JAKARTA — Trade between Vietnam and Malaysia in the Halal industry is showing strong momentum, though Vietnamese companies face challenges including an expanding trade gap and rigorous Islamic certification requirements.

New Council to Streamline Halal Certification Process

Malaysia’s Melaka state has unveiled plans to create a State Halal Industry Development Council, presenting new possibilities for Vietnamese companies to access this profitable market segment.

According to Melaka Chief Minister Ab Rauf Yusoh, the council aims to accelerate investor entry and streamline halal certification approval processes, eliminating unnecessary red tape.

Opportunities Emerge as Melaka Aims for Regional Hub Status

Vietnamese businesses view the council’s formation as an encouraging development that could help them navigate certification obstacles and access both Melaka’s local market and the wider regional Halal economy. With Melaka’s ambitions to establish itself as a regional Halal center, Vietnamese exporters have fresh opportunities to strengthen their market presence.

Robust Growth Amid Persistent Trade Deficit

While bilateral Halal trade is growing substantially, Vietnamese exporters are confronting a significant trade imbalance and the demanding requirements of Islamic certification protocols.

Data from the Department of Vietnam Customs indicates that bilateral trade surpassed $12 billion during the first nine months of this year, representing a 12.9% year-over-year increase. Despite this growth, Vietnam recorded a trade deficit of $4.29 billion.

Strong Market Potential Meets Intense Regional Competition

Ngô Quang Hưng, Vietnam’s trade representative in Malaysia, characterizes the Malaysian market as appealing due to its robust purchasing capacity, varied consumer demands, and cultural consumption habits that align well with Vietnamese offerings. However, he notes that Vietnamese exports encounter intense rivalry from competitors in China, Thailand, and Indonesia.

Certification Remains Primary Barrier to Entry

The primary obstacle continues to be obtaining Halal certification, which serves as a crucial gateway for entering this significant Muslim-majority market, he emphasized.

Original Article:

Vietnam News. (2025, October 21). Vietnamese products expected to expand footprint in Malaysia’s Halal market. Retrieved from https://vietnamnews.vn/economy/1727656/vietnamese-products-expected-to-expand-footprint-in-malaysia-s-halal-market.html