MEDICINAL & AROMATIC PLANTS
Market Assessment Report
Report commissioned by
TRAFFIC Southeast Asia
Greater Mekong Programme
Report prepared by
Dang Vu Hoai Nam, Consultant
Doan Phuong, Assistant
September 2013
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
Table of Contents
I. INTRODUCTION ........................................................................................................... 4
1. Research context .................................................................................................................... 4 2. Research questions ................................................................................................................. 5 3. Research objectives ................................................................................................................ 6
II. METHODOLOGY ........................................................................................................... 7
1. Research approach ................................................................................................................. 7 2. Research design ...................................................................................................................... 7
2.1 Purpose ........................................................................................................................... 7 2.2 Strategy .......................................................................................................................... 7 2.3 Ethics .............................................................................................................................. 7
3. Sampling and interview development ................................................................................... 8 3.1 Sampling ......................................................................................................................... 8 3.2 Interview development .................................................................................................. 8 3.3 Questionnaires................................................................................................................ 8
III. MEDICINAL & AROMATIC PLANTS (MAPs) ....................................................................... 9
1. Overview of MAPs ................................................................................................................... 9 2. Types, specifications and benefits of target species ............................................................. 9
IV. POLICY BACKGROUND ................................................................................................ 12
1. Introduction .......................................................................................................................... 12 2. International policies regulating the collection and trading of MAPs ................................. 12 3. National policies regulating the collection and trading of MAPs ......................................... 13 4. Conclusion ............................................................................................................................. 15
V. VALUE CHAIN ANALYSIS ................................................... Error! Bookmark not defined.
1. Overview ................................................................................... Error! Bookmark not defined. 2. Commodity research ................................................................ Error! Bookmark not defined.
2.1 Target species .................................................................. Error! Bookmark not defined. 2.2 Supply capacity ................................................................ Error! Bookmark not defined. 2.3 Quality .............................................................................. Error! Bookmark not defined. 2.4 Price ................................................................................. Error! Bookmark not defined.
3. Chain actors research ............................................................... Error! Bookmark not defined. 3.1 Identify chain actors ........................................................ Error! Bookmark not defined. 3.2 Factors affecting buying decisions ................................... Error! Bookmark not defined. 3.3 Analysing buying habits/business practices ..................... Error! Bookmark not defined.
4. Value chain mapping ................................................................ Error! Bookmark not defined. VI. TARGET MARKETS AND POTENTIAL CLIENTS ....................... Error! Bookmark not defined.
1. Identification ............................................................................. Error! Bookmark not defined. 2. Need analysis ............................................................................ Error! Bookmark not defined. 3. Market demand and volume ..................................................... Error! Bookmark not defined. 4. Market segmentation ................................................................ Error! Bookmark not defined. 5. Conclusion ................................................................................ Error! Bookmark not defined.
VII. CONSTRAINTS & IMPLICATIONS FOR VALUE CHAIN DEVELOPMENTError! Bookmark not defined.
1. Main constraints of the value chain ........................................ Error! Bookmark not defined. 2. Possible strategies for value chain interventions ................... Error! Bookmark not defined. 3. Conditions for success ............................................................. Error! Bookmark not defined. 4. Research limitations ................................................................ Error! Bookmark not defined. 5. Conclusion ................................................................................ Error! Bookmark not defined.
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
List of Figures
Figure 1: Dried tuberous roots of Bach Bo in NXL SHCA
Figure 2: Fresh and dried Giao Co Lam in NXL SHCA
List of Tables
Table 1: Supply capacity of collectors
Table 2: Price range of target species from 2011 to 2013
Table 3: Contact details and description of local traders
Table 4: Supply capacity of local traders in 2013
Table 5: Prices of MAPs in Ninh Hiep village
Table 6: Prices of MAPs in traditional medicine shops in Lan Ong street, Hanoi
Table 7: Analysis of contacted companies
Table 8: Analysis of contacted clinics, traditional healers and practitioners
List of Annexes
Annex 1: Questionnaire for Collector
Annex 2: Questionnaire for Group leader
Annex 3: Questionnaire for Trader
Annex 4: Contact details and Supply capacity of Collectors
Annex 5: Prices of MAPs from different Chain Actors
Annex 6: Traditional medicine Companies visited
Annex 7: Traditional medicine Shops visited
Annex 8: Traditional medicine Clinics visited
Annex 9: What is Access and Benefit Sharing – The Nagoya Protocol?
