Cordyceps production chain improves lives of ethnic communities

Challenges in product consumption

Before the first rays of sunlight shine on the rolling mountains of the Northwestern region, ethnic minorities in mountainous areas of Dien Bien Province already begin their working day, carefully taking care of delicate strands of cordyceps mushrooms – a rare medicinal herb often referred to as “soft gold” in the vast forests. For a long time, cordyceps has been recognized as a valuable medicinal herb with high values in both traditional and modern medicine. Due to its rich nutritional content and health benefits, including boosting immunity and supporting the treatment of various diseases, cordyceps has become increasingly popular in the market.

Recognizing the great potential of this medicinal resource, Dien Bien Province – a region with favorable natural and climatic conditions – has developed cordyceps cultivation models with the expectation of producing high-quality products and providing a stable income for ethnic minority communities.

Cordyceps is becoming increasingly popular in the market - photo: N.H

Dao Huy Hung, a representative of Huy Hung cordyceps production facility in Dien Bien Province, shared that the facility supplies approximately 4,000 – 5,000 bottles of fresh mushrooms per month, generating a revenue of over 500 million VND. However, the market for these products has not yet been fully tapped.

Currently, cordyceps products are mainly consumed by high-income customers in major cities like Hanoi and Ho Chi Minh City. In contrast, those in mountainous and rural areas have limited access to this valuable medicinal herb. Moreover, competition from similar products produced in Lam Đong Province, Hanoi City, and imported goods from South Korea and Tibet poses challenges for Dien Bien cordyceps in establishing its brand.

One of the biggest barriers is the traditional business model, which mainly relies on direct distribution channels, while consumer trends are shifting towards digital platforms and e-commerce. Without timely adaptation, the product risks losing its competitive edge in the market.

Additionally, high prices of the products remain a complex issue. “Due to the high technical requirements and large investment costs of the cultivation process, Điện Biên cordyceps is still relatively expensive compared to the income level of most consumers. Meanwhile, imported products with well-known brands have an advantage in pricing and brand recognition,” Dao Huy Hung stated.

Improving livelihoods of ethnic communities

In response to these challenges, the Department of Industry and Trade of Dien Bien Province has been implementing a series of comprehensive solutions to promote the production and consumption of cordyceps, which helped businesses and production households not only affirm their position in Vietnam’s medicinal herb market, but also secure stable livelihoods for the ethnic minorities.

Recognizing the potential of cordyceps in poverty alleviation and improving quality of life, local authorities and relevant agencies have launched various support programs to enable ethnic minority communities to access modern cultivation models. Training courses on cultivation techniques, preferential loan programs, and product distribution networks have been widely implemented, offering opportunities for hundreds of households to transition from small-scale farming to professional production. As a result, cordyceps has not only brought a stable income, but also paved the way for long-term economic development right in their local areas, reducing reliance on inefficient farming practices.

According to Nguyen Van Dung, Deputy Director of the Department of Industry and Trade of Dien Bien Province, in the coming time, the department will continue to enhance activities to expand the market for Dien Bien cordyceps, creating more job opportunities, increasing income, and ensuring sustainable livelihoods for the local households.

The Department of Industry and Trade of Dien Bien Province has been implementing comprehensive solutions to promote the production and consumption of cordyceps

In the digital era, e-commerce is the key to expanding markets for local cordyceps. Nguyen Van Dung emphasized, “Boosting online sales is no longer an option, but an inevitable trend. Businesses must fully utilize e-commerce platforms, such as Shopee, Lazada, and Tiki to reach customers nationwide and reduce reliance on traditional distribution channels.”

Furthermore, enterprises need to invest strongly in digital marketing. Creating engaging and authentic media contents will help products leave a lasting impression on consumers. Videos introducing the products, customer feedback, and usage instructions should be maximized on platforms like Facebook, Zalo, and TikTok to strengthen brand awareness. Most importantly, creating a compelling brand story for the product – from the production region and modern cultivation process to the health benefits that the products bring – will help Dien Bien cordyceps affirm its strong position in the market.

With the support of local authorities and the continuous efforts of businesses, Dien Bien cordyceps has great potential to expand beyond local borders and become a solid foundation for sustainable livelihoods for the ethnic minority communities. To fully take advantage of this potential, close coordination among related parties is essential in improving product quality, boosting communications, and expanding distribution channels.

Although there are many challenges ahead, cordyceps is gradually affirming its value in Dien Bien Province thanks to the consistence of growers and practical support policies. This “soft gold” mushroom not only supports local residents in the highland region in achieving economic prosperity, but also symbolizes the positive transformation of the Northwestern mountainous region where diligent hands and sharp minds are crafting success stories from local specialties.