Overview

Panax is a highly versatile and high-value medicinal plant used in pharmaceuticals and cosmetics due to its extensive health benefits, ranging from antioxidant to anti-cancer properties. While it is a rare native species found in high-altitude forests in regions like Lai Chau, (former) Quang Nam and (former) Kon Tum, all parts of the plant are extremely valuable, with natural roots fetching prices as high as 200 million VND per kilogram, and prices for cultivated Panax ranging from 30 to 100 million VND per kilogram.

Son La Province possesses over 50,000 hectares of land at altitudes above 1,400 meters, offering ideal ecological conditions – cool temperatures, high humidity, and thick humus – for high-quality Panax. Market demand for this “national product” is surging, yet domestic supply remains extremely limited. Strong policy support from central and provincial levels further encourages investment in this high-value medicinal plant.

However, the sector faces significant challenges. As a new crop, local farmers lack proper agriculture techniques. The high investment cost of quality seedlings, infrastructure and the long five-year harvest cycle create barriers for low-income households to start cultivating Panax. Furthermore, seedling provision is limited and complex to propagate, and organised value chain linkages between cooperatives and farmers are not yet widely established.

In Panax cultivation, both men and women collaborate across most production stages. Therefore, Panax cultivation represents a transformative opportunity for women’s economic empowerment, particularly for ethnic minorities. Women’s natural meticulousness makes them ideal for tasks such as seed sowing, nursery care, and harvesting. Participation in the Panax value chain can significantly boost household income and confidence. By taking on leadership roles in cooperatives, women can also gain greater influence in household financial decisions and business investments.

Key interventions

Establish an onsite nursery: Develop a 1,000 m2 nursery to proactively supply high-quality, ecologically suited seedlings, which is expected to reduce seedling costs by approximately 20%.

Develop Panax plantation and obtain GACP-WHO certificate: Cultivate a 3-hectare commercial Panax area, with 1.8 hectares targeted for GACP-WHO certification by late 2026 and the remainder certified by 2028.

Provide capacity building and technical support: Establishing GACP-WHO compliant technical protocols for cultivation, harvesting, and preliminary processing, training core technical staff and farmers, and providing ongoing technical support to cooperatives and farming households.

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Expected outcomes

3 hectares of commercial ginseng area developed, with 1.8 hectares GACP-WHO certified

1 nursery established with a capacity of 120,000 seedlings/year

300 farmers (150 men and 150 women) trained in advanced cultivation techniques

150 households benefiting directly, with 44 households (including 30 ethnic minority women) seeing stable income increases

150 business cooperation contracts signed between collective groups and households

15% increase in the number of women participating in household expense decision-making

10% increase in the number of women having shared workload from husbands/other male family members

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Implementing partners