With the global supply chain suffering disruption as a result of the novel coronavirus (COVID -19) pandemic, it is expected to pose a range of challenges, whilst simultaneously creating opportunities for local firms to make further inroads into the market, according to insiders.

Photo: VNA

The information was released by experts during a teleconference aimed at seeking new markets following the impact of the COVID 19, an event jointly held by the Ho Chi Minh City Trade and Investment Promotion Center (ITPC) and Halal Vietnam Center on April 28. 

Cao Thi Phi Van, ITPC Deputy Director, said that despite the COVID-19 pandemic having a significant impact on production and business activities, plenty of domestic businesses have devised new plans with a view to branching out into new markets in order to overcome challenges. 

Van notes that the Muslim community represents a major potential market for Vietnamese exports, although many Islamic countries have imposed specific standards that local businesses must strictly follow in order to gain entry into the market. 

Ramlan Osman, Business Director of Vietnam Halal Center, said that there are over 1.8 billion Muslims worldwide with annual consumption demand reaching US$2,800 billion.

With exporting to Islamic nations representing a huge potential market for domestic products, businesses must first obtain a Halal certification which meets strict religious requirements and complies with food safety and hygiene standards imposed by Muslim countries before products can be sold in the market, said Ramlan Osman. 

Aside from major food suppliers of Halal products from Brazil, Australia, Malaysia, the UAE, Thailand, and Japan, Vietnam can be considered a country that enjoys plenty of advantages when it comes to gaining entry into the Halal market. 

This is largely due to an abundant supply of materials which are suitable to Halal standards, including coffee, rice, marine products, seafood, spices, beans, and vegetables, he added. 

In addition to food items, the country also has an advantage over export products relating to health care, cosmetics of natural origin, handicrafts, household products, and especially tourism services. 

The demand to import advantageous Vietnamese products among the Muslim community is predicted to reach approximately US$34 billion per year, however the export turnover of Vietnamese products into this market currently stands at only US$10.5 billion.

Experts believe that although all Muslim countries require Halal certification, this does not mean that it is a uniform standard for all countries. Therefore, local firms must directly exchange with their partners in order to fully grasp standards set by the market.