July 24, 2024

 

Strong potential for Vietnam in exporting halal products, industry official highlights

 

Vietnam has significant potential to produce and export halal products, given its abundant raw material sources and location in Asia, where about 62% of the world's Muslim population lives, according to Ly Thi Kim Chi, chairwoman of the Ho Chi Minh City Food and Foodstuff Association.

 

Chi was speaking at the seminar "Halal Market: Concept, Potential, and Challenges" held on July 13 in Ho Chi Minh City, Vietnam.

 

"Vietnam is one of the world's largest exporters of agricultural products, with many key items such as rice, rubber, tea, cashew nuts, coffee, and pepper," she said. "The country's territory is close to halal markets in Asia. Within Southeast Asia, Indonesia, the world's most populous Muslim country, is a potential market for Vietnamese businesses."

 

The Southeast Asia-South Pacific region is a potential export market for halal products, with about 860 million people being practicing Muslims. The region is the largest consumer of halal food globally, with about $470 billion, of which Southeast Asia accounts for $230 billion and South Asia-South Pacific at $238 billion, said Nguyen Tuan, deputy director of the Ho Chi Minh City Investment and Trade Promotion Center, at the seminar.

 

Vietnam is actively implementing a project to develop relations with countries in the region during the 2016-2025 period, including high-level declarations with some key partners on cooperation, promoting export-import, and certifying halal products.

 

Vietnam is also an important link in many leading regional economic connections, with 16 free trade agreements (FTAs), including some new-generation FTAs.

 

However, to export food and agricultural products to the Muslim market, businesses need to comply with halal standards as regulated by GSO.

 

Also discussing about this issue, on July 12, the Trade Promotion Agency under the Ministry of Industry and Trade also organised a seminar on promoting trade to the African-Middle Eastern market with the theme "Potential to Promote Halal Agricultural Products in the Middle Eastern Market." The seminar attracted a large number of import-export businesses and agricultural product sectors to participate both in person and online.

 

"To ensure compliance with these standards, businesses need to obtain halal certification," said Le Chau Hai Vu, food quality halal consultant and director of Consultech JSC, at another seminar. "This certification will serve as proof for customers that the company's products have been inspected and fully meet halal standards."

 

While there are promising growth signals in agricultural exports to the Middle East, Vietnamese agricultural products have not created a strong brand there and they face fierce competition with agricultural products from other countries such as India, Sri Lanka, Thailand, China, and Brazil.

 

"To effectively enter the Middle Eastern market, Vietnamese businesses should also prioritise research to gain an in-depth understanding of market trends," said Nguyen Minh Phuong, head of the West Asia, Africa Division - Asia-Africa Market Department under the Ministry of Industry and Trade. "This includes familiarity with the region's religion, language, and business culture, as well as insight into consumer preferences and sensitivities regarding religion and culture."

- Vietnam Investment Review