Raw mangoes before being processed at the Doveco factory in Son La. Photo by Chu Khoi.

According to data released at the Forum "Connecting production and trade of agricultural and forestry products in the Northwestern provinces" held recently in Son La, although the Northwest is a region that produces many temperate and subtropical fruit trees such as mango (reaching 79.8 thousand tons), longan (81.3 thousand tons), plum (94.5 thousand tons), passion fruit (7.6 thousand tons), orange (108.1 thousand tons), banana (116.6 thousand tons), grapefruit (125.9 thousand tons)... but the export value of agricultural products in 2024 of the region will only reach about 245 million USD; of which: Son La reaches 190 million USD; Dien Bien over 22.4 million USD; Lai Chau over 6.5 million USD; Lao Cai 25 million USD...

Explaining the reason for the limited export value of agricultural products of the province, Ms. Cam Thi Phong, Deputy Director of the Department of Agriculture and Environment of Son La province, said that it was due to the low rate of deep processing, packaging and labels that did not meet market requirements, and the lack of sustainable contractual links between producers and businesses. Faced with this situation, to increase the value of products, Son La aims to become an agricultural processing center of the Northern Midlands and Mountains.

BUILDING SON LA TO BECOME AN AGRICULTURAL PROCESSING CENTER

Currently, the whole province has more than 100,000 hectares of agricultural land, of which about 85,000 hectares are fruit trees. Thanks to the implementation of Resolution 05-NQ/TW since 2015 on the development of commodity agriculture, Son La has formed specialized areas for mango, longan, passion fruit, plum, etc., creating a large and stable raw material area.

Agricultural processing in Son La province is strongly promoted through nearly 560 processing facilities, thousands of longan drying points, and cold storage systems. Among them, there are very modern agricultural processing factories invested by large enterprises such as: Dong Giao Food Export Joint Stock Company (Doveco), TH Group, Phuc Sinh Group...

Sharing more, Mr. Dinh Cao Khue, Chairman of the Board of Directors of Doveco, said that the Company has invested in a processing factory in Son La since 2023. Doveco not only plays the role of a fruit buyer for farmers, but also a technical consultant, provides seeds, consumes products, and works with local authorities to develop long-term strategies.

Among them, Son La mango, especially Taiwanese variety, is very suitable for processing and export standards. In 2024, the Company supported the consumption of 10% of local mango output and strives to reach 20% in 2025.

Processing mangoes at Doveco factory in Son La. Photo by Chu Khoi

Not stopping at mango, Doveco has expanded its purchasing to include easy-to-care-for, low-risk crops such as pineapple and passion fruit - two products that are almost non-seasonal. With these crops, Mr. Khue affirmed: “Doveco will process as much as it can purchase. The current capacity of the factory and cold storage system allows us to consume large volumes without worrying about overloading.”

In addition, some pineapple varieties that Doveco is supporting in Son La can bring in revenue of up to 1 billion VND/ha after only 14 months of planting if planted properly and synchronously. In addition, banana trees in the Northwest have a clear advantage over those in the Central region. In Lai Chau, Doveco has invested in building many large raw material areas, ready to connect with modern processing factories.

At the forum, Mr. Ngo Minh Hai, Chairman of the Board of Directors of TH Group, said that the enterprise has conducted in-depth research on the potential of the region, including resources such as fruit trees, medicinal plants, and raw materials for paper production. Based on these studies, TH has decided to invest in two processing plants in Son La and Dien Bien.

In Son La, TH will build a fruit and medicinal plant processing plant to take advantage of local raw materials. Main products include juices, concentrated juices, and processed products from fruits such as mango, longan, and plum. In Dien Bien, TH will focus on growing macadamia trees - a high-value tree.

POTENTIAL FOR MEDICINAL PROCESSING

Phuc Sinh Joint Stock Company (Phuc Sinh Group) has invested in building Phuc Sinh Son La Factory in Chieng Mung Commune, Mai Son District. This is the largest facility of the group, with a total area of 45 hectares, specializing in processing Arabica coffee that meets Son La geographical indication standards. Mr. Vu Viet Thang, General Director of Phuc Sinh Son La, said that with a capacity of 20,000 tons of fresh coffee per year, the factory contributes to enhancing the value and competitiveness of Son La coffee.

According to Ms. Vu Thi Van Phuong, Chairwoman and General Director of VietRAP Investment and Trade Joint Stock Company, the Northwest is a "green gold mine" with many precious medicinal herbs such as seven-leaf flower, Panax notoginseng, ginseng... However, to exploit it effectively, it is necessary to invest in deep processing and build sustainable links between businesses and people.

"Lai Chau province really needs a special mechanism for the development of Vietnamese ginseng, creating an open corridor for investment, exploitation, processing and commercialization. Removing these "bottlenecks" will pave the way for Lai Chau ginseng to become a national product and reach out to the international market."

Mr. Ha Trong Hai, Vice Chairman of Lai Chau Provincial People's Committee.

VietRAP has spent 5 years building and stabilizing the raw material area, from long-term to short-term medicinal plants. In Van Ho district (Son La), after only one year, the company has linked up with three large cooperatives, mobilizing hundreds of households to participate. After three years, the planting area reached 60 hectares, of which 20 hectares have been harvested to the fourth cycle.

From a local perspective, Mr. Ha Trong Hai, Vice Chairman of Lai Chau Provincial People's Committee, said that the province currently has over 23,000 hectares of medicinal herbs of all kinds, with key species such as cinnamon (over 10,000 hectares), cardamom (over 6,500 hectares), amomum, hawthorn, Lai Chau ginseng and seven-leaf flower. The annual harvest is estimated at about 3,000 tons, showing great potential if there is proper investment. In particular, Lai Chau ginseng - also known as black ginseng, red ginseng - is a rare native species with high medicinal value and has been used by local people for a long time.

Lai Chau ginseng has been granted a protection certificate by the Ministry of Science and Technology. This product is attracting the attention of international partners such as Japan and Korea, opening up great opportunities for export. However, because it is not yet on the list of DNA recognized in Japan, the province is planning to process ginseng into functional foods to penetrate the market, gradually putting Lai Chau ginseng on the list of official ingredients.

Despite its great potential, the development of medicinal herbs still faces major institutional barriers. Dr. Pham Quang Tuyen, Institute of Forestry Research, said that current policies only integrate medicinal herbs into the forestry or traditional medicine sectors, and there is no separate legal corridor for the medicinal herbs sector. This makes it impossible for many localities to build large-scale raw material areas, lack technical standards for sustainable exploitation, and make it difficult to attract businesses due to the lack of appropriate credit and risk insurance mechanisms.

Meanwhile, market demand is increasing rapidly, with domestic consumption reaching 80,000 tons of medicinal herbs per year, but currently only meeting about 20-30%. This gap can only be filled if production is systematically organized along the value chain, from cultivation, processing to consumption.