Presenting Vietnam’s Ginseng to the World

The Vietnam Ginseng Development Program, with a vision towards 2045, aims to establish Vietnamese ginseng as a national brand. It seeks to diversify products and gradually elevate Vietnamese ginseng into a high-value industry, meeting global market demands while protecting the Vietnamese ginseng brand. The final installment of this series, titled “Introducing Vietnamese Ginseng to the World,” continues to explore and propose solutions for the development of the Vietnamese ginseng industry.

On June 1, 2023, the Prime Minister approved the Decision on the Vietnam Ginseng Development Program towards 2030, with a vision towards 2045. This program sets a target to preserve the gene source of Vietnamese ginseng distributed in natural forests, covering an area of approximately 100,000 hectares. In reality, the conservation of the authentic Ngoc Linh ginseng gene source has not received adequate attention. Fake Ngoc Linh ginseng is rampant in the market. Mr. Bui Nhu Chuong, a ginseng farmer in Tra Linh commune, Nam Tra My district, suggests strict quality control for products derived from Ngoc Linh ginseng.

“To my knowledge, there are many ginseng varieties that resemble Ngoc Linh ginseng but are not the authentic strain. These imposters have been intermixed on Ngoc Linh Mountain for years, causing confusion and distrust among buyers. I hope the authorities will take action to distinguish the authentic strain and discard the rest. We, the ginseng farmers, wish for the government to establish a garden of authentic Ngoc Linh ginseng to preserve this precious gene source,” said Mr. Bui Nhu Chuong.

In the past, the provinces of Quang Nam and Kon Tum have made efforts to attract large enterprises to invest in the construction of industrial zones and large-scale processing plants for Ngoc Linh ginseng products. However, there are still few major companies investing in this field. Most ginseng production and processing facilities operate on a small, scattered scale, lacking linkage and coordination. Mr. Ho Van Luong, a resident of Tra Linh commune, Nam Tra My district, pointed out the common challenge faced by Ngoc Linh ginseng farmers: finding stable buyers for their produce, as prices tend to fluctuate.

“Currently, we are seeking stable buyers and large-scale processing plants for our Ngoc Linh ginseng products. The government, scientists, and relevant parties need to pay more attention to supporting these facilities and plants to maximize economic value. With proper processing, the value of a ginseng root can increase tenfold,” suggested Mr. Ho Van Luong.

The government and relevant ministries and localities are working to address bottlenecks and obstacles in the development mechanism for Ngoc Linh ginseng. The Prime Minister has directed an urgent review and improvement of policies to facilitate the transformation of Vietnamese ginseng into a national brand with international recognition. Additionally, there is a focus on attracting investment from enterprises in the production of Vietnamese ginseng, from seedling production, cultivation, harvesting, processing to consumption, along with the development of tourism in ginseng-growing areas.

According to the People’s Committee of Quang Nam province, the government needs to invest in infrastructure for the Ngoc Linh ginseng capital region. This includes upgrading National Highway 40B (the section from Bac Tra My district to the border of Kon Tum province, spanning 45 km) and constructing a strategic road for the Ngoc Linh ginseng region. Mr. Ho Quang Buu, Vice Chairman of the People’s Committee of Quang Nam province, emphasized that establishing Ngoc Linh ginseng as a national brand entails addressing numerous issues, starting with the implementation of specific policies and the removal of bottlenecks.

“The development plan for ginseng is already in place, and we need to focus on investing in transportation infrastructure for the ginseng region. Next, there should be a clear legal framework to facilitate ginseng cultivation under the forest canopy. Thirdly, in terms of capital, the State Bank should provide supportive policies for enterprises investing in the ginseng industry. For example, there could be specific lending policies for enterprises investing in ginseng cultivation,” suggested Mr. Ho Quang Buu, Vice Chairman of the People’s Committee of Quang Nam province.

Mr. Im Chang Ho, a ginseng farmer in Hamyang district, Geongsangnam province, South Korea, who has visited Ngoc Linh ginseng gardens in Nam Tra My district, shared his insights: “The natural conditions on Ngoc Linh Mountain are superior to those in our mountain region in Hamyang. In South Korea, enterprises almost exclusively source their raw materials from ginseng farmers. The government provides support to these enterprises in terms of technology and taxation to enhance their competitiveness in the international market.”

Mr. Kato Fumino, who works for the Japanese organization JAICA in Vietnam, offered the following suggestions: “I perceive Ngoc Linh ginseng in Vietnam as a gold mine in the mountains. This is a significant asset that can propel your country’s economy to new heights.”

