Việt Nam Needs to Target Halal Markets

Imagine unlocking a multi-billion-dollar market that is rapidly growing and ethically conscious—this is the opportunity Việt Nam faces with the global halal market. Halal products and services, which adhere to Islamic dietary laws and ethical standards, are not only in high demand among the world’s two billion Muslims but are also becoming increasingly popular among non-Muslim consumers seeking ethical and sustainable products. In this context, Việt Nam stands at a crossroads with an enormous opportunity to expand into this booming market.

But why should Việt Nam target halal markets, and how can it succeed? Let’s explore the potential and challenges, and more importantly, how Việt Nam can position itself as a major player in the global halal industry.

A Market with Enormous Potential

Here’s a staggering fact to consider: the global halal market is projected to reach $5.8 trillion by 2032. This growth is driven by the expanding Muslim population, particularly in Southeast Asia, the Middle East, and Africa, along with a rising interest in ethical and sustainable consumption practices globally. The halal market is not just limited to food—it encompasses a broad range of sectors including cosmetics, pharmaceuticals, tourism, and even finance.

For Việt Nam, which is already a major exporter of goods, tapping into the halal market could mean exponential growth. Countries such as Malaysia, Indonesia, and the UAE, all of which have significant Muslim populations, are key destinations for halal-certified products. Việt Nam’s proximity to these nations gives it a strategic advantage, but it needs to invest in gaining halal certification and building a supply chain that meets halal standards.

Why Việt Nam Needs to Act Now

The global halal market is not just growing—it’s competitive. Countries like Malaysia and Indonesia are already major players in this space, and Việt Nam risks falling behind if it doesn’t act quickly. One of Việt Nam’s key strengths is its established agricultural and manufacturing sectors, which could be expanded to cater to halal needs.

Currently, Việt Nam exports a wide range of agricultural products including seafood, rice, and coffee. If these products were halal-certified, Việt Nam could tap into a wider audience. This is particularly important in markets like the Middle East, where halal certification is non-negotiable. In fact, 94% of consumers in the Middle East check for halal labels before making a purchase, demonstrating the high demand for certified products.

The Halal Certification Process: An Essential Step

To succeed in halal markets, Việt Nam must prioritize halal certification. This involves not only ensuring that food and products adhere to Islamic dietary laws but also addressing broader ethical concerns such as fair trade, environmental sustainability, and humane animal treatment. Many halal certifications also cover non-food items like cosmetics, pharmaceuticals, and fashion, broadening the scope of Việt Nam’s potential exports.

Obtaining halal certification can be a complex and stringent process, but it is essential. Certification bodies like JAKIM in Malaysia and the Halal Certification Agency in Indonesia are globally recognized and could serve as benchmarks for Việt Nam’s emerging halal certification efforts.

Learning from Regional Leaders: Malaysia and Indonesia

Việt Nam can learn valuable lessons from regional leaders like Malaysia and Indonesia, which have become key exporters in the halal market. Malaysia, in particular, is a world leader in halal certification and has developed a robust halal ecosystem that includes logistics, food production, and even halal tourism. Malaysia’s government has provided significant support to the halal industry, helping it expand not just locally but globally.

Việt Nam could replicate this success by creating a national halal strategy that aligns government support, trade incentives, and certification processes. The Vietnamese government could consider working closely with the Organisation of Islamic Cooperation (OIC) and ASEAN to strengthen its halal export framework and establish international partnerships.

Việt Nam’s Strengths: Agriculture and Beyond

One of Việt Nam’s key advantages in entering the halal market is its strong agricultural base. Việt Nam is a major producer of rice, seafood, coffee, and fruit, and many of these products are in high demand across Muslim-majority countries. For example, the Middle East is one of the largest importers of rice, and halal certification would allow Việt Nam to compete more effectively with traditional suppliers like Thailand and India.

Additionally, Việt Nam has a thriving manufacturing sector, producing textiles, electronics, and pharmaceuticals—all of which have halal market potential. With halal certification, Việt Nam could diversify its exports and appeal to Muslim consumers worldwide, particularly in the halal cosmetics and pharmaceutical sectors, which are seeing exponential growth.

Tapping into Halal Tourism

Another area Việt Nam could explore is halal tourism. With Muslim travelers making up a significant portion of global tourism, there is a growing demand for Muslim-friendly destinations that offer halal food, prayer facilities, and culturally appropriate accommodations. In 2022, the Muslim travel market was valued at over $220 billion, with predictions that it will reach $300 billion by 2026.

Việt Nam is already a popular destination for tourists from all over the world, but it could further attract Muslim travelers by developing halal tourism infrastructure. This includes offering halal-certified restaurants, creating Muslim-friendly tour packages, and ensuring that hotels provide prayer facilities and other services that cater to the needs of Muslim travelers.

While the potential is immense, entering the halal market comes with challenges. One of the most significant obstacles Việt Nam faces is awareness and education—both for producers and consumers. Vietnamese companies must learn how to navigate the certification process, which can be rigorous and complex. Moreover, awareness among domestic producers about the benefits of halal certification remains limited.

Additionally, Việt Nam must invest in halal-specific infrastructure, such as halal-compliant logistics, processing facilities, and supply chain management. Meeting the strict requirements of halal certification will take time, but the long-term benefits of accessing a massive, growing market far outweigh the initial challenges.

As the global halal market continues to expand, Việt Nam stands at a pivotal moment. With its strong agricultural base, growing manufacturing capabilities, and strategic location in Southeast Asia, Việt Nam is uniquely positioned to become a major player in the halal economy. However, this will require coordinated efforts from both the public and private sectors, with a focus on halal certification, infrastructure development, and targeted marketing.

By embracing halal markets, Việt Nam has the opportunity to not only increase its export revenues but also strengthen its trade ties with Muslim-majority nations and create a more inclusive and diverse economy. The halal market is more than just an economic opportunity—it’s a chance for Việt Nam to play a leading role in a rapidly growing, ethically driven global industry.

The question is no longer if Việt Nam should target halal markets, but how quickly it can capitalize on this incredible opportunity.