Yet for Vietnamese businesses to compete in this demanding arena, a complete transformation is required, from production standards and market mindset to national branding strategies.

According to Shariza binti Abdul Rasheed, head of halal products at Maybank Islamic Berhard Malaysia, the Halal market spans a wide range of sectors, from food and beverages to cosmetics and pharmaceuticals. However, current global supply only meets around 20 per cent of actual demand, leaving significant headroom for exporters like Vietnam.

“Despite this potential, the proportion of Vietnamese exports certified as Halal modest remains. Most Vietnamese products still lack formal Halal labelling, limiting access to Islamic markets,” Rasheed noted at a seminar titled "Export Prospects to the Halal Market via the Malaysian Gateway in 2025", held on August 7 in Ho Chi Minh City.

In Malaysia, the door is opening wider for Vietnamese enterprises. Zaimah Osman, Malaysian trade commissioner in Ho Chi Minh City, emphasised that Malaysia regards Vietnam as a key trade partner and is actively supporting Vietnamese businesses in exploring Halal opportunities through MATRADE's global network and business-matching initiatives.

“Malaysia was also the first country to officially recognise the Vietnam Halal Certification Agency, enabling Vietnamese products to be more easily approved and distributed through our retail systems,” Osman added.

Ho Thi Quyen, deputy director of the Investment and Trade Promotion Centre of Ho Chi Minh City, stated that the Halal industry is experiencing rapid global growth, not just in consumer demand but also in the scale of its supply chains.

“This is a prime moment for Vietnamese businesses, especially those in poultry, agriculture, seafood, and food processing, to develop a more professional strategy for entering the Halal market,” Quyen said.

To realise this potential, the Vietnamese government has launched a master plan titled “Strengthening International Cooperation for Halal Industry Development to 2030,” signalling a strong commitment to global integration with the Muslim world.

Crucially, Vietnam has signed more than 15 free trade agreements with Muslim-majority countries such as Malaysia, Indonesia, the UAE, and Turkey, offering preferential tariffs and a gateway to expand exports.

Yet major hurdles remain. Vietnam's domestic Halal certification system is fragmented and lacks widespread recognition from leading international bodies such as JAKIM (Malaysia), MUI (Indonesia), and MUIS (Singapore).

Many small- and medium-sized enterprises (SMEs) struggle to meet Halal production requirements, such as having Muslim supervisors or investing in certified processing lines. Limited information, a shortage of trained personnel, and hesitation towards the Halal market have also discouraged participation.

Dr. Phu Van Han, vice president of the Ho Chi Minh City Association of Ethnology and Anthropology, emphasised that for Vietnam to build a sustainable Halal industry, recognition by mutual agreements with leading Halal certification bodies are essential. He also called for investment in dedicated industrial parks and logistics hubs tailored to Halal production, processing, and distribution.

“Regarding human resources, establishing specialised Halal training centres in Hanoi, Ho Chi Minh City, and Can Tho will help develop a skilled workforce capable of meeting rigorous Halal standards. Training programmes should be interdisciplinary, combining Islamic law, food technology, hygiene standards, and supply chain management,” Han said.

Digital transformation can also play a vital role. Digitizing the certification process and integrating blockchain for traceability would enhance transparency, lower costs, and be especially beneficial for SMEs entering the global Halal market.

A bold strategic move would be to establish a national Halal brand “Vietnam Halal Certified”, that signals Vietnam's adherence to global standards. This will not only elevate the image of Vietnamese products but also position Vietnam as a trusted, professional, and friendly supplier to Muslim consumers.

According to Rasheed, Vietnamese businesses can also leverage Salaam Market, an e-commerce platform specifically designed for Halal trade.

"Combined with MATRADE's business matchmaking and trade events like MIHAS, Vietnamese companies will have more opportunities to connect directly with international importers and distributors. Trade finance instruments like letters of credit can also help reduce risk when entering unfamiliar markets," she noted.

Vietnam can also learn from the experiences of other countries. Malaysia leads the world in building a comprehensive Halal ecosystem, from regulation and certification to education, media, and enterprise support.

Indonesia has temporarily implemented mandatory Halal certification under its Halal Product Law, while Thailand, despite not being a Muslim-majority country, has invested heavily in Halal research and verification. These successful models offer valuable lessons for Vietnam in crafting a sustainable, science-based, and culturally distinct Halal development strategy.

With the global Halal market expected to reach $5 trillion by 2030, serving more than 2.2 billion Muslim consumers, the time is now for Vietnam to seize this high-potential export opportunity.

Source: Vietnam Investment Review