Halal market presents major opportunities for Vietnamese businesses

The global Halal market is projected to reach $5 trillion by 2030, with Malaysia alone expected to hit $113.2 billion, said Shariza binti Abdul Rasheed, Halal product manager at Maybank Malaysia.

Speaking at the seminar “Prospects for exporting to the Halal market via the Malaysian gateway by 2025” in Ho Chi Minh City on Thursday, Shariza emphasized that the global Halal market presents significant opportunities for Vietnamese businesses.

The Malaysian Halal market, one of the key gateways to the global Halal industry, is forecast to reach $113.2 billion, with strong demand across multiple sectors: food and beverages ($85.2 billion), cosmetics ($10.5 billion), and pharmaceuticals ($5.9 billion).

As global demand continues to outpace supply by 80%, the path is becoming increasingly favorable for Vietnamese enterprises to enter this market, she noted.

One major advantage is that the Vietnam Halal Certification Agency (HCA) has been officially recognized by Malaysia’s Department of Islamic Development (JAKIM). This endorsement enables Vietnamese products to meet Halal standards and gain easier access to Malaysia’s distribution network.

Shariza also noted that Vietnamese businesses can now introduce Halal-certified products through Malaysia's first B2B Halal e-commerce platform, Salaam Market. Additionally, business matchmaking programs are being organized to connect Vietnamese manufacturers with local suppliers and partners, helping to complete the Halal supply chain.

Zaimah Osman, Consulate General of Malaysia, Trade Section, views Vietnam as a key partner in trade cooperation and is actively supporting Vietnamese businesses in exploring Halal market opportunities through MATRADE’s network and business connection initiatives. Malaysia was also the first country to recognize HCA, facilitating the approval and retail distribution of Vietnamese Halal products.

MATRADE is a national trade promotion agency under Malaysia's Ministry of Investment, Trade and Industry (MITI) to develop and promote Malaysia's export to the world.

Ho Thi Quyen, deputy director of the Ho Chi Minh City Investment and Trade Promotion Center (ITPC), added that the Halal industry is expanding rapidly, not only in terms of consumer demand but also across global supply chains.

She emphasized that now is an ideal time for Vietnamese enterprises, especially those in poultry, agriculture, seafood, and food processing, to pursue the Halal market in a more professional and strategic manner.

For Malaysia and Vietnam in particular, there is great potential for cooperation in the Halal food sector. Malaysia’s Halal standards are internationally recognized, and Vietnam has acknowledged the National Halal Certification Center (HALCERT), under the Ministry of Science and Technology, as the country’s focal point for Halal certification. This agency works closely with international experts, including those from Malaysia.

Opportunities come with challenges

However, Quyen also highlighted several challenges. The number of organizations in Vietnam authorized to issue Halal certificates remains limited, and the associated costs can be prohibitive for small and medium-sized enterprises (SMEs).

Additionally, some requirements are difficult to meet domestically - such as the stipulation that a Muslim must supervise the production process - which creates a significant barrier for Vietnamese companies seeking to export to Muslim-majority markets.

Despite the market’s enormous potential, breaking into the Halal industry remains a complex challenge for many Vietnamese businesses.

Dr. Phu Van Han of Hung Vuong University in HCMC echoed this view, noting that Vietnam lacks internationally recognized Halal certification bodies. Domestic certification efforts are still fragmented, lacking coordination among relevant agencies, and falling short of international standards and best practices.

Moreover, most Vietnamese companies involved in food and agricultural processing are SMEs with limited financial resources, weak management capabilities, and insufficient knowledge of Halal standards.

Their access to modern technology is also limited. Fear, a lack of information, and the absence of a strategic orientation further discourage businesses from tapping into the Halal market.

"Vietnam needs to develop a comprehensive, coordinated, and long-term vision for the growth of the Halal industry. This should include a balanced approach that combines institutional reform, enhanced business competitiveness, the development of high-quality human resources, and the promotion of proactive and effective international cooperation," said Han.

According to data from the Customs Department, in the first half of 2025, total trade turnover between Vietnam and Malaysia was estimated at $7.7 billion, a 6% increase compared to the same period in 2024. Of that, Vietnam’s exports to Malaysia accounted for $2.5 billion.

Vietnam’s main exports to the Malaysian market include machinery, equipment, and spare parts; computers; electronics and components; various types of iron and steel; gasoline; and chemicals.

Vietnamese products still have significant potential for export growth in the Malaysian market, which has strong purchasing power, diverse consumer demands, and a cultural affinity with Vietnamese goods.