With vast potential and growing opportunities, the Halal market is becoming an important avenue for Vietnamese enterprises in their export expansion strategies. However, to fully leverage the advantages, close coordination between the government, businesses, and certification organizations is essential to build a well-structured Halal ecosystem that meets international standards.

At a briefing held recently by the Ministry of Industry and Trade (MoIT) for the network of Vietnam Trade Offices abroad, with the theme “Promoting Trade and Expanding Access to the Global Halal Products Market”, Mr. Ramlan Bin Osman, Director of the National Halal Certification Center (HALCERT) at the Ministry of Science and Technology, said the global Halal market holds immense potential in terms of scale, population growth, spending levels, sectoral diversity, and increasing growth prospects.

Gateway to the Halal economy

With nearly 2 billion Muslims worldwide, making up a quarter of the global population, the demand for Halal-certified products is surging like never before. By 2028, the global Halal economy is projected to hit a staggering $10 trillion, creating a golden window of opportunity for Vietnamese businesses, especially in agriculture and food processing.

Vietnam is exceptionally well-positioned to tap into this thriving market. As one of the world’s top 20 food exporters and among the 15 largest exporters of agricultural goods, the country is already a vital player in global supply chains. Backed by 17 operational free trade agreements, including several next-generation and inter-regional pacts, Vietnam’s export advantage is stronger than ever.

Even more promising, Vietnam boasts an abundance of raw materials perfect for Halal food production: coffee, rice, seafood, aquaculture products, spices, nuts, vegetables, and tropical fruit. This makes the country not just a supplier of ingredients, but a potential powerhouse for finished Halal products. Add to that its growing tourism appeal, and Vietnam boasts fertile ground for expanding Halal hospitality services like restaurants and catering.

It already produces and exports all 20 of the most in-demand agricultural items in countries within the Organization of Islamic Cooperation (OIC), from green coffee beans to rice, cashews, and fruit juices. Yet, despite this impressive product base, Vietnamese export volumes still fall short of the actual demand in these markets. That’s why strong collaboration between the MoIT and national Halal certification bodies is more crucial than ever.

In 2024 alone, Vietnam’s key agricultural exports such as rice, coffee, cashews, and pepper saw remarkable growth. “With proper Halal certification, these staple products could significantly expand their reach into Muslim-majority markets,” said Mr. Bin Osman. He stressed that Vietnam, with its agricultural potential, has a real chance to step confidently onto the global Halal food stage, where demand currently outpaces supply by a wide margin.

To fully unlock this opportunity, Vietnam must not only align with Halal standards but also learn from the success stories of leading non-Muslim Halal exporters like Australia, Brazil, and South Korea, which have turned Halal into a strategic economic pillar. “I firmly believe that Vietnam can soon join that list,” Mr. Bin Osman said. “Halal could become not just a new export stream but a major contributor to the country’s GDP. But success depends on one key principle: from farm to table, everything, every ingredient, every step, must be Halal-compliant.”

Strategic pathways

According to Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan, the global Halal market presents a significant opportunity for Vietnam’s exports. With a total market value of $2 trillion, even a 10 per cent share would represent a substantial gain for Vietnam. At the current growth rate, if efforts are maintained over the next five years, Vietnam’s exports could claim a much larger share of the global Halal market.

While affirming the strong demand for Halal products in the Muslim community, Mr. Le Phu Cuong, Head of the Vietnam Trade Office in Malaysia, noted that obtaining standard Halal certification for export remains a separate and challenging issue. Halal certification is not mandatory for imports into Malaysia; however, many importers, distributors, and retailers prioritize certified products to meet the needs of the local Muslim-majority population, which accounts for 60 per cent of the country’s demographic. As a result, most products selected for the market are expected to carry Halal certification.

Indonesia, another key Halal-importing country, also poses significant challenges. Mr. Pham The Cuong, Commercial Counsellor of Vietnam in Indonesia, said Halal certification in Indonesia is considered a non-tariff barrier due to the prolonged procedures, high costs, short validity periods, and burdensome requirements; all factors that especially hinder small and medium-sized enterprises (SMEs).

Furthermore, the number of authorized certifying bodies in Indonesia is extremely limited, with only one recognized organization currently certifying food products. The certification process itself is complex, requiring that food safety standards be maintained throughout the entire supply chain, not just at the input stage. Compounding the issue is a general lack of awareness and structured preparation among Vietnamese businesses regarding the certification process, coupled with growing competition from other countries.

Therefore, Vietnamese businesses are urged to proactively apply for Halal certification in Indonesia, as well as the SNI (Standar Nasional Indonesia - Indonesian National Standard). They should also maintain close cooperation with relevant Vietnamese authorities in the event that Indonesia initiates trade defense measures against their products to protect local business interests.

Meanwhile, Mr. Tran Trong Kim, Commercial Counsellor of Vietnam in Saudi Arabia, recommended that government authorities and local agencies provide clear guidance on Halal certification procedures and work to promote mutual recognition agreements on Halal standards. Many countries still do not directly recognize Vietnamese products, instead requiring validation through third-party entities. Additionally, he emphasized the need to attract foreign investment and establish internationally-standardized Halal production facilities in Vietnam.

On the business side, companies are encouraged to invest in Halal-compliant production lines and engage with recognized Halal certification organizations for consultation and guidance. Enterprises should also actively participate in promotional activities for Vietnamese Halal food, such as specialized trade fairs, with a focus on high-quality Halal products. Mr. Kim also advised businesses to verify partners before transactions, avoid non-cancellable contracts without proper due diligence, and request deposits to ensure secure business dealings and avoid trade disputes.

Highlighting further challenges, Mr. Truong Xuan Trung, Head of the Vietnam Trade Office in the United Arab Emirates (UAE), noted that understanding of Islamic regulations and Halal standards in Vietnam remains limited. The Halal certification process in the country remains complex and lacks alignment with international standards.

In addition, the shortage of trained professionals with expertise in Halal requirements poses a significant obstacle to the development of a domestic Halal industry. As such, Mr. Trung proposed improving the legal framework for Halal, especially as the recently signed Vietnam-UAE Comprehensive Economic Partnership Agreement (CEPA) is expected to facilitate trade between the two countries. He also called for strengthened cooperation with Islamic countries on Halal certification, supportive policies for Halal product exports, and prioritization of budget allocations for Halal production initiatives.