Economy

Final article: Building a clean raw material supply area and product brand.

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

Tea remains one of Nghe An's key export products. Resolution No. 17 of the Standing Committee of the Nghe An Provincial Party Committee, 16th term, as well as the province's and agricultural sector's projects and plans, have identified tea as a key crop for processing. To ensure the sustainable development of tea cultivation, solutions are needed to meet the demands of both domestic and international markets.

Thu Huyen - Hoai ThuApril 25, 2025

Tea remains one of Nghe An's key export products. Resolution No. 17 of the Standing Committee of the Nghe An Provincial Party Committee, 16th term, as well as the province's and agricultural sector's projects and plans, have identified tea as a key crop for processing. To ensure the sustainable development of tea cultivation, solutions are needed to meet the demands of both domestic and international markets.

Tea is a popular beverage worldwide; the tea production and processing industry plays a crucial role in the economy, creating jobs, increasing income, and contributing to GDP. In Nghe An province, tea production and processing provides employment for thousands of local workers. Many tea-growing regions, such as Thanh Chuong, Anh Son, and Con Cuong, have high yields and good quality tea; tea cultivation has been and continues to be a key crop for poverty alleviation and a staple crop for tens of thousands of households in mountainous districts.

However, alongside the opportunities and achievements, Nghe An's tea industry is facing challenges and obstacles that prevent it from delivering the expected value. The tea products from the growing region are currently fragmented and subject to intense competition in the market. Most tea products are processed in raw form by local facilities and sold to domestic factories for further processing and export.

This also means that the quality of tea is not guaranteed; only 48 hectares of tea plantations have been certified under VietGAP standards, and only about 20 hectares have been certified under organic farming standards. Consequently, the value of tea is low compared to other tea-growing regions nationwide. Due to poor tea quality and lack of branding, the price of tea from Nghe An is very low. While the price of fresh tea buds in Thai Nguyen, Phu Tho, and Lam Dong provinces reaches 15,000 - 20,000 VND/kg; and in other provinces 8,000 - 10,000 VND/kg, in Nghe An the highest price for tea buds is only 6,000 VND/kg, and at times it drops to only 2,000 - 3,000 VND/kg.

Mr. Nguyen Xuan Ty, Chairman of the Farmers' Association of Hung Son commune (Anh Son district), said: "Tea is the main crop that brings income to more than 90% of the households in the commune. The commune leaders are always concerned about finding ways to increase the value of the local agricultural product, and have visited other localities many times to learn and find more promising directions. Through these visits to other localities, such as Huoi Tu (Ky Son district), Ha Giang, and Lao Cai, we have seen that the value of tea is much higher than what Hung Son currently has. For example, in Ha Giang and Lao Cai, tea growers are very persistent, strictly adhering to organic farming processes and manual harvesting. As a result, the price of raw materials and tea products not only sells domestically but also meets export standards at 1.5 - 7 million VND/kg. Some segments even fetch higher prices. Meanwhile, OCOP-certified tea from Nghe An generally only sells for a few hundred thousand VND/kg."

The question is, why is the quality of industrial tea in Nghe An so poor? There are many reasons, including the overuse of chemical fertilizers and pesticides, which compromises tea quality. In addition, improper harvesting techniques, not following the tea industry's guidelines, also lead to lower raw material and processed tea prices compared to other regions. Due to fierce competition for raw material areas, and the desire to sell more tea at higher prices without strict harvesting techniques, many tea growers have over-harvested. After each such "harvesting," the tea plants grow more slowly, and some plants and rows even die if they encounter severe heat and drought.

In Anh Son district, tea has been identified as a key crop. On March 25, 2021, the District People's Committee approved a plan for the development of tea, sugarcane, and cassava in the district for the period 2021-2025, with a vision to 2030. However, tea cultivation alone did not meet the plan's targets. The projected tea area for 2025 is 2,650 hectares, reaching only 88.6% of the plan's target. The area of ​​newly planted tea each year is low compared to the planned target. Most communes failed to meet the target, with some communes failing to develop any new tea plantations for three years or achieving very low results, such as Tho Son, Binh Son, Thanh Son, Tuong Son, Hoi Son, and Khai Son. Recently, due to inefficient production, some households have become discouraged and cut down their tea gardens, abandoning tea cultivation altogether.

Mr. Le Van Tri, a long-time agricultural official with extensive experience in agricultural production models in Anh Son district, including tea cultivation, shared: "With the current average yield, the average profit from tea during the production period is approximately 40-60 million VND/hectare/year. Tea is a high-value industrial crop with a long harvesting season (25-30 years), suitable for the climate and soil of the semi-mountainous districts of Nghe An province. However, despite the presence of tea factories in the area, production linkages are not yet effective, and farmers mainly sell to traders, leading to unstable prices. In general, the tea industry lacks a leading enterprise, and the Nghe An tea brand is not strong enough or well-received by consumers… This reality demands a comprehensive, long-term solution, including strategies for clean production, processing, consumption, and brand building for Nghe An tea…"

Investing in the development of the industrial tea industry in Nghe An province has been a sound policy for many years, as reflected in Resolution No. 17 of the Standing Committee of the Nghe An Provincial Party Committee, 16th term. The plan for developing key agricultural products of Nghe An province for the period 2021-2025, with a vision to 2030, has also identified tea as a raw material for processing. The province has also implemented many policies to support the development of the tea industry; these include Resolution No. 18/2021/NQ-HĐND of the Provincial People's Council on regulations regarding some policies to support agricultural and rural development in the province for the period 2022-2025, which includes support for seeds, land preparation, and irrigation systems for tea plants…

Tea quality is determined by factors such as: variety, soil, intensive cultivation methods, harvesting techniques, and processing technology. Mr. Phan Thanh Tung – Head of the Crop Production Department, Provincial Crop Production and Plant Protection Sub-Department, stated: Currently, the LDP1 and LDP2 tea varieties have been mainly applied in new plantings since 2001. In addition, the Shan Tuyet tea variety is suitable for the high mountainous region of Ky Son. The proportion of different tea varieties varies depending on the soil and climate conditions of each locality. The application of scientific and technical advancements in tea production is increasingly attracting the attention of farmers and businesses. Many localities have adopted technical advancements in tea production such as VietGAP tea production, organic tea farming models, etc.

To "save" the tea industry, a comprehensive solution is needed, in which improving product quality right from the raw material stage is crucial. Ms. Tran Thi Ly, owner of Minh Sang Green Tea Processing Cooperative, said: "Our facility regularly receives orders but lacks clean, guaranteed raw materials for processing. The biggest difficulty is raising awareness about clean agricultural production. We need to use organic fertilizers in the production process; use biological products to treat pests and fungal diseases; and use chemical fertilizers in a balanced and proper way."

Concerned about how to enhance the value of tea products while maintaining quality right from the cultivation stage, officials of Hung Son commune's People's Committee have connected with and called for social investment to invest in machines that forecast and detect harmful agents affecting crops and to implement organic fertilizer production for tea-growing areas. “Currently, the weather forecasting and pest detection machines have been installed and are undergoing testing. This is a high-tech device combining digital technology, promising to be a great help to us in caring for tea plants and other crops. At the same time, the commune is also mobilizing and educating people to build earthworm breeding tanks and compost straw to make bio-fertilizer, gradually ‘saving’ the tea plants, and also maintaining a sustainable income from the locality's main crop,” said Mr. Nguyen Xuan Ty, Chairman of the Farmers' Association of Hung Son commune.

This is also a concern for many tea lovers and those involved in agricultural production today. Mr. Le Dinh Thanh – Standing Deputy Secretary of the Thanh Chuong District Party Committee – expressed his concern: Industrial tea cultivation has taken root in Thanh Chuong for 40-50 years and has continuously developed over the years, considered by the people as the district's main crop. During the past term, the District Party Committee has always paid attention to directing the people to develop and expand tea cultivation areas, resulting in higher tea acreage and production in each subsequent term. Currently, Thanh Chuong district has over 5,000 hectares of tea, accounting for half the area and more than half the production of the entire province. While previously tea was a crop for poverty alleviation, it is now a key economic crop, currently grown in 13 communes of the district.

However, the main export markets are West Asian countries, which are less demanding and have lower prices, primarily exporting raw tea, thus failing to fully realize the potential of tea cultivation. While there is a desire to attract high-quality factories, this has not yet been achieved. Discussing sustainable solutions for tea cultivation, Mr. Le Dinh Thanh stated: “Tea is not an easy crop to cultivate, but it's not overly difficult either. The key is to improve the quality of the raw material areas. In the coming time, we will continue to encourage people to plant and care for tea; encourage tea cultivation in areas with reliable irrigation. We will continue to attract tea factories with advanced technology to increase the value per unit of cultivation, boost tea prices, and encourage VietGAP and organic tea to meet the increasingly high standards of consumers. To achieve this, we will encourage people to produce sustainably in an organic direction, and work alongside businesses to promote products, targeting both domestic and international markets.”

To unlock the potential and develop tea cultivation sustainably requires a comprehensive approach, from establishing clean raw material areas to investing in processing lines and building product brands.

Discussing this issue, Ms. Vo Thi Nhung – Deputy Director of the Department of Agriculture and Environment – ​​stated that developing tea cultivation in Nghe An province requires a comprehensive strategy encompassing multiple solutions. First, it is necessary to review and supplement land allocated for tea development. Regarding varieties, research and testing are needed to quickly introduce new varieties with high yield and quality suitable to Nghe An's ecological conditions. A system of qualified seed production facilities and areas should be established to meet seedling needs and effectively manage seed quality according to industry regulations. For cultivation techniques, intensive farming and advanced pest and disease control methods should be applied. The application of biological methods should be strengthened, and the use of chemical pesticides should be limited. Models for safe tea production according to VietGAP, organic, and Global GAP standards, meeting export quality requirements, should be developed and replicated. High technology should be applied to production, especially irrigation technology: sprinkler and drip irrigation to save water and improve efficiency.

Furthermore, regarding processing and preservation, tea producers and businesses need to innovate with advanced and modern processing equipment and technology to produce high-quality teas with high economic value. Diversifying tea products is also crucial to meet market demands. Post-harvest preservation is also very important; therefore, appropriate technology should be applied to maintain the flavor and quality of the tea, thereby increasing its value.

To enhance the value of the tea production industry, assigning planting area codes and granting domestic planting area codes to tea-growing areas in the province is extremely important. Therefore, all levels and sectors need to review and select planting areas that meet export requirements, ready for export promotion. From there, promote access to consumer markets by building the Nghe An tea brand, registering trademarks and geographical indications for specialty tea regions. Strengthen efforts to find and build distribution channels and organize trade promotion activities, aiming for export to demanding markets. Strengthen production linkages between farmers, businesses, and cooperatives to ensure market access for farmers.

"Furthermore, it is necessary to study and revise current policies to provide sufficient support for the development of Nghe An's tea industry in the coming time, especially policies supporting capital and technology. This will give businesses, organizations, and individuals confidence to invest, create healthy competition, and develop the Nghe An tea brand," emphasized Vo Thi Nhung, Deputy Director of the Department of Agriculture and Environment.

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"It is necessary to study and revise current policies to provide sufficient support for the development of Nghe An's tea industry in the coming time, especially policies supporting capital and technology."

Ms. Vo Thi Nhung - Deputy Director of the Department of Agriculture and Environment

Nghe An province has a strong agricultural sector with many key products such as rice, oranges, tea, and sugarcane. If it continues to receive appropriate investment and product value enhancement, tea will remain a profitable crop for many localities, not only increasing people's income and contributing to the development of new rural areas in conjunction with the OCOP program, but also elevating the status of local agricultural products when they are accepted by international consumer markets.

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According to Decision No. 4288/QD-UBND dated November 11, 2021, approving the Project "Development of Key Agricultural Products of Nghe An Province in the period 2021-2025, with a vision to 2030," regarding the objective of developing the processing industry for key agricultural products, it is determined that existing tea processing facilities should be reviewed and reorganized according to raw material areas. Investment should be attracted to build concentrated tea processing plants to supply raw materials for factories producing products using tea, such as: bottled green tea beverages, instant green tea, matcha tea, green tea essential oils, etc., in Thanh Chuong and Anh Son districts.

>> Lesson 1: Advantages, Potential, and Practical Effectiveness
>> Lesson 2: Organic Tea Production
>> Lesson 3: Locating the tea plants of Nghe An?