Discussing solutions to 'open the door' to the Halal market for Vietnamese agricultural products

With the global Halal economy expected to grow to 10 trillion USD by 2028, this is considered a potential market for Vietnamese agricultural products.

The market opportunity potential is huge.

According to the Ministry of Foreign Affairs, the global Halal economy is estimated to reach 7,700 billion USD in 2025, expected to increase to 10,000 billion USD in 2028. Many countries, especially Muslim countries, are currently actively participating in this market.

Halal food market (Photo: Consovasukien.vn)

Vietnam has many favorable conditions to participate more deeply in the global Halal market thanks to the strong direction of the Party and State leaders; the attention of localities and enterprises. In addition, Vietnam has strengths in supplying agricultural products, food, tourism, textiles, etc. and is an important link in global supply chains with 17 signed Free Trade Agreements (FTAs). Vietnam also has good relations with many major Muslim countries in the world.

Effective and systematic participation in the global Halal market will help open up the potential Halal market, creating new momentum for the country's sustainable economic development. Thereby, forming a new, important component of the economy, which is the Halal ecosystem.

Affirming the potential and advantages of this market block, Mr. Phung Duc Tien - Deputy Minister of Agriculture and Rural Development - said that, besides traditional markets such as China, the US, Japan, EU... The Ministry will focus on exporting agricultural and aquatic products to Halal and Middle Eastern markets...

Mr. Truong Xuan Trung - Vietnam Trade Counselor in the United Arab Emirates (UAE) - assessed: Vietnam is one of the world's leading countries in exporting agricultural and aquatic products and processed agricultural products such as: Rice, tea, cashew nuts, coffee, pepper, vegetables, fruits... and beverage products. Vietnam is located in the Southeast Asia and Asia regions with a large concentration of Muslim populations such as Indonesia, Malaysia, the Middle East region...

In addition, Vietnam has a policy of developing relations with Middle Eastern and African countries; including promoting cooperation in production, import, and Halal certification. This is also a favorable condition for Vietnamese enterprises to export products to the Halal market.

According to Mr. Truong Xuan Trung, the size and demand of the Halal market is very large. If we look at the growth figures on consumption of main product groups in the UAE market, we can see that Vietnam has strengths in product groups such as agricultural products, processed agricultural products, and cereals.

Of course, wanting is one thing. Conquering this market is a whole process. Because this is a market that requires many specific and very strict requirements. In particular, daily food must be certified according to Halal standards.

“To further promote the export of Vietnamese products to the Halal market, Vietnamese enterprises must have Halal certificates to meet export standards to Muslim countries,” said Mr. Truong Xuan Trung.

Just in the early stages

According to experts, although it is a large, potential market with favorable geographical location, Vietnamese goods in general and agricultural and aquatic products in particular are only at the initial stage of exploration in the Halal market. Every year, Vietnam has about 50 companies granted Halal certification with main products being seafood, beverages, canned foods, confectionery, vegetarian food and pharmaceuticals. If well utilized and promoted, Vietnamese agricultural and aquatic products will firmly participate in the Halal product market.

Units must strictly comply with Halal standards throughout the entire livestock farming process.

However, the biggest challenge for the Halal industry is that Halal certification is not permanent and is not mutually recognized in all countries and for all products. This causes many difficulties for businesses because they have to re-certify many times and have to register for appropriate certification based on each export market.

In the field of animal husbandry, according to Mr. Tong Xuan Chinh - Deputy Director of the Department of Animal Husbandry (Ministry of Agriculture and Rural Development), the foods they use every day must be certified according to Halal standards (Halal in Arabic means "legal").

According to Mr. Tong Xuan Chinh, the Halal market has very unique characteristics that Vietnamese export enterprises must pay attention to, such as: In Southeast Asian countries, the organization that certifies Halal products, especially chicken meat, is carried out by state management agencies (in Vietnam, it is certified by private organizations).

Units must strictly comply with Halal standards in the entire breeding and slaughtering process such as: Breeding animals must be certified, with parents raised according to Halal processes; chickens raised from 1 day old until slaughter must all use Halal standard feed; the slaughtering process must follow Halal regulations, in which the biggest feature is that in addition to requirements on food safety, animal welfare... there must be a prayer process before slaughtering. This work must be supervised and carried out by Muslims; the distribution and packaging stages must also follow Halal instructions and standards...

According to Mr. Tong Xuan Chinh, meat that meets Halal standards is different from normal meat, with 5 signs: The butcher must say the word Allah (meaning God) first; the animal must be slaughtered in the throat with a sharpened tool to ensure humaneness; the animal must be alive before slaughter; Halal meat must not have blood on it, after the slaughter process is completed, the meat must be hung upside down to let all the blood drain out. In addition, animals must not be fed food made from other animals. Animals such as cows, goats, sheep, deer, chickens, birds, and ducks must be slaughtered according to the above Islamic rituals to meet Halal standards.

To open up the Halal market for Vietnamese poultry products, the Ministry of Agriculture and Rural Development is currently implementing the tasks assigned in Decision No. 10/QD-TTg dated February 14, 2023 of the Prime Minister approving the Project "Strengthening international cooperation to build and develop Vietnam's Halal industry by 2030". The Ministry is also coordinating with the Vietnamese Embassy in Muslim countries, and working with agencies and organizations of these countries to exchange information and develop the Halal food market in Muslim countries.

Deputy Minister Phung Duc Tien emphasized that the requirements for agricultural products, especially Vietnamese livestock products, to enter the Halal market have been clearly identified. Therefore, businesses need to closely coordinate with state management agencies and specialized units of the Ministry of Agriculture and Rural Development to approach and gradually perfect the process, remove technical barriers, and soon bring livestock products, typically Vietnamese chicken, to the Halal market.

“Although agricultural and aquatic products have been exported to many markets and trade promotion has been effective, Vietnam must enter specific markets such as the Halal market. Thereby, Vietnam's agricultural products will have many segments and markets, increasing the export turnover of the whole industry,” said Mr. Phung Duc Tien.

On October 22, 2024, the National Halal Conference will take place in Hanoi with the theme “Promoting internal strength, promoting international cooperation to build a sustainable Halal industry in Vietnam”. The event will be chaired by the Ministry of Foreign Affairs, in coordination with the Ministry of Science and Technology, and the Ministry of Agriculture and Rural Development.

At the Conference, businesses, experts, and management agencies will discuss and identify difficulties and obstacles, thereby proposing solutions to promote international cooperation, promote the construction and development of the Vietnamese Halal industry in a systematic, professional and comprehensive manner. Raise awareness of countries, regional and international organizations about the potential, strengths, and cooperation opportunities in the Halal field with Vietnam. Promote the promotion and dissemination of Halal to localities, businesses and people of Vietnam. Strengthen the connection of localities and Vietnamese businesses with potential regional and international partners.

Source: https://congthuong.vn/ban-giai-phap-mo-canh-cua-thi-truong-halal-cho-nong-san-viet-353847.html