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Businesses introduce products to Muslim customers. Photo: ST

Potential from a market of nearly 2 billion people

With a value of 7,000 billion USD per year, the global Halal market brings many opportunities for Vietnamese businesses to increase exports.

At the recent workshop "Promoting the export of Halal products by Vietnamese enterprises to the Malaysian market and Muslim countries" held in Ho Chi Minh City, opportunities for Vietnamese enterprises to export to potential markets were shared. Hey, Dr. Phu Van Han, Deputy Director of the Institute of Social Sciences in the Southern Region, said that globally, this market is estimated to reach USD 10,000 billion by 2028. This is a large-scale market and Halal industry is not limited to food products but now includes pharmaceuticals, cosmetics, medical products, toiletries, medical equipment...

As for the Malaysian market, Mr. Dao Minh Chanh, Deputy Director of the Ho Chi Minh City Trade and Investment Promotion Center, said that this is one of the import markets with great potential for Vietnam in the ASEAN region. Citing statistics from the General Department of Vietnam Customs, Mr. Chanh said that in the first 4 months of 2024, total import-export turnover between Vietnam and Malaysia reached USD 4.9 billion, of which export turnover from Vietnam to Malaysia reached USD 1.6 billion.

Informing businesses about this market, Mr. Firdauz Bin Othman, Consul General of Malaysia in Ho Chi Minh City, said that currently, Halal standards have been accepted globally, especially the issue of food hygiene and safety. This has contributed positively to the development and increase in demand for Halal products. The Halal food segment in particular is growing at a very fast pace, and is forecast to reach a value of about USD 4,500 billion by 2030. This market is growing due to the growth of the global Muslim population as well as the growing demand for food. Demand for Halal certified products. This has brought great opportunities for many countries including Vietnam to proactively approach the Halal market.

Despite having export potential, Vietnamese enterprises have not taken full advantage of the opportunity due to certain difficulties in producing and exporting Halal products such as high investment costs, information about Halal market culture, Halal standards are not many...

Change thinking in product supply

According to experts, although there is a lot of potential, to access and penetrate deeper into this market, businesses must understand Halal thoroughly. The Halal market which is considered difficult as products entering this market must meet specific and strict Muslim regulations. Meanwhile, businesses do not fully understand Islamic culture, especially issues and content related to aspects of consumer culture, business and product regulations. Therefore, businesses often encounter problems from farming to processing, preservation and product designs and brands that are not consistent with Islamic culture and do not meet the strict standards of the Halal market. Businesses must clearly understand and master Halal standards, including strict requirements on raw materials, production processes, management systems and other aspects related to their products and business activities.

Dr. Phu Van Han said that to export to the Halal market, businesses must first have a Halal certificate authenticated by competent authorities. Achieving this certification is not easy. Because the standards and regulations on verification and certification are very strict but do not have permanent value and are not recognized equally in all countries and for all products. Therefore, businesses are required to re-certify many times and must base on each export market to register for appropriate certification.

Paying attention to businesses, Mr. Dao Minh Chanh said that the Halal market is shifting from the mindset of only caring about Halal products to building the entire Halal supply chain. Therefore, for sustainable export, the establishment of Halal standards needs to be emphasized. Businesses and manufacturers need to set specific criteria in the Halal production process, including factors such as the number of complaints, Halal incidents, inspection frequency, and the percentage of employees trained at the senior level. Halal reputation, Halal trust, Halal reputation index, operating license and Halal rating... Businesses and suppliers also need to build a reputable Halal brand on the basis of product quality and the quality of the whole Halal business value chain, building a practical roadmap to implement the Halal value chain and reviewing progress.