The booth of the Vietnam Trade Office in Malaysia at the Malaysia International Halal Showcase 2024 (Source: VNA)

Trade experts highlighted the Halal economy’s massive potential, fuelled by a large consumer base, rising spending, and economic diversity, with forecasts pegging its worth at 10 trillion USD by 2028.

The 2024 Global Halal Food Market Report by Cognitive Market Research valued the Halal food sector at over 2.548 trillion USD in 2024, set to nearly double to 4.934 trillion USD by 2031, with a 9.9% annual growth rate. Demand for Halal-certified products is surging, not only in Muslim-majority countries but also in markets like China, home to an estimated 21–23 million Muslims, potentially rising to 30 million by 2030.

As an agricultural powerhouse, Vietnam is primed to dive deeper into the Halal food supply chain. Right now, its Halal exports lean on farm produce and raw materials, but more companies are securing Halal certification to access markets within the Organisation of Islamic Cooperation (OIC). With its ranking among the top 20 global food exporters and top 15 agricultural exporters, bolstered by 17 free trade agreements (FTAs), Vietnam is a strong contender in the global Halal supply chain.

However, challenges remain. Vietnamese firms must meet stringent Halal certification standards and improve competitiveness. The absence of a complete Halal ecosystem poses a hurdle while rivals like Brazil, Singapore, and Indonesia have already held considerable market shares and had rich experience.

The Vietnamese Government has been issuing strong directions to diversify export markets and reduce reliance on big trade partners. The Ministry of Industry and Trade (MoIT) is also spearheading efforts through trade promotion campaigns targeting Muslim-heavy markets like the Middle East, Africa, South America, and Eastern Europe.

Vu Ba Phu, Director of the Vietnam Trade Promotion Agency (Vietrade) under the MoIT, said to gain a sustainable foothold in Halal markets, a comprehensive strategy is required, covering institutional support, certification, enterprise training, logistics systems, communications, and market access.

Phung Van Thanh, Commercial Counsellor at the Vietnam Trade Office in the Philippines, said his office is pushing Halal opportunities hard, with trade promotion events, market surveys, and business exchanges. It is touting the Halal Expo Philippines 2025, slated for November 13–15 in Manila, as a chance to network globally.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said to help businesses boost exports to Halal markets, the MoIT will step up trade promotion and provide detailed guidance on Halal standards, regulations, and market conditions, particularly in Muslim-majority countries like Indonesia, Malaysia, and those in the Middle East, Asia, and Africa. It will also work closely with business associations to help Vietnamese firms seek potential partners in those markets.

The MoIT also promised support for businesses to improve product quality up to Halal standards – the decisive factor to expand Vietnamese presence and increase export value in international markets.