Quang Nam: Investment attraction into ginseng

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(QNO) - Since Ngoc Linh ginseng was recognized as a national product, a strong wave of investment has pushed in the Ginseng capital, Nam Tra My district, Quang Nam province. Several businesses have rented forests to grow ginseng.

Ngoc Linh ginseng at the monthly fair in Nam Tra My district
Ngoc Linh ginseng at the monthly fair in Nam Tra My district

Investment expansion

As a company producing and trading Ngoc Linh ginseng products, Sam Sam Co,. Ltd. has planted ginseng in an area of 10 ha of forest for rent in Tra Linh commune (Nam Tra My district) since 2016. This company’s ginseng area has also been extended in order to increase the source of raw materials for its production. There are currently 8 local people employed to take care of the company’s ginseng area. The company’s products has been oriented to be diversified, including capsules, tablets, beverages and functional foods made from ginseng. In the coming time, a factory manufacturing Ngoc Linh ginseng products industrially will be built in the Ginseng Capital, contributing to creating jobs and livelihoods for the locals. Besides Sam Sam Company, some others also taking interest in planting Ngoc Linh ginseng are Quang Nam Pharmaceutical Trade Joint Stock Company, Hoa Thien Phu Group, Mien Trung Paper Raw Materials Joint Stock Company, VinGroup, and TH True Milk Group.

However, lack of ginseng seedlings is one of the main difficulties facing all the businesses investing in planting Ngoc Linh ginseng. According to General Director of Sam Sam Co., Ltd. Luu Van Luc, his company could expand the area of ginseng to 100 ha if there were a sufficient source of ginseng seeds.

Barrier removal

Economic values of Ngoc Linh ginseng are high but the conservation and development of this type of ginseng are still in small scales, not matching its potential and strengths. The number of ginseng culturists is limited. Businesses seem to be nonchalant much about ginseng development projects. The source of raw ginseng is limited and not self-controlled. In addition, the slow implementation of preferential policies and mechanisms is one of the biggest barriers to the development of Ngoc Linh ginseng.

Facing these problems, Vice Chairman of the Quang Nam provincial People's Committee Le Tri Thanh suggested some solutions in order to attract good businesses into the development of ginseng areas. They include the synchronous implementation of the policies for Ngoc Linh ginseng development in larger scales; of preferences in land allocation, tax, loans; and cutting out waste in administrative procedures.