Vietnam’s First Halal Conference Spotlights Economic and Diplomatic Opportunities

Vietnam is emerging as a strategic player in the global halal economy, aiming to leverage its geographic position and agricultural strength to tap into the lucrative and rapidly expanding halal market. By hosting “Vietnam’s First Halal Conference” in Hanoi, under the theme “Fostering International Cooperation and Mobilizing Internal Resources to Develop Vietnam’s Halal Industry,” the nation has taken a significant step toward positioning itself as a key producer and exporter of halal products. The event emphasized economic opportunities and underscored the country’s commitment to strengthening its diplomatic and economic relations with the global Muslim community.

Vietnam’s Halal Initiative

Vietnamese Prime Minister Phạm Minh Chính opened the conference by highlighting the strategic importance of the halal sector for the nation’s economic and diplomatic goals. “Developing the halal market is not just a new economic opportunity; it’s a pivotal pillar of international cooperation,” Chính remarked. “We see it as a driving force that will help strengthen our relationships with countries, especially within the Muslim world.” He further encouraged Vietnamese businesses to recognize this “golden opportunity” to improve their production capacities, form partnerships, and participate actively in the global halal value chain.

Vietnam’s entry into the halal market comes at a time when the global halal economy is witnessing exponential growth, driven by a rising Muslim population and increasing consumer demand for halal-certified products across various sectors. The global halal market, encompassing food, cosmetics, pharmaceuticals, and other consumer products, is valued at over $2 trillion and is expected to grow steadily. In 2023, the global halal food market alone was worth approximately $1.9 trillion, with estimates projecting it to reach nearly $3 trillion by 2030.

Vietnam’s Geographic Advantage

Vietnam’s location in Southeast Asia gives it a unique advantage in accessing halal markets, particularly those in Muslim-majority neighboring countries like Indonesia, Malaysia, and Singapore. These nations are major importers of halal products, offering Vietnam a gateway to penetrate and expand its influence in the region. Vietnam’s geographic position also makes it a natural bridge for connecting with the wider Asia-Pacific market, which has seen increasing demand for halal products from non-Muslim consumers who value halal standards for their quality, safety, and ethical considerations.

The country’s robust agricultural sector, which includes strong production in coffee, seafood, rice, and spices, provides a solid foundation for entering the halal market. Agricultural, forestry, and fishery exports from Vietnam are projected to reach $54 billion in 2024. By implementing halal certification across its agricultural supply chain, Vietnam could diversify its export portfolio and target Muslim-majority countries, as well as non-Muslim markets where halal products are gaining popularity.

Strengthening the Halal Ecosystem

Vietnam’s focus on building a strong halal infrastructure is evident in its efforts to establish a comprehensive certification system that adheres to international standards. At the conference, the Halcert Authority, a Vietnamese agency under the Ministry of Science and Technology, signed memorandums of understanding with four renowned halal certification bodies: GAE Resources Malaysia Sdn Bhd, the Korea Halal Agency, MUIS Singapore, and the European Certification Centre. These partnerships aim to enhance cooperation in training, certification processes, and the mutual recognition of halal standards, which will be essential for Vietnam’s integration into the global halal supply chain.

Ramlan Osman, director of Halcert Authority, stressed the importance of these partnerships, saying, “Vietnam is ready to enter the halal economy, signaling to the world that we are prepared to comply with global standards and develop the necessary human capital for the halal sector.” The country’s certification efforts are focused not only on food products but also on other sectors such as cosmetics, pharmaceuticals, and lifestyle goods, which are gaining traction in the halal market.

As part of its strategy to support local businesses, Vietnam is working on establishing a network of halal-certified training centers that will educate companies on the requirements for obtaining halal certification and maintaining compliance. This initiative is designed to empower Vietnamese enterprises with the knowledge and skills needed to compete in international markets, thus enhancing the overall competitiveness of the country’s halal industry.

Related: Vietnam PM Pushes for Halal Expansion

Vietnam’s First Halal Conference

Vietnam’s efforts to develop its halal economy are not solely driven by economic motives; they also aim to strengthen diplomatic relations with the Muslim world. The country recognizes that by investing in the halal sector, it can enhance its standing as a partner to the global Muslim community and expand its international influence. This strategic initiative has the potential to open new avenues for bilateral and multilateral cooperation in various fields, including trade, tourism, education, and cultural exchange.

By participating actively in the global halal economy, Vietnam seeks to position itself as a reliable partner for Muslim-majority countries that are looking for diverse sources of halal products. The growing Muslim population worldwide, currently estimated at around 1.8 billion, represents a substantial market for halal-certified goods. Additionally, non-Muslim countries with significant Muslim communities, such as the United States, the United Kingdom, and France, offer further export opportunities for Vietnam’s halal products.

Vietnam’s halal initiative is also in line with its broader diplomatic efforts to diversify trade relations and reduce economic dependence on traditional markets. By strengthening ties with the Organization of Islamic Cooperation (OIC) member states, which collectively have a GDP of over $7 trillion, Vietnam can tap into new markets and attract investments in areas such as halal tourism, Islamic finance, and halal-certified manufacturing.

