Common basil is grown in Tra Que village in Hoi An city. The herb can be used as material for essential oil and cosmetic products. — VNS Photo Cong Thanh

Thanh Ha Industrial Park in Hoi An city has started construction of its first-ever essential oils plant, which will be used for domestic products and export.

The province said the plant, which covers on 2,500sq.m, with a total investment of VND90 billion (nearly US$4 million), will be the largest essential oil manufacture plant in Viet Nam, after the ones built in Ha Giang, Nghe An, Vinh Phuc and Yen Bai provinces in the north.

Project director La Ngoc Anh said the plant will start production in the third quarter this year, with a capacity of 1 million units of essential oils for cosmetics from local herbs each year.

According to the project’s investor, the Viet Nam Natural Cosmetics Company, the company exports 15,000 litres of essential oil from local herbs each year to Asian and European markets.

As scheduled, the plant will use various herbs such as basil, mint, coriander Chinese parsley, citronella and other cosmetic herbs from Tra Que village for essential oil production. The plant will also produce shampoo, shower cream, skin cream, soap and perfumes with natural aromas.

Tra Que village, with area of 18ha, was allocated for organic vegetable farming under a brand name recognised by the Intellectual Property Rights Office of Viet Nam in 2009.

Nguyen Van Dung, Chairman of Hoi An City People’s Committee, said natural oil production will develop the Tra Que brand, making it a favourite destination for safe farm products.

He said the village can be part of a value chain that extends from farming to oil production. — VNS