Vietnam targets global Halal market as US tariffs bite

With its ranking among the top 20 global food exporters and top 15 agricultural exporters, bolstered by 17 free trade agreements (FTAs), Vietnam is a strong contender in the global Halal supply chain.

The booth of the Vietnam Trade Office in Malaysia at the Malaysia International Halal Showcase 2024 (Photo: VNA)
The booth of the Vietnam Trade Office in Malaysia at the Malaysia International Halal Showcase 2024 (Photo: VNA)

Hanoi (VNA) – With the US imposing reciprocal tariffs on exports, many Vietnamese firms are pivoting to the burgeoning global Halal market to diversify their revenue streams and boost export growth.

Trade experts highlighted the Halal economy’s massive potential, fuelled by a large consumer base, rising spending, and economic diversity, with forecasts pegging its worth at 10 trillion USD by 2028.

The 2024 Global Halal Food Market Report by Cognitive Market Research valued the Halal food sector at over 2.548 trillion USD in 2024, set to nearly double to 4.934 trillion USD by 2031, with a 9.9% annual growth rate. Demand for Halal-certified products is surging, not only in Muslim-majority countries but also in markets like China, home to an estimated 21–23 million Muslims, potentially rising to 30 million by 2030.

As an agricultural powerhouse, Vietnam is primed to dive deeper into the Halal food supply chain. Right now, its Halal exports lean on farm produce and raw materials, but more companies are securing Halal certification to access markets within the Organisation of Islamic Cooperation (OIC). With its ranking among the top 20 global food exporters and top 15 agricultural exporters, bolstered by 17 free trade agreements (FTAs), Vietnam is a strong contender in the global Halal supply chain.

However, challenges remain. Vietnamese firms must meet stringent Halal certification standards and improve competitiveness. The absence of a complete Halal ecosystem poses a hurdle while rivals like Brazil, Singapore, and Indonesia have already held considerable market shares and had rich experience.

The Vietnamese Government has been issuing strong directions to diversify export markets and reduce reliance on big trade partners. The Ministry of Industry and Trade (MoIT) is also spearheading efforts through trade promotion campaigns targeting Muslim-heavy markets like the Middle East, Africa, South America, and Eastern Europe.

Vu Ba Phu, Director of the Vietnam Trade Promotion Agency (Vietrade) under the MoIT, said to gain a sustainable foothold in Halal markets, a comprehensive strategy is required, covering institutional support, certification, enterprise training, logistics systems, communications, and market access.

Phung Van Thanh, Commercial Counsellor at the Vietnam Trade Office in the Philippines, said his office is pushing Halal opportunities hard, with trade promotion events, market surveys, and business exchanges. It is touting the Halal Expo Philippines 2025, slated for November 13–15 in Manila, as a chance to network globally.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said to help businesses boost exports to Halal markets, the MoIT will step up trade promotion and provide detailed guidance on Halal standards, regulations, and market conditions, particularly in Muslim-majority countries like Indonesia, Malaysia, and those in the Middle East, Asia, and Africa. It will also work closely with business associations to help Vietnamese firms seek potential partners in those markets.

The MoIT also promised support for businesses to improve product quality up to Halal standards – the decisive factor to expand Vietnamese presence and increase export value in international markets./.

VNA

See more

General Secretary of the Communist Party of Vietnam (CPV) Central Committee To Lam speaks at the Vietnam-Russia business forum in Moscow on May 11. (Photo: VNA)

Vietnam creates favourable conditions for Russian businesses: Party chief

Lam emphasised that promoting cooperation among businesses of the two sides plays an important role in implementing high-level agreements on socio-economic development. The two sides have important pillars of cooperation in energy, industry, science - technology and human resource training.

Automobile assembly at GMA Automotive Industry in Kim Dong district, Hung Yen province. (Photo: VNA)

Ample room remains for Vietnam-Belarus trade cooperation

The coming state visit to Belarus by Party General Secretary To Lam is expected to create new impetus to consolidate and strengthen the bilateral relations, and open up opportunities for businesses of the two countries in trade and investment cooperation.

Hoa Phat Group targets first railway track products to be produced by May 2027. (Photo: Hoa Phat Group)

Private sector empowers Vietnam’s steel revolution

Steel production has transformed significantly thanks to active participation from private enterprises, which have invested big in advanced production technologies and completed steel manufacturing lines with high-capacity plants, resulting in diverse and high-quality products.

Vietnam’s durian exports to China reach only 35,000 tonnes valued at around 130 million USD in the first four months of this year. (Photo: VNA)

Vietnam takes steps to address drop in durian exports to China

A report from the ministry shows that Vietnam’s durian exports to China reached only 35,000 tonnes worth around 130 million USD in the first four months of this year, equivalent to only 20% of export targets. In comparison, durian exports totalled 500 million USD in the same period last year.

Vietnamese Consul General Nguyen Thanh Tung at the event (Photo: VNA)

Sydney forum explores investment opportunities between Vietnam, Australia

Vietnamese businesses introduced their strengths and capabilities, and explored cooperation opportunities with Australian partners. Meanwhile, the Australian side expressed their interest in introducing advanced mining technologies to the country, bringing Vietnam’s high-quality building materials to the Australian market, and cooperating with Vietnamese partners to convert waste into fertiliser for agriculture and coal for steel production.