Vietnam boasts significant strengths across numerous agricultural commodities, with over 80% of pure plant-origin produce inherently satisfying baseline Halal nature. However, Halal exports currently consist primarily of raw agricultural and fishery commodities, while deep-processed products meeting destination-specific market requirements remain limited.

Speaking at the September trade promotion briefing with Vietnam’s network of overseas trade offices—themed "Halal Vietnam: Identifying Supply Capacity, Market Demand, and Coordination Mechanisms to Accelerate Exports" held on the morning of September 23—Vu Ba Phu, Director General of the Vietnam Trade Promotion Agency (Ministry of Industry and Trade), stated that there are currently roughly 2 billion Muslims worldwide across 112 countries, including 57 member states of the Organisation of Islamic Cooperation (OIC), accounting for roughly 25% of the global population. Notably, Muslim populations constitute majorities across parts of Asia and the Middle East.

The global Halal market is experiencing extraordinary expansion, with its market scale climbing into trillions of US dollars. Moving beyond food alone, Halal standards have expanded across multiple sectors, including cosmetics, tourism, finance, and logistics.

Vu Ba Phu noted that consumption trends aligned with Halal standards are drawing increasing interest from non-Muslim consumers due to intrinsic requirements for transparency and safety throughout the entire supply chain. This demonstrates that the Halal market holds immense potential that extends far beyond Islamic communities to the wider global population.

Amid prevailing global economic volatility, the Halal market can generate a novel growth engine. Vietnam's strong export performance is currently anchored predominantly in conventional agricultural and food commodities. Developing the Halal industry will inject fresh momentum into Vietnam's export trajectory.

According to Vu Ba Phu, beyond export performance, domestic consumption can likewise serve as a catalyst contributing to sustaining double-digit economic growth going forward.

Under updated provisions governing quality management and development policies for Halal services, on April 6, the Government set out three core policy pillars designed to support Halal market development. This focal area is receiving focused attention, progressively establishing a regulatory foundation to shape Vietnam’s national Halal industry development strategy.

The Ministry of Industry and Trade has been assigned to draft the development strategy for the Halal sector. This critical undertaking will provide the groundwork for sustainable industry growth and contribute to overarching economic performance in the period ahead.

Ba Thi Nguyet Thu, Director and Chairwoman of the Board of Directors of Hanoi Xanh Cooperative and founder of Halal Viet, shared that Vietnam ranks among the world's top 10 exporters of key agricultural staples such as rice, coffee, cashew nuts, pepper, deep-processed agro-products, and medicinal herbs. Over 80% of Vietnam's pure plant-based agricultural products inherently satisfy fundamental Halal principles due to their natural composition, free from alcohol or prohibited derivatives.

According to Ba Thi Nguyet Thu, sharpening the competitiveness of deep-processed products and diversified offerings derived from Vietnamese raw material sources is an essential prerequisite for penetrating the Halal export market.

According to State of the Global Islamic Economy reports for 2023 and 2024, Vietnam’s annual Halal export revenue reaches approximately USD 900 million, primarily comprising unprocessed agricultural and aquatic commodities. Meanwhile, products fully complying with destination-specific Halal standards remain limited.

For raw agricultural commodities, meeting Halal criteria is comparatively straightforward, as actual demand across Halal markets for produce—particularly commodities in which Vietnam excels—is substantial. However, for deep-processed lines, compliance capabilities tailored to specific markets remain constrained. Jurisdictions such as the UAE and Malaysia maintain distinct certification regimes. These divergent requirements serve as market access hurdles for Vietnamese enterprises seeking entry into the Halal space.

Pham The Cuong, Vietnamese Trade Counselor in Indonesia, noted that Indonesia is the Islamic market with the world's largest aggregate expenditure on Halal food and beverages at USD 155.3 billion, representing 11.1% of the global Halal food market valued at USD 1.397 trillion (as of 2022).

To successfully penetrate the Indonesian market, Pham The Cuong advised enterprises to acquire an in-depth understanding of Indonesian culture, business practices, and consumer preferences, while actively cultivating trust with local partners. Concurrently, businesses should collaborate with reputable domestic partners who possess a thorough grasp of regulatory frameworks, local consumer behavior, and distribution networks.

Indonesia enforces regulations stipulating that imported merchandise may only be brought in by general trading import enterprises or manufacturing firms. Retailers and food service providers are prohibited from importing directly; consequently, they procure imported goods via importers, distributors, or food processing companies.

“Enterprises must consider establishing joint linkages between domestic firms and counterparts in nations with advanced Halal industries, including Indonesia. This is exceedingly vital, contributing not only to raising corporate awareness of Halal standards but also to multiplying export opportunities; simultaneously, it facilitates the formation of closed-loop supply chains from raw material sourcing and manufacturing to certified Halal distribution and export,” Pham The Cuong stated.

Source: Bao Tin tuc va Dan toc - TTXVN