Vietnamese producers have way to go to gain ground in Halal markets

Saturday, Jul 15, 2023 09:42

A production line of coconut milk in Bến Tre Province. Coconut milk is one of the most popular beverages among Muslim consumers. — VNA/VNS Photo Huỳnh Phúc Hậu

Vietnamese producers still have a lot of work to do to gain ground in the global Halal industry, which is expanding rapidly and is expected to reach US$10 trillion in value by 2028.

Nguyễn Tuấn, Vice President of the Investment and Trade Promotion Centre in HCM City, said the Halal food sector catered to around 2 billion Muslim consumers around the world, topping $7 trillion in value in 2022.

Việt Nam is well-positioned to become a prominent exporter in the sector thanks to its geographical proximity to large Halal markets, such as Southeast Asia ($230 billion in value) and South Pacific ($238 billion), according to Tuấn.

However, there is a lot of work to do to get there, given that the country is still in the early stages of entering the markets. Specifically, merely 50 Vietnamese producers get Halal-certified annually, indicating ample room for improvement.

Lý Thị Kim Chi, Chairwoman of the Food and Foodstuff Association of HCM City, said the global demand for Halal products had been soaring in recent years thanks to the increasing population of the Muslim world and their growing popularity among non-Muslim consumers.

Despite the untapped potential, it would be no mean feat for Vietnamese producers to expand their commercial presence in Islamic countries because the countries set the bar very high on Halal-certified imports.

It was also worth noting that Halal marks were not permanent and not the same across countries. Vietnamese producers would have to apply for different marks when entering different markets and re-apply for the marks when they expire.

Malaysian Consul General Wong Chia Chiann revealed that "Halal" is an Arabic word that means "permissible" and "lawful".

Halal foods are those that are made, produced, manufactured, processed, and stored using machinery, equipment, and utensils that have been cleaned according to Islamic law.

The main obstacle in the way of Vietnamese producers trying to enter Halal markets is that not many specialists in Việt Nam are trained in Halal certification. However, that does not mean the door is shut for good.

The diplomat suggested Việt Nam develops its own Halal certifications and strengthen its ties with experienced partners to keep producers well-informed about the food standards.

Haji Machdares Samael, Chairman of the Muslim Committee in HCM City, said Islamic countries raising the bar on imports would have a profound effect on Vietnamese exports.

There are multiple Halal systems in the world, so it is essential for Việt Nam to cooperate with other Halal-granting organisations to get its own Halal marks recognised by them.  — VNS

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