Da Nang activates investment in the medicinal plant industry.

A gold mine of medicinal herbs.

The merger with Quang Nam has given Da Nang a new impetus for development: the medicinal plant industry, thanks to its exceptionally rare natural resources. Da Nang has a large area of forest land, accounting for over 70% of its natural area, with a rich diversity of medicinal plants. According to the Institute of Medicinal Plants (Ministry of Health), the city has more than 832 species, 593 genera, and 190 families of medicinal plants, of which 36 species are listed in the Vietnamese Red Book. The total area of medicinal plants is estimated at approximately 2,471 hectares.

Among them, Ngoc Linh ginseng, considered the "green gold" of Vietnam, is a "treasure" in Da Nang 's development orientation for the medicinal plant industry. To date, the city has planned 15,567 hectares for ginseng cultivation; 18 organizations and businesses and 41 household groups have completed applications to lease forest land with a total area of 825.44 hectares, of which businesses account for 341.75 hectares. The area currently planted with ginseng is approximately 1,294 hectares.

Recognizing the exceptional value of Ngoc Linh ginseng, Da Nang has implemented numerous conservation and development projects. The city has invested 19.9 billion VND in a conservation and testing project for Ngoc Linh ginseng with two components. Simultaneously, it has invested in a reforestation project in the ginseng development area (formerly Nam Tra My district) with 572.52 hectares of new planting, 112.69 hectares of forest enrichment, and 140.24 hectares of regeneration. Over 360 billion VND has also been allocated to build transportation infrastructure into the ginseng region, such as the Tac Pong - Tac Ngo route, the Tra Linh - Mang Lung route, and the Mang Lung - Dac G'Lay route. The city is currently implementing two projects under the National Product Development Program until 2030.

Annually, budgets are allocated to support the care and protection of ginseng nurseries belonging to two public service units: the Quang Nam Ngoc Linh Ginseng and Medicinal Herbs Development Center (the original seedling nursery in Tra Linh commune) and the Tak Ngo Farm under the Nam Tra My Agricultural Technical Center. Over the years, these two units have supplied nearly 107,000 one-year-old Ngoc Linh ginseng seedlings to people and businesses.

Attracting investment resources

Despite its great potential, Da Nang's medicinal herb industry remains small in scale, with its economic value not commensurate with its potential, and only 10 businesses involved in purchasing and processing Ngoc Linh ginseng.

To develop into an industry, in addition to ensuring raw material supply, Da Nang needs to attract resources from businesses and investors. According to Ho Quang Buu, Vice Chairman of the Da Nang People's Committee, the locality has signed investment survey agreements with 9 organizations and businesses in the field of developing Ngoc Linh ginseng and medicinal herbs, with a total committed capital of over 5,000 billion VND. Among them, 5 businesses are oriented towards building processing, purchasing, and preserving medicinal herbs in raw material areas. Three businesses have registered for field surveys: Truong Hai Group Joint Stock Company, Capella Quang Nam Joint Stock Company, and OSP Trade, Service and Technology Joint Stock Company.

Notably, Truong Hai Group has surveyed ginseng and other medicinal herb growing areas in the communes of Tra Linh, Tra Tap, Tra Tan, Tay Giang, Hung Son, etc. The company plans to invest in a ginseng and medicinal herb cultivation project covering approximately 1,250 hectares and is currently selecting the project site in accordance with regulations.

Several processing projects have been established and put into operation, such as the Sam Sam Medicinal Herb Processing Plant (Sam Sam Co., Ltd.), which specializes in processing products from Ngoc Linh ginseng and other medicinal herbs. Huong Que Nam Medicinal Herb Joint Stock Company has also been granted an investment certificate for the Huong Que Nam Pharmaceutical and Medicinal Herb Factory, with a scale of 25,467 m2 and a total capital of 234 billion VND.

Industrial parks in Da Nang also have land available to welcome investors. Currently, the former Quang Nam region has 16 industrial parks that have been approved for investment, of which 8 industrial parks attract industries such as pharmaceuticals and medicinal herbs.

Mr. Ho Quang Buu emphasized that the deep processing industry for medicinal herbs is one of the important drivers of growth. The city is urgently implementing the Project to Develop and Establish a Medicinal Herb Center with Ngoc Linh ginseng as the main crop, while also promoting research and application programs to develop products from ginseng and other medicinal herbs.

Simultaneously, Da Nang will strengthen connections between scientists, businesses, and the government to promote research, production, and commercialization of medicinal herbs; boost investment promotion; and propose that the Government issue preferential mechanisms regarding taxes, credit, and infrastructure support for investors.

“Medicinal herbs and ginseng are areas with great potential, creating additional growth momentum for Da Nang. With the advantage of being a tourist city, Da Nang will promote the connection between tourism development and medicinal herbs to create sustainable added value, gradually forming a medicinal herb industry,” Mr. Buu added.

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