Collaboration to Open Global Halal Market for Vietnam, Says Malaysian Prime Minister

Aziz recently concluded a highly productive trip to Vietnam, where he co-chaired the fourth meeting of the Vietnam-Malaysia Joint Trade Committee. This visit marked significant advancements in bilateral trade, with a particular emphasis on boosting collaboration in the Halal food sector and exploring opportunities in digital and green technologies.

The discussions led to strategic agreements aimed at enhancing trade relations, promoting sustainable practices, and tapping into the rapidly growing Halal market. This collaboration is set to strengthen the economic ties between Vietnam and Malaysia, fostering growth and innovation across multiple industries.
During this meeting, several pivotal agreements were reached, demonstrating the trip’s success. One major outcome was the mutual agreement to establish a trade target of US$18 billion by 2025. This ambitious goal underscores the commitment of both nations to deepen their economic ties.

Expanding Halal Cooperation

A major highlight of the visit was the focus on expanding Halal cooperation. Malaysia’s Halal Development Corporation CEO was present, aiming to strengthen Vietnam’s capabilities in the Halal value chain. To facilitate this, a memorandum of cooperation between Malaysia’s Halal Development Corporation and Vietnam is in the works.

Furthermore, Vietnam agreed to establish an agency dedicated to Halal under its Ministry of Science and Technology. This move is expected to streamline Halal certification processes, making it easier for Vietnamese products to penetrate global markets, particularly in Muslim-majority countries​ (The Nation)​.

The Potential of the Halal Industry

The Halal market is projected to reach around $5 trillion by 2030, reflecting its immense potential. Halal certification not only caters to Muslim consumers but also appeals to non-Muslim markets, broadening the market scope for certified products. Vietnam, already a major exporter of agricultural products, stands to benefit significantly from this collaboration. Products like coffee and rice, once Halal-certified, can access new markets and meet the growing demand for ethical and compliant goods​ (Meezan Bank)​​ (Business Recorder)​.

Strategic Sectors for Growth

Electrical and electronics (E&E), chemicals and petrochemicals, and agriculture were identified as key sectors for boosting bilateral trade. Both Malaysia and Vietnam have strong presences in these industries, making them prime areas for collaborative growth. By leveraging their strengths, both countries aim to enhance trade and achieve the set targets of $18 billion by 2025 and $25 billion by 2030​​.

Investment Climate in Vietnam

Malaysian businesses view Vietnam as a promising investment destination, with total Malaysian investments in the country exceeding $13 billion. Sectors like property, banking, and manufacturing have already seen significant Malaysian involvement. Additionally, the renewable energy sector, particularly wind energy, has been identified as a potential area for Malaysian investment, with companies like Petronas expressing interest​​.

Boosting Digital Transformation

Both nations are keen to enhance collaboration on digital transformation and the digital economy. The aim is to make digital trade more inclusive and equitable, particularly for small and medium-sized enterprises (SMEs). Standardizing policies and payment systems across ASEAN countries is crucial to achieving this goal, facilitating easier cross-border e-commerce​ (Daily Times)​.

The Vietnam-Malaysia collaboration, especially in the Halal industry, is set to unlock significant economic opportunities for both nations. By focusing on mutual strengths and addressing key areas like digital transformation and green technologies, this partnership is poised to foster sustainable growth and financial inclusivity. With ambitious trade targets and a commitment to ethical and Shariah-compliant practices, Vietnam and Malaysia are well-positioned to make a substantial impact on the global market.

This collaborative effort not only enhances bilateral trade but also positions Vietnam and Malaysia as key players in the rapidly expanding Halal industry. The strategic focus on sectors such as electrical and electronics (E&E), chemicals, and agriculture underscores the potential for sustained economic growth and development.

By capitalizing on their mutual strengths and fostering innovation in green and digital technologies, both countries are well-positioned to achieve significant economic milestones and contribute to the global market’s evolution. This partnership highlights the importance of strategic alliances in driving economic prosperity and advancing the Halal market’s growth on an international scale.