Health food products expand into broader consumer segments

Previously, products such as cordyceps mushrooms, bird’s nest, and lingzhi mushrooms were considered premium foods due to their very high prices. These products have high nutritional value, helping nourish the body, strengthen resistance, and support the treatment of illness. Success in producing these products requires not only substantial capital investment but also a firm grasp of scientific and technical knowledge.

The Phuong Linh Mushroom Farm in Long Khanh Ward employs advanced technology in the production of cordyceps mushrooms.

As their strong economic returns have attracted more investors, production has expanded rapidly. The resulting increase in supply has driven prices down considerably, allowing a much broader group of consumers to access these speciality health products.

Consumers enjoy more choices

Cordyceps mushrooms contain bioactive compounds believed to possess anti-cancer properties and help improve overall health and immunity. Historically, natural cordyceps sold for hundreds of millions of VND per kilogram, with the rarest specimens fetching up to billions of VND. Today, the market offers consumers a wide variety of cordyceps products, including dried mushrooms, tea, herbal wine, powder, extracts and capsules. Products are available across multiple price ranges, although average prices have declined sharply, making them affordable for mainstream consumers.

Phuong Linh Mushroom Farm in Long Khanh Ward currently operates two cultivation facilities that produce cordyceps, lingzhi and red reishi mushrooms, all of which are medicinal mushrooms. The farm alone supplies several tonnes of dried cordyceps to the market each year.

Tran Ngoc Dai, owner of Phuong Linh Mushroom Farm, said premium-grade cordyceps once sold for more than VND10 million per kilogram, but in recent years, the price of grade-1 mushrooms has fallen to only a few million VND per kilogram. "The rapid increase in the number of cultivation facilities has created an abundant supply, leading to market saturation and eliminating the exceptionally high prices seen in the past," Dai said. Mushroom growers can no longer earn huge profits and must carefully calculate investment costs to offer reasonable prices to the market. His business has the advantage of controlling the process from mushroom strain production to operating a closed production chain, helping reduce production costs to the lowest possible level. The farm has also continued to expand its production scale and increase output. Its products are now supplied to supermarket chains and distributed to markets nationwide, making cordyceps a more common consumer product. In addition, the farm has expanded into producing lingzhi and red reishi mushrooms for the market. These mushrooms now sell for only VND300,000-500,000 per kilogram, down 30-50 percent from several years ago.

Edible bird's nest has followed a similar trend. Once considered an exclusive delicacy because of its exceptional nutritional value, bird's nest products have become more affordable as supply has increased and the market has diversified. Depending on quality and brand, premium red bird's nest can sell for nearly VND20 million per 100 grams, while white bird's nest typically costs several million VND per 100 grams. Lower-grade broken or raw bird's nests are available for just over VND1 million per 100 grams.

Swiftlet farming has expanded rapidly across Dong Nai in recent years. The city is now home to approximately 3,000 swiftlet houses, producing around 56 tonnes of raw bird's nests annually. According to local producers, the abundant supply has steadily pushed prices downward. Competition from lower-priced imported bird's nests has also put pressure on the market. In addition, weaker consumer demand amid broader economic challenges has further reduced raw bird's nest prices compared with last year.

Several producers of cordyceps and bird's nest products in Dong Nai said that achieving OCOP (One Commune One Product) certification has enhanced product credibility and expanded retail distribution channels. The certification has also encouraged businesses to increase production capacity, modernize processing and packaging facilities, and strengthen their brands through consistent product quality.

Competing through quality

As prices have become more affordable, demand for premium health foods has continued to grow. At the same time, government oversight of product quality and safety standards has become increasingly rigorous. Intense competition has also prompted producers to standardize manufacturing processes and build stronger brands based on quality and consumer trust.

Nguyen Truong Giang, Director of the Dong Nai Sub-Department of Livestock Production and Fisheries, said Dong Nai ranks among the leading localities in both the Southeast region and nationwide in terms of swiftlet house numbers. The agency has been working with producers to ensure compliance with quarantine, veterinary inspection and hygiene regulations, enabling full traceability of bird's nest products. "The objective is to strengthen veterinary hygiene management and disease control at swiftlet farms. These standards will help the industry meet domestic demand while also satisfying export requirements, thereby creating greater economic value for local communities," Giang said.

Nguyen Hoang, owner of Hoang Nhat Kim Swiftlet Farm in Gia Kiem Commune, said his business previously sold raw bird's nests mainly to traders. "Without our own brand, our products sold at prices well below the general market level and were subject to significant price fluctuations," he said. The business has since invested in processing, packaging and brand development while obtaining OCOP certification to improve product recognition. It has also adopted biosecurity measures and standardized harvesting, processing and packaging procedures to meet export market requirements.

Sharing the same view, Tran Ngoc Dai, owner of Phuong Linh Mushroom Farm, said successful cordyceps cultivation requires the application of advanced techniques and high technology, along with substantial initial investment. "A complete production system, from mushroom strains and cultivation facilities to freeze-drying equipment, requires an investment of tens of billions of VND," he said. This product line requires not only substantial capital but also that operators master techniques and apply advanced technology in production. Market competition in cordyceps mushrooms is now intense, especially from lower-priced imported cordyceps products from China. However, Dai remains confident in the competitiveness of Vietnamese products. "Consumers are still willing to pay a premium for Vietnamese-grown mushrooms because they offer clear traceability and carry recognized quality certifications," Dai said.

By Binh Nguyen - Translated by Mai Nga, Minho