Annex 10: Potential Traditional medicine Prodution and Trading Companies
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
I. INTRODUCTION
1. Research context
Vietnam is considered to be one of the sixteen most biologically diverse countries in the world,
where are prioritized for global conservation (Ministry of Natural Resources and Environment
[MONRE], 2008; United Nation Development Program [UNDP], 2012). MONRE (2008) regards the
diversity of topography, soil, landscapes and climate as a prerequisite for the biological diversity of
Vietnam.
Ecosystems and biological resources play an important role in Vietnam as they contribute
significantly to food security, sustainable livelihoods and the healthcare system. These
contributions are especially critical for local communities and ethnic minority groups living in
remote areas and directly depending on the collection and trading of biological resources (MONRE,
2008). Despite rapid economic growth of the country, they are somewhat left out and are, to a
large extent, living on the fringes of society.
The Government of Vietnam has paid great attention to those communities and made much effort
in improving their status and living conditions. A number of programs have been implemented to
conserve the socio-cultural diversity amongst ethnic minority groups. Through many researches on
genetic resources and indigenous knowledge, there have been discovered thousands of medicinal
and aromatic plants and traditional remedies by Dzao, Tay, Nung and H’Mong people in
mountainous areas (MONRE, 2008).
However, Vietnam is encountering a variety of difficulties in the management of biodiversity,
presented by MONRE (2008) as follows:
(i) Lacking of effective inter-sector cooperation mechanisms and overlapping in functions
among different ministries; (ii) Legislations for biodiversity conservation is not yet
systematic and comprehensive, even overlapping, inconsistent and of conflicts. Besides,
several contents such as gene access and benefit-sharing, sustainable harvest of
biodiversity resource that are not legislated yet; (iii) Poor community participation in
biodiversity conservation due to the shortcomings of government mechanisms and
policies, leading to weak law enforcement to stop deforestation and illegal wildlife trade;
(iv) Investment for biodiversity conservation is still limited, or does not meet actual
requirements or objectives. Further technical, financial and personnel resources are in
need, together with raising awareness and information on biodiversity conservation. (pp.
7-8)
To address those issues, Vietnam has adopted “the National Green Growth Strategy in the period
2011-2020 with vision to 2050”, which states that “Green growth is by the people and for the
people, contributing to poverty reduction and improving the well-being of all people” and “green
growth shall lead to increased investment in conservation, development and efficient use of
natural capital, reduction of greenhouse gas emissions and improvement of environmental quality,
and thereby stimulating economic growth”.
TRAFFICE Southeast – Greater Mekong Programme (TSEA–GMP)
TRAFFIC, the wildlife trade monitoring network, is a Joint-Program between WWF (World Wildlife
Fund) and IUCN (International Union for Conservation of Nature). TRAFFIC works to ensure that
trade in wild plants and animals is not a threat to the conservation of nature. It monitors wildlife
trade at international, regional and national levels. On the one hand, TRAFFIC researches into both
domestic and international chains of supply and demand to identify interventions to increase the
efficiency of management. On the other hand, it works closely with governments, providing critical
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
information on the impacts of trade, motivating efforts to increase the ecological sustainability of
trade in wild species, and helping to improve enforcement of international wildlife trade controls
(TRAFFIC, 2013).
The TRAFFIC Southeast Asia - Greater Mekong Programme is a sub-programme of TRAFFIC
Southeast Asia (TSEA), which is the Southeast Asian regional office of the TRAFFIC network. The
TRAFFIC Southeast Asia programme was established in 1991 and continues to work with partners
to address key wildlife trade issues in the region. This work is carried out in close collaboration
with TRAFFIC offices in consumer regions such as East Asia, Europe and North America (TRAFFIC,
2013).
In 2011, TSEA-GMP implemented a project titled “Developing a model for the sustainable wild
collection of medicinal plants through the implementation of FairWild in Vietnam”, funded by
Critical Ecosystem Partnership Fund (CEPF). This project pilots sustainable harvesting of medicinal
and aromatic plants (MAPs) by households in seven hamlets of two buffer zone communes in Nam
Xuan Lac Species and Habitat Conservation Area (NXL SHCA), Cho Don District, Bac Kan Province,
in order to protect overexploited MAPs while improving the limited and unstable income of a large
number of local collectors. This project also identified trade chains for two target species groups
Alpinia laislabris, Alpinia malaccensis and Alpinia menhainensis (known as Thao Dau Khau in
Vietnamese) and Amomum villosum and Amomum xanthioides (known as Sa Nhan in
Vietnamese) (TRAFFIC, 2013).
