Gaining big profits from growing medicinal plants

Four years ago, Thinh Vuong Cooperative in Nghinh Tuong commune suddenly shifted its business from construction and transportation activities to engaging in planting medicinal plants.

Ha Quoc Vuong, a Tay ethnic minority, head of Thinh Cuong Cooperative, said the cooperative planted 2,000 ba kich (morinda officinalis) trees on an area of 0.5 hectares. After four years, they harvested nearly 8 tonnes of morinda officinalis and earned VND1.5 billion (US$65,200) in profit.

Realizing the potential of medicinal plants, Thinh discussed with his family members and neighbors and received their support. Then, a new business for the cooperative was set up with seven founding members.

The total area of land contributed by cooperative members is 80 ha.

Determining that it takes a long time for medicinal plants to bear fruits, Thai bananas and turmeric were chosen for cultivation together with the plants. The cooperative has also contacted relevant units who pledged to buy all the products before planting medicinal plants.

Now Thinh Vuong Cooperative has nearly 40 hectares of plants that are about to be harvested soon. They include 10 hectares of bananas, 5 hectares of turmeric, 5 hectares of morinda officinalis, and 3 hectares of che hoa vang (Camellia Chrysantha).

The cooperative has created stable jobs for more than 30 locals with an average income of VND5 million ($216) per person per month.

In the future, it plans to build a processing unit to meet the market’s demand, Thinh said.

Ha Van Quyen, Secretary of Nghing Tuong Commune’s Party Committee said Thinh Vuong Cooperative was expected to be the pioneer in exploiting the economic potential of medicinal plants in this mountainous region.

“Most medicinal plants of Thinh Vuong Cooperative are suitable for local soil conditions. They grow well and promise high productivity and yield,” he said.

Quyen cited the Camellia Chrysantha as an example.

Camellia Chrysantha trees can grow up to 1.5-1.7metres after three years.

While the price of a seedling is VND35,000 ($1.5), many people have agreed to pay VND1million ($43) for an adult tree.

With the current selling price of morinda officinalis of VND200,000 ($8.7) per kilogram, the cooperative could get revenue of VND20 billion ($869,600) from 5 local soil condition hectares of morinda officinalis farm.

Nguyen Minh Tuan, deputy head of Vo Nhai District’s Agriculture and Rural Development Sub-department said with rich ecosystem diversity, the district has enormous potential for medicinal plants. 

Many rare and specious herbs are found in special-use forests and conservation areas, he said adding that locality has programs to support the development of medicinal plants.

In addition to hundreds of hectares of plants cultivated by local people, the district People's Committee has set up a concentrated medicinal area spanning over 100 hectares with an estimated investment of VND7 billion ($304,000).

Nguyen Quang Lich, director of Thai Nguyen Province Special-use and Protective forests Management Board said that since 2012, the Management Board has collaborated with the locality to implement a project on planting morinda officinalis in special-use forests to create sustainable livelihoods for residents.

Households who are chosen to join the project had opportunities to visit neighboring areas where medicinal plants with high income are grown.

Once medicinal herbs are harvested, the management board contacts sales agents and pharmaceutical companies to guide people on how to process, preserve and consume the products.

It can be said that this is a good way to create a sustainable livelihood for ethnic minorities living in the core and buffer zones. Thereby, reducing the pressure on forest encroachment and contributing to protecting the natural reserve.

Changing locals’ awareness

Another project on cultivating herbal plants is being implemented in Sang Moc Commune.

Ha Mau Hiep, a forest ranger in Vo Nhai District said: “Initially, locals were only familiar with growing maize and cassava.”

However, with the encouragement, supporting policies, and technical guidelines on how to cultivate medicinal herbs, they had met technical requirements.

In the past, khoi nhung (Ardisia silvestris pit) tree grows naturally and is popular under the canopy of Sang Moc forest but it has been exhausted due to rampant deforestation.

Nong Quy Duong, the Party Secretary of Sang Moc commune was the one who came up with the idea of restoring the plant.

He said that about 4,000 Ardisia silvestris pit trees could be planted in one ha of forest. After one year, farmers may get 2 tonnes of dried leaves and are expected to earn about VND300 million ($13,000) in profit.

"This can be a good model to help people escape poverty because investment cost is not too high and growth time of the plant is short. It’s more important that people can combine the clearing of underbrush and planting medicinal plants under the forest canopy at the same time," Duong said.

Bui Thi Sen, Chairwoman of the People's Committee of Vo Nhai district said that the medicinal plant growing area in the district is being expanded, attracting a lot of residents and local enterprises.

She said the local government will have special mechanisms and policies to promote the development of the plants, helping to raise the living standards of growers.