Recognising the potential of the halal market, the Vietnamese government issued two key decrees to enhance the governance and development of the halal economy. The country is also seeking assistance from Malaysia, Saudi Arabia, Indonesia, and the United Arab Emirates (UAE).
“This would not have materialised today if there was no intervention from the prime minister himself,” noted Vietnam Halal Certification Authority (HALCERT) Director Ramlan Osman.
Vietnam has approximately 550,000 micro, small, and medium enterprises (SMEs) in the food and beverage (F&B) sector. However, only about 1,000 have obtained halal certification, highlighting a significant gap in the market.
Vietnam’s wide range of food products, such as coffee, tea, confectionery, and other manufactured goods, underscores an immense potential for Vietnam to penetrate the global halal market. The need for a structured approach to halal governance in Vietnam is critical to capitalising on this opportunity.
“We need to bring together all parties in Vietnam to establish proper governance for the halal sector in the country,” remarked Ramlan.
There are also considerable opportunities for Malaysian SMEs to penetrate the Vietnamese halal market. According to the General Department of Customs, Vietnam has imported 40 main items from Malaysia, with the total value of these imports amounting to US$$2.4 billion in the first quarter (Q1) of 2024.
Vietnam’s main imports from Malaysia were petroleum at US$772 million, electronics at US$490 million, and machinery and equipment at US$145 million.
Ramlan also observed a growing interest in cosmetics among Vietnamese women, with cosmetics from Korea and Japan dominating the market. Malaysian SMEs should consider tapping into this market by offering halal-certified cosmetic products, leveraging this growing consumer base in Vietnam.
He further advised: “Malaysian SMEs need to engage with relevant government entities to find out what the Vietnamese market is importing from Malaysia.”
Additionally, Vietnam aims to attract more Muslim tourists to the country. The country is working on developing standards for Muslim-friendly products and services. While Vietnam’s coastal regions are known for their beautiful beaches, the lack of halal restaurants, prayer rooms, and other Muslim-friendly amenities stresses the need to establish relevant standards.
“To be recognised as Halal, we must comply with the Department of Islamic Development Malaysia (JAKIM), Halal Management Division (BPH), and Standards and Metrology Institute for Islamic Countries (SMIIC) standards. However, creating a ‘Muslim-friendly’ standard doesn’t require benchmarking against anyone. We can develop it independently, and that’s the approach I am advising,” said Ramlan.
Furthermore, Vietnam is promoting eco-tourism in regions like Da Lat and Sa Pa. Da Lat, renowned for its cool climate, currently features two halal eateries and Indian and Pakistani restaurants.
Vietnam is also focusing on the potential revenue of attracting tourists from the Gulf Cooperation Council (GCC) countries, which have a combined population of about 50 million. To tap into this market, Vietnam is easing visa requirements for visitors from GCC countries, starting with Saudi Arabia.
“Previously, obtaining a visa required applying two weeks in advance and visiting a counter. Now, they’re making the process more user-friendly for Saudi Arabians and other GCC countries to visit Vietnam,” said Ramlan.
On top of that, the Vietnam has mandated that HALCERT have several local companies certified halal by Q4. This initiative aims to address the gap in the availability of halal products, ensuring that Vietnam’s halal industry can meet demands and compete effectively on the global stage.
Adding value and appeal
Since its establishment in April 2024, HALCERT has been at the forefront of halal certification in Vietnam. Operating under the Vietnam Certification Centre (QUACERT), HALCERT aims to regulate and oversee halal products to ensure they meet Shariah standards.
The recent appointment of the new director, Ramlan Osman, marks a significant step in the agency’s mission to improve the credibility of halal certification in Vietnam.
“The Vietnamese government has recognised about 30 certification companies operating from north to south. Most of these companies do not adhere to halal standards in the Shariah sense,” said Ramlan.
This calls for stricter halal certification practices due to concerns over many existing certification companies prioritising profit over genuine compliance. This shift is intended to ensure that halal products from Vietnam meet the expectations of Muslim consumers globally.
Ramlan emphasised the importance of collaboration with established halal certification bodies like JAKIM. By emulating JAKIM’s practices and adapting them to Vietnam’s context, HALCERT seeks to establish a robust certification process. He also highlighted Vietnam and Malaysia’s growing trade relationship, which is reflected in their trade figures.
The General Department of Customs reported that Vietnam’s exports to Malaysia reached US$2.61 billion in the first half of 2024. Meanwhile, Vietnam’s imports of goods and raw materials from Malaysia in the first quarter of 2024 totalled US$2.4 billion.
South Korea and Thailand are exporting halal products to Vietnam despite the country’s small Muslim population. These countries understand that producing halal-certified products can attract a broader customer base.
In fact, it is observed that halal certification adds value and appeal, especially when priced competitively.
Thailand, for instance, exports halal products like ice cream, peanuts, and chocolates to Vietnam. Despite having a small Muslim population, Thailand sees value in marketing these products.
The strategy acknowledges that while local demand might be limited, the influx of tourists and broader market potential justify the investment.
It goes to say that halal certification proves valuable even in countries with a small Muslim population. Therefore, Malaysia should explore the prospects of expanding its presence in Vietnam’s halal market. – 
@Halal
