Market Assessment Report - TRAFFIC Nam201309 (Excerpts)

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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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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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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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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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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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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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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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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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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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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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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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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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).

15


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.

16


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