How to hunt for billion-dollar opportunities in the Middle East market?

Vietnam owns great opportunities in exporting Halal products. Illustration photo: ST

Lots of potential

Sharing about the Halal industrial product market in the Africa - Middle East region, Ms. Nguyen Minh Phuong, Head of West Asia and Africa Department - Asia - Africa Market Department (Ministry of Industry and Trade) said, this market exposes great potential to Vietnamese goods and products. According to statistics, Muslims' annual spending on food is about 1,400 billion USD; the total Halal food trade turnover of OIC member countries is 444.7 billion USD.

"It is estimated that by 2030, the number of Muslims in the world will exceed 2 billion people, promising a large market to consume Halal products," Ms. Nguyen Minh Phuong emphasized.

Currently, the food processing industry of Middle East - African countries is underdeveloped, many processed products serving the needs of people in this region are mainly from imported sources. Therefore, the Halal product market is very potential for Vietnamese businesses to exploit.

Furthermore, due to the health and environmental benefits, the demand for Halal products is now popular not only with Muslims but also more preferable in other major markets such as the United States and Europe. .. Which increase the import of Halal products to meet people's consumption needs. The notable point is that compared to the general price level of regular products, the price of Halal products is usually 5-10% higher and consumers who want to use Halal products are willing to pay for these products. .

However, to be able to successfully penetrate and compete with other rival supply sources in the Africa - Middle East region, experts say that businesses need to learn and grasp business practices, market regulations.

Mr. Tran Trong Kim, First Secretary, in charge of the Vietnam Trade Office in Saudi Arabia, said that Vietnam could completely export Halal products because this market still has a lot of room. Key markets in Asia-Pacific have very high demand for Halal products. North Africa and the Middle East are also potential markets because the majority of the population in these countries is Muslim.

Meanwhile, Mr. Le Chau Hai Vu, Halal food quality consultant, Director of Consultech Joint Stock Company, acknowledged that currently, despite recent growth in agricultural exports to the Middle East, Vietnamese agricultural products brands are not strong enough and face fierce competition with agricultural products from other countries.

For example, in the Middle East region, agricultural products are imported mainly from Europe, the US and some countries such as China, India, and Thailand... In addition, Turkey, Iran, and Israel are also big export agricultural producers with many agricultural products not only exported to the world but also to other countries within the Middle East.

In the UAE market, Vietnamese agricultural products such as rice, pepper, cashew nuts, tea, spices, coffee... must compete with India, Sri Lanka, Thailand, China and Brazil. ..

Immerse the market to compete successfully

According to Mr. Le Chau Hai Vu, the first thing when a business wants to exploit the Halal product market is to learn and research carefully about the characteristics of Halal products and the target market (study carefully about the trends of Halal market, consumer preferences, competitors...).

When developing plans to produce and supply Halal products to the Middle East market, businesses need to have a production process that ensures Halal conditions and standards. Besides, it is necessary to invest in building a methodical business and marketing strategy, suitable for the market...

However, when planning to export to this market, Mr. Le Chau Hai Vu recommends that businesses need to pay attention to tariffs and constant amendments in UAE tariffs. Therefore, businesses should check these contents before exporting. In particular, businesses do not transact with partners who require advance transfer of brokerage fees, lawyer fees or contract approval fees to avoid unfortunate losses.

In addition, to do business successfully in the UAE market, Vietnamese businesses need to properly learn about Arab religion, language and business culture, acquire their tastes as well as sensitive issues about religion, education and consumer culture. Besides, other criteria such as specific standards for product packaging and advertising should be fully taken awareness.

In particular, businesses need to contact and exchange regularly with diplomatic representative agencies and Trade Offices in the Middle East because this is the official "paving, accompanying and supporting" unit that represents Vietnam.

Regarding the Saudi Arabian market, Mr. Tran Trong Kim said, in response to the escalating conflict in the Red Sea, businesses need to research market tastes and local regulations on quality management and food hygiene and safety, proactively send product samples to promote and display at the Trade Office and Embassies.

According to Mr. Tran Trong Kim, Saudi Arabia is aiming for a green, healthy life and sustainable environmental development. Therefore, organic, environmentally friendly products are beginning to be highly appreciated and are in demand in the near future. Enterprises need to catch up this trend to increase export value. In addition, enterprises should build their own brand in addition to selling, packaging, and printing labels according to the importer's requirements.