Sao Thai Duong

South Asia
IB topics
Last update

Established in 2000, Sao Thai Duong is among the top five companies specialized in production of products from herbal plants with three categories: cosmetics (40 per cent), functional foods (40 per cent), and herbal medicine (20 percent), mostly sold in domestic market. Its products meet the good manufacturing practices of the World Health Organisation (GMP-WHO) and the company is aiming to meet the good manufacturing practices of the European Union (GMP-EU) and obtain organic certifications. 

Inclusive Business Model

Since 2009, the company has started to develop material zones and sourcing two thirds of its inputs directly from local producers. It is sourcing nearly 70 different inputs (such as ginger, turmeric, lemongrass, lemon, mint, holy basil, polyscias, pinellia, and other indigenous plants in Ha Nam, Nam Dinh, Bac Giang, Hung Yen and other provinces in North Viet Nam. This part of the company’s business and the processing of herbal products in three factories is a potential inclusive business line.


Sao Thai Duong works with around 400 households as suppliers and 400 factory workers (hence a total social reach of 800). It is planning to upscale sourcing to 700 farmers by 2023, while the number of laborers will remain the same (increasing its total reach to 1,100 people).  As a result of the company’s engagement, the farmers could double their income compared to when they worked before in traditional crop (rice and corn).