Vietnam launches national Halal certification center and Halal standards

Oct 23rd at 08:14
23-10-2024 08:14:16+07:00

Vietnam launches national Halal certification center and Halal standards

With its total market scale projected to reach US$10 trillion in 2030, the Halal industry is a lucrative market for Vietnamese exporters.

The Vietnamese Government today (October 22) introduced the National Halal Certification Center (HALCERT) and the Vietnam Halal Standards to promote the Halal economy in the country.

The international conference on Halal industry development in Hanoi on October 22. Photo: VGP

Five cooperation agreements were also signed today between the GCC Certification Center, the Korean Halal Organization, the European Halal Certification Center, the Halal Academy under GAE Ltd (Malaysia), and the Quang Ninh Tourism Association with Vietnamese regulatory agencies concerning Halal standards.

These are significant milestones reflecting Vietnam's efforts to tap into the global Halal market, which is expected to reach a value of US$10 trillion by 2030.

The establishment of the National Halal Certification Center positions Vietnam as a reliable supplier of Halal products, creating new opportunities for Vietnamese businesses, said Yousif S. AlHarbi, Vice President of the Saudi Food and Drug Authority (SFDA) and the Saudi Halal Center, at an international conference on the Halal industry in Hanoi.

He noted that the core requirements for Halal products – purity, ethical standards, and harmony with nature – are deeply embedded in Vietnamese culture.

This creates an excellent opportunity for Vietnam to integrate Halal standards into its export products, he added.

With its unique advantages, Vietnam is emerging as a crucial link in the global Halal supply chain, potentially becoming a hub for Halal product manufacturing and distribution, he said.

The Halal market is diverse, encompassing products such as food, pharmaceuticals, cosmetics, and fashion, said Mohamed Jinna, Chairman of the Indian Halal Certification Authority.

Vietnam is at a prime moment to seize these opportunities, and entering this market is a strategic step to integrate more deeply into the global Halal economy, he said.

Mohamed believed that Vietnam has the potential to become a key player in the global Halal market and even a hub of the Halal economy.

Participants at the conference. Photo: VGP

Prime Minister Pham Minh Chinh stated that developing the Halal industry helps connect Vietnam's people, economy, and culture with the world, particularly with the Muslim world.

“It drives the development of the Halal industry in Vietnam to be more comprehensive, professional, and inclusive, enabling the country to participate in the global sustainable value chain,” he added.

Prime Minister Chinh outlined several actions taken by the Government and businesses to boost the domestic Halal sector, including investments in production and expanding exports to the global Halal market.

He emphasized that Vietnam’s political, economic, and social stability, along with its rapid economic growth and high personal income levels, are favorable conditions for Halal sector growth.

"Vietnam's consistent foreign policy of being a good friend and partner, combined with its status as one of the world's largest agricultural exporters, further enhances its Halal potential," said Chinh.

He added that Vietnam views the development of the Halal sector as a "golden opportunity" to enhance cooperation with the global Muslim community, grounded in respect for cultural values and a commitment to contributing positively and responsibly to building a peaceful, cooperative, diverse, and harmonious world.

He urged international organizations, businesses, and governments to share experiences with Vietnam in setting Halal standards and supporting the development of the domestic Halal industry. The Prime Minister called for increased negotiations and agreements on Halal cooperation and invited Halal investors to operate in Vietnam.

Prime Minister Chinh also encouraged efforts to promote, market, and raise awareness of Vietnamese Halal products and brands globally, as well as to foster people-to-people exchanges to bring Vietnamese Halal products to international consumers.

Vietnam’s massive Halal potential

According to the Global Islamic Economy Report (SGIE), spending on Halal food grew nearly 7% even during the Covid-19 pandemic, reaching $1.27 trillion in 2022 and projected to rise to $1.67 trillion by 2025. Meanwhile, Cognitive Market Research estimates that the global Halal food market will surpass $2.5 trillion this year and could reach $4.9 trillion by 2031.

Prime Minister Pham Minh Chinh delivers his remarks at the conference. Photo: VGP

There are currently over two billion Muslims worldwide, and this population is projected to grow to nearly three billion by 2050, representing almost 30% of the global population. This indicates significant potential for Vietnam to tap into the global Halal market.

However, Vietnamese businesses' Halal exports to Muslim countries remain modest.

Indonesia, home to the world's largest Muslim population (87% of its 278 million citizens), ranks only 10th globally in Halal product production. The country still imports 12.6% of its total Halal food consumption.

In 2023, Indonesia's total Halal trade was valued at approximately $64 billion, with $50 billion in exports and $14 billion in imports. Meanwhile, Vietnam’s Halal exports to Indonesia were only around $30 million.

According to Ly Kim Chi, Vice President of the Ho Chi Minh City Business Association (HUBA) and President of the Ho Chi Minh City Food Association (FFA), Halal standards and regulations are becoming increasingly stringent.

Chi cited an FFA report showing that many well-established Vietnamese companies, such as Vinamilk, Bibica, and Cholimex, have already secured Halal certification and have been exporting to Muslim markets for years, achieving positive results.

"However, the overall export value remains modest compared to the potential," Chi noted.

Halal food consumption is viewed as a religious obligation that Muslims must adhere to, and Halal certification is a critical part of this process, she explained.

Nguyen Van Cam of C.P. Vietnam Corporation suggested that the Ministry of Agriculture and Rural Development (MARD) and the Department of Animal Health should showcase bird flu-free zones on the World Organization for Animal Health (WOAH) website to boost exports.

The Ministry should focus on geographic indications for fresh frozen meat and continue negotiating with markets to maximize product opportunities based on demand, he added.

MARD’s Deputy Minister Phung Duc Tien highlighted Vietnam’s ability to export over $50 billion in agricultural products annually and its established supply chains offer opportunities for Vietnamese agricultural and seafood products to enter the Halal market if investments are made effectively.

"The Halal market presents tremendous opportunities for Vietnam’s livestock and broader industries," Tien said.

Prime Minister Pham Minh Chinh visits a Vietnamese Halal counter at the conference. Photo: VGP

"Businesses must have concrete plans and timelines for each task so that MARD can provide timely support to ensure the entire production process – breeding, farming, feed, slaughtering – meets Halal standards," he said.

Bilateral cooperation with government agencies and industry experts is crucial, Tien said, as Vietnam aims to build a stringent production process that fully complies with Halal standards.

Minister of Science and Technology Huynh Thanh Dat acknowledged that the Halal product market has expanded globally, reaching both Muslim and non-Muslim countries, and developed and developing economies alike.

This growth is driven by the fact that Halal products meet high standards for food safety, health, quality, and ethical production, all while contributing to environmental protection, he said.

"This presents a major opportunity for Vietnam, which boasts advantages in agriculture, processing industries, and exports," Minister Dat said.

“Vietnam also has a strong foundation in science and technology, enabling it to develop high-quality Halal products that meet the strict requirements of international markets.”

In recent years, the Ministry of Science and Technology (MoST) has proactively developed national standards for Halal, including standards for Halal food, agricultural production, animal feed, Halal slaughtering, and Muslim-friendly tourism services, he added.

These national standards will help Vietnamese tourism and travel companies add value to their products by serving customers from the Middle East and other Muslim-majority countries, contributing to the development of Vietnam’s Halal industry, the minister concluded.

Hanoi Times





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