Economy

Lesson 3: Locating tea plants in Nghe An?

Hoai Thu, Thu Huyen • April 26, 2025 12:57

Nghe An tea once held a special position as an agricultural product exported to many countries around the world. However, the quality of raw materials is not guaranteed, processing and preservation technologies are limited, and a brand has not been built in the market, resulting in low product value. Many tea factories that were once operating efficiently are now operating at a reduced capacity or have closed down.

Nghe An tea once held a special position as an agricultural product exported to many countries around the world. However, the quality of raw materials is not guaranteed, processing and preservation technologies are limited, and a brand has not been built in the market, resulting in low product value. Many tea factories that were once operating efficiently are now operating at a reduced capacity or have closed down.

Thu Huyen - Hoai ThuApril 25, 2025

Tea was once a strong point of Nghe An province in the 1990s and 2000s. Recognizing the importance of branding, since 2003, the Nghe An Tea Investment and Development Company has collaborated with Thu Do Intellectual Property and Technology Company Limited to build its brand. In 2003, the Ngheantea brand was registered with the Intellectual Property Office, and the General Department of Standards, Metrology and Quality was granted barcode numbers for the company's products. Besides the protected logo and trademark, the company also focuses on building customer trust in product quality and competitive pricing; it has many advanced processing lines imported from India. The company has applied scientific and technical advancements to raw material production, processing, and preservation. At that time, many products were well-known to consumers, such as Kim Lien premium green tea, Kim Lien green tea for soaking, Kim Lien jasmine tea for soaking, Kim Lien black tea for soaking, etc.

In the districts of Thanh Chuong, Anh Son, and Con Cuong, many tea factories such as Thanh Mai, Ngoc Lam, Hanh Lam, Hung Son, and Bai Phu... have their products purchased by the Nghe An Tea Corporation.

It was once a golden age, but then the old business methods became unsuitable for market trends, and both the factories and tea growing areas became increasingly deserted; many factory production lines fell into disuse, rusting and covered in dust. The "Nghe An Tea" brand is now just a memory of the past.

Visiting the Thanh Chuong tea-growing region in March 2025, the hillsides are covered with lush green tea plants ready for harvest. In the memories of many farmers involved in tea cultivation in Thanh Mai and Hanh Lam communes, these areas were once tea capitals with vast plantations, serving as the source of raw materials for the renowned Nghe An Tea Company. However, after privatization, due to various reasons, state-owned tea enterprises gradually shrank. Many private businesses emerged, competing with the state-owned company. Currently, there are more than 30 processing facilities in Thanh Chuong district, and at times, due to raw material shortages, they have to purchase from Ha Tinh and other localities.

Currently, Nghe An's annual output of finished dried tea is approximately 12,500-13,000 tons, but due to low quality and a lack of established brands, most products are processed in a raw form. Each year, over 10,000 tons of dried tea are exported to less demanding markets in the Middle East and India, with a small amount going to China and Taiwan, generating around $20 million USD annually. The current situation shows that Nghe An tea has yet to find a foothold in more demanding markets such as the EU, the US, and Japan.

Several managers and many tea producers in Thanh Chuong and Anh Son districts also acknowledge that, because the quality of their tea is not as good as in other localities, they mainly sell their products to less demanding markets such as the Middle East. The proportion of products that are packaged, labeled, and have clear origins reaching consumers is small.

Truong Thinh Tea Company is a well-known tea processing enterprise in Thanh Chuong district. However, returning to the factory in the early days of the year, the factory was not producing anything, and the entire premises were deserted. Mr. Chu Quang Thanh – manager of Truong Thinh Tea Factory in Thanh Chuong district – said: “This processing facility has a capacity of 30-40 tons/day/factory, providing jobs for several dozen workers. We used to produce premium tea, broken tea, and CTC black tea, but now production has slowed down. In the years of the pandemic, sales were difficult, and many households abandoned their tea plantations. In 2024, production and business were relatively stable, but since the beginning of this year, the spring tea crop has been scarce, and there isn't enough raw material to operate, so the factory is focusing on maintaining its machinery.”

Harsh climate, years of drought, poor tea quality, and a lack of proper attention to product branding have prevented tea from establishing a strong position in the market. At times, the tender tea buds, harvested from the hills and imbued with the hard work, sweat, and tears of the farmers, have to be sold at a meager price of 3,000-4,000 VND/kg. Tea farmers in Nghe An province are facing hardship.

Mr. Bui Van Son, owner of the Son Tam tea processing facility in Thanh Tung commune (Thanh Chuong district), who has been involved with tea cultivation for over 40 years, said that for many years, the industrial tea growing areas in Thanh Chuong, Anh Son, and Con Cuong districts have been experiencing fierce competition in buying and selling tea raw materials. To sell more tea, many tea growers have over-harvested, disregarding proper harvesting techniques, as long as they have a large quantity to sell. After each machine harvest, the tea plants suffer, slowing down their growth, and some plants and rows even wither and die if severe droughts occur. This also leads to uncompetitive tea product quality, serving only as raw material for other companies to process.

Similarly, in Anh Son district, tea is identified as one of the three main crops in the area. Alongside sugarcane and cassava, those who are deeply connected to Anh Son and understand tea cultivation share a bitter sentiment: When will the good old days return? The Nghe An Tea Investment and Development Company Limited played a crucial role in the strong development of both the area and value of tea products, but today, three units – Bai Phu Tea Factory, Hung Son Tea Factory, and Anh Son Tea Factory (CTC Black Tea Factory) – are all struggling to survive.

