Take advantage opportunity to elevate Vietnamese food in Halal market

Many barriers

Speaking at the seminar “Halal – From standards to branding: New opportunities for Vietnamese exporters”, organized by the Import-Export Department of the Ministry of Industry and Trade on the afternoon of March 28 in Ho Chi Minh City, Ms. Nguyen Cam Trang – Deputy Director of the Import-Export Department, highlighted that the Halal industry, particularly the food sector, has created significant opportunities for both Muslim and non-Muslim businesses due to the increasing demand from consumers. The global Halal food market is estimated to be worth around 2.7 trillion USD annually. According to forecasts from IMARC Group, the market is expected to reach 5.912 trillion USD by 2033, with a compound annual growth rate (CAGR) of 8.92% from 2025 to 2033.

Key Halal markets such as Indonesia, Malaysia, the UAE, Saudi Arabia, Turkey, and several African nations are currently increasing imports of processed Halal food products due to insufficient domestic supply. This presents a strong opportunity for Vietnamese businesses to tap into these markets and expand their export potential.

Despite the significant potential in this sector, the reality is that the export of food products by Vietnamese businesses to the Halal market is still in the early stages of development. The number of Vietnamese companies that have achieved Halal certification and are able to access the global Halal market remains limited, and there are still many challenges to overcome.

Explaining the reasons behind the limitations, Ms. Ly Kim Chi, Chairwoman of the Ho Chi Minh City Food and Foodstuff Association, shared that many businesses still lack a clear understanding of the trade regulations of Islamic countries and often confuse or misinterpret the concept of Halal. She emphasized that the Halal certification process is not just about meeting financial requirements but also about gaining in-depth knowledge of the specific certification procedures. In addition, businesses must invest in training personnel to meet the strict quality standards required for the Islamic market.

Moreover, obtaining Halal certification from reputable international bodies is a major challenge for Vietnamese companies, as the legal and procedural requirements are often complex, lengthy, and costly. In addition, Halal certificates differ according to product types, and businesses need to register for certification that aligns with the regulations of each specific market.

Another significant challenge is that Vietnamese companies have not yet developed a fully integrated Halal ecosystem. In contrast, other countries such as Brazil, Singapore, and Indonesia have long-established roles in supplying Halal-certified products, securing substantial market shares thanks to years of experience and established advantages. This highlights the need for Vietnam to develop a comprehensive Halal ecosystem strategy, while also building a national brand for Halal agricultural exports in order to compete effectively in the international market.

Overcoming challenges to enter the market

According to Mr. Ramlan Bin Osman, Director of the Vietnam Halal Certification Center, Halal has now become a global standard. Not only in Islamic countries but also in the United States, many consumers view Halal certification as a quality standard.

In order for Halal food products from businesses to be successfully exported to Islamic countries, Mr. Ramlan Bin Osman emphasized that the most important factor is for businesses to choose a reputable Halal certification body that is internationally recognized. He also highlighted that production facilities must meet strict hygiene, cleanliness, and safety standards to ensure that the products meet the required quality expectations.

“There are two essential criteria to obtain Halal certification: the product must be permissible according to Islamic law, and secondly, it must be safe for consumption”, Mr. Ramlan Bin Osman firmly pointed out.

From a business perspective, Ms. Trinh Thi Minh Thuy – Director of MT Food Export-Import and Manufacturing Co., Ltd. shared that, for agricultural products, the Islamic market holds a significant potential for consumption. However, the selling prices in these markets tend to be lower compared to other markets.

According to Ms. Thuy, many businesses today pursue Halal certification only as a trend, without making significant investments in the process or fully understanding the complexities involved. This lack of a well-planned, systematic approach often leads to quick failures. Additionally, many businesses rush to accept orders without having the necessary capacity or infrastructure, which results in one-time collaborations rather than fostering long-term, sustainable relationships with international partners.

Ms. Ly Kim Chi further explained that each Islamic country has its own specific set of Halal standards, and there is no one-size-fits-all approach for businesses seeking to enter these markets. To successfully penetrate the Halal market, she believes it requires a comprehensive, collaborative effort involving not only businesses but also the government and industry associations. She emphasized that the government needs to establish clear, detailed standards for Halal products and ensure that there are credible and internationally recognized certification bodies available. Industry associations must play a vital role as intermediaries, bridging the gap between businesses and relevant regulatory agencies.

“The success of the strategy to develop the Halal market cannot depend solely on the individual efforts of businesses. We need a coordinated approach that brings together ministries, local authorities, industry associations, international Halal certification organizations, and Vietnam’s trade representatives abroad. This collaboration will help build an ecosystem that supports businesses in developing Halal products in a coherent and effective way”, Ms. Ly Kim Chi stressed.