'Unlocking' the Halal market: Summary from Vinamilk's 27 years of export experience

Báo An ninh Thủ đôBáo An ninh Thủ đô25/12/2024


ANTD.VN - With over 27 years of export experience, Vinamilk is one of the few businesses that has many advantages as the Halal market is increasingly expanding. In addition to practicing production according to Halal standards, Vinamilk's representative said that the commitment to consumers is a prerequisite for the business to stand firm in this market group.

Returning to Vietnam for the third time, Mr. Inam Ahmad Zia Ahmad, an importer from the Middle East, is still amazed by the modernity of Vinamilk's milk factories. Not only does it have Halal - a mandatory standard for exporting to Muslim countries, but the "collection" of world-leading standards such as GlobalG.AP, Organic EU, FDA, ISO 9001, FSSC 22000... is enough for the products of this "giant" in the dairy industry to be present in any demanding market.

Knowing Vinamilk at an international fair more than 10 years ago, Mr. Zia Ahmad decided to cooperate to distribute Vietnamese baby milk powder to the Afghan market. “ Not only do they have products that fully meet Halal standards, they also have very professional services, supporting us to approach consumers, carry out promotional programs or seminars on health and nutrition for customers. In addition to baby milk powder, we are expanding to many other milk lines to meet the higher demand of the market,” Mr. Zia Ahmad added.

Ông Inam Ahmad Zia Ahmad trực tiếp đến tìm hiểu công nghệ sản xuất tại các nhà máy của Vinamilk
Mr. Inam Ahmad Zia Ahmad directly came to learn about production technology at Vinamilk factories.

With revenue growing many times after more than 10 years of market penetration, Vinamilk's Alpha brand has become extremely familiar, appearing everywhere... Not only Afghanistan, Halal markets are accounting for nearly 80% of Vinamilk's export revenue. Among them, there are market groups with high growth in both contribution and value, with some markets even having an estimated growth rate of more than 80% in 2024.

The trillion-dollar market has opened up more widely.

With about 2 billion consumers concentrated in the Middle East, South Asia, Africa and some Southeast Asian countries, the Halal product market is considered a "golden land" for export businesses. Regarding food alone, a report by the Food and Agriculture Organization of the United Nations (FAO) shows that the global Muslim community will spend about 1,900 billion USD in 2024 and is expected to increase to 15,000 billion USD by 2050. Of which, high-quality agricultural products, especially clean and organic products with Halal certification, account for a large proportion.

Vietnam is a country with strengths in agricultural exports, and is located in Asia - where about 62% of the world's Muslim population lives. In the coming time, Vietnam and a number of Muslim countries aim to increase bilateral trade turnover, for example: Vietnam - Malaysia strives to increase trade turnover to 18 billion USD, Vietnam - UAE to 10 billion USD, Vietnam - Türkiye to 5 billion USD...

From a business perspective, Mr. Vo Trung Hieu - Director of International Business of Vinamilk - said: “The Halal product market has great potential. Not only the Muslim community, consumers in developed countries such as the US, Russia, EU... are also very interested in this standard because of its safety, quality and sustainability. Vietnam's recent expansion of free trade agreements, especially the CEPA Agreement (Vietnam - UAE Comprehensive Economic Partnership Agreement), is creating great opportunities for domestic enterprises to approach this large customer group”.

Regarding Vinamilk’s orientation towards this market group, Mr. Hieu shared that the company aims to maintain a 5%-10% growth in output for traditional markets. At the same time, it is researching suitable products to expand into large markets such as Malaysia, Indonesia, etc., aiming to serve the Muslim community in this region.

Không chỉ hướng đến các quốc gia Hồi Giáo, sản phẩm đạt chuẩn Halal cũng giúp mở rộng tệp khách hàng tại các quốc gia châu Á
Not only targeting Muslim countries, Halal-certified products also help expand customer base in Asian countries.

Is opportunity for the majority?

According to experts, despite being a large, potential market with favorable geographical location, Vietnamese goods in general, and agricultural and aquatic products in particular, entering the Halal market are only at the initial stage of exploration. Although ranked in the Top 20 leading exporting countries in the world, Vietnam is not yet in the Top 30 countries supplying Halal food globally, with less than 1,000 enterprises having certified products.

To “unlock” the market potential of countries that only consume Halal products, enterprises need to pay attention to and comply with the implementation of certification and the selection of the right reputable certification organization. With their experience, Vinamilk representative added that the exporting unit needs to discuss with partners to clearly understand the specific regulations of each market. Not all markets require certification by a third party, but enterprises can self-certify or have conventions for specific products and industries.

Depending on the nature of the industry and the origin of the product, businesses need to be flexible to practice appropriately, save costs, thereby creating a competitive advantage for the product. The Halal logo on the product is not the only "test" to penetrate the market. The important thing is to truly understand this market group, to have compatible awareness and practice ,” said Mr. Hieu.

At Vinamilk, the research and practice of this standard began very early, even when Vietnam did not have an official certification agency. Currently, all 387 export products of this unit meet Halal standards, including powdered milk, condensed milk, nutritional powder, yogurt, drinking yogurt, etc.

Logo Halal gắn trên sản phẩm không chỉ là một chứng nhận, mà còn là cam kết của nhà sản xuất đối với người tiêu dùng
The Halal logo on the product is not only a certification, but also a commitment from the manufacturer to consumers.

“For Vinamilk, achieving Halal standards is not too difficult because we have experience and confidence in our quality management process from production to transportation. However, we believe that the Halal logo on the product is not only a certification, but also a commitment from the manufacturer to consumers. This commitment includes many factors behind it, from finding suitable products and flavors, ensuring production practices according to Halal standards to after-sales programs, packaging design... suitable for market characteristics,” Vinamilk representative further explained.

Along with certification, close ties with partners, according to Vinamilk, are one of the main “secrets” that help businesses “take root” in a market for 10-20 years. Through local partners, this exporter can provide products that closely match consumer needs, as well as design packaging, advertising, brand images, etc. that are suitable for the culture and tastes of each market. This is even more important for Muslim countries.

Vinamilk thường xuyên kí được các hợp đồng lớn trị giá triệu đô với khách hàng đến từ thị trường Halal tại hội chợ quốc tế Gulfood tại Dubai
Vinamilk regularly signs large contracts worth millions of dollars with customers from the Halal market at the Gulfood international fair in Dubai.

In addition, actively participating in trade promotion activities such as fairs, exhibitions, networking, etc. was also revealed by Vinamilk representatives as an effective channel to expand export markets, not just for Halal products. In 2024, the company participated in nearly 20 fairs, exhibitions and trade promotion activities, through which many million-dollar contracts were signed. In early 2025, this exporter continued to be present at the world's second largest food fair - Gulfood in Dubai - which is considered the gateway to Halal markets such as the Middle East, Africa and Southwest Asia.



Source: https://www.anninhthudo.vn/mo-khoa-thi-truong-halal-duc-ket-tu-27-nam-kinh-nghiem-xuat-khau-cua-vinamilk-post599345.antd

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