Tea cultivation is the main source of income for many households in Nghe An province. Along with growing raw tea leaves, numerous tea processing facilities provide employment for many local workers. Currently, the province has 35 processing plants, concentrated in Thanh Chuong and Anh Son districts. The total tea processing capacity of the province reaches 324 tons of fresh tea leaves per day, linked to tea growing areas in Thanh Chuong, Anh Son, Con Cuong, and Quy Hop districts.

However, due to improper tea cultivation techniques and the pursuit of high yields, growers often overuse inorganic fertilizers and pesticides, leading to unsafe and unhygienic tea products. Simultaneously, this causes the soil to become compacted and lose its looseness, resulting in reduced tea yield and quality. Recently, fluctuating tea prices have further limited investment in tea cultivation…

In Thanh Chuong district, many tea producers are concerned about the local tea brand, asking, "Where does Nghe An tea stand on the map of Vietnamese tea?" Thanh Chuong district has strengths and a long tradition in tea in general and industrial tea in particular. Tea is a perennial industrial crop with a long economic cycle but a quick harvest. For people in mountainous districts, including Thanh Chuong, tea can be considered a crop that helps alleviate poverty. In many resolutions of the District Party Congress, tea has been identified as one of the key crops to promote the district's economic development. However, ensuring the sustainable development and value of tea remains a difficult challenge.

Mr. Le Ngoc Phuc, Director of Phuc Hung Thinh Tea Company Limited, with its production facility in Thanh Thinh commune (Thanh Chuong district), is a young entrepreneur who is always striving to improve the quality of his tea products and build the brand of Nghe An tea. Pouring a cup of tea for his guest, Mr. Phuc thoughtfully shared that although tea cultivation has been a part of his family for generations, Nghe An tea remains an unfamiliar name to discerning tea consumers in many localities across the country. People know about Thai Nguyen and Lam Dong tea, but when Nghe An tea is mentioned, it doesn't "come to mind." Because of this, most Nghe An tea sold in other localities is only processed crudely and given a different name.

In recent years, in order to bring Thanh Chuong tea products to domestic and international markets, tea production and processing facilities in the district have quickly applied science and technology to their production lines to increase productivity, improve product quality, and reduce labor costs.

As one of the tea processing and production facilities receiving attention from the district and local authorities, in 2023, Phuc Hung Thinh tea products were certified as OCOP 3-star products. Phuc Hung Thinh tea products have participated in almost all exhibition booths organized by the district and province and are present in over 25 provinces and cities nationwide. “Phuc Hung Thinh Tea Factory, with an annual processing capacity of approximately 2,000 tons of fresh tea leaves, produces many different types of tea, primarily focusing on processed hook-shaped tea and other types of tea… In addition, the company also processes jasmine-flavored and pineapple-flavored tea to serve the market in the southern provinces from Hue to Ca Mau. This is also a market with a large number of tea consumers, so it has the potential for sustainable development. This is an initial result that will allow us to continue focusing on improving quality, building image, and strongly targeting the domestic market,” shared Mr. Le Ngoc Phuc.

To enhance the value of tea products in particular and agricultural products of the district in general, in 2024, Phuc Hung Thinh tea processing facility boldly invested in building an OCOP product display area and Phuc Hung Thinh rest stop. Currently, the display area features 14 OCOP products certified with 3 stars, aiming to promote the brand of the district's products. This has initially yielded positive results, with visiting delegations giving favorable reviews of the products.

The owner of Phuc Hung Thinh tea establishment is one of the "young people" who are always concerned about the brand of their hometown tea, wishing to contribute their efforts and intellect to improve product quality, find markets, and build a brand. This aspiration is also in line with the hope of improving the lives of tea farmers who are attached to their hills and homeland…

Sharing his aspirations and concerns about the unfulfilled potential of his homeland's tea industry, Nguyen Xuan Ty, Chairman of the Hung Son Commune Farmers' Association, said: "The commune has nearly 500 hectares of tea plantations, providing a livelihood for hundreds of households. However, the economic benefits from tea cultivation are still not commensurate with its value. The reasons remain the inadequacies and negative consequences of unscientific farming practices, the overuse of pesticides, and the lack of persistence in pursuing clean agriculture despite guidance and encouragement."

Recently, Mr. Ty and other commune officials visited and learned from tea cultivation and production experiences in several localities inside and outside the province, hoping to find ways to enhance the value of Hung Son tea. “Currently, we are calling for social investment in machinery and equipment to support tea growers in adopting green, clean, VietGAP-standard, and organic farming practices. We hope that the households will agree and persevere in implementing these measures to build a brand for Hung Son tea in particular, and Nghe An tea in general,” Mr. Nguyen Xuan Ty expressed.

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According to the Vietnam Tea Association, there are currently 455 tea processing factories nationwide, but only over 300 have a capacity of about 1 ton/day. The rest are mostly small factories with outdated technology, and because only 5% of the factories have their own raw material areas, there is often competition for raw materials. A similar situation occurs in Nghe An province, but it remains uncontrolled; many mini-tea processing plants, due to a shortage of raw materials, often use various methods to procure tea, without strict requirements regarding raw material standards…

>> Lesson 1: Advantages, Potential, and Practical Effectiveness
>> Lesson 2: Organic Tea Production
>> Final article: Building a clean raw material supply area and product brand