Vietnamese goods conquer halal market through trust and quality

Vietnam has great opportunities in exporting Halal products. Source: Internet

A "passport" for Vietnamese businesses

The global Halal market possesses substantial scale, potential, and sector diversity. The Muslim population is projected to reach approximately 2.02 billion in 2024, representing nearly 25% of the global population, and is forecast to reach around 2.8 billion by 2050. The global Halal economy is estimated to reach 7.7 trillion USD by 2025 and is projected to reach 10 trillion USD before 2028. The Halal market spans across continents, encompassing both Muslim and non-Muslim countries, as Halal products meet numerous criteria regarding food safety, quality, and environmental protection. Therefore, Halal is considered a promising market for food-producing countries, particularly those with advantages in agricultural and aquatic product exports like Vietnam.

Speaking at the National Halal Conference "Promoting internal strengths, strengthening international cooperation to build a sustainable Vietnamese Halal industry," Minister of Science and Technology Huynh Thanh Dat assessed the Halal market, stating that the Ministry has proactively developed national Halal standards, including those for Halal food, agricultural production, animal feed, and Halal slaughter.

Notably, the Ministry of Science and Technology recently announced the establishment of the National Halal Certification Center (HALCERT), aiming to unify state management in Halal certification and facilitate Halal certification activities within Vietnam. These initiatives are viewed as "passports" enabling Vietnamese businesses to access the lucrative Halal market.

Mr. Mohamed Jinna, Chairman of the Halal Certification Authority of India, stated that Vietnam faces a bright future in accessing the expanding global Halal market. Halal certification serves as a gateway for Vietnam to tap into a profitable market spanning various industries such as food, pharmaceuticals, cosmetics, fashion, and tourism.

Efforts to enhance quality

Despite the market's size, potential, and Vietnam's favorable geographical location, Vietnamese goods in general, and agricultural and aquatic products in particular, are still in the early stages of Halal market penetration. Annually, approximately 50 Vietnamese companies receive Halal certification, primarily for seafood, beverages, canned food, confectionery, vegetarian food, and pharmaceuticals.

According to Ms. Pham Hoai Linh, Deputy Head of the West Asia-Africa Department (Asian-African Market Department, Ministry of Industry and Trade), the concept of Halal remains relatively unknown to state and local authorities and businesses. Meanwhile, regulations for Halal inspection and certification are becoming increasingly stringent, diverse, and complex. Halal certification is not permanent, isn't universally recognized across all countries and products, and numerous different Halal systems and standards exist for different products.

This poses considerable challenges for businesses, requiring multiple re-certifications and adherence to specific certification requirements for each export market. Moreover, investment costs for equipment, production lines, and safe raw materials throughout the packaging, transportation, and preservation stages, in accordance with Halal standards, are often higher than for conventional production and export. This presents a significant barrier for Vietnamese businesses, predominantly small and medium-sized enterprises (SMEs), which often face capital limitations.

Furthermore, Vietnamese Halal food exports face fierce competition from regional countries. Muslim-majority nations like Indonesia, Malaysia, Pakistan, and Bangladesh are major importers and also among the world's largest Halal product suppliers.

As a representative of CPV Food Binh Phuoc, a livestock company with international Halal certification, Mr. Nguyen Van Cam noted that Muslims consume significant amounts of chicken, second only to seafood. CPV Food currently supplies Halal chicken to restaurants, hotels, and Muslim tourists in Vietnam. "Achieving Halal certification demonstrates that our products meet international standards and food safety requirements. This signifies the absence of diseased or dead animals, the non-use of harmful chemicals, humane slaughter practices, etc., enabling access to high-standard markets like Europe, even for non-Muslim consumers," stated Mr. Cam.

Ms. Ba Thi Nguyet Thu, representing Hanoi Xanh Cooperative (Dan Phuong District, Hanoi), one of the few successful exporters to the Muslim market, believes that while Halal standards are high, they are attainable.

"Our grapefruit-based cosmetic products are in high demand, even exceeding our supply capacity for the region. To produce these goods, meticulous preparation is crucial, from selecting cultivation areas to harvesting, nurturing, and production processes, strictly adhering to organic standards. Beyond grapefruit, flowers like roses and jasmine are particularly suitable for cosmetics targeting the Muslim market. The demand for such natural cosmetics from Muslim countries currently outstrips supply," Ms. Thu emphasized.

To fully exploit this market's potential, the Chairman of the Halal Certification Authority of India advises that Vietnam must meet the highest Halal standards and build trust with global Muslim consumers. This necessitates a transparent, seamless, and globally recognized Halal certification process, alongside investments in modernizing and standardizing production processes by businesses.