Faced with the global green transition trend and incentives for ESG-compliant products in Malaysia, Vietnamese enterprises must restructure production, combining Halal standards with sustainable development to enhance competitiveness and expand market share.

Great opportunities but increasingly stringent standards

On April 23, 2026, the Investment and Trade Promotion Centre of Ho Chi Minh City (ITPC), in collaboration with the Consulate General of Malaysia and the Malaysia External Trade Development Corporation (MATRADE) in Ho Chi Minh City, organized the seminar "Promoting Green Production and Sustainable Exports for Vietnamese Goods to Penetrate the Malaysian Market." The event aimed to help businesses update consumer trends, new 2026 Halal standards, and incentive policies for products meeting ESG criteria in Malaysia and other Islamic nations.

According to Customs data, bilateral trade turnover between Vietnam and Malaysia in 2025 exceeded 15 billion USD, a 5% increase over the previous year, with Vietnam's exports reaching 4.8 billion USD. Both countries are targeting a turnover of 25 billion USD by 2030, indicating significant growth potential.

However, alongside these opportunities come increasingly strict requirements. Amidst the global green transition wave and strong incentive policies for ESG-compliant products in Malaysia, Vietnamese enterprises are forced to upgrade production standards to compete.

Mr. Le Anh Hoang, Deputy Director of ITPC, noted that Vietnam and Malaysia share many advantages, including similarities in consumer culture and relatively low market barriers. Nevertheless, he emphasized that combining Halal standards with green standards remains a major challenge for Vietnamese businesses, especially small and medium-sized enterprises (SMEs), due to limited investment capital, clean production processes, and transparent data systems for periodic re-certification.

Sharing Malaysia's perspective, Mr. Firdauz Othman, Consul General of Malaysia in Ho Chi Minh City, stated that the global Halal market scale currently reaches over 2.3 trillion USD and is forecasted to rise to approximately 20 trillion USD by 2028. He spoke highly of the Vietnamese Government's "Scheme on Strengthening International Cooperation to Build and Develop Vietnam’s Halal Industry to 2030" and affirmed that Malaysia is ready to act as a gateway for Vietnamese businesses to access the global Halal market.

Combining Halal and ESG to enter sustainable supply chains

From a commercial standpoint, Ms. Zaimah Osman, Trade Consul of MATRADE in Ho Chi Minh City, stated that the Halal industry is expected to contribute up to 8.1% of Malaysia's GDP in 2025, equivalent to approximately 35 billion USD.

According to Ms. Zaimah Osman, Halal certification is not only a market condition but also a tool to help businesses meet ESG standards and international management systems such as ISO 9001 and ISO 22000, thanks to principles regarding traceability, safe production, and social responsibility.

Echoing this view, Mr. Muhammad Naim bin Aziz, Senior Assistant of the Halal Hub Division at JAKIM (Department of Islamic Development Malaysia), observed that consumer trends are shifting clearly from focusing solely on Halal factors to combining them with ethical and sustainable criteria. Malaysian consumers, particularly Gen Z, increasingly prioritize environmentally friendly products, green packaging, and animal welfare.

Mr. Muhammad Naim bin Aziz advised businesses that legal regulations for imported Halal goods are very strict. All products must be certified by an organization recognized by JAKIM, with certification information clearly stated on the packaging, requiring businesses to build transparent governance and traceability systems.

From a practical perspective, Mr. Ngo Quang Hung, representative of the Vietnam Trade Office in Malaysia, said that this market still offers ample room for Vietnamese goods, particularly in the agricultural and aquatic sectors. According to Mr. Hung, items such as rice, fresh chili, green leafy vegetables, coconut, and processed pangasius from Vietnam have many opportunities to penetrate the market. However, to seize these opportunities, businesses must strictly comply with ESG standards that Malaysia has applied since 2023 and pay attention to the Extended Producer Responsibility (EPR) regulations to be fully implemented from 2026.

In return, products achieving ESG and Halal certification will enjoy various incentives from the Malaysian government, including a 5-10% tariff reduction and up to a 20% cut in import inspection fees.

It is evident that in a context of increasing competition, "greening" production and standardizing according to Halal requirements are not only mandatory but also opportunities for Vietnamese enterprises to elevate themselves, participate deeper in global supply chains, and achieve sustainable development in the Malaysian market and Islamic nations.

Source: Tap chi Kinh te - Tai chinh