Source: The Star

Kyoto, Japan – Experts and officials are calling for Vietnam to implement comprehensive strategies to access the $3 trillion global halal market by strengthening its certification infrastructure and production capabilities.

Ramlan Osman, Director of Vietnam’s National Halal Certification Centre (HALCERT), emphasized that the country’s natural resources position it advantageously in the halal production landscape.

“Vietnam’s agricultural wealth—including coffee, rice, seafood, spices, nuts, and various produce—creates an ideal foundation for developing internationally competitive halal-certified products,” Osman stated.

The country’s tourism boom since 2018 has created increased demand for halal-compliant hospitality services. Combined with Vietnam’s steady 6-7% annual economic growth, these factors establish favorable conditions for halal sector development. Yet, current supply satisfies only about 10% of market demand, presenting what Osman terms “a golden opportunity” for Vietnamese producers.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan identified the halal market as a strategic priority amid global economic fluctuations. He recommended businesses focus on halal brand development, market diversification, and creating effective promotional networks with clear objectives.

Certification system challenges were highlighted by Tran Trong Kim, head of Vietnam’s Trade Office in Saudi Arabia, who noted that many international markets require third-party verification rather than accepting manufacturers’ direct halal claims. He advocated for attracting foreign investment in halal-compliant facilities within Vietnam.

The recent Vietnam-UAE Comprehensive Economic Partnership Agreement (CEPA) could significantly benefit halal product exports to Gulf nations, according to Truong Xuan Trung, director of Vietnam’s Trade Office in the UAE. Trung emphasized the necessity of legal framework improvements to maximize these opportunities.

Industry associations acknowledge certification’s critical role in export expansion. Tran Van Hiep of the Vietnam Cashew Association reported that Vietnam exported 700,000 tonnes of cashew nuts worth $3.8 billion in 2024, with halal certification enabling broader market access in the United States, Europe, Australia, and Middle Eastern countries.

Le Phu Cuong, who heads Vietnam’s Trade Office in Malaysia, observed that while halal certification isn’t mandatory for Malaysian imports, importers highly value it due to the country’s predominantly Muslim population. He warned that Vietnamese products face strong competition from regional producers like China, Thailand, and Indonesia, who offer greater product diversity and better understand local preferences.

Indonesian market entry poses particular challenges, according to Pham The Cuong, Vietnam’s Trade Office representative there. He described Indonesia’s halal certification procedures as a significant non-tariff barrier, involving lengthy processes, high costs, and limited certification agencies—obstacles especially challenging for smaller enterprises.

Cuong stressed that Vietnamese producers must invest in understanding local consumer preferences to improve competitiveness, particularly in modern retail environments where cultural alignment and product positioning significantly impact success.

Experts agree that as Vietnam works to increase its global halal market share, coordinated government policies, streamlined certification processes, and market-specific business strategies will be essential for sustainable growth in this promising sector.

Original Articles:

thestar.com.my.(n.d.). Vietnam needs long-term strategy to tap global halal market. Retrieved April 9, 2025, from https://www.thestar.com.my/aseanplus/aseanplus-news/2025/04/08/vietnam-needs-long-term-strategy-to-tap-global-halal-market#goog_rewarded