With a population scale of over 280 million people, increasingly rising consumption demand, and a Halal food market among the largest in the world, Indonesia is emerging as a highly potential destination for Vietnamese food enterprises.

Growth room for Vietnamese food

At the thematic Seminar “Indonesian market trends and opportunities for the Vietnamese food industry” jointly organized by the Investment and Trade Promotion Centre of Ho Chi Minh City (ITPC), the Consulate General of Indonesia in Ho Chi Minh City, and the Vietnam Trade Office in Indonesia on the afternoon of June 24, experts evaluated that Indonesia is becoming a market rich in potential for the Vietnamese food industry.

Sharing about the potential of the Indonesian market, Mr. Pham The Cuong, Commercial Counselor of the Vietnam Trade Office in Indonesia, stated that with the food and beverage (F&B) industry revenue projected to reach 360.5 billion USD by 2026, Indonesia opens up a vast market space for Vietnam's agricultural products and processed foods.

Particularly, he emphasized that Indonesia's Halal food market scale is estimated to reach up to 155.3 billion USD, accounting for 11.1% of the total global Halal food market scale. According to Mr. Pham The Cuong, this once again affirms that Halal certification is not only a mandatory requirement but also a core competitive advantage for enterprises wishing to penetrate the market.

“Regarding consumption trends, Indonesian citizens increasingly prioritize products that are convenient, good for health, and compactly packaged, suitable for modern urban lifestyles. Besides, the sharp rise in online shopping, especially through social media platforms like Facebook, TikTok, and Instagram, is reshaping how consumers approach products, especially the youth,” Mr. Pham The Cuong added.

To efficiently exploit this market, the Vietnam Trade Office recommends that enterprises proactively cooperate with domestic distributors who am hiểu (are well-versed in) procedures, while concurrently grasping the trends of sustainable packaging possessing aesthetic appeal and providing transparent information to build long-term trust with local consumers.

Mr. Le Anh Hoang, Deputy Director of ITPC, argued that Indonesia is emerging as one of the highly potential markets for Vietnamese goods in general and the food industry in particular. With a population of over 280 million people, a large consumption scale, along with a rapidly growing middle class, this market possesses an increasingly high demand for processed, convenient, health-friendly, and naturally sourced food products.

According to Mr. Hoang, the driver boosting bilateral trade also comes from the two countries having established a Comprehensive Strategic Partnership in March 2025 and jointly participating in multiple regional trade agreements such as ATIGA and RCEP.

To realize these opportunities, following the success of 2025 when supporting enterprises to execute more than 330 business matching sessions, ITPC plans to continue organizing a delegation of enterprises to participate in the SIAL Interfood 2026 International Food and Beverage Exhibition from November 4 to 6, 2026, in Jakarta, Indonesia.

Satisfying Halal standards and optimizing supply chains

Alongside major opportunities, experts also noted that Vietnamese enterprises need to pay special attention to management regulations and technical requirements when exporting to Indonesia.

Mr. Danny Hidajat, Director of We Link Co., Ltd., analyzed that Indonesia is a large consumer market with stable GDP growth ranging from 4.8% to 5.2% annually. Notably, with 87% of the population following Islam, Halal certification and circulation licenses from the Indonesian Food and Drug Authority (BPOM) are prerequisite conditions before commercializing any food product.

Evaluating the competitive capacity of Vietnamese goods, Mr. Danny Hidajat argued that Vietnamese goods possess the advantage of being a “smart mid-range choice.” Accordingly, Vietnamese enterprises compete thanks to stable quality compared to cheap supply sources from China, while concurrently owning reasonable prices and higher flexibility compared to premium brands from Japan or Europe.

To mitigate risks when approaching the market, Mr. Danny Hidajat recommended that enterprises should apply a business model through distributors during the first year to test the market before expanding operations.

Informing about the regulatory compliance trend in Indonesia, Mr. Rachmat Widyanto, S.TP., M.Si, Head of the Halal Assessment Management Division and Head of the Halal Auditor Team, stated that the wave of certification registration is taking place very powerfully. In just the first 4 months of 2026, the number of new registrations reached 3,146 enterprises, equivalent to 42.5% of the total dossiers for the entire previous year, which stood at 7,398 enterprises.

Mr. Rachmat Widyanto emphasized the milestone date of October 17, 2026, the deadline for applying Halal certification to new product groups, including cosmetics, traditional medicines, chemicals, imported goods, and small-scale F&B establishments. According to him, non-compliant products will face sanctions such as administrative penalties and mandatory labeling as “Non-Halal.”

However, he also pointed out the challenge where over 75% of cosmetic raw materials must be imported into Indonesia, while domestic enterprises encounter difficulties in collecting certificates from international raw material manufacturers. Although the Halal Product Assurance Organizing Agency (BPJPH) affirmed it will strictly execute the 2026 deadline, experts still express concern over the feasibility of this roadmap.

From a logistics perspective, Mr. Le Tran Nhat Phuong, Deputy General Director of Bee Logistics, assessed that for a market with strict controls on HS Codes, SNI certificates, or Halal like Indonesia, selecting a suitable transportation route and managing the total cost carries more significant meaning than merely seeking the lowest freight rates.

According to Mr. Phuong, currently, maritime cargo streams are connecting efficiently from Ho Chi Minh City and Hai Phong to Indonesia's key ports including Jakarta, Surabaya, Semarang, and Batam. For air transport, direct flights are operated daily from Tan Son Nhat, Noi Bai, and Da Nang airports to Jakarta with a transit time of only 3 to 5 hours.

Even so, Mr. Phuong also warned that documentation errors can cause goods to delay customs clearance by 7 to 14 days, pulling along destination yard storage costs of approximately 0.17 USD/kg/day after the first 24 hours.

Indonesia is opening up considerable opportunities for the Vietnamese food industry thanks to a large market scale, growing consumption demand, and development room in the Halal market. However, to translate potential into actual business results, enterprises need to proactively satisfy mandatory standards, grasp new consumption trends, and construct appropriate market approach strategies.

Source: Tap chi Kinh te - Tai chinh