In early 2013, TSEA-GMP was funded by the Keidanren Nature Conservation Fund (KNCF) for a
new project to scale up the aforementioned one. Apart from the two previous species groups, the
new project also targets at five more species, including Stemona tuberose (known as Bach Bo in
Vietnamese), Cibotium barometz (known as Cau Tich in Vietnamese), Homalomena occulata
(known as Thien Nien Kien in Vietnamese), Gynostemma pentaphyllum (known as Giao Co Lam
in Vietnamese), Ampelopsis cantoniensis (known as Che Day in Vietnamese).
To develop the new project, in June 2013, TSEA-GMP implemented a research to review
outstanding issues of the past project and to assess whether its experience could be extended to
similar projects related to the sustainable collection and trade of other medicinal and aromatic
plants in Vietnam. A number of constraints have been pinpointed. Of those, the lack of a market
approach is prominent as previous project mostly focused on the promotion of sustainable
collection practices and the improvement of livelihood of forest-dependent communities through
the sustainable collection of wild medicinal and aromatic plants. Then, the research team has also
recommended a variety of solutions and activities (Heimo et al., 2013, p. 13). However, an in-
depth understanding of the whole value chain is needed to identify core issues and to develop
viable strategies for value chain development.
Therefore, this research is initiated to collect detailed value chain information of seven target
MAPs. It employs a wholly market-based approach.
2. Research questions
The main research question of this project is,
“What are potential interventions for the development of MAPs’ value chain?”
To answer this question, the research will focus on several sub-questions as follows:
i) What is the policy background related to the collection and trading of MAPs?
ii) Who are key stakeholders of MAP’s value chain: collectors, traders, wholesalers, end-
users/final destinations, etc.?
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
iii) What is the relationship amongst these stakeholders in terms of contract/agreement,
dynamics and business practices, price, credit, power, added value, etc.?
iv) What is the current supply capacity of collectors in seven target hamlets?
v) What is the current level of demand for seven target species?
vi) Who are potential clients for the products?
vii) What are possibilities for local collectors to add value to their products so that they could
increase their profits in a sustainable way?
3. Research objectives
There follow 4 main objectives of the chain analysis:
i) To identify collectors, traders (how many levels of traders), wholesalers and final
destinations and mapping the links between these target groups through identifying and
following the trade chain including information on the price and market locations, along the
current trade chains;
ii) To identify the current supply capacity of collectors in the target villages (estimated from
sustainable wild collection) and the current level of demand for identified target species;
iii) To identify potential clients for products;
iv) To identify and outline value addition options for target species.
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
II. METHODOLOGY
1. Research approach
This research has an inductive approach (Saunders, 2009). A wide variety of methodologies are
employed to answer the main research question and achieve research objectives. This is done
through studying the dynamics and practices of MAPs’ value chain in the project areas, supply
capacity, market demand and volume, market structure, chain actors mapping, stakeholders’
analysis, customers’ behaviours and policy background.
2. Research design
2.1 Purpose
The purpose of this project is a combination of descriptive and exploratory research. First, a
descriptive study is carried out to collect background information about the MAPs’ value chain.
Then, the research is to explore more into the MAPs’ value chain in terms of its dynamics and
business practices.
2.2 Strategy
Within this research, a wide variety of strategies are adopted to achieve all research objectives,
including survey, case study, grounded theory, action research, archival research (Saunders,
2009, p. 141).
Objective 1 is addressed mainly through a field survey, which lasts 20 days in the project areas
and target markets. First, archival research and literature review into relevant past and current
projects of TRAFFIC are utilized to provide an overview of the research context. To identify
collectors and other chain actors/customers as well as the relationship amongst them, a number of
tools and techniques are employed, including semi-structured interview using questionnaires, in-
depth interview, focus group discussion, case study and observation/action research.
Objective 2 is related to market supply and demand within this value chain. This is achieved
thanks to the aforementioned field survey. On the supply side, the survey is focused on collectors
from seven hamlets, using questionnaires. However, only collectors of considerable volume are
taken into account. In some cases, collected amounts in 2012 are used to estimate the supply
capacity in 2013 as some crops are ongoing at the time of interviews. On the demand side, the
market demand is based on in-depth interviews with key chain actors.
