High-tech mushroom cultivation with Japanese technology

Long Khanh Kinoko I.E Co., Ltd. has invested tens of billions of VND in building a large-scale production facility for enoki and king oyster mushrooms in Bao Vinh ward, Dong Nai province, applying advanced Japanese technology. The company is also a pioneer in using robots to replace human labor, thereby achieving high economic efficiency.

The company is led by Duong Thi Thu Hue, an entrepreneur from northern Vietnam with more than two decades of dedication to mushroom cultivation, who chose Dong Nai as her investment destination because it is regarded as one of Vietnam’s largest mushroom production hubs.

Expanding market share for Vietnamese mushrooms

Sharing the journey that first connected her to the mushroom industry, Duong Thi Thu Hue, Director of Long Khanh Kinoko I.E Co., Ltd., said, “I originally worked as a Japanese interpreter. In 2002, I worked as an interpreter for a Japanese-backed mushroom project that used microbial technology for environmental treatment. This project, supported by Japan, helped Vietnamese farmers cultivate mushrooms on corn cobs. After mushroom cultivation, those corn cores could be returned to the soil as a solution that can help treat land contaminated with oil and dioxin.”

Mushroom packaging process at Long Khanh Kinoko I.E Co., Ltd. Photo: Binh Nguyen

Recalling that period, Hue said, “Because I initially had no prior knowledge of mushrooms, I sought out mushroom-related courses to equip myself with the expertise needed for the project I was interpreting. Those early studies laid the foundation for my first formal training in the mushroom sector. Through that experience, I also had the opportunity to work closely with leading Japanese mushroom experts and professors. The more I learned about mushrooms, the more clearly I recognized their value. I then began to seriously consider further study and investment in mushroom cultivation to create jobs for people in my hometown.”

In 2005, Hue invested billions of VND in building a mushroom farm in Hanoi, initially focusing on traditional mushroom varieties such as wood ear, lingzhi, and straw mushrooms. Three years after the investment, Hanoi was hit by historic flooding in 2008, with floodwaters rising to the roof of her mushroom farm. But she did not lose heart. Instead, she expanded her operations and shifted toward applying high technology to grow “one-of-a-kind” mushrooms.

Hue noted, “Vietnam is currently importing mushrooms on a massive scale, with daily import volumes estimated at 300–500 tons. Enoki and king oyster mushrooms, in particular, are almost entirely imported, largely because very few domestic producers are willing or able to invest in these highly capital-intensive product lines. Currently, Vietnam spends thousands of US dollars per ton on imported mushrooms, and for some varieties, the figure can reach 2,000–3,000 USD per ton. That is truly unfortunate. Meanwhile, we already have the people, the land, and the conditions. I am ready to transfer this technology to other farmers. What mushroom farmers like us really need is access to low-interest capital so that we can confidently invest in production and help reduce mushroom imports.”

Replacing human labor with robots

According to Hue, she arrived in Bao Vinh ward in 2008 and decided to establish her mushroom production farm there, recognizing it as one of Vietnam’s top mushroom-producing localities. In its early stages, the farm continued producing traditional mushroom lines such as wood ear, lingzhi, and straw mushrooms, while primarily manufacturing mushroom spawn for farms in Lam Dong, where weather conditions are particularly favorable for mushroom growth. After more than 10 years of mushroom cultivation under natural conditions, however, Hue made a major technological leap by importing modern machinery, equipment, and mushroom production technology from Japan.

The mushroom production facility of Long Khanh Kinoko I.E Co., Ltd., consists of inoculation rooms, incubation rooms, packaging areas, and harvesting areas. Enoki and king oyster mushrooms, however, are difficult to invest in because they must be cultivated entirely in cold rooms. Depending on the mushroom variety, cultivation rooms require different temperatures. For example, enoki mushrooms are best suited to a temperature of 5°C. All mushroom cultivation rooms are managed for humidity, temperature, lighting, and CO2 levels. Robots and machinery are used at almost every stage of production to replace human labor. Machinery currently replaces about 70% of human labor, while in many stages, it replaces up to 90%.

Notably, while the robot systems and many machines are based on Japanese designs, they have been manufactured by Vietnamese engineers, significantly lowering investment costs. The company is also continuing to research and develop additional high-value mushroom varieties.

Duong Thi Thu Hue, Director of Long Khanh Kinoko I.E Co., Ltd.

According to Hue, Japanese mushroom-production technology also offers environmental advantages by reducing plastic waste, as plastic cultivation jars can be reused for up to 20 years. The model also helps improve mushroom quality. Although the transition requires substantial capital, such investment is essential for Vietnamese mushrooms to strengthen their competitiveness in global markets.

By Binh Nguyen – Translated by Minh Hong, Minho