Halal Market Opportunities Seminar for Vietnamese Food Exporters

HCM CITY — At a recent workshop held during the Vietnam International Food Industry Exhibition in Ho Chi Minh City, industry leaders, experts, and exporters came together to discuss strategies for advancing Vietnam’s role in the halal economy. Organized by the Vietnam Trade Promotion Agency, the event focused on equipping Vietnamese food exporters with the tools to navigate the halal certification process, meet global market demands, and address the challenges associated with halal trade.

The Halal Market

The term “halal” refers to products and services that comply with Islamic dietary laws and ethical practices. Halal certification ensures that food, beverages, cosmetics, and even pharmaceuticals are prepared according to stringent guidelines that uphold cleanliness, safety, and ethical sourcing.

This certification is increasingly recognized as a mark of quality, appealing not only to Muslims but also to a growing number of non-Muslim consumers who value the transparency and trust associated with halal products.

The global halal market is experiencing exponential growth, fueled by a surge in the Muslim population and increasing demand from non-Muslim consumers. Key statistics highlight the immense potential of this market:

1. Muslim Demographics: By 2030, the global Muslim population is expected to exceed 2 billion, accounting for 25% of the world’s population. This demographic shift is a driving force behind the demand for halal-certified goods.

2. Market Value: Currently valued at over $2 trillion, the global halal economy is projected to reach $2.8 trillion by 2028. This growth is not limited to food; it includes halal-certified cosmetics, pharmaceuticals, and even lifestyle services such as tourism and banking.

3. Beyond Muslim Countries: While countries like Indonesia, Malaysia, and Saudi Arabia dominate halal consumption, non-Muslim-majority regions such as Europe and North America are becoming significant markets. In Europe alone, the halal food market is valued at approximately $70 billion.

Vietnam’s Competitive Advantage

Vietnam ranks among the top 15 agricultural producers globally and is renowned for its exports of rice, coffee, seafood, and fresh produce. These strengths provide a solid foundation for entering the halal market.

Moreover, Vietnamese products already meet rigorous international standards such as VietGAP, GlobalGAP, and HACCP. These certifications align closely with halal requirements, making the transition to halal certification relatively seamless for many exporters.

Lê Châu Hải Vũ, Director of Consultech JSC, emphasized that halal certification is more than a regulatory requirement—it is a gateway to accessing premium markets. Halal-certified products often command higher prices, appealing to health-conscious and ethically aware consumers worldwide.

Vietnamese exporters have an opportunity to target several key markets, including:

• Southeast Asia: With countries like Indonesia, Malaysia, and Brunei leading halal consumption, Southeast Asia remains a primary destination for halal-certified products. These nations offer a strong foundation for Vietnamese exporters due to cultural and geographical proximity.

• Middle East and North Africa (MENA): Representing 20% of the global Muslim population, the MENA region is a lucrative market for halal food, particularly premium items like seafood and processed foods.

• Europe and North America: The demand for halal-certified goods is growing rapidly in Western markets, driven by increasing Muslim populations and the rising popularity of ethical and sustainable products.

• Africa: With its expanding middle class and increasing demand for quality imports, Africa is an emerging market for halal goods. Countries like Nigeria, Kenya, and South Africa are becoming hubs for halal trade.

Challenges in Entering the Halal Market

Despite its potential, entering the halal market poses several challenges:

1. Standards: The lack of globally unified halal standards creates complications for exporters. While Malaysia and Indonesia have established certification bodies, their requirements often differ, necessitating multiple certifications for different markets.

2. Certification Costs: Securing halal certification can be costly, particularly for small and medium-sized enterprises (SMEs). Costs include inspections, audits, and compliance with production standards, which can be prohibitive for smaller businesses.

3. Competition: Established players in the halal market, such as Malaysia and Turkey, have a competitive edge due to their robust halal infrastructure and government support.

4. Insights: Understanding cultural nuances, consumption trends, and packaging preferences in target markets is essential but often overlooked by exporters.

Success in the Halal Economy

To overcome these challenges and thrive in the halal market, Vietnamese food exporters must adopt a strategic approach:

• Invest in Halal Certification: Securing halal certification is the first step to entering the global halal market. Businesses should collaborate with reputable certification bodies, such as the Malaysia Halal Council (MHC) or the Indonesian Council of Ulama (MUI), to ensure compliance with market-specific standards.
• Participate in Trade Promotion: Trade shows and exhibitions, such as MIHAS (Malaysia International Halal Showcase), provide platforms for businesses to network with global buyers and gain insights into market demands.
• Leverage Digital Marketing: In the digital age, promoting halal products online can significantly expand market reach. Vietnamese exporters should invest in e-commerce platforms, social media marketing, and SEO strategies to attract both B2B and B2C customers.
• Collaborate with Local Distributors: Partnering with distributors in target markets can help navigate regulatory landscapes and build consumer trust. Local partners can also provide valuable insights into market preferences.
• Focus on Innovation: Diversifying product offerings to include halal-certified organic foods, plant-based alternatives, and functional beverages can help Vietnamese exporters cater to evolving consumer preferences.

Related: Vietnam Poised to Lead Global Halal Food Market

Success Stories from Vietnamese Food Exporters

Several Vietnamese companies have successfully entered the halal market by adopting these strategies. For example:

1. Seafood Exporters: Vietnamese seafood products, particularly shrimp and pangasius fish, have found a strong foothold in Malaysia and the UAE due to their high quality and halal certification.

2. Processed Foods: Companies exporting rice noodles and canned fruits have gained traction in Indonesia and Saudi Arabia by aligning their production processes with halal standards.

Emerging Trends in the Halal Industry

The halal market is evolving, presenting new opportunities for exporters:

• Halal Cosmetics: The global halal cosmetics market is projected to reach $54 billion by 2027. Vietnamese producers of skincare and beauty products can tap into this trend by adopting halal certification.

• Halal Pharmaceuticals: As consumers prioritize ethical and safe medicines, the demand for halal-certified pharmaceuticals is growing. Vietnamese pharmaceutical companies can capitalize on this niche.

• Sustainability: Eco-friendly and sustainable halal products are gaining popularity. Vietnamese exporters can leverage their investments in sustainable agriculture to appeal to this segment.

With its strong agricultural base, strategic location, and growing expertise in international trade, Vietnam is well-positioned to become a global leader in the halal economy. By embracing halal certification, investing in innovation, and building partnerships with key players, Vietnamese food exporters can unlock unprecedented growth opportunities.

The global halal market is more than just a business opportunity; it is a chance for Vietnam to showcase its commitment to quality, ethics, and sustainability on the world stage. For Vietnamese businesses, the time to act is now.