Vietnam needs long-term strategy to tap global halal market


Malaysian entrepreneur Dr Shimi Muthu Kunju standing in front of Halal@Saigon in Ho Chi Minh City. Vietnam’s recognition as one of the world’s top tourist destinations since 2018 has also enhanced its hospitality and food service sectors, with a noticeable increase in halal restaurant and catering services. - STAR

HANOI: Vietnam must strengthen its halal product ecosystem to meet growing global demand, particularly by aligning with international quality and certification standards, according to experts and officials quoted by the Vietnam News Agency (VNA).

Vietnam’s Director of the National Halal Certification Centre (HALCERT) under the Ministry of Science and Technology, Ramlan Osman emphasised that Vietnam holds immense potential in the global halal market, which is valued at approximately US$3 trillion.

He said the country is rich in raw materials suited for halal production, such as coffee, rice, seafood, aquaculture products, spices, nuts, vegetables and fruits -- all of which could be transformed into halal-certified final products.

"These raw materials hold great promise for producing Halal-certified goods,” he said.

Vietnam’s recognition as one of the world’s top tourist destinations since 2018 has also enhanced its hospitality and food service sectors, with a noticeable increase in halal restaurant and catering services.

Coupled with consistent gross domestic product (GDP) growth of six to seven per cent annually, Vietnam presents a strong economic case for developing Halal products.

Osman noted, however, that the current supply only meets about ten per cent of market demand, describing this gap as "a golden opportunity” for Vietnamese producers to expand into the vast and lucrative halal sector.

Vietnam’s Deputy Minister of Industry and Trade, Nguyen Sinh Nhat Tan, called the halal market a strategic frontier for Vietnamese businesses amid global uncertainties.

He encouraged companies to build strong halal brands, diversify their market reach, and establish promotional networks with clear objectives.

Highlighting structural challenges, Tran Trong Kim, head of the Vietnam Trade Office in Saudi Arabia, stressed the need for clearer guidelines on halal certification procedures.

Many countries, he said, require third-party certification rather than direct acceptance of halal claims from businesses.

He also recommended encouraging foreign investors to set up halal-compliant facilities in Vietnam.

Truong Xuan Trung, who heads the Vietnam Trade Office in the UAE, urged improvements in Vietnam’s legal framework on halal products. He noted that the newly signed Vietnam-UAE Comprehensive Economic Partnership Agreement (CEPA) could facilitate the export of Halal-certified goods to the Gulf region.

From an industry perspective, Tran Van Hiep, Vice Chairman of the Vietnam Cashew Association, highlighted the importance of halal certification for export growth.

In 2024, Vietnam exported 700,000 tonnes of cashew nuts valued at US$3.8 billion. He noted that halal certification has enabled greater access to key markets, including the United States, Europe, Australia and the Middle East.

Le Phu Cuong, head of the Vietnam Trade Office in Malaysia, observed that although halal certification is not mandatory for Malaysian imports, it is highly prioritised by importers due to the country’s 60 per cent Muslim population.

He also cautioned that Vietnamese products face stiff competition in Malaysia from regional players like China, Thailand and Indonesia, who have greater product diversity and better market insight.

Pham The Cuong, who leads the Vietnam Trade Office in Indonesia, said Halal certification there remains a major non-tariff barrier due to lengthy procedures, high costs and limited certification agencies.

These hurdles, he warned, particularly affect small and medium-sized enterprises (SMEs) trying to enter the market.

He added that Vietnamese producers must also invest in understanding local tastes and consumer preferences to improve competitiveness, especially in modern retail channels. - Bernama/VNA

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