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HotlineThe Halal food market, catering to Muslims and generating billions of dollars in revenue, has become a lucrative opportunity for Vietnamese businesses looking to expand their potential customer base. This is particularly true for product groups in which Vietnam has a competitive advantage, such as seafood, tea, and agricultural products.
It is estimated that nearly 1.5 billion Muslims worldwide consume only Halal food. The global Halal food market generates trillions of dollars annually, and its consumption is expected to grow steadily in the future. To seize this opportunity, Vietnamese businesses have begun developing raw material regions and meeting market standards. This is especially true for product groups where Vietnam holds an advantage, including tea, seafood, and agricultural produce.
According to Pham Sanh Chau, Vietnamese Ambassador to India, many Vietnamese export products are suitable for Halal certification, such as seafood and agricultural products. Currently, around 50 Vietnamese companies obtain Halal certification each year, primarily for seafood, beverages, canned food, confectionery, vegetarian food, and pharmaceuticals.
Several Vietnamese companies, including Orion Vina, Vinamilk, Nestlé Vietnam, Cai Lan Oils and Fats Industries, Tuong An Vegetable Oil Company, and Minh Phu Seafood, have received Halal certification.
Vietnam's key export products, such as rice, coffee, pepper, tea, seafood, fruits, and cereal products, have already penetrated and established a presence in Muslim-majority markets, such as the Middle East and Africa.
However, according to Nguyen Quoc Toan, Director of the Department of Agricultural Product Processing and Market Development (Ministry of Agriculture and Rural Development), market information is not yet widely understood or effectively implemented by many businesses. "Previously, we often associated the Halal food market with the Middle East. However, in reality, the Halal market also includes regions like the European Union and the Asian bloc, which account for two-thirds of the global Halal market (including Indonesia, Malaysia, and other areas)," Toan noted.
According to Egyptian Ambassador to Vietnam, Mahmoud Hassan Nayel, Vietnam is one of the world's largest exporters of food products, especially agricultural and seafood products, which align well with Halal standards. With Vietnam's strong relationships with Muslim countries, the potential for this market will continue to grow as long as Halal standards are met.
Nguyen Thi Diem Hang, Deputy General Director of Vinapharma Group, shared her insights after a trade promotion trip to the UAE and Dubai in February 2020. Upon her return, she began restructuring the entire planting system to meet soil and water standards, establishing raw material zones that comply with GlobalGAP standards and follow organic practices. Additionally, the company built a GMP-standard factory and underwent Halal assessments to obtain Halal certification, aiming to export its products to the UAE and Dubai markets.
According to Diem Hang, the Middle East is rich in gold and oil, but 100% of its food products are imported. While countries like Thailand, China, and the Philippines dominate the Middle Eastern market, Vietnamese products struggle to enter due to small-scale production and a lack of understanding of market standards. To succeed, Vietnamese companies must meet requirements such as large-scale, clean raw material areas cultivated under GlobalGAP or organic practices and pharmaceutical or food factories meeting ISO, FDA, and GMP standards.
Halal certification is a religious standard for Muslims, requiring products to meet strict cleanliness requirements in water, soil, factory conditions, and production processes. These regulations are quite stringent, demanding the purest and cleanest products.
"This is a highly potential market and a gateway to the world. Once you penetrate the Middle Eastern market, you gain access to European and American markets. Products certified as Halal are recognized for their quality worldwide," Diem Hang emphasized.
With its existing product lines, Vinapharma Group's success in developing "super giant celery" once again affirms its leadership in product quality, innovation, and technological breakthroughs, further strengthening the Vietnamese brand. Diem Hang shared that their raw material area is expected to receive GlobalGAP certification, and the company aims to achieve Halal certification to export its products to the Middle East and other Halal markets.
According to Ambassador Mahmoud Hassan Nayel, Egypt is open to importing Halal food products and ready to collaborate with Vietnamese businesses. However, no unified Halal standard exists across all Muslim countries. For example, Egypt uses regular water for food processing, whereas Indonesia requires Halal-certified water. Additionally, slaughter and food processing regulations differ among countries.
Therefore, Egypt offers training programs to help Vietnamese specialists understand the necessary techniques and standards for Halal food preparation and processing. However, Vietnamese businesses should proactively study each Muslim market's specific requirements and technical standards. "Generally, global Muslim regulations share significant similarities, but technical details vary by country," Mahmoud Hassan Nayel explained.
Halal certification acts as a "passport" to access these markets. According to Nguyen Quoc Toan, Halal certification encompasses multiple aspects, including quality standards, religious beliefs, and cultural norms. Therefore, to successfully market products in this segment, businesses must have a deep understanding of the culture, religious practices, and market dynamics. Additionally, transparent communication and targeted marketing are essential for tapping into the Halal market.
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