Encouraging Saudi Arabia's businesses to invest in deep processing of Halal products

On September 14, Deputy Minister of Agriculture and Rural Development, Tran Thanh Nam, hosted a