Objective 3 is achieved through a quick customer survey. Apart from chain actors/customers
identified in previous researches and projects of TRAFFIC, a number of potential ones are
contacted for discussion over cooperation opportunities. This sample consists of traditional healers,
traditional medicine practitioners, selected pharmaceutical companies, producers and traders.
Objective 4 is addressed through customer survey, competition analysis and case studies. On the
one hand, the research discovers current competitors, their supply capacity, quality and
distribution channels. On the other hand, constraints within this value chain are identified and
scrutinized. Then, possible chain intervention strategies are developed to add values to this chain
and to ensure upholding of local rights and equitable benefit sharing results in improved use of
biological resources in traditional medicine.
2.3 Ethics
This research aims at developing sustainable and equitable benefit sharing mechanisms from the
use of biological resources, based on Nagoya Protocol and national policies of Vietnam. All personal
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
information of interviewees is treated with utmost confidentiality. American Psychological
Association (APA) reference style is employed in literate review and report writing.
3. Sampling and interview development
3.1 Sampling
The policy background is collected at different levels: international (Nagoya Protocol, etc.),
national (Vietnam Biodiversity Law, etc.) and local (Socio-Economic Development Plan, etc).
Related to interviews in seven hamlets of two communes, collectors of considerable volume are
included in this sampling. Selection criteria are based on local knowledge and information from
leaders of collector groups.
As for the customer survey, snowball sampling is adopted, which is a non-probability sample
(Saunders, 2009, p. 240). Traders of different levels are contacted for interviews thanks to
introduction of relevant stakeholders, site visits and action research. Snowball sampling is also
utilised to research into potential customers that are divided into different categories and
contacted via available database or at random.
3.2 Interview development
Semi-structured interviews are used to ensure standardization. The unstructured part is useful to
get more information possibly related to other parts of this research.
3.3 Questionnaires
Three sets of questionnaires have been developed for three different categories of interviewees
(Annex 1, 2, 3):
- Collectors
- Group Leaders
- Traders (of different levels, including potential clients)
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
III.MEDICINAL & AROMATIC PLANTS (MAPs)
1. Overview of MAPs
Schippmann et al. (2006) reveal that medicinal and aromatic plants have played an important role in daily lives of human beings since time immemorial. They are gathered for different purposes, including medicinal, cosmetic and cultural use. Of those, medicinal plants play a crucial role. They are regarded as traditional medicines to treat many illnesses and as commodities to meet the demand of other markets. Schippmann et al. (2006) define medicinal and aromatic plants as “the
whole range of plants used not only medicinally sensu stricto but also in the neighboring and often overlapping fields of condiments, food and cosmetics”.
Kathe (2006, p. 110) estimates that the number of plant species used for medicinal and/or aromatic purposes worldwide is between 40,000 and 50,000. However, Schippmann et al. (2006) estimate that more than 70,000 plant species could be used for medicinal purposes, in which Vietnam accounts for 1,800. Kathe (2006, p. 110) argues that over 50% of medicinal plants might already be cultivated instead of wild collection. Though MAPs provide the basis for health-care
systems in most countries worldwide, they are being threatened by over-harvesting, habitat and ecosystem degradation and land conversion (Kathe, 2006, p. 110).
To ensure that MAPs are collected and/or cultivated in a sustainable way, in 1988, WHO, IUCN and WWF organized an international consultation meeting in Chiang Mai, Thailand and launched the Chiang Mai Declaration “Saving lives by saving plants”. As a result of the meeting, Guidelines on the Conservation of Medicinal Plants were published in 1993 to provide a framework for governments to develop their own strategies on the conservation and sustainable use of medicinal
plants (WHO, IUCN, & WWF, 1993).
Vietnam is one of the richest countries in terms of biological diversity (MONRE, 2008; UNDP, 2012). There is a significant number of plants species in Vietnam that could be used for medicinal and aromatic purposes. TRAFFIC (2008) reports 180 plant and fungi species were found in traditional medicine markets in the North of Vietnam and 288 species found in the South.
