Vietnam has many "golden advantages" to develop Halal industry

During Malaysian Prime Minister Anwar Ibrahim's visit to Vietnam in July 2024, the two countries' leaders agreed to promote cooperation in the Halal sector. (Photo: Nguyen Hong)

Huge potential

Vietnam has a lot of potential and advantages in developing the Halal industry. First of all, Vietnam has the advantage of a strategic location in Southeast Asia, close to major Muslim markets such as Malaysia, Indonesia and Singapore, so there are many opportunities for trade and export. In addition, Vietnam has a diverse and developed agriculture with many types of crops and livestock, which is a solid foundation for the Halal food industry. If the certification process is achieved, Vietnamese products will be suitable for the Halal market. In addition, the tourism industry also brings opportunities for Vietnam to become a popular destination for many Muslim tourists. Through further development of Halal-certified tourism services and products, Vietnam can attract more tourists from the Muslim world, significantly boosting tourism revenue. In particular, the Vietnamese Government recognizes the opportunities of the rapidly growing global Halal market. This expansion is driven not only by the growing Muslim population worldwide but also by the interest of non-Muslim consumers in the quality and safety standards of Halal products. Government support plays a key role in realizing the prospects of Vietnam's Halal industry. The government's interest and steps to promote Halal certification and production are significant, including the effort to launch the project "Strengthening international cooperation to build and develop Vietnam's Halal industry by 2030" in February last year. This effort not only facilitates the development of the Halal industry but also helps potential investors see Vietnam's commitment to exploiting this market.

Symbiosis across borders

I see many opportunities for further collaboration between Malaysia and Vietnam in the Halal sector. Malaysia’s Halal ecosystem is a comprehensive and robust framework that encompasses various sectors such as food, finance, pharmaceuticals, cosmetics, tourism and logistics. Our Halal certification, overseen by JAKIM (Ministry of Islamic Development Malaysia), is recognized worldwide for its stringent standards and thorough processes. On the other hand, Vietnam, with its rapidly growing economy, dynamic workforce and strategic location in Southeast Asia, is well positioned to become a key player in the global Halal market. During the official visits of the Malaysian Prime Minister to Vietnam in March 2022 and July 2023, the leaders of the two countries focused on discussing expanding cooperation in Halal development, logistics, Islamic finance and banking, Muslim-friendly tourism and hospitality, healthcare services and Halal beverages. Malaysia can share its expertise and Malaysian companies can provide capital, technology and skills to invest in Vietnam's Halal industry. In return, Vietnamese enterprises can explore opportunities in Malaysia, especially in the production of Halal food, cosmetics and pharmaceuticals. Vietnamese enterprises are encouraged to choose Malaysia as an important manufacturing location, because Malaysia can provide globally recognized Halal certification from JAKIM. With such a strategic approach, Vietnam can quickly penetrate global Halal markets, leveraging its well-established connectivity with Halal markets in Southeast Asia. Another area where the two countries can cooperate is Halal tourism. Both countries can work together through joint promotional campaigns, attracting tourists from Muslim-majority countries and promoting tourism in both countries. Cooperation between Vietnam and Malaysia in the Halal industry is not only about leveraging each other’s strengths but also about creating a symbiotic relationship across borders. Increasing market access, complying with international standards and promoting Halal innovation are just the beginning. For its part, the Embassy looks forward to working with partners and stakeholders in Malaysia and Vietnam to facilitate activities and events such as business forums, conferences, training opportunities through the Malaysian Technical Cooperation Programme (MTCP); cooperate with Vietnamese enterprises to participate in the annual Malaysia International Halal Exhibition (MIHAS). This year, MIHAS will be held from September 17-20 in Kuala Lumpur.

Minister Nguyen Hong Dien, Minister of Industry and Trade of Vietnam, received Minister of Investment, Trade and Industry of Malaysia Tengku Zafrul Aziu, and discussed Halal cooperation. (Source: Industry and Trade Newspaper)

With Halal, trust is important

Penetrating the Halal market involves building trust with Muslim consumers to ensure that the product meets Halal standards. Being certified by global organizations that are known for their strict Halal standards will increase consumer confidence. Clarity in communicating the status of a product as well as its adherence to Islamic principles is key to growing the Halal industry. Using targeted communication strategies, especially through digital channels as well as Halal-focused events can help promote the product effectively. In addition, building strong relationships with distributors and retailers specializing in Halal products is important for market expansion. Fostering collaboration with Halal industry stakeholders, both local and international, will also boost the capacity and presence of Halal products in the market. In particular, I would like to emphasize that it is essential to identify global Halal market trends, consumer preferences and changes in Halal regulations. A commitment to continuous improvement and compliance with Halal standards through consumer feedback is crucial. Malaysia, with its large Muslim population, is experiencing a growing demand for Halal products in many sectors such as food, cosmetics, pharmaceuticals and tourism. Vietnamese businesses are well-positioned to tap into our market. The geographical proximity and close trade relations between the two countries help simplify market entry processes. Furthermore, Vietnam’s acquisition of Malaysia’s globally recognized Halal certification not only opens the door to the Malaysian market but also enables Vietnam to penetrate other international Halal markets.