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

According to data released at the "Connecting Production and Trade of Agricultural and Forestry Products in the Northwest Provinces" forum recently held in Son La, although the Northwest region produces many types of temperate and subtropical fruits such as mangoes (79.8 thousand tons), longan (81.3 thousand tons), plums (94.5 thousand tons), passion fruit (7.6 thousand tons), oranges (108.1 thousand tons), bananas (116.6 thousand tons), pomelos (125.9 thousand tons)... the value of agricultural exports in 2024 of the region will only reach about 245 million USD; of which: Son La will reach 190 million USD; Dien Bien over 22.4 million USD; Lai Chau over 6.5 million USD; Lao Cai 25 million USD...

Explaining the reasons for the limited value of agricultural exports from the province, Ms. Cam Thi Phong, Deputy Director of the Department of Agriculture and Environment of Son La province, said that it is due to the low rate of deep processing, packaging and labeling that do not meet market requirements, and the lack of sustainable contractual links between producers and businesses. Given this situation, to increase the value of its products, Son La aims to become a center for agricultural processing in the Northern Midlands and mountainous region.

BUILDING SON LA INTO A CENTER FOR AGRICULTURAL PROCESSING

Currently, the province has over 100,000 hectares of agricultural land, of which approximately 85,000 hectares are planted with fruit trees. Thanks to the implementation of Resolution 05-NQ/TW from 2015 on the development of commercial agriculture, Son La has formed specialized areas for growing mangoes, longan, passion fruit, plums, etc., creating a large and stable source of raw materials.

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

Sharing further information, Mr. Dinh Cao Khue, Chairman of the Board of Directors of Doveco, said that the company has invested in a processing plant in Son La since 2023. Doveco not only acts as a buyer of various fruits for farmers, but also provides technical consulting, supplies seeds, guarantees product sales, and works with local authorities to develop long-term strategies.

Among them, Son La mangoes, especially the Taiwanese variety, are very suitable for processing and export standards. In 2024, the company helped consume 10% of the local mango production and aims to reach 20% in 2025.

Mango processing at the Doveco factory in Son La. Photo by Chu Khoi.

Not stopping at mangoes, Doveco expanded its procurement to include easy-to-cultivate, low-risk crops such as pineapples and passion fruit – two products that are virtually non-seasonal. Regarding these crops, Mr. Khue affirmed: “Doveco will process as much as we can procure. The current capacity of our factory and cold storage system allows us to handle large volumes without worrying about overload.”

Furthermore, some pineapple varieties that Doveco is supporting in Son La can generate revenue of up to 1 billion VND/hectare after only 14 months of cultivation if planted using the correct techniques and in a coordinated manner. In addition, banana cultivation in the Northwest has a distinct advantage compared to the Central region. In Lai Chau, Doveco has invested in developing large-scale raw material areas, ready to connect with modern processing plants.

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

In Son La, TH is building a fruit and medicinal herb processing plant to utilize local raw materials. The main products include juices, concentrates, and processed products from fruits such as mango, longan, and plum. In Dien Bien, TH is focusing on growing macadamia trees – a high-value crop.

POTENTIAL FOR PROCESSING MEDICINAL MATERIALS

Phuc Sinh Joint Stock Company (Phuc Sinh Group) has invested in building the Phuc Sinh Son La factory in Chieng Mung commune, Mai Son district. This is the group's largest facility, covering a total area of ​​45 hectares, specializing in processing Arabica coffee that meets the 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 Trading Joint Stock Company, the Northwest region is a "green gold mine" with many valuable medicinal plants such as *Thất Diệp Nhất Chi Hoa*, *Tam Thất*, ginseng, etc. However, to exploit them effectively, it is necessary to invest in deep processing and build sustainable links between businesses and people.

"Lai Chau province urgently needs a special mechanism for the development of Vietnamese ginseng, creating a favorable environment for investment, exploitation, processing, and commercialization. Removing these 'bottlenecks' will pave the way for Lai Chau ginseng to become a national product and reach international markets."

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

VietRAP spent five years building and stabilizing its raw material supply area, ranging from long-term to short-term medicinal plants. In Van Ho district (Son La province), after just one year, the company partnered with three large cooperatives, mobilizing hundreds of households to participate. After three years, the cultivated area reached 60 hectares, of which 20 hectares have reached their fourth harvest cycle.

From a local perspective, Mr. Ha Trong Hai, Vice Chairman of the People's Committee of Lai Chau province, stated that the province currently has over 23,000 hectares of various medicinal plants, with key species such as cinnamon (over 10,000 hectares), cardamom (over 6,500 hectares), amomum xanthioides, hawthorn, Lai Chau ginseng, and Panax notoginseng. Annual harvest yields are estimated at around 3,000 tons, demonstrating significant potential with proper investment. In particular, Lai Chau ginseng – also known as black or red Panax notoginseng – is a rare and valuable native species with high medicinal value, and has been used by local people for generations.

Lai Chau ginseng has been granted protection by the Ministry of Science and Technology. This product is attracting interest from international partners such as Japan and South Korea, opening up significant export opportunities. However, because it is not yet included in the list of recognized DNA strains in Japan, the province is initially focusing on processing the ginseng into functional foods to penetrate the market and gradually include Lai Chau ginseng in the list of officially recognized raw materials.

Despite its great potential, the development of medicinal plants currently faces significant institutional obstacles. Dr. Pham Quang Tuyen, from the Institute of Forestry Research, stated that current policies only integrate medicinal plants into forestry or traditional medicine, lacking a separate legal framework for the medicinal plant industry. This prevents many localities from establishing large-scale raw material areas, lacks technical standards for sustainable exploitation, and makes it difficult to attract businesses due to the absence of appropriate credit and risk insurance mechanisms.

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