According to research by scientists, Ngoc Linh ginseng is currently ranked first among the top five best ginseng varieties in the world. It contains up to 52 saponin compounds, which are highly beneficial to health, with a total saponin yield of 10.8%. Although considered the most precious ginseng globally, the Vietnamese ginseng industry is still in its infancy. The cultivation area for Ngoc Linh ginseng is limited, mainly under the forest canopy, resulting in restricted yield. According to the Department of Forestry under the Ministry of Agriculture and Rural Development, the area of ginseng cultivation in Vietnam is only about 3,055 hectares. This figure is modest compared to South Korea, which has 15,000 hectares of ginseng cultivation, with a yield of 6 tons per hectare.

Experts believe that before considering the formation of a ginseng industry, Vietnam must focus on enhancing its capacity for ginseng seedling production and expanding the raw material area to ensure sufficient supply for the market and the deep processing chain. The Ministry of Agriculture and Rural Development is developing production standards and cultivation and harvesting procedures that align with international practices to enable Ngoc Linh ginseng products to enter the global market.

According to Associate Professor and Doctor Tran Cong Luan, former Director of the Center for Ginseng and Medicinal Plants in Ho Chi Minh City and a long-time researcher of Ngoc Linh ginseng, it is necessary to transplant Ngoc Linh ginseng from high mountains to lower altitudes to expand the cultivation area while controlling yield and product quality.

“Whether we like it or not, we must develop and diversify the raw material area. In my opinion, the traditional raw material area in the Ngoc Linh ginseng-growing region should continue to maintain the original strain, based on the development of the existing cultivation area. Additionally, we need to continue researching the transplantation of Ngoc Linh ginseng to areas with similar conditions to promote its growth,” suggested Associate Professor and Doctor Tran Cong Luan.

Regarding the development of the Vietnamese ginseng brand and the processing of ginseng products, there are two opposing viewpoints. Some argue for geographical indications according to different types of ginseng, such as Ngoc Linh ginseng in Quang Nam and Kon Tum or Lai Chau ginseng, to avoid confusion about the value of each type. Others propose using the name “Vietnamese Ginseng” to establish a national brand, with traceability to the source, whether it is Ngoc Linh or Lai Chau ginseng, before the product reaches the market for consumer choice.

In Vietnam, enterprises involved in ginseng cultivation, production, and processing have struggled to find a unique selling point for their “made in Vietnam” ginseng products. In contrast, South Korea has successfully developed a national ginseng brand in conjunction with renowned names like Samsung and LG. By associating ginseng products with well-known electronics brands, South Korea has paved the shortest path for its ginseng to conquer the international market.

Many believe that to elevate the Vietnamese ginseng brand, it is essential to encourage leading economic groups in the country to collaborate with domestic ginseng enterprises in building and developing a national brand. Vietnamese ginseng should aim for the global market with the label “made in Vietnam.”

Mr. Le Minh Hoan, Minister of Agriculture and Rural Development, emphasized the need to view ginseng as a national product. If we remain concerned about whether the product is Ngoc Linh or Lai Chau ginseng, we will limit ourselves to a regional scope. South Korea flies its flag on its products to signify them as national products and orient their marketing towards the international market. Minister Le Minh Hoan urged ginseng farmers and enterprises involved in ginseng cultivation, production, and processing to embrace a sense of patriotism and work together to build a national brand that symbolizes the country.

In South Korea, ginseng-derived products are exported to 90 countries and territories worldwide, generating 2.5 billion USD in revenue annually. In Vietnam, deep-processed products from Ngoc Linh ginseng are scarce, and only a handful of Vietnamese can afford them. To establish a value chain for Vietnamese ginseng, Minister Le Minh Hoan proposed an urgent change in our approach to create added value.

“Ginseng is not merely an agricultural product. In South Korea, they refer to it as the ginseng industry. Here, agriculture is just the beginning. It involves expanding the area under the forest canopy for ginseng cultivation, followed by seedling production and raw material supply. The real value of ginseng lies in the subsequent value chain. Developing Vietnamese ginseng is not just about agriculture; it’s about building a ginseng industry with multiple layers, not just one layer of ordinary product processing. It should encompass pharmaceuticals, food, cosmetics, and even entertainment, as seen in South Korea. It’s about elevating the value of an agricultural product to an industrial product, from low to high value,” added Mr. Le Minh Hoan, Minister of Agriculture and Rural Development.