2. Types, specifications and benefits of target species
Alpinia species
Alpinia, known as “Thao Dau Khau” in Vietnamese or “Mac Ca” in Tay language, is a genus of
flowering plants in the ginger family, Zingiberaceae. In Vietnam, Alpinia is composed of 03 main
types: Alpinia Latilabris, Alpinia Malaccensis and Alpinia Menghaiensis, with relatively common
description. All are big perennial herbaceous plants which grow from large rhizomes and usually
found in clusters of many individuals (Nguyen & Nguyen, 2012). Alpinia species has a pungent
taste. They could be used to treat gastrointestinal disorders and serve as a detoxifier (Do, 1995,
pp. 237-278; Le, 1997, pp. 270-271; Vo, 1997, pp. 61-1214; Ministry of Health [MOH], 2009, pp.
796-797).
In Xuan Lac and Ban Thi, the two buffer zone communes of NXL SHCA, local residents often collect
Alpinia species from July to September. They only divide Alpinia species into two categories based
on their diameters.
Amomum species
Amomum, known as “Sa Nhan” in Vietnamese or “Mac Neng” in Tay language, is a genus of plant
belongs to the family Zingiberaceae. Kusters and Belcher (2004) reveal that there are fourteen
different types of Sa Nhan in Vietnam. However, only three of them are of commercial use as they
bear high-quality fruits. Sa Nhan could be used as a main ingredient in traditional medicines to
treat digestive diseases, rheumatism, malaria and toothache. It is also used to produce soap and
shampoo (Kusters & Belcher, 2004; Nguyen & Nguyen, 2011).
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
In NXL SHCA, there are two main types of Sa Nhan: Amomum xanthioides and Amomum villosum,
with same appearance. They are big perennial herbaceous plants which grow in big, dense
clusters. Both of them bear fruits with many seeds inside (Nguyen & Nguyen, 2012). Collectors
from Xuan Lac and Ban Thi communes often harvest Sa Nhan from May to July but they do not
differentiate the two types when selling to traders.
Radix stemonae
Stemona tuberosa, known as “Bach Bo” in Vietnamese, or “Man Rang Ma” in Tay language, is a
herbaceous plant in the family Stemonaceae. In traditional medicine, the most valuable part of
Bach Bo is its tuberous root. Dweck (n.d., p. 3) notes that the tuberous roots are precious thanks
to their antibacterial, anthelmintic and expectorant properties. They could be used to moisten the
lungs and stop cough, and help causing the evacuation of parasitic intestinal worms (Dweck, n.d.,
p. 3; Heimo et al, 2013). The decoction or extract of Bach Bo is applied externally to treat
impetigo and scabies as it could kill various species of bacteria and fungi (Dweck, n.d., p. 3).
Bach Bo is available for collectors in NXL SHCA around the year, especially in autumn. After
collecting Tuberous roots, they wash and dock at each end. Then, the roots are steam-cooked and
dried in the sun or in ovens at 50-60°C.
Cibotium barometz
Cibotium barometz, known as “Cau Tich” in Vietnamese, or “Cut Dong” in Tay language, is a large
terrestrial tree fern with long leaves and a stump-like rhizome (Chandra, 1970; WHO, 1990).
Nguyen et al. (2009) reported that Cau Tich takes over four years to be full-grown and after that,
it produces a lot of spores every year. Old rhizomes of Cau Tich are capable of sprouting lateral
buds (Nguyen et al., 2009). Cau Tich’s rhizomes and roots are used in traditional medicines to
treat ulcers, rheumatism, typhoid and coughs (Puri, 1970; May, 1978; Nguyen et al., 2009). Its
roots could stop blooding effectively (Heimo et al., 2013).
Cau Tich is usually collected during the dry season, in autumn or winter (United Nation
Environment Program [UNEP] & World Conservation Monitoring Centre [WCMC], 2010). However,
collectors in Xuan Lac and Ban Thi communes have not collected Cau Tich for recent years.
Homalomena aromatica
Homalomena aromatica, known as “Thien Nien Kien” in Vietnamese, or “Vat Huong” in Tay
language, is a rhizomatous aromatic perennial herb within the family Araceae. In Vietnam, it has
been exploited as a non-timber forest product for a long time without conservation and/or
cultivation measures. According to the handbook on MAPs (NEDFi, 2005), Thien Nien Kien is best
harvested during the rain free period (November-April) as its oil accumulation is maximum.
Hore (2012) reveals that Thien Nien Kien could be used for economic, medicinal and aromatic
purposes. In traditional medicine, its dried rhizomes are useful in treating skin diseases, deafness
and blood purifier (Hore, 2012).
