Halal Market: Promising avenue for Vietnamese exports

Pure Halal agricultural products and processed foods can provide a competitive edge, enabling businesses to penetrate and capture market share in these regions.

The global Halal food market is perceived by numerous businesses as possessing significant potential, which is expanding swiftly across various continents, including Asia, the Middle East, Africa, Europe, and America.

The surge in demand for Halal products is attributed not only to the rapid increase in the Muslim population but also to a growing interest among non-Muslim consumers in major economies such as China, Japan, the United States, and Europe. Consequently, there is a rising preference for Halal products among consumers, as these items are associated with high standards of food hygiene, safety, and environmental considerations.

Data from the Ministry of Industry and Trade indicates that the global Halal food market caters to approximately 2 billion Muslims, highlighting its significant size. It is projected that the global Halal economy will reach a value of US$10 trillion by 2028. The consumption of Halal products is widespread, spanning both Muslim-majority and non-Muslim countries.

Notably, Southeast Asia, South Asia, and the South Pacific—regions geographically close to Vietnam—are identified as promising export markets for Halal products. This area is home to around 860 million Muslims and Halal food consumers, representing 66 percent of the global Muslim population.

It is recognized as the largest market for Halal food consumption, valued at approximately $470 billion, with Southeast Asia contributing $230 billion and South Asia-South Pacific accounting for $238 billion.

Chairwoman Ly Kim Chi of the Ho Chi Minh City Food and Foodstuff Association said that Vietnam is one of the largest agricultural and aquatic product exporting countries in the world, located geographically close to major Halal markets. However, the reality of the enterprises' food import and export to the Halal market is only the first step of exploration.

She added that every year, the country has about 50 companies granted Halal certification with main products being seafood, beverages, canned foods, confectionery, vegetarian food and pharmaceuticals. If well utilized, more and more Vietnamese export enterprises will firmly participate in the Halal product market,

A representative from Vinamilk underscored the significance of Halal markets, which currently constitute nearly 80 percent of the company's export revenue. Notably, certain Halal markets are experiencing substantial growth rates, with projections exceeding 70 percent in 2024 compared to the previous year.

To further capitalize on this opportunity, a representative from the City's Investment and Trade Promotion Center (ITPC) said that the center will intensify its efforts in promoting trade and investment, serving as a focal point for addressing business challenges, and facilitating market access, particularly in the promising Halal market.