Report on the Free Trade Zone Establishment Project and Vinatea’s High-End Tea Value Chain Development Plan

On the afternoon of April 9, Mr. Tran Duy Dong — Alternate Member of the Party Central Committee, Deputy Secretary of the Provincial Party Committee, and Chairman of the Provincial People’s Committee — chaired a conference to hear the Department of Industry and Trade’s report on the Free Trade Zone (FTZ) Establishment Project and the Vietnam Tea Corporation’s (Vinatea) proposal for a high-end tea value chain development plan in Phu Tho.

Chairman of the Provincial People’s Committee Tran Duy Dong delivers directing remarks at the conference.

Also in attendance were Vice Chairmen of the Provincial People’s Committee: Nguyen Huy Ngoc and Dinh Cong Su; leaders of various provincial departments, sectors, and localities; representatives from the Vietnam Institute of Economics and World Affairs, Vietnam Tea Corporation, the Northern Mountainous Agriculture and Forestry Science Institute, several tea enterprises; and leaders of tea-growing communes and wards across the province.

According to the report by the Department of Industry and Trade, developing the Free Trade Zone (FTZ) project within the province is a mission of profound scientific and practical significance. It aims to provide comprehensive arguments, propose a specific model, and outline a roadmap for the Provincial Party Committee, People’s Council, and People’s Committee to review and submit to the Central Government for the pilot implementation of specialized mechanisms. This initiative is expected to create a new, modern growth pole for Phu Tho as well as the entire Northern Midland and Mountainous region.

During the discussion, delegates evaluated and clarified the conditions and feasibility of establishing an FTZ in the province, specifically focusing on land funds, urban planning, practical conditions, and necessary legal frameworks.

Participants also noted that besides the FTZ model, there are other advantageous models implemented by various localities, such as the “Specialized Zone” model, as well as experiences and conditions for forming economic zones from other provinces and cities nationwide.

Concluding this topic, Chairman Tran Duy Dong emphasized that following the administrative merger, Phu Tho’s economic scale now ranks among the top 5-10 provinces nationwide, occupying a “strategic belt” surrounding western Hanoi. The successful development of the FTZ Project is crucial to meeting the global supply chain shift and transitioning the province’s growth model from "breadth to depth.“Specifically, it aims to resolve existing”bottlenecks" by integrating isolated industrial zones, increasing added value, and simplifying complex administrative and customs procedures.

However, the Chairman noted that this is a challenging project with a broad scope of impact, requiring approval from multiple central-level ministries. Therefore, he directed the Department of Industry and Trade to meticulously study the proposal, incorporate delegates' feedback, and continue researching international and domestic experiences to ensure the chosen economic model is feasible and perfectly suited to the province’s socio-economic conditions.

Regarding the development of Vinatea’s high-end tea value chain, surveys show that Phu Tho currently holds nearly 14,500 hectares of tea, producing 180,000 - 190,000 tons of fresh buds annually, with revenues ranging from 80-120 million VND/hectare. The province boasts 57 processing facilities and significant advantages: large cultivation areas near Hanoi, iconic landscapes (Long Coc, Tay Coc), the ancient Xuan Son tea forests, and a long-standing tradition.

However, the industry faces hurdles such as low selling prices, inconsistent quality, weak chain linkages, lack of strong branding, and average technology, while facing stiff competition from Thai Nguyen and Lam Dong. Research suggests Phu Tho is fully capable of standardizing high-end tea zones and building a “National Model Tea Region” brand that integrates agriculture, tourism, and culture.

The Vietnam Tea Corporation (Vinatea) has unveiled a strategic roadmap to transform Phu Tho province into a modern, national-scale tea production center with a vision for global expansion. A key pillar of this strategy is the standardization of over 4,500 hectares of premium tea zones, positioning Phu Tho as a primary export source for high-standard markets, including Japan and the European Union.

Vinatea aims to develop a multi-segment product portfolio to build a dominant brand within Vietnam while integrating production with experiential tourism. This model is designed to preserve the iconic tea-hill landscapes, enhance brand value, and increase service-based revenue. Beyond economic gains, the project focuses on environmental protection and sustainable agriculture, aiming to boost the income of thousands of long-standing tea-farming households and establish Vietnamese tea as a signature national cultural product.

The “Ancestral Land Tea” Ecosystem Chairman of the Provincial People’s Committee Tran Duy Dong highly commended Vinatea’s proposal. He directed that the province must transition beyond simple raw production to build a comprehensive "Ancestral Land Tea Ecosystem."

This initiative involves re-planning specialty tea regions integrated with Geographical Indications (GI) and the strict preservation of ancient Shan Tuyet tea forests. The Chairman emphasized deep processing and diversification—researching high-end lines, instant teas, functional foods, and tea-based cosmetics to maximize added value. Furthermore, the province will promote cultural tourism through “The Ancestral Land Tea Road” tours, allowing visitors to experience harvesting and tea-tasting within a local cultural ambiance.

General view of the conference.

Regarding specific solutions, the Chairman of the Provincial People’s Committee directed an urgent plan to replace aged tea areas while shifting focus toward modern consumer products, such as bottled and ready-to-drink teas. He emphasized the necessity of land consolidation to create large-scale production zones and called for local authorities to resolutely address tea-land encroachment and land-use violations.

A key priority is the close collaboration between Vinatea and the province to build a professional “Ancestral Land Tea” brand. This includes ensuring rigorous compliance with antibiotic residue standards to facilitate exports to high-standard markets like Japan. Furthermore, the Chairman suggested researching the inclusion of “Ancestral Land Tea” in the Hung Kings' Commemoration rituals, establishing it as a hallmark product that embodies the spiritual essence of the nation’s roots.

The Chairman of the Provincial People’s Committee assigned the Department of Agriculture and Rural Development to lead and coordinate with relevant departments and sectors in proposing mechanisms and policies to enhance the value of “Ancestral Land Tea” products. These initiatives include investing in transportation infrastructure to connect raw material regions, providing preferential loans, and allocating budgets for branding and trade promotion.

By April 15, 2026, Vinatea and relevant agencies are required to submit written reports detailing specific obstacles concerning land and policy mechanisms. During the second quarter, the draft Tea Development Project for the 2026–2030 period (with a vision to 2045) must be finalized for submission to the Provincial Party Standing Committee for the issuance of a Specialized Resolution.

The province has officially unified its administrative stance: shifting from “State Management” to “Enabling Development,” fostering a robust linkage between the State, Enterprises, and Citizens to drive a sustainable and transformative breakthrough for the tea industry.

Dinh Vu