Gynostemma pentaphyllum
Gynostemma pentaphyllum, known as “Giao Co Lam” in Vietnamese, or “Phec Da” in Tay
language, belongs to the genus Gynostemma of family Cucurbitaceae including cucumbers,
gourds, and melons. Giao Co Lam is a climbing, perennial vine which mostly grows in China, Japan
and some countries in Southeast Asia. Giao Co Lam is considered to be dioecious, with male and
female flowers on separate plants. Bown (1995), quoted by Plants For A Future (PFAF, 2012),
reveals that Giao Co Lam could improve the circulation, stimulating liver function, strengthening
the immune and nervous systems and reducing blood sugar and cholesterol levels. Thanks to its
sedative effects, Giao Co Lam helps relieve spasms and lowering the blood pressure. In traditional
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
medicine, it is used internally to treat stress and exhaustion, peptic ulcer, asthma, bronchitis,
diabetes and cardiovascular disease (Bow, 1995).
Giao Co Lam grows abundantly in the wild, including NXL SHCA. Besides, it is also cultivated
largely to meet large demand from local markets (Nguyen, personal communication, 13
September 2013). However, collectors in Xuan Lac and Ban Thi communes rarely harvest Giao Co
Lam as they could not sell to local traders. Only one processor in Bang Lung town collects seven-
leaf Giao Co Lam, which is the best type, and produces about 400kg dried tea per year to serve
individual customers in Bac Kan and Hanoi.
Ampelopsis cantoniensis
Ampelopsis canoniensis, known as “Che Day” in Vietnamese, or “Che Thau” in Tay language, is a
genus of climbing shrubs, in the grape family Vitaceae. In traditional medicine of Vietnam, Do et
al. (2007, p. 768) note that Che Day is a wild herb used to treat inflammatory diseases such as
rheumaticarthritis, hepatitis, dermatitis, pyelitis, gastritis, acute tonsillitis, acute bronchitis and
tracheitis, and eczema. Che Day also has good antioxidant and anti-ulcer effect (Do et al., 2007,
p. 768). Besides, Tan et al. (2004, p. 457) mention de-infection and antibacterial functions of Che
Day in Taiwan. However, in Xuan Lac and Ban Thi communes, local residents mainly harvest Che
Day and use as a kind of vegetable. Che Day could be collected around the year.
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
IV. POLICY BACKGROUND
1. Introduction
Legal frameworks and other legislative issues play a crucial role in the development of MAPs’ value
chain. Therefore, it is critical to have an in-depth understanding of the related policy background
at international, national and local levels.
The collection and trading of MAPs are part of larger themes such as green growth, biodiversity
conservation or sustainable development, which are governed and regulated by a number of
policies at international level. Of those, the Convention on Biological Diversity (CBD), together with
its associated Protocol, is the most relevant one.
At the national level, Vietnam possesses one of the most well-developed policy and legal
framework for the conservation of biodiversity (UNDP, 2012). Since 2006, 1% of the national
budget has been allocated to address environmental issues on an annual basis (Bahuet, 2010;
UNDP, 2012; MONRE, 2013). The following parts give an overview of both international and
national policies regulating the collection and trading of MAPs.
2. International policies regulating the collection and trading of MAPs
Convention on Biological Diversity
The Convention on Biological Diversity is the only international instrument comprehensively
addressing biological diversity. It was created and signed by 193 Governments, including Vietnam,
at the 1992 Earth Summit in Rio de Janeiro, Brazil, when world leaders agreed on a
comprehensive strategy for “sustainable development”, in order to meet current needs while
ensuring a living planet for future generations (WWF, 2013).
The Convention targets at three objectives: (i) the conservation of biological diversity, (ii) the
sustainable use of its components, and (iii) the fair and equitable sharing of benefits arising from
the utilization of genetic resources. Every 02 years, new issues are identified and scrutinized by
the Conference of the Parties (COP). Then, strategic programs, with new targets and work plans,
are adopted to address biodiversity loss. The COP also requires all governments having signed the
Convention on Biological Diversity to develop their own national strategies and action plans for
execution (WWF, 2013).
Nagoya Protocol
To further advance the implementation of the third objective, in 2010, a Protocol was launched at
the tenth meeting of the COP in Nagoya, Japan, after six years of negotiation. It was fully named
“Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits
Arising from their Utilization to the Convention on Biological Diversity”. In essence, Nagoya
Protocol aims at sharing the benefits arising from the utilization of genetic resources in a fair and
equitable way, including by appropriate access to genetic resources and by appropriate transfer of
relevant technologies, taking into account all rights over those resources and to technologies, and
by appropriate funding, thereby contributing to the conservation of biological diversity and the
sustainable use of its components (Nagoya Protocol, 2010).
