Vietnam's Mekong Delta has immense opportunities for herbal-based medicine development: exec

The government should prioritize planning for designated growing areas and support product promotion to advance the development of products derived from medicinal herbs, said Pham Thi Xuan Huong, general director of OPC Pharmaceutical JSC.

Huong made these remarks at the Mekong Connect 2024 forum held in the Mekong Delta province of An Giang on Tuesday. OPC is a leading company in development and production of herbal-based pharmaceuticals.

Huong emphasized that Vietnam has significant potential for developing medicinal herbs, but the potential remains underutilized. The Vietnamese pharmaceutical industry predominantly focuses on manufacturing, while the raw material production sector has yet to be established.

Currently, 75% of medicinal herbs are imported, primarily from China and India. 2023 data from the Department of Traditional Medicine Management shows Vietnam consumes approximately 100,000 tons of medicinal herbs annually.

The global market for herbal medicine also offers substantial opportunities. According to the Global Industry Analysts, the global herbal medicine market reached $110 billion in revenue in 2021 and is projected to grow to $179 billion by 2026.

Huong noted that Vietnam could tap into this expanding market by leveraging its strengths in medicinal herbs. Focusing on the Mekong Delta, one of eight medicinal herb regions designated by the government, she highlighted its promising potential based on OPC’s research.

“The Mekong Delta has immense opportunities. At OPC, we’ve successfully developed two sustainable medicinal herb regions in Can Tho and Dong Thap. These regions are thriving and are poised for even greater growth,” she noted.

OPC has been at the forefront of medicinal herb development for 47 years. The company has consistently focused on Vietnamese herbal products, exporting to 15 countries. The global demand for safe and health-promoting products aligns well with the medicinal herb industry’s strengths, Huong added.

“OPC has heavily invested in two key areas, including research and development and the digitization of all data within the research center. This enables us to utilize both domestic and international scientific research. For products that affect health, scientific evidence and technological applications are essential. Looking ahead, OPC plans to incorporate AI into research,” Huong remarked.

Drawing on OPC’s experience in establishing raw material supply chains, Huong explained that the company strategically focuses on products that align with its resources and market advantages.

She emphasized the importance of sustainability in developing growing areas, which not only secures raw material supplies but also facilitates technological investment. She noted that medicinal herbs are not widely recognized globally, making it critical to invest in scientific evidence, starting from the cultivation stage.

Based on OPC’s experience and the challenges encountered in developing growing areas, Huong made three key recommendations. First, she urged the government to formulate a detailed plan for growing areas. Such a plan would enable businesses to define strategies and make informed investment decisions.

Second, she suggested the government assist businesses in promoting and marketing products from these growing areas.

“Regional products must grow within their regions to support local economies. Businesses need mechanisms to collaborate with localities for product promotion and trade. Medicinal herb products marketed through tourism could greatly benefit, as they are often trusted as gifts or souvenirs,” she said.

Third, Huong called on the government to support the establishment of processing facilities within growing area clusters.

“When businesses develop growing areas, they need locations for preliminary processing before transferring raw materials to main factories. The government’s support in allocating and developing these facilities would be invaluable,” she noted.