Vietnamese producers have way to go to gain ground in Halal markets
Vietnamese producers have way to go to gain ground in Halal markets
Vietnamese producers still have a lot of work to do to gain ground in theglobal Halal industry, which is expanding rapidly and is expected to reach US$10 trillion in value by 2028.
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 |
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 exporterin the sectorthanks 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, giventhat the country is still in the early stages of entering the markets. Specifically, merely50 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 tothe increasingpopulation of the Muslim world and their growing popularity among non-Muslim consumers.
Despite the untapped potential, it would be no mean feat forVietnamese producersto expand their commercial presenceinIslamiccountries because the countriesset the bar veryhigh on Halal-certified imports.
It was also worth noting thatHalal markswerenot 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 specialistsin Việt Nam are trained in Halal certification. However, that does notmean the door is shut for good.
The diplomatsuggested Việt Nam develops its own Halal certificationsand strengthen its ties with experienced partners to keepproducers well-informed about the foodstandards.
Haji Machdares Samael,Chairman of the Muslim Committee in HCM City, said Islamic countriesraising the bar on imports would have a profound effect on Vietnamese exports.
There are multiple Halal systems in the world, so it is essentialforViệt Namto cooperate with other Halal-granting organisations to get its own Halal marks recognised by them.