Nagoya Protocol provides a strong basis for greater legal certainty and transparency for both
providers and users of genetic resources, including the six target species of medicinal and aromatic
plants. It is innovative in such a way that it delivers specific obligations to support compliance with
domestic laws. It also establishes regulatory requirements of the Party providing genetic resources
(collectors of MAPs in this case) and contractual obligations reflected in mutually agreed
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
provisions. Together with provisions establishing more predictable conditions for access to genetic
resources, they help ensure the sharing of benefits when genetic resources leave local collectors or
cultivators.
The Protocol is the catalyst to conserve biological diversity, equitable and sustainable use of its
components as well as further the contribution of biodiversity to sustainable development and
human well-being (Nagoya Protocol, 2010).
Community Bio-Cultural Protocols
Communities can develop “bio-cultural protocols” to set out their customary values, rights and
rules about bio-cultural heritage. Doing this helps ensure their rights are recognized, even if law
does not enforce those rights, and strengthens negotiating capacity to promote more equitable
agreements with third parties.
Nagoya Protocol recognized the need to support the development of community protocols by
indigenous and local communities to govern access and benefit-sharing for traditional knowledge
associated with genetic resources. Bio-cultural protocols are also “internal” governance tools to
regulate equitable benefit-sharing amongst communities and reduce conflicts associated with ABS
agreements.
Access and Benefit-Sharing Protocols
These protocols aim to protect traditional knowledge and genetic resources by ensuring that
access by researchers or commercial users observes customary values and laws. Access protocols
let communities establish their own rules for access, equitable benefit sharing and the “free prior
and informed consent” (PIC) required for research. They ensure that traditional authorities make
the decisions on access, not individuals, lessening the risks of unfair exploitation.
FairWild Standard
Maintained by FairWild Foundation, FairWild Standard forms a basis of a third-party audited
certification system. It delivers best-practice framework and guidance for the sustainable collection
and trade of wild plants. FairWild certification is used by companies and traders to certify their
products sourced from biodiversity as sustainably traded.
The FairWild Standard is useful for companies and traders to inform customers of their product-
sourcing guidelines. It is also being used by governments and inter-governmental organizations to
develop policies and guidance for collection and trading controls of wild plants. Local communities
could also base on this Standard to develop their own management systems for long-term benefits
from wild resources.
3. National policies regulating the collection and trading of MAPs
National level
Since ratifying the CBD in 1994, Vietnam has developed a number of national policies, legal
frameworks and action plans for biodiversity conservation. Considerable attention and investment
in human and financial resources have been made by the Government to fulfil its commitments
and obligations to the CBD. Of those, an initial milestone was in 1995 when the first National
Biodiversity Action Plan (NBAP) of Vietnam was launched, which became a legal document in order
to govern and regulate activities related to conservation of biodiversity in Vietnam (MONRE, 2008).
Then, biodiversity conservation was mentioned, to some extent, in such sector laws as the 1998
Water Law, 2004 Forest Law and 2005 Environmental Protection Law. In 2002, signatory
governments to the CBD approved a strategic plan in which they committed themselves to reduce
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
the current loss of biodiversity at national, regional and global levels by the year 2010. They
assumed that this would contribute to poverty alleviation while maintain and sustainably develop
their own biodiversity resources. Within the strategic plan to 2010, seven major goals were set
with specific indicators for biodiversity assessment to be developed by each government. This
helps form a Monitoring and Evaluation mechanism integrated into national annual environmental
state (MONRE, 2008).
Upon completion of the first NBAP, the second one to the year 2010 and its orientation towards
2020 was approved by Prime Minister and promulgated in 2007. This aligned the conservation of
biodiversity with the actual socio-economic development of Vietnam in the new period (MONRE,
2008).
