WNAM REPORT: Vietnam possesses abundant medicinal plants, and the growing use of herbal ingredients in cosmetics, beverages, daily food products, and tourism is opening up new development space. However, a key challenge remains how to transform this potential into a high-value-added economic sector.
Expanding application areas
With 65 years of development, the National Institute of Medicinal Materials under the Ministry of Health has played a leading role in researching and developing medicinal plants, herbal products, and traditional medicine. To meet rising demand, it has recently shifted focus to high-quality product lines, particularly in beverages and cosmetics.
A multi-purpose approach is also emerging among businesses. The Ninh Binh Golden Camellia Park, developed by Vu Gia Herbal Co. Ltd., has gained attention as a large-scale cultivation area for the valuable plant listed among 100 medicinal species prioritised for development in the 2020–2030 period.
Beyond traditional whole-flower tea, the company has diversified into products such as facial mists, skincare essences, sunscreen, and cleansers. Research indicates that bioactive compounds in the leaves are nearly equivalent to those in the flowers, enabling the production of tea bags and soluble powders. By combining cultivation with experiential tourism, the firm is building a value chain from breeding to deep processing.
Experts divide the medicinal product pyramid into three tiers. The largest base includes food, beverages, and household goods, followed by health supplements, while herbal medicines and traditional remedies occupy the top tier. Current trends show strong expansion at the base level, targeting daily consumption.
According to Phan Van Hieu, Chairman of CVI Pharmaceutical and Cosmetics JSC, technological advances are boosting consumer confidence in herbal products. Demand is rising for daily-use items that support health and lifestyle, provided their origin and quality are transparent. In response, CVI has developed herbal-based cosmetics using domestic extracts, particularly for sensitive groups such as pregnant women and children.
Businesses are also tapping into medicinal materials for food and tourism. In Thanh Hoa, a company plans to introduce home-grown medicinal vegetable models using trays or boxes for urban households, alongside larger-scale farming. The initiative, featuring around 10 common varieties, aims to revive traditional herbal gardens, promote daily use, and encourage preventive healthcare.
New approach to development
Tran Minh Ngoc, Director of the National Institute of Medicinal Materials, said integrating medicinal plants into multiple economic sectors is a global trend. The global market is projected to expand from about 230 billion USD in 2021 to over 430 billion USD by 2028, with annual growth exceeding 11%, driven by rising demand for natural products.
Advances in bioactive compound analysis, artificial intelligence, and big data are reshaping research and product development, creating both opportunities and challenges for Vietnam. The priority is to combine modern scientific advances with traditional knowledge to produce high-value products and sustainable livelihoods for farmers.
The Politburo’s Resolution No. 72-NQ/TW calls for promoting the multi-purpose value of medicinal materials, shifting from treatment to proactive healthcare. Meanwhile, Resolution the Politburo’s No. 57-NQ/TW identifies science, technology, and digital transformation as key drivers of socio-economic growth.
Experts stressed that a new development approach is needed, with science and technology as the central lever to standardise raw materials, ensure quality, and enable deep processing. Stronger links between research institutions and businesses are essential to develop standards for promising medicinal plants, some of which are not yet included in the official pharmacopoeia.
A representative of Traphaco JSC also highlights the need to connect medicinal plant development with tourism and build integrated value chains led by enterprises. Without a stable domestic supply chain, Vietnam risks continued reliance on imports, limiting its ability to fully unlock the value of its rich medicinal resources.
Looking ahead, the institute plans to expand research beyond medicines and functional foods to include nutrition and daily consumption products, contributing to the integration of medicinal plants into everyday life and community healthcare, Ngoc stated.
