Da Nang develops Ngoc Linh ginseng value chain towards global reach

(Chinhphu.vn) - After the Prime Minister issued Decision No. 463/QD-TTg dated February 28, 2025 on the Project "Development and formation of a medicinal herbs center in Quang Nam (now Da Nang City) with Ngoc Linh ginseng as the main crop", Da Nang has officially entered the stage of accelerating the development of the economic value chain for this precious medicinal herb.

Ngoc Linh ginseng is sold at the ginseng market in Nam Tra My, Da Nang City - Photo: VGP/Nhat Anh

Large raw material area is favorable for developing pharmaceutical industry

Da Nang owns more than 70% of its area as forestry land, diverse terrain, cool climate in the highlands - ideal conditions for the growth of many precious medicinal herbs, especially Ngoc Linh ginseng, a ginseng species endemic to Vietnam.

According to the Institute of Medicinal Materials ( Ministry of Health ), Da Nang currently has over 832 medicinal plant species, of which 36 species are listed in the Vietnam Red Book, and Ngoc Linh ginseng is considered the most valuable medicinal plant.

Mr. Tran Ut, Deputy Director of the Department of Agriculture and Environment of Da Nang City, said that according to the plan, the total area of the conservation and development of Ngoc Linh ginseng in the old Quang Nam province, now Da Nang City, is 15,567 hectares, of which 13,329 hectares are at an altitude of 1,200–2,000 m and 2,238 hectares are above 2,000 m.

Up to now, there have been 18 organizations, enterprises and 41 household groups renting forest environment with a total area of 825.44 hectares; the area planted with Ngoc Linh ginseng is about 1,294 hectares (including rented forest environment area and self-planted area).

To date, the locality has granted certificates of the right to use the geographical indication "Ngoc Linh" to 3 enterprises, and confirmed the origin of more than 271,000 ginseng plants from 2019 to present.

In addition to the core area of Nam Tra My, the Provincial People's Committee (old) has supported seedlings for experimental planting in Bac Tra My, Nam Giang, Dong Giang, Phuoc Son, Tay Giang, with the possibility of expanding the raw material area in the future.

Ngoc Linh ginseng seeds - Photo: VGP/Nhat Anh

Businesses join in removing the "bottleneck" of deep processing

According to businesses, Ngoc Linh ginseng has a very high price, but its true economic potential is only fully exploited when it is processed into products brought to the market such as ginseng capsules, ginseng tea, ginseng drinks, ginseng wine, ginseng honey, cosmetics containing ginseng extract, high-end functional foods, etc.

However, according to statistics, there are currently only more than 10 enterprises participating in purchasing and processing Ngoc Linh ginseng in the area. However, the processing output is still modest: Raw materials consumed are only about 50-60 kg/year for some units. The products are not diverse and the consumption market is mainly domestic.

Mr. Ho Quang Buu, Vice Chairman of the People's Committee of Da Nang City, emphasized that Decision No. 463/QD-TTg dated February 28, 2025 approving the Project "Developing and forming a medicinal plant industry center in Quang Nam province with Ngoc Linh ginseng as the main crop" has opened up opportunities for breakthrough development, turning Vietnam's medicinal plant industry into a commodity production industry with high economic value.

On May 10, 2025, at the conference to implement Decision 463 of the Prime Minister, the locality signed a memorandum of understanding on cooperation with 9 enterprises, with a total committed investment capital of more than 5,000 billion VND.

Enterprises participating in leading the economic value chain from Ngoc Linh ginseng will open up breakthrough opportunities in the production and export of ginseng products - Photo: VGP/Nhat Anh

To meet the demand for processing and export, Da Nang focuses on investing in Nam Thang Binh Industrial Park (649 hectares), Chu Lai Open Economic Zone, following the ecological industrial park model, prioritizing the pharmaceutical and functional food industries. Traffic infrastructure, electricity, water supply and telecommunications have been basically completed in many industrial parks, creating conditions for businesses to quickly deploy production.

In addition, the city plans to organize the International Ginseng Festival "Ngoc Linh Ginseng - From National Product to Global Brand" in 2026. This is a gathering place for businesses, scientists and international investors - a golden opportunity to promote trade, sign export contracts and transfer technology.

With rich medicinal potential, the main one being Ngoc Linh ginseng, along with a clear strategic orientation and the active participation of people and businesses, Da Nang is making great strides to fulfill the goal of becoming the Center of the medicinal industry of the whole country according to Decision No. 463 of the Prime Minister.

Nhat Anh

Source: https://baochinhphu.vn/da-nang-phat-trien-chuoi-gia-tri-sam-ngoc-linh-huong-ra-toan-cau-102250814150203443.htm