UNDP (2012) regarded the approval of the Biodiversity Law in 2008 as the most important
milestone for biodiversity conservation in Vietnam, which elevated the principles and priorities of
biodiversity conservation to the level of law independent of other sectors in Vietnam. With
concrete terms and provisions, the 2008 Biodiversity Law helps establish national standards for
conservation and protected areas as well as management of the ecosystem. It defines a much
more comprehensive and systematic process for conservation planning at both national and
provincial levels. Local communities also have a legal basis to conserve biodiversity and natural
resources through a number of schemes like Payment for Environmental Services (PES). To further
the implementation of the Biodiversity Law, the Government has promulgated Decree 65 dated
June 11, 2010 which provides regulations and guidance on applying certain aspects of the
Biodiversity Law and Decree 69 dated June 21, 2010 which addresses bio-safety issues. The
former is under the aegis of Institute of Strategy and Policy on Natural Resources and Environment
(ISPONRE), while the latter under Biodiversity Conservation Agency (BCA).
Besides the Biodiversity Law, UNDP (2012) also identified other key documents for biodiversity
conservation, including Decision No. 192/2003/QD-TTg, entitled “The Management Strategy for a
Protected Area System in Vietnam to 2010 – MASPAS”. It aims to establish, organize and manage
effectively an integrated protected area system covering terrestrial, wetland and marine
ecosystems. Excerpts from the Biodiversity Law and Green Growth Strategy of Vietnam are
compiled in Annex 9.
Regarding the sustainable collection and trading of MAPs, a previous research by TRAFFIC (2013)
reported other relevant legal frameworks, including:
o Law No. 34/2005/QH11 dated June 27, 2005, Pharmacy Law;
o Decision No. 186/2006/QD-TTg dated August 14, 2006, Promulgating the Regulation on
Forest Management;
o Decree No. 32/2006/ND-CP dated March 30, 2006, on Management Of Endangered,
Precious and Rare Forest Plants and Animals;
o Circular No. 14/2009/TT-BYT on Guidance on the implementation of Good Agricultural and
Collection Practices in accordance with World Health Organization recommendations.
Provincial and local levels
In 2011, People’s Committee of Bac Kan Province ratified Decision No. 738/2011/QD-UBND on the
approval of regulations on Forest Management and Protection in NXL Conservation Area, Cho Don
District, Bac Kan Province. This Decision allows local communities to collect MAPs in an equitable
and sustainable way in the buffer zone and/or the ecological restoration. Under this Decision,
Management Board of NXL Conservation Area, together with People’s Committees of Xuan Lac and
Ban Thi communes, are entitled to directly manage and protect all forest resources as well as
other forest-related activities in the area (TRAFFIC, 2013).
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
Also based on findings from the previous research of TRAFFIC (2013), the collection and trading of
MAPs in Bac Kan Province is regulated by the Provincial Decision No. 435/2010/QD-UBND dated
March 12, 2010 with main features as follows:
o Article 5*: When organizing the exploitation of medicinal plants for local use or commercial
trade, collectors should have good understanding of sustainable collection practices
following WHO-GCP regulations (Good Collection Practices for wild medicines);
o Article 5**: Before exploiting, the collectors must request a license of medicine collection
from local agencies responsible for resource management, and pay the resource
exploitation fees as deemed;
o Article 6: The prohibition, without prior approval, of all exploitation of MAPs for commercial
purposes in Special Use Forests, unless exploited for local treatment or scientific research
purposes; and
o Article 7: The prohibition of exploitation and export of rare MAPs in danger of extinction
which are regulated by the Decree No. 32/2006/ND-CP dated 30 March 2006 and/or listed
in Plant Part of the Vietnam Red Book.
To harness implementation of the legal framework at the provincial and local level, a Provincial
Inter-Department Committee was established in 2012 with 03 main objectives: (i) promote the
sustainable use and cultivation of higher-value MAPs with domestic market and export potential;
(ii) facilitate research on their uses as traditional medicines; and (iii) protect and promote their
uses through certification and/or trademarks (TRAFFIC, 2013).
Nevertheless, no guidelines and resources for the enforcement of Decision No. 435 have been
delivered. Thus, this Decision is generally of no use, except the confiscation of some truckloads by
the Forest Protection Department (TRAFFIC, 2013).
4. Conclusion
Despite the ratification of International Convention on Biological Diversity and a well-developed legal framework, Vietnam is still facing difficulties in the real execution of enacted policies and decrees.
First, local authorities and communities are not fully aware of their rights and responsibilities. The previous research of TRAFFIC (2013) finds out that local knowledge related to the collection and trading of MAPs within the conservation area’s buffer zone is limited and rarely applied. This is due
to poor enforcement of the legal framework and corruption. Both collectors and traders find it unnecessary to follow legislative regulations.
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Market Assessment: Medicinal & Aromatic Plants – Dang, V. H. N. (2013)
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