The journey to position Vietnam’s Halal industry

WVR - Despite significant challenges, with determination and great potential in the trillion-dollar Halal market, Vietnam is poised to become a rising star on the global map.
Hội nghị phát huy nội lực, tăng cường hợp tác quốc tế để đẩy mạnh phát triển ngành Halal Việt Nam
Prime Minister Pham Minh Chinh and delegates at the conference on promoting Vietnam’s Halal industry on October 22. (Photo: Tuan Anh)

Sharing in a recent The World and Vietnam Report's talkshow, former Ambassador of Vietnam to Austria and former Director General of the Middle East and Africa Department Mr. Nguyen Trung Kien; Associate Professor Dr. Dinh Cong Hoang, Head of the Middle East and West Asia Research Department at the Institute of South, West, and African Studies; and Ambassador of Vietnam to Malaysia Mr. Dinh Ngoc Linh analyzed the barriers and challenges facing Vietnam's Halal industry. They assessed its current position and discussed the necessary steps for a breakthrough.

Challenges from the early stages

Associate Professor Dr. Dinh Cong Hoang affirmed that Vietnam has many comparative advantages in entering the Halal market and is not too late to join. However, the country is facing numerous challenges.

First, awareness among Vietnamese people and businesses about Halal is still relatively limited. Citizens, enterprises, and even government agencies lack a deep understanding of Halal. Businesses need professional consultation and support to understand the requirements of this market.

Second, the Halal certification process in Vietnam is still relatively complex and not harmonized with international standards. There is no robust legal framework to develop this nascent Halal industry.

Third, the cost of developing the Halal industry poses a significant challenge for many businesses—not just the certification costs but also investments in specialized infrastructure, production lines, and safe materials for Halal compliance.

Fourth, Vietnam lacks a comprehensive Halal ecosystem, including production, services, and infrastructure. More importantly, without a skilled Halal workforce, the industry cannot thrive. This is a core factor that cannot be overlooked.

Finally, in the current Halal race, there are many experienced “players” with decades-long development paths. Many countries have achieved significant milestones, making it challenging for Vietnam to compete with them in the near future.

Các diễn giả tham gia chương trình talkshow của Báo Thế giới và Việt Nam. (Ảnh chụp màn hình)
Speakers at a talk show on the Halal industry hosted by The World and Vietnam Report. (Screenshot)

Rolling up our sleeves

From the perspective of diplomatic missions, Mr. Nguyen Trung Kien emphasized that the biggest challenge in promoting the Halal industry abroad is limited resources, given the numerous diplomatic tasks at hand. Prioritizing tasks is inevitable.

However, Mr. Kien believes that each diplomatic mission can contribute to the Halal campaign. For example, the Vietnamese Embassy in Malaysia can act as a bridge between Halal certification centers, Vietnam’s Halal market development agencies, and their Malaysian counterparts.

Similarly, the Vietnamese Embassy in Austria can assist businesses and Halal specialists from Vietnam in accessing the European market, quality management agencies, and the European ecosystem. It can also work with some UN agencies headquartered in Vienna, such as the United Nations Industrial Development Organization (UNIDO), to help Vietnam harmonize its standards and enhance the coordination capacity of its Halal certification centers.

“For diplomatic missions abroad, our task is not just to narrate the story of Vietnam’s aspirations for Halal development but to take concrete actions—rolling up our sleeves, engaging organizations, and negotiating mutual benefits. The current economic diplomacy mission is diverse and urgent. Thus, it is crucial to select the right tasks, timing, and partners to achieve the highest efficiency”, Mr. Kien said.

Bold Innovation

From the “field” in Malaysia, a country considered to have the world’s highest Halal standards, Ambassador Dinh Ngoc Linh deeply understands the difficulties facing Vietnam’s Halal industry.

According to Mr. Linh, although Vietnam has accelerated the establishment of a Halal legal framework, it still lags behind many countries and lacks a Halal ecosystem for businesses to explore and access the market. Mr. Linh stated that the Vietnamese Embassy in Malaysia, in collaboration with various ministries, including the Ministry of Industry and Trade, must strive to ensure a unified approach to promoting Vietnam’s Halal industry.

“To address challenges, I propose building a Halal ecosystem centered on digitalization. High technology should be applied in Halal processes, such as product quality inspections (using AI), to create a modern ecosystem that replaces some traditional standards and aligns with Vietnam’s digital and green economic approaches”, Mr. Linh emphasized.

For Malaysia specifically, Mr. Linh highlighted the importance of leveraging Malaysian businesses’ interests in the Halal sector. Malaysia aims to be a hub that transforms Vietnam’s potential products into Halal-certified goods for export to other countries.

“Malaysian businesses are enthusiastic about Vietnam’s cooperation proposals, as they want to serve as a transit hub. Therefore, promoting the interests of Malaysian businesses in developing Vietnam’s Halal industry is a feasible approach to focus on in the near future”, Mr. Linh shared.

Malaysia là một trong những quốc gia nổi bật trong lĩnh vực Halal. (Nguồn: Halal Malaysia)
Malaysia is one of the leading nations in the Halal sector. (Source: Halal Malaysia)

Top 5 exporting nations

Currently, Vietnam ranks among the top 20 largest trading nations globally and aspires to be in the top 30 largest GDP countries in the coming years. However, in the global Halal map, Vietnam is not among the top 20 or 30 leading exporters. Nonetheless, Associate Professor Dr. Dinh Cong Hoang is confident that with determination and significant advantages, Vietnam can join the “club” of the top five exporting nations in the Halal market within 5–10 years.

To achieve this, Mr. Hoang believes the Ministry of Foreign Affairs must spearhead efforts to accelerate the “Halal market wheels”, concretizing the Prime Minister’s plan to "Strengthen international cooperation to build and develop Vietnam's Halal industry by 2030".

Additionally, Vietnam needs to develop a national strategy for Halal growth in a systematic, professional manner, pooling social resources for comprehensive development. The country must identify target markets and products, similar to Australia’s focus on lamb and beef, South Korea’s emphasis on fashion and cosmetics, and Thailand’s prioritization of Muslim tourism. Vietnam must find its niche to optimize resources and use technology to access distant markets.

“With a complete ecosystem, I believe Vietnam can be among the top five countries in the Halal sector within five years, becoming a new star on the global Halal map”, Mr. Hoang expressed optimistically.

Mr. Nguyen Trung Kien shares this optimism. He hopes that Vietnam’s diplomatic missions and the Ministry of Foreign Affairs will increasingly implement specific plans to realize the Halal vision at both bilateral and multilateral levels.

At the October conference titled “Fostering international cooperation and mobilizing internal resources to develop Vietnam’s Halal industry”, Prime Minister Pham Minh Chinh affirmed that Vietnam considers Halal a “golden opportunity”, a new direction in production, and a vital component of economic cooperation. While the journey of Vietnam’s Halal industry remains challenging, with unity, determination, and clear, systematic planning, this “ship” will undoubtedly reach its destination as envisioned.

TIN LIÊN QUAN
Vietnam aims to become important link in global supply chain of Halal products: Prime Minister
Vietnam has potential to become a global supplier of halal food: Conference on Halal trade
Vietnam, Malaysia look for golden partnership opportunities in Halal industry: Malaysian Minister
Vietnam needs to adapt to boost exports to massive Halal markets
Halal market: To grasp ‘precisely and focally’

Translated by Pham Hien

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