Special policies to attract investment in Lai Chau ginseng

Lai Chau province welcomes investment in the development of medicinal plants

Mr. Ha Trong Hai, Vice Chairman of Lai Chau Provincial People's Committee, said that Lai Chau ginseng was first discovered in 2013. After over 10 years of research, conservation and development, Lai Chau province has organized an association consisting of businesses, cooperatives, households and individuals to invest, preserve and form ginseng areas in different districts across the province.

According to a survey conducted in both the domestic and foreign medicinal market, ginseng products are in high demand, including Lai Chau ginseng. However, the propagation, conservation and development of ginseng in Lai Chau has not been been able to fully utilize the province's potential and advantages. The province's internal resources are not strong enough to mobilize investment, expand the planting area to make Lai Chau ginseng the key product of the province.

Consequently, Lai Chau province will create an open, friendly business investment environment and commit to accompanying businesses in the development of Lai Chau ginseng as well as other medicinal plants in the province.

"With the determination and efforts of the local government at all levels, the people in conjunction with the attention and support from the ministries and central agencies, the companionship and cooperation of investors, Lai Chau ginseng will become a key commodity with high economic value, opening up a new direction in the province's socio-economic development", emphasized Mr. Ha Trong Hai.

Lai Chau ginseng production is currently being supported with multiple policies established by the central and provincial governments such as: special policies on varieties, capital and technology in the cultivation and exploitation of medicinal plants; mechanisms and policies to encourage businesses' investment in agriculture and rural areas as well as cooperation and association in the production and consumption of agricultural products; single-time support for up to 50% of the seed cost and 50% of the fertilizer, plant protection drug cost and so on.

Lai Chau aims to have all of the natural Lai Chau ginseng area in the province under management and preserved by 2030. The province will also invest, build and develop 7 Lai Chau ginseng production facilities; expand the ​​ginseng growing area in the province to at least 3000 hectares.

At the same time, to encourage investment in building a Lai Chau ginseng product processing factory that applies standards and regulations as prescribed; All production and trading establishments of Lai Chau ginseng are granted codes according to regulations.

Lai Chau province strives to develop an additional 7,000 hectares of Lai Chau ginseng growing area from 2031 to 2045, bringing the total area in the province to 10,000 hectares.

Lai Chau ginseng is an endemic plant with a narrow distribution in the Pu Si Lung mountain range and in the vicinity of Muong Te district (Pa Ve Su, Ka Lang, Thu Lum, Ta Ba) and the Pu Sam Cap mountain range located between Sin Ho district (Nam Tam, Pu Sam Cap) and Tam Duong district (Khun Ha, Ho Thau, Ban Giang). Lai Chau ginseng is mainly found at an altitude of 1,400 to 2,200m above sea level. This ginseng enjoys moisture, cool climate all year round and cold weather in winter. These conditions are most common in the border and highland communes of Lai Chau province, exhibiting great potentials to expand production on a large scale.

Many businesses have invested in the development of Lai Chau ginseng

Lai Chau Provincial People's Committee has recently signed a Memorandum of Understanding with units and businesses in order to promote the development of Lai Chau ginseng growing area and build a deep processing facility. These activities will help to diversify Lai Chau ginseng products towards a sustainable concentrated commodity production and to create livelihoods for local people.

The Memorandum of Understanding is an important milestone, marking the cooperative relationship between Lai Chau province, businesses and investors.

Mr. Pham Dinh Huynh, Chairman of the Board of Directors of Dai Nam Son Group, said that under the Memorandum of Understanding between Lai Chau Provincial People's Committee and Dai Nam Son Group, the Group will be introduced to the growing areas for ginseng as well as other medicinal plants including tea. The parties will subsequently include these areas in the planning for the development of Vietnamese medicinal plants. This is an important step in building a brand name for Lai Chau ginseng and Vietnamese medicinal herbs to a greater extent.

Dai Nam Son Group is also responsible for researching, preserving varieties, developing raw material areas; implementing agricultural and agro-pharmaceutical projects in association with with tourism and health care projects. Dai Nam Son Group's undertakings will promote Lai Chau's potentials and advantages in terms of natural environment, ecology, cultural values ​​of ethnic groups, contributing to socio-economic development, etc.

Mr. Vu Van Manh, Director of Dai Viet Import-Export Co., Ltd. said that the Lai Chau Ginseng Fair (recently held from November 11 to 13) is a bridge connecting the government's investment promotion policies with businesses.

"With the advantage of exporting agricultural products and medicinal plants, we see this as a great opportunity to proactively diversify the company's core products. The company has recently signed an investment project to plant 20 hectares of Lai Chau ginseng in Muong Khoa commune, Tan Uyen district and build a processing facility for Lai Chau ginseng products with a scale of 2 tons/year.

Lai Chau Ginseng has a higher antioxidant capacity compared to Korean ginseng

Mr. Kim Suk Bum, Director of BRIDIA Company in Ho Chi Minh City, said that Vietnamese Lai Chau ginseng contains many excellent components. Unlike Korean ginseng, Lai Chau ginseng contains ocotillol-type ginsenosides such as majornoside R1 (MR1), R2 (MR2) and vina-ginsenoside R2 (VR2), which account for over 50% of the total content. Consequently, researchers believe that Lai Chau ginseng contains a higher content of ginseroide, which is is beneficial for immunity and antioxidant, compared to Korean ginseng.