The increasing number of Vietnamese agricultural and food items receiving Halal certification presents a significant opportunity for local products to swiftly enter the global Muslim market. Vietnam is enhancing its export market structure, with a focus on diversifying markets and reducing dependence on traditional trading partners.
With over two billion Muslims globally, constituting about a quarter of the world’s population, the Halal market is expected to reach around US$5 trillion by 2030, expanding beyond food and beverages to sectors like cosmetics, pharmaceuticals, logistics, tourism, and Islamic finance.
The Halal market has evolved from a niche market to a comprehensive consumer market that prioritizes ethical standards, traceability, transparency, and production integrity. Non-Muslim consumers are also showing interest in Halal products as a symbol of quality, safety, and sustainability.
Given Vietnam’s strengths in tropical agriculture, food processing, and integration through free trade agreements, the country is well-positioned to develop a structured Halal industry. However, achieving a competitive edge requires viewing Halal certification not only as a standard but also as an industry-wide growth strategy.
Companies like HR Essence Co, Ltd are proactively engaging with the Halal market, with several of their products, including coffee and cereals, obtaining Halal certification. This move signifies a comprehensive restructuring of the value chain, from sourcing raw materials to branding and market access strategies.
Vietnamese Halal products are transitioning towards higher value-added positioning with a focus on branding and traceability. HR Essence successfully exported its first shipment to Malaysia shortly after receiving certification, tapping into one of the region’s most demanding Halal markets.
Malaysia, with a majority Muslim population, aims to become a global Halal hub by 2030, positioning itself as a significant player in the Halal market. Accessing this market not only signifies a commercial milestone for Vietnamese goods but also opens doors to other Muslim-majority markets in the Middle East.
While gaining Halal certification is not mandatory for all products, it is often a crucial requirement for entering modern distribution systems. Vietnamese firms face challenges in integrating into the complex and costly Malaysian Halal ecosystem due to technical and cultural factors.
To thrive in the Halal market, Vietnamese enterprises need to invest in market research, product redesign, supply chain standardization, and brand-building that align with ethical and sustainable values. The establishment of a National Halal Certification Centre in Vietnam is a significant institutional advantage that should be expanded to offer strategic advisory services, training, and market connectivity.
In conclusion, Halal certification is not merely a certificate but a competitive arena that demands strong governance, strategic foresight, and ongoing commitment for companies to succeed and expand in the long term.