Opportunities for Vietnamese firms in $4.5 trillion Halal food market

The Halal food market, driven by the increasing global Muslim population, is growing rapidly, said Malaysian Consul General in Ho Chi Minh City Firdauz Bin Othman.

Othman was speaking at a seminar themed "Promoting the export of Halal products of Vietnamese enterprises to the Malaysian market and Muslim countries" last Friday.

Potential of Malaysia’s Halal market

Based on Global Islamic Economy Indicator (GIE) data, the global Muslim population is forecast to grow from 1.8 billion people in 2017 to 3 billion in 2060. The market includes various sectors such as food and beverages, Islamic finance, modest fashion, cosmetics, medication, travel, and recreation, Othman said.

“This has provided a vast number of opportunities for many countries, including Vietnam, to be actively involved in the Halal industry. Recognizing the potential in the market, the Vietnamese government has paid special attention to supporting local businesses to enter the global Halal market. Various initiatives and policies are in place to facilitate the growth of the Halal industry in Vietnam," Othman commented.

According to the diplomat, Malaysia has a comprehensive ecosystem for the development of the Halal industry. This includes the Halal certification system, standards, infrastructure, incentives, human capital, and Islamic finance supported by an effective framework from Malaysian institutions.

Malaysia is one of the pioneer countries in the global Halal industry, especially in the Islamic financial sector and Halal food. The country has a business-friendly Halal economic landscape and a competitive advantage in terms of credibility towards Halal certification, which is accepted by almost all Halal markets around the world.

Dao Minh Chanh, deputy director of the Investment and Trade Promotion Center of HCMC (ITPC), said that Malaysia is one of Vietnam's import markets with great potential in ASEAN. In the first four months of 2024, total import-export turnover between Vietnam and Malaysia reached $4.9 billion, of which exports from Vietnam to Malaysia were $1.6 billion. Vietnam's main export products to Malaysia include machinery, equipment and spare parts, computers, electronics and components, iron and steel products, petroleum, and chemicals.

Rapid development and the establishment of Halal standards from production to distribution are becoming important trends, creating great opportunities for Vietnamese businesses, Chanh added.

Notes for exporting to Halal market

Phu Van Han, deputy director of the Graduate Academy of Social Sciences in the southeast region, said that to export to this market, businesses must first have a Halal certificate authenticated by competent agencies. However, achieving this certification is not easy. The standards and regulations on verification and certification are strict but have no permanent value and are not recognized equally in all countries and for all products. Therefore, businesses are required to re-certify many times and must rely on each export market to register for appropriate certification.

“Enterprises must clearly understand and master Halal standards, including strict requirements on raw materials, production processes, management systems, and other aspects related to their products and business activities," Han emphasized.

Othman said that currently, Halal standards have been accepted globally, especially regarding food hygiene and safety. This has contributed positively to the development and increased demand for Halal products around the world.

"To exploit the potential in the Halal field, Vietnamese businesses need to proactively learn and develop Halal-certified products, and participate in trade promotion programs dedicated to Halal products," Othman advised.