​Vietnamese firms tap into halal markets

​Vietnamese firms tap into halal markets

Vietnamese enterprises are expanding factories, diversifying and improving the quality of their products, and investing in processing operations to penetrate halal markets.

Middle Eastern markets prefer Vietnam’s tra fish meeting halal standards. Photo: Thao Thuong / Tuoi Tre

Halal refers to food and services that are ‘legal’ under Islamic law. Halal products typically carry strict requirements related to their ingredients, processing, and transportation.

According to the Global Islamic Economy Report, spending on halal food is estimated at US$7.7 trillion by 2025 and $10 trillion by 2028.

The Muslim population currently accounts for some 24 percent of the world’s population and that proportion may increase to 27 percent by 2050.

Halal markets offer significant opportunities for Vietnamese enterprises but also present challenges due to stringent product requirements.

Vietnam's exports to these markets primarily consist of agricultural products.

Vietnam’s processed farm produce preferred

Pham Thi Huan, chairwoman of Ba Huan JSC -- a company specializing in poultry farming, animal feed production, eggs, chicken, and other processed products -- stated that while the company's products have been in various markets for years, only its eggs currently meet halal standards.

Ba Huan eggs are available in five countries and territories, including the U.S., Hong Kong, Singapore, Japan, and Malaysia.

In addition to its farm in southern Binh Duong Province, the company is constructing another facility in Long An Province, which will increase its capacity to produce halal eggs to two million per day.

With its halal certification in hand, Ba Huan is prepared to export its eggs as soon as opportunities in halal markets arise, Huan said.

Nguyen Van Thu, director of GC Food JSC in Dong Nai Province, which has been exporting aloe vera and coconut jelly products meeting Halal standards to the Middle East for over a decade, stated that the opportunities in these markets are abundant.

He noted that the company’s halal customer base has grown, adding that the key to success lies in maintaining a reliable production process.

Products meeting halal requirements are good for health, so agricultural products of Vietnam and GC Food in particular have secured market shares in the Philippines and Malaysia, Thu explained.

Countries with large Muslim populations, including Indonesia, Malaysia, Pakistan, and Bangladesh, have a high demand for importing a large volume of Vietnam’s agricultural products.

As a result, a cashew nut exporter in Dong Nai Province, which neighbors Ho Chi Minh City, has imported machines from Japan to improve the quality of cashew nuts for export to halal markets.

With good raw materials and technology, products will be of higher quality.

The machines ordered three months ago are expected to be delivered next month, the owner of the company said.

Quality remains top requirement

As each halal market has its own requirements, enterprises should invest in product quality, according to exporters.

Nearly 1,000 Vietnamese enterprises have obtained halal certificates, the Ministry of Agriculture and Rural Development reported.

Thu from GC Food JSC noted that having halal certification is just a prerequisite, high-quality products are the ultimate requirement.

Thu highlighted that the halal industry is highly competitive, and Vietnamese firms can gain consumer trust in halal markets by offering high-quality products at reasonable prices.

He stressed the importance of ensuring cultivation and production processes, breeds, and input materials meet stringent standards.

Meanwhile, a representative from a tra fish (pangasius) export company said that Vietnam still lacks unified halal standards for products exported to all halal markets.

Vietnam’s agricultural products are preferred by Muslim people and can conquer large markets thanks to the integration into the global market via free trade agreements.

However, the absence of halal standards is an obstacle to the export of products to halal markets, the representative added.

A leader of the Ministry of Agriculture and Rural Development noted that Middle Eastern countries import up to 80 percent of their food needs, amounting to $40 billion annually.

These countries primarily demand products that align with Vietnam's strengths, coupled with low import tariffs ranging from zero to five percent, creating significant opportunities for Vietnamese businesses.

However, while the potential is substantial, challenges remain. The official stressed that enterprises must develop systematic strategies to successfully penetrate these markets.

Pham Quang Thuan, a representative of a seafood export company in Nha Trang City, south-central Khanh Hoa Province, agreed that enterprises have to improve product quality and comply with requirements to export goods to halal markets.

However, the greatest challenges in these markets are political instability and conflicts so firms should work out solutions to avoid risks, Thuan noted.

Middle East increases Vietnamese seafood imports

Middle Eastern countries are increasing their imports of Vietnamese seafood, according to Truong Dinh Hoe, general secretary of the Vietnam Association of Seafood Exporters and Producers.

The quality of Vietnamese seafood exports has improved, with tuna and tra fish making up the largest proportions, Hoe said.

In January-November, the Middle East emerged as a potential market for Vietnam’s seafood exports with a growth rate of 18 percent, making up four percent of the Southeast Asian country’s total seafood exports.

Consumers in Israel, Saudi Arabia, the UAE, and Qatar favor canned tuna, tra fish fillets, and whole frozen fish that meet halal standards.

Vietnamese enterprises currently account for 70 percent of canned tuna sales in Israel, while tra fish exports to the UAE reached 28 percent during the first 11 months of this year, according to Hoe.

Tuoi Tre News