Lao Cai possesses a great natural advantage that few other places have. With distinct subtropical and temperate climate zones, especially in highland areas such as Sa Pa, Bac Ha, Bat Xat, along with suitable soil, this place has long been the cradle of many rare medicinal herbs.
Recognizing this potential, Lao Cai Provincial Party Committee issued Resolution 10-NQ/TU on agricultural and forestry development, which identified medicinal herbs as an economic pillar. The province's goal by 2025 is very clear: to become the largest center for medicinal herbs production and processing in the entire Northwest region.
People clear weeds to take care of organic cinnamon forests in Lao Cai. Photo by Hoang Thuy.
Elevating organic cinnamon: From raw farm to export center
In the medicinal plant structure of Lao Cai, cinnamon occupies a unique position. With an area of up to nearly 60,000 hectares (as of 2024), Lao Cai is currently the largest cinnamon growing area in the country, concentrated mainly in the two districts of Van Ban and Bac Ha (old). For generations, cinnamon has been a traditional livelihood, closely associated with the cultural life of the Dao and Tay people.
However, for a long time, the value of cinnamon trees has not been exploited appropriately. People mainly harvest raw cinnamon bark and leaves, selling them through traders at unstable prices, largely dependent on the informal market.
The transformation only really began when Lao Cai was determined to shift to deep processing and international standardization. A series of cooperatives owned by Mong and Dao people were established. With support capital and preferential credit policies, the cooperatives invested in modern machinery and distillation systems to extract cinnamon essential oil right in the growing area.
In particular, in the period of 2024-2025, Lao Cai has created a new breakthrough. The province not only stops at developing organic cinnamon growing areas, but also supports cooperatives to achieve Fair Trade certification. This is one of the most stringent standards in the world , not only ensuring product quality but also committing to social benefits, environmental protection and farmers' rights.
A cinnamon essential oil production model in Lao Cai province. Photo: Huy Thong
This certification has opened the door for Lao Cai cinnamon essential oil and powder to penetrate directly into the most demanding markets such as the European Union (EU), Japan, and the United States, with a value 30-40% higher than that of conventional products. At the same time, the role of leading enterprises such as Vina Samex, Son Ha... is extremely important. They invest in large-scale processing factories, sign long-term product consumption contracts, create a sustainable chain of links, helping people feel secure in production without worrying about good harvests and low prices.
Promoting indigenous knowledge into OCOP products and tourism
If Van Ban and Bac Ha (old) represent industrial-scale medicinal production, Sa Pa is a model for exploiting value from indigenous knowledge, associated with OCOP products and tourism.
Sa Pa has long been famous as the largest artichoke growing area in the North. Taking advantage of this, local cooperatives and businesses have been very successful in building their brands. Products such as artichoke tea and artichoke extract have become 4-5 star OCOP products, a specialty gift that any tourist coming to Sa Pa will look to buy, bringing high and stable income to farmers.
Besides artichoke, a priceless medical heritage of the Red Dao people has been awakened, which is the herbal bath recipe. From a family secret only available in the villages, with the support of the government, cooperatives (typically Ta Phin Cooperative) have researched, standardized the formula and successfully commercialized it. Products such as concentrated bath water, essential oils, and foot bath salts from Red Dao medicinal leaves have become famous OCOP products, not only sold domestically but also served at spas and tourist homestays.
This is also the new direction of Lao Cai in 2025: developing agricultural experiential tourism. The province encourages linkage models where tourists not only buy products, but also visit lush artichoke farms, harvest them themselves, or experience the process of distilling leaves, bathing, and relaxing with local herbal therapy. This model creates double added value, selling both products and experiential tourism services.
Despite many successes, Lao Cai still clearly identifies challenges. The biggest problem today is the degeneration of varieties, especially the original Artichoke variety (French variety), which reduces productivity and medicinal properties. The scale of cooperatives is still small, and processing machinery is simple. The province is focusing on prioritizing resources to restore the original Artichoke variety, while continuing to call on large enterprises to invest in factories to extract active ingredients, instead of just stopping at distilling crude essential oils. The promotion of granting growing area codes and standardizing GACP processes for all medicinal herbs is also being thoroughly implemented, to make Lao Cai a modern and sustainable medicinal herb center of the country.
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Source: https://suckhoedoisong.vn/lao-cai-bien-duoc-lieu-ban-dia-thanh-nganh-kinh-te-mui-nhon-169251118203831827.htm
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