Over the past three years, the program has provided more than 100,000 Ngoc Linh ginseng seedlings to nearly 1,700 households, covering a total area of ​​approximately 5.16 hectares; and nearly 500,000 seedlings of other medicinal plants such as Ba Kich (Radix Polygoni multiflori), Dang Sam (Codonopsis pilosula), and Che Day (Gynostemma pentaphyllum) have been provided to groups and households, covering a total area of ​​57.36 hectares.

Regarding Tra My cinnamon, during the period 2018-2024, the total planted area of ​​Tra My cinnamon was over 2,658 hectares. The area converted into seed forests was 13.29 hectares.

According to the leaders of the Da Nang City People's Committee, the implementation of conservation mechanisms has yielded clear results, initially forming several concentrated medicinal plant production areas, improving nursery infrastructure, expanding conservation areas, and raising public awareness about planting, conserving, and developing medicinal plants. This has encouraged people to cultivate and develop valuable medicinal plants, contributing to increased income while protecting and managing forests in the city.

Da Nang City plans to spend over 136 billion VND in the period 2026-2030 to conserve and develop Ngoc Linh ginseng and other medicinal plants.

However, the incentive mechanisms expired on December 31, 2025. Meanwhile, current practices present many challenges that need addressing, and new mechanisms are needed to overcome existing limitations and encourage individuals, organizations, and businesses to invest in the development of medicinal plants in general, and Ngoc Linh ginseng in particular, linked to deep processing to increase production value. Therefore, the development of the "Regulations on Incentive Mechanisms for the Preservation and Development of Ngoc Linh Ginseng and Other Medicinal Plants in Da Nang City for the period 2026-2030" is extremely necessary. The project also plays a crucial role in building new rural areas and sustainable poverty reduction programs in mountainous localities.

Building a competitive production-consumption chain for medicinal plants.

The Resolution on the Mechanism for Encouraging the Conservation and Development of Ngoc Linh Ginseng and Other Medicinal Plants in the City during the period 2026-2030 was issued to conserve and sustainably develop several valuable medicinal plants, gradually build stable medicinal plant cultivation areas; contribute to shifting the crop structure towards commodity production, improve livelihoods, and sustainably reduce poverty for the people.

Furthermore, focus on developing raw material areas and transforming medicinal plant products into a commodity production industry; attract investors to develop facilities for the production and processing of medicinal plants, medicines, and functional foods. Develop closed-loop supply chain models from cultivation, preliminary processing, processing, and consumption of medicinal plant products in a modern manner, using advanced technology, creating products that are competitive in domestic and international markets.

The resolution also aims to manage, exploit, and sustainably utilize medicinal plant resources in the city to serve economic and health development; to build specific mechanisms and policies to invest in the development, conservation, and commercialization of medicinal plants, linked with processing and consumption of products through a five-party linkage chain: farmers, businesses, scientists, managers, and banks.

Da Nang City is prioritizing resources to invest in the development of processed products from Ngoc Linh ginseng.

Specifically for Ngoc Linh ginseng, priority should be given to investing resources in developing Ngoc Linh ginseng into a branded product of Da Nang City.

The medicinal plants eligible for conservation and development support include: Ngoc Linh ginseng in 5 communes including Nam Tra My, Tra Linh, Tra Tap, Tra Leng, and Tra Van, and areas where Ngoc Linh ginseng has been transplanted; Tra My cinnamon; and other medicinal plants in other medicinal plant growing areas within the approved planning zone.

The beneficiaries of the support include households, groups of households, and individuals with the need and ability to invest in planting Ngoc Linh ginseng, Tra My cinnamon, and other medicinal plants that meet the eligibility requirements; as well as agencies, public service units, forest management units, cooperatives, cooperative unions, etc.

The total estimated budget for the period 2026-2030 to implement the Resolution is 136.4 billion VND.

The Da Nang City People's Council has approved a Resolution stipulating a mechanism to encourage the development of Ngoc Linh ginseng, Tra My cinnamon, and several other medicinal plants in Da Nang City. The total estimated budget for the period 2026-2030 is over 136 billion VND.

Source: https://congthuong.vn/da-nang-chi-tram-ty-de-phat-trien-sam-ngoc-linh-va-duoc-lieu-459026.html