Business Business

20/06/2018 - 11:07

Geographical indications for Hue cajuput oil

With the support of the provincial People's Committee and the consensus of representatives of Hue’s cajuput oil manufacturers and enterprises, Thua Thien Hue will soon establish a business association and develop geographic indications for the cajuput oil product.

Material preparation for cajuput oil distillation. Photo: Tuyet Khoa

Developing geographical indications

By the end of 2017, of the 65 specialties attaching themselves to the different geographic names in Thua Thien Hue province, 31 have received registration support for geographical indications and collective trademarks. Hue conical hat till now is the only product that has geographical indication.

Today, geographical indication is one of the effective management tools for consumers to trace and identify a product’s origin, quality and characteristics; and the benefits it brings to a product are immeasurable.

Hue cajuput oil is one of the two specialties chosen by the Provincial People's Committee to develop their geographical indications in 2018 under the supporting budget of the Ministry of Science and Technology. Prior to that, in 2017, the Department of Science and Technology, in collaboration with the Phu Loc District People's Committee, announced the local technical standards for Hue cajuput oil. Accordingly, manufacturers and traders of cajuput oil products would have to comply with the standards already published on odor, taste, color, and physical and chemical indicators.

In order to support Thua Thien Hue Province’s efforts to develop geographical indications for cajuput oil, the Ministry of Science and Technology invited the Consulting and Research Company for Technology Transfer and Investment (CONCETTI) to enter into contract coordinate with the local authority to carry out the related procedures. According to Mr. Nguyen Ba Hoi, a representative of CONCETTI, the limitations of the current cajuput oil industry in the province involves lack of concentric manufacturing zone, heavy dependence on natural resources, small production scale, and uneven quality. More importantly, there ought to be a joint management body of the producers that work closely together for the sake of the community’s benefits.

A product of cajuput oil distilled manually at Uu Diem Village (Phong Dien District). Photo: Tuyet Khoa

If geographic indications are developed, Hue cajuput oil will have a lot of opportunities to affirm the value of its brand and expand its market. The manufacturing and managing processes will be put under the direct supervision  of the State. Products with clear traceability will ensure customers’ psychological trust. Cajuput oil manufacturers and trading enterprises will also have more opportunities to receive supports from the State to promote their products as well as to overcome possible difficulties and constraints on raw material supplies.

Establishing trade association and sharing benefits

One of the necessary conditions for sustainable use and development of Hue cajuput oil brand name is the establishment of a business association for the producers. The objective is to gather cajuput oil manufacturers and traders. They will make use of the same brand name, share benefits as well as responsibilities with mutual supervision and support to protect Hue's cajuput oil from counterfeit products.

Many representatives of cajuput oil manufacturers such as Kim Vui, Be Tho, Hoa Nam, Hong Van... agree to the  establishment of a business association as they take this to be a good opportunity for the enterprises and manufacturers to joint hands and to protect the name of the  product better before introducing them to the market.

Mr. Nguyen Duy Thanh, Deputy Director of the Department of Industry and Trade, says that with the aim to build Hue's cajuput oil into a value-added and export-oriented product, the establishment of the business association proves to be essential. This will be a good opportunity for the sustainable development of the product. “We are willing to join hands with the businessmen, especially in activities related to market management,” adds Mr. Thanh.

Mr. Tran Duc, representative of the Department of Agriculture and Rural Development, says that the development of geographic indications for Hue cajuput oil is extremely necessary. This is a solution for Thua Thien Hue Province’s unified management of standardized products.

By Dong Van