Supporting enterprises in unlocking the potential of the Halal market

In recent years, Vietnam has recorded strong export growth to the Halal market, particularly in agricultural products. However, this remains a relatively new market that holds significant potential for Vietnamese enterprises. Among the key issues, food safety and sanitary and phytosanitary (SPS) standards are especially critical in the production and trade of agricultural and food exports.

Production line at Long Son Foods Co., Ltd. (Long Binh Ward) meets Halal market standards. Photo: B. Nguyen

To support agricultural producers and businesses in Dong Nai Province in accessing information and understanding the emerging Halal market, the Ministry of Agriculture and Environment, in collaboration with the Dong Nai Department of Agriculture and Environment, organized a conference to disseminate regulations and commitments on SPS measures under the VIFTA and CEPA agreements (with Israel and the United Arab Emirates).

Dong Nai enterprises tapping into the Halal market

Vietnam ranks among the world’s top 20 food exporters and is one of the 15 largest agricultural exporters globally. The country also plays a vital role in global supply chains, with 17 free trade agreements (FTAs) signed, including several next-generation, regional, and inter-regional agreements. These achievements reflect the high level of compliance of Vietnam’s agricultural and food exports with international SPS standards.

Over time, the business community and relevant stakeholders have shown a clear shift in awareness regarding compliance with SPS requirements, particularly in improving the quality of Vietnam’s agricultural and food products for international markets. Among these, the Halal market has attracted early attention from many agricultural processors and exporters in Dong Nai Province.

Vu Thi Thu, Deputy Head of Quality Management at Long Son Food Co., Ltd. (Long Binh Ward), shared that: The company has held Halal certification for over 10 years. This certification has opened up tremendous opportunities for Long Son to expand export markets. Currently, exports of cashew nuts to Halal markets account for about 5–10% of the company’s total export volume. Exports to Halal markets are gradually increasing, as demand for nut-based and health-oriented products continues to grow rapidly. Even non-Muslim consumers favor Halal-certified products, which means the potential for market expansion remains very high.

According to Thu, obtaining Halal certification in the cashew industry is not particularly difficult, as the nature of cashew nuts already meets Halal standards. When applying for certification, the company encountered no major obstacles, as it primarily required adjustments in management to fully comply with the Halal market's requirements. In the coming period, Long Son plans to actively participate in seminars and trade promotion programs to boost exports to this market.

Sharing the same view, Le Tri Thong, Head of Production at GC Food Joint Stock Company (located in Ho Nai Industrial Park, Ho Nai Ward), said that from its early days, the company had identified agricultural exports as its target market, and therefore obtained various export certifications, including Halal. From factory construction to production processes, our operations strictly follow Halal standards. Currently, the company exports an average of 500 tons of nata de coco and 500 tons of aloe vera per month to Muslim countries. In recent years, exports to the Halal market have proliferated, and the company considers this one of its key markets for continued investment in the near future.

Ample growth potential

Experts assess the Halal market as a relatively new sector with significant untapped potential. The global Muslim population currently stands at around 2 billion people, accounting for 25% of the world’s total population. The global Halal economy is projected to grow to approximately USD 10 trillion by 2028. Within that, the Halal food market alone is estimated to be worth nearly USD 5 trillion in 2024. Muslim consumer spending on tourism is expected to reach USD 325 billion by 2030. Priority markets include Southeast Asia, the Middle East, and Africa.

Nguyen Thanh Duy, Deputy Director General of the Department of Middle East and Africa under the Ministry of Foreign Affairs, affirmed that Muslim-majority countries have a strong demand for Vietnamese products and maintain good trade relations with Vietnam. However, he noted that the Halal market has yet to receive adequate attention from Vietnamese enterprises and has not generated the same level of interest as markets like China or the European Union. The government and relevant ministries have been focusing on supporting localities and businesses in tapping into the Halal market. As a new market with considerable growth potential, early and proactive engagement is expected to give Vietnamese enterprises a competitive advantage in the coming period.

Offering a different perspective, Le Chau Hai Vu, Vice Chairman of the Vietnam Agribusiness Club, emphasized that the difficulties businesses cite in meeting Halal market standards should not be seen as barriers. Enterprises need to shift their mindset to find effective solutions. From the outset, they must determine whether this new market is large and promising enough to justify investment. Businesses need to overcome their hesitation and concerns about regulatory hurdles to approach this high-potential market confidently. The Vietnam Agribusiness Club has a strong team of experts specializing in the Halal market, ready to provide consultation and support for enterprises seeking to enter and expand in this sector.

The Halal market is new, both in concept and approach; however, Vietnamese agricultural products are of high quality and have already gained access to some of the world’s most demanding markets. When entering this new market, businesses need to be fully prepared in terms of quality and standards to effectively overcome technical barriers.

Ngo Xuan Nam, Deputy Director of the Vietnam SPS Office, stated that transparency is one of Vietnam’s core commitments as a member of international trade organizations. All enterprises, organizations, individuals, and regulatory agencies have the right to comment on draft notifications related to food safety and animal and plant quarantine within 60 days of receipt. We should make full use of this right, because once these measures are enacted, we are obligated to comply. In the past, changes to regulations on product quality and packaging were rare; however, such updates now occur frequently. Businesses must stay informed and respond promptly to new requirements. Food safety and disease control are transparent and public issues, as these are not barriers, but regulations that enterprises must comply with.

By Binh Nguyen - Translated by Quynh Nhu, Minho