Vietnam boasts potential to become global source of Halal food

Participants provided solutions to support businesses in promoting Halal food exports, as well as putting Vietnam on the list of typical Halal food suppliers globally.

According to experts' analysis, two billion people currently make up the Muslim market globally, therefore accounting for about 25% of the total global population; in which, Muslims make up the majority in Asia, especially in the ASEAN bloc.

A report released by the Food and Agriculture Organization of the UN (FAO) also shows that spending on Halal food by the global Muslim community is increasing, with this figure expected to reach US$1.9 trillion this year before rising to US$15 trillion in 2050.

With a growing demand for Halal products globally and attracting attention outside of the Muslim community, Vietnam is also considered to have the potential to export Halal food with a position in the Top 20 leading food exporting countries in the world whilst being one of the 15 largest agricultural exporting countries.

In particular, the nation is also an important link in terms of global supply chains with 17 signed Free Trade Agreements (FTAs); of which, many new generation, regional, and inter-regional FTAs ​​have been signed.

However, despite having the world's top 20 export capacity, the country is still not among the list of the 20 to 30 countries supplying Halal food globally, whilst the nation’s Halal product exports are still quite modest. This situation is due to the fact that Vietnamese enterprises have not fully exploited the opportunities due to certain difficulties in terms of producing and exporting Halal products such as high investment costs, information about Halal market culture and Halal standards.

Nguyen Thi Ngoc Hang, marketing director of the Halal Certification Office, said that in order for Vietnamese enterprises to export Halal products to Muslim countries, the most important thing is to choose a reputable and internationally recognised Halal certification organisation.

Although some Halal certification organisations in the country can provide certification services, if they are not recognized by an international groups then their certification will not be valid when exporting to many Muslim countries.

A reputable and internationally recognized Halal certification organisation will therefore not only help a business's products to be easily accepted in Muslim markets, but also to help create prestige and enhance the brand's position within the international market.

Furthermore, Halal standards in each market and each country are different, meaning that businesses need to ensure that their products are certified by an internationally recognised certification organisation.

The Department of Trade Promotion under the Ministry of Industry and Trade is also focusing on increasing support and co-ordination with associations, localities, enterprises, and relevant agencies in a bid to launch a variety of trade promotion activities such as organising training courses, seminars, conferences, trade fairs, and exhibitions to actively support Vietnamese enterprises in terms of market information, finding partners, and expanding the consumption of Vietnamese Halal export products.

Moreover, if the business community engages effectively and systematically in the global Halal market then it will help Vietnam open up a potential Halal market, thereby creating fresh impetus for sustainable economic development.

Regarding the Halal market, Nguyen Minh Phuong, head of the Asia-Africa Market Department of the Ministry of Industry and Trade, pointed out that Vietnam faces competition from many countries such as Malaysia, Indonesia, and Thailand, all of which have experience and reputation in exporting Halal products.

Besides, consumer culture in the Middle East and African markets is very different from those in the nation, differing from the way of consuming products, taste preferences, and packaging to the method of promoting products.

Other challenges include logistics such as long transit times, high transportation costs, and unreliable infrastructure in African countries that can make it difficult for businesses to maintain a stable supply chain. This requires the ability to build relationships with local partners and importers, which is also an important factor in effectively accessing the Middle East and African markets in particular, as well as the global Halal market in general.

Therefore, businesses need to take advantage of a series of trade promotion activities through international fairs, exhibitions, or trade missions organised by the Government and industry associations in a bid to gradually seize opportunities to penetrate the potential market of Vietnamese Halal products.

Furthermore, it can be viewed as very necessary for businesses to focus on analyzing and assessing risks before deciding to expand the Halal market.