Addressing bottlenecks in Vietnam’s halal exports

At a recent seminar titled "Halal – From Standards to Branding: New Opportunities for Vietnamese Exporters," organized by the Agency of Foreign Trade in Ho Chi Minh City, Deputy Director Nguyen Cam Trang emphasized the vast potential of the global Halal industry.

She highlighted that effective and strategic participation in the Halal market could unlock significant opportunities for Vietnam while fostering sustainable economic growth. Despite this potential, Trang said that Vietnam’s food exports to Halal markets remain in their early stages.

Vietnam's booth at Amazing ASEAN Week 2023 in Saudi Arabia hosted by the Vietnamese Embassy in Saudi Arabia. (Photo: Vietnamese Embassy in Saudi Arabia)

According to the Deputy Director, a key challenge lies in the low number of Vietnamese businesses that have obtained Halal certification and possess the capability to penetrate the global Halal market. This limitation has prevented local enterprises from fully capitalizing on the opportunities within this high-demand sector.

Lack of strategic investment and market readiness

From a business perspective, Trinh Thi Minh Thuy, Director of MT Food Import-Export and Production Company, noted that while the Muslim market offers strong demand for agricultural products, price levels remain relatively low. Furthermore, many companies approach Halal certification as a short-term trend rather than a strategic investment, leading to quick failures.

Additionally, some businesses rush into accepting orders without adequate preparation, resulting in one-time deals instead of long-term partnerships. "To succeed, companies must shift their mindset and adopt a more comprehensive approach to market entry," Thuy advised.

Ly Kim Chi, Chairwoman of the Ho Chi Minh City Food and Foodstuff Association, pointed out that many Vietnamese firms lack a clear understanding of trade regulations in Muslim-majority countries and often misinterpret Halal certification requirements. Achieving Halal certification requires not only financial investment but also thorough research into certification processes and staff training to meet strict quality standards.

Another major obstacle is the complexity of obtaining internationally recognized Halal certification. The legal procedures involved are often time-consuming, and certification requirements vary across different markets, necessitating tailored approaches for each target country.

Vietnamese enterprises also face stiff competition from countries such as Brazil, Singapore, and Indonesia, which have well-established Halal supply chains and extensive market experience. To compete, Vietnam must develop a comprehensive Halal ecosystem and establish a national brand for Halal agricultural exports.

Collaborative efforts for market expansion

Ramlan Bin Osman, Director of Vietnam’s National Halal Certification Center, emphasized the importance of choosing internationally accredited Halal certification bodies. He also underscored the necessity of maintaining high hygiene and safety standards at production facilities.

“There are two fundamental criteria for Halal certification: product permissibility and safety,” he stated.

Moreover, Bin Osman advised Vietnamese businesses to forge strong partnerships with local distributors in Halal markets, particularly in the Middle East and Africa, to facilitate market entry and long-term success.

Industry experts stress that each Muslim-majority country has its own Halal standards, meaning there is no universal certification formula. For deeper market penetration, Chairwoman Ly Kim Chi called for stronger collaboration between the government, industry associations, and businesses.

She proposed that the government establish clear Halal standards and authorize reputable certification bodies, while industry associations should act as intermediaries between businesses and regulatory agencies.

“The success of Vietnam’s Halal market strategy cannot rely on individual business efforts alone. We need coordinated action among ministries, local governments, industry associations, international Halal certification bodies, and Vietnam’s trade representatives abroad to build a supportive ecosystem for Halal product development,” she emphasized.

Speaking at the seminar, Deputy Minister of Agriculture and Environment Phung Duc Tien reiterated the government’s commitment to facilitating Halal exports. He noted that under the Prime Minister’s directive, the Ministry of Agriculture and Environment has been working with companies such as De Heus Vietnam and C.P. Vietnam to access Halal markets.

Additionally, the ministry has been engaging with businesses to explore strategies for entering new markets and sustaining growth into 2025.

As part of its upcoming initiatives, the Ministry of Agriculture and Environment plans to launch a dedicated online portal providing comprehensive information on Halal market entry, assisting Vietnamese businesses in navigating this promising but complex sector.