Halal Tourism

Vietnam’s entry into the halal economy is not limited to food and consumer products; the country is also looking to develop its halal tourism sector. Halal tourism, which caters to the needs of Muslim travelers by providing halal food, prayer facilities, and culturally appropriate accommodations, is a rapidly growing segment of the global travel industry. In 2023, the global Muslim travel market was valued at approximately $220 billion, with forecasts indicating it could reach $300 billion by 2030.

As a popular tourist destination, Vietnam is already attracting millions of visitors annually, and there is significant potential to cater to the growing number of Muslim tourists. The Vietnamese government has recognized this opportunity and is working to promote the country as a Muslim-friendly destination. Several hotels and resorts in popular tourist areas like Da Nang, Nha Trang, and Phu Quoc have already begun offering halal-certified dining options and prayer facilities to accommodate Muslim guests.

The development of halal tourism is also supported by the Vietnam National Administration of Tourism, which is collaborating with travel agencies, hotels, and airlines to create travel packages that appeal to Muslim travelers. By enhancing the availability of halal-certified services and promoting its cultural and natural attractions, Vietnam could emerge as a preferred destination for Muslim tourists in Southeast Asia.

Community Involvement

While the focus of “Vietnam’s First Halal Conference” was largely on international collaboration and market expansion, domestic efforts to promote halal awareness are also underway. Vietnam is home to around 90,000 Muslims, and the local halal market, though small, serves as a foundation for broader outreach efforts. The government is working with local Muslim communities to ensure that halal standards are understood and maintained, thereby fostering a culture of compliance and quality.

Efforts to promote halal awareness extend to educational institutions, where programs on halal food production, Islamic finance, and cultural sensitivity training are being introduced. The aim is to equip future business leaders and policymakers with the knowledge required to navigate the complexities of the halal economy and engage effectively with the global Muslim market.

Strategies for Overcoming Barriers

Despite the optimism surrounding Vietnam’s entry into the halal market, several challenges need to be addressed. Establishing a reliable and internationally recognized halal certification infrastructure is crucial to gaining the trust of Muslim consumers and meeting the diverse regulatory requirements of various markets. The government has acknowledged the complexities of these regulatory landscapes and is working closely with established halal certification bodies to ensure that Vietnamese products meet the necessary standards.

Another challenge lies in scaling up production to meet international demand while maintaining high-quality standards. This will require investments in technology, infrastructure, and workforce development. Vietnam is actively seeking foreign investment and expertise to help modernize its halal production facilities and streamline supply chain processes. By integrating technology such as blockchain for traceability and quality assurance, the country could enhance the transparency and reliability of its halal-certified products.

Additionally, there is a need to raise awareness among Vietnamese businesses about the benefits of halal certification. Many local companies may still be unfamiliar with halal requirements or perceive them as too stringent. To overcome this barrier, the government and halal industry leaders are launching educational campaigns to inform businesses about the economic potential of the halal market and provide support for certification processes.

Sustainability in Vietnam’s Halal Strategy

As global consumers increasingly prioritize sustainability, Vietnam has an opportunity to distinguish itself in the halal market by integrating sustainable practices into its halal-certified products. This could involve adopting eco-friendly farming techniques, reducing waste in production, and using sustainable packaging. For instance, Vietnam’s seafood industry, one of its key export sectors, could focus on sustainable fishing practices to appeal to environmentally conscious consumers in the halal market.

Sustainability efforts could extend to halal tourism, where Vietnam could promote eco-tourism experiences that align with Islamic principles of ethical and responsible travel. By emphasizing sustainability in its halal strategy, Vietnam could not only meet the demand for halal products but also contribute to the global movement towards ethical consumption and sustainable development.

Vietnam’s Path to Halal Market Leadership

Vietnam’s efforts to develop its halal economy mark an important step toward becoming a regional leader in the halal industry. By mobilizing internal resources, fostering international cooperation, and building a robust halal infrastructure, the country is positioning itself to capitalize on the growing global demand for halal-certified products. The outcomes of “Vietnam’s First Halal Conference” have set the stage for future growth, with a clear focus on economic opportunities, diplomatic engagement, and sustainability.

Moving forward, Vietnam aims to expand its halal certification capabilities, attract foreign investments, and deepen its partnerships with leading halal industry players. The country’s proactive approach could serve as a model for other non-Muslim majority nations seeking to participate in the global halal market. As Vietnam continues to invest in its halal economy, it has the potential to become a key supplier of halal products not only within Southeast Asia but also in markets across the Middle East, Europe, and beyond.

Vietnam’s entry into the halal market represents a strategic effort to diversify its economy and strengthen its diplomatic ties with the global Muslim community. With the right investments, partnerships, and policy initiatives, Vietnam could transform itself into a significant player in the halal economy, driving economic growth and forging new international relationships. As the global halal market continues to evolve, Vietnam’s commitment to developing a competitive halal sector could make it a vital player in shaping the future of the industry.