To date, the model has initially yielded positive results, with organic spice cultivation areas (chili peppers, ginger, turmeric, lemongrass, cinnamon, star anise) generating hundreds of billions of VND in annual income for farmers. Simultaneously, a spice processing plant for export has begun construction in Dong Khe commune, raising hopes for the development of “made in Cao Bang ” spice brands in the international market.
Expanding the raw material area
Since 2013, the Agricultural Development and Environmental Consulting Company (DACE) in Hanoi has been collaborating with farmers in the former Ha Quang district to grow organic ginger. To date, the area of organic spice cultivation under this partnership has expanded to 2,300 hectares.
According to the company, each year it purchases approximately 6,000-7,000 tons of agricultural products from farmers in Cao Bang, with a total value of hundreds of billions of VND, to transport to its factory in Hanoi for processing and export. Mr. Tran Van Hieu, the company’s director, stated that the company’s processed spice products are currently exported to 14 countries, with a total turnover of approximately 9 million USD per year. With the goal of building a spice processing plant right in the growing region, creating a sustainable production value chain, and with the support of the local government, the company will begin construction of a factory with a total investment of 126 billion VND in Dong Khe commune at the end of August 2026; it is expected to be completed by the end of 2027, with a processing capacity of approximately 50,000 tons of raw materials per year. “According to calculations, currently, both the raw material areas where the company collaborates with farmers and the raw materials purchased from farmers without such collaboration in Cao Bang only meet about 20-25% of the designed capacity of the factory in Dong Khe; therefore, linking and expanding the growing area to meet the raw material production needs of the factory is a rather urgent need,” Mr. Hieu added.
Recognizing the effectiveness of the production linkage model between businesses and farmers, Cao Bang province has recently focused on supporting the company in developing raw material areas. In July 2026, the Department of Agriculture and Environment issued a plan for the development of spice raw material areas for the period 2026-2030. To implement the plan, officials from the department and company staff visited potential localities to exchange information, provide guidance, introduce and support farmers in developing spice cultivation. In Thong Nong commune, through discussions and guidance, the locality plans to develop approximately 195 hectares of spice crops during the 2026-2030 period, with about 350 farming households participating.
Building a brand for spices “made in Cao Bang”
Appreciating DACE Company’s investment in building a spice processing plant for export right in the raw material area, Ms. Hoang Thi Lien, President of the Vietnam Pepper and Spice Association, shared that currently, the total export volume of Vietnamese spice products reaches over 417,000 tons/year, with a total export value of approximately 2.1 billion USD/year. Vietnamese spices have established their brand and reputation in the international market. However, building a brand is difficult, but maintaining and developing a sustainable brand is even more challenging. Therefore, the company’s construction of a factory right in the Cao Bang raw material area will help reduce production costs and increase the competitiveness of Vietnamese spice products in general, and “made in Cao Bang” spice products in particular, in the international market.
Recognizing and accurately assessing the potential and strengths, and strengthening linkages, cooperation, and support for effective exploitation, in August 2026, the People’s Committee of Cao Bang province and the Vietnam Pepper and Spice Association signed a memorandum of cooperation to develop a sustainable cinnamon and spice value chain. Accordingly, the Association will accompany and advise the locality in developing and expanding the raw material area; Connecting businesses with farmers and forming a sustainable production value chain by linking farmers and businesses to purchase and market spice products at reasonable prices… Appreciating the participation of the Association and businesses in building the “three-party” linkage, contributing to job creation and gradually improving farmers’ incomes, Mr. Hoang Van Thach, Vice Chairman of the Provincial People’s Committee, affirmed that the provincial Party Committee and government will continue to cooperate and support the development and expansion of spice growing areas in the locality, aiming to build and develop the brand of “made in Cao Bang” spice products in the international market.
Text and photos: MINH TUAN
