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Vietnam targets stronger presence in USD 2 trillion Halal market

Despite its strong export potential, Vietnam currently meets less than 10 percent of global Halal food demand.

Vietnam targets stronger presence in USD 2 trillion Halal market - 1

Muslim tourists in HCM City

Despite its strong export potential, Vietnam currently meets less than 10 percent of global Halal food demand, but the country is stepping up efforts to enhance its role in the fast-growing USD 2 trillion global Halal market.

Vietnam possesses abundant raw materials and the capacity to produce high-quality Halal-compliant goods for export. Its growing appeal as an international tourist destination also creates opportunities for the hospitality sector, including Halal restaurants and catering services.

Less than 10 percent of demand met

Ramlan Bin Osman, director of the National Halal Certification Centre (HALCERT) under the Ministry of Science and Technology, highlighted Vietnam’s untapped potential in the Halal sector. While the country’s GDP has grown steadily at 6 to 7 percent annually, Halal food exports remain underdeveloped, currently satisfying less than 10 percent of global demand.

The market is drawing increased attention from trade associations and businesses. Tran Van Hiep, vice chairman of the Vietnam Cashew Association, noted that Vietnam exported 700,000 tonnes of cashew kernels worth USD 3.8 billion in 2024.

“All our exported cashew products now carry Halal certificates alongside other quality certifications,” Hiep said. “The US is our largest market, accounting for 30 percent of exports, and also has the highest Halal requirements, followed by Europe, Australia and the Middle East.”

While demand is on the rise, Vietnamese exporters still face challenges in accessing Halal markets. Le Phu Cuong, head of the Vietnam Trade Office in Malaysia, noted that although Halal certification is not legally required for imports into Malaysia, it is widely prioritised by local distributors and retailers, given that Muslims make up around 60 percent of the population.

Pham The Cuong, Vietnam’s commercial counsellor in Indonesia, said Vietnamese firms also struggle with Indonesia’s complex certification system. Halal approval there is viewed as a non-tariff barrier due to its lengthy, expensive and bureaucratic nature, particularly for small and medium-sized enterprises.

Only one certification body in Indonesia is currently authorised, and only for food products. Companies must ensure strict food safety and hygiene standards across the entire supply chain, not just at the raw input stage. Limited familiarity with the process, alongside rising competition from other exporting countries, adds to Vietnam’s difficulties.

Halal sector seen as strategic for export growth

According to Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan, the global Halal market offers a critical opportunity for Vietnam to boost exports. With current momentum, Vietnam could significantly increase its market share within five years.

In a recent directive, the Government Office issued Official Dispatch No. 4169 relaying Prime Minister Pham Minh Chinh’s instructions on expanding Vietnam’s Halal exports. The Ministry of Industry and Trade and the Ministry of Foreign Affairs were tasked with reviewing Report No. 388/2025, dated May 8, 2025, from the Government Portal and developing an action plan for Halal market engagement.

The Halal sector is fast becoming a strategic export avenue for Vietnamese businesses. However, fully tapping into its potential will require stronger coordination among government agencies, industry stakeholders and certification bodies to establish a comprehensive Halal ecosystem that aligns with international standards.

Experts recommend targeted government support, such as budget allocations for Halal-compliant production and certification, enhanced trade promotion, and specialised training in Halal quality assurance.

Establishing credible intermediary organisations will also be key, helping businesses navigate certification procedures and ensure compliance in high-demand export markets.

Source: VOV
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