Hanoi (VNA) – Vietnam-Malaysia trade is on track to top 18 billion USD in 2026, putting the 20-billion-USD milestone within reach as both sides seek to unlock new export opportunities, particularly in the Halal market.
Two-way trade more than doubled from 7.4 billion USD in 2015 to 16.33 billion USD in 2025. In the first half of 2026, it reached 10.8 billion USD, including 3.4 billion USD of Vietnamese exports and 7.4 billion USD of imports.
Phung Van Thanh, Vietnamese Trade Counsellor in Malaysia, said Malaysia remains one of Vietnam’s key trading partners in ASEAN and globally. However, Vietnam’s exports have lagged behind imports, resulting in a trade deficit of 5.67 billion USD with Malaysia in 2025 and nearly 4 billion USD in the first six months of 2026.
Vietnamese exports to Malaysia grew by an average 3.89% annually between 2015 and 2025, reaching 5.33 billion USD last year. Key products include machinery, electrical equipment, mechanical products and production materials. No Vietnamese export item has yet reached 1 billion USD in annual turnover in Malaysia.
By contrast, imports from Malaysia grew 11.48% annually on average during the same period, reaching 11 billion USD in 2025, mainly comprising machinery, equipment, petroleum products, computers, electronics and components.
Thanh identified Halal certification as a major hurdle but also a significant opportunity for Vietnamese exporters. Malaysia, with a population of about 34.2 million and a Muslim population of 60.4%, is a major Halal food market and one of the five largest Halal food importers among Organisation of Islamic Cooperation (OIC) members, with annual imports exceeding 20 billion USD.
Malaysia’s domestic Halal food market is estimated at 50 billion USD, while its Halal Industry Master Plan targets domestic Halal consumption of 113 billion USD by 2030 and seeks to position the country as a global Islamic economy hub.
Vietnam has strong potential to tap this market, with the country ranking among the world’s top 10 exporters of key agricultural products such as rice, coffee, cashew nuts, pepper and medicinal herbs. More than 80% of Vietnam’s plant-based agricultural products inherently meet basic Halal requirements.
Thanh said developing Halal-compliant products could help Vietnamese businesses overcome export barriers and contribute to achieving the 20-billion-USD bilateral trade target, with 25 billion USD a year as a longer-term goal.
However, businesses still face challenges in obtaining certification due to limited experience, a shortage of specialised consultancy services and differing requirements among Muslim markets.
In Malaysia, the Department of Islamic Development Malaysia (JAKIM) applies stringent certification procedures, including document reviews, on-site inspections of production facilities and supply chains, dedicated Halal compliance personnel and staff training. Foreign businesses must also cover inspection teams’ travel and accommodation costs, adding to certification expenses.
Strengthening Halal certification capacity and helping Vietnamese businesses meet international standards could therefore be key to narrowing the trade gap and unlocking greater export potential in the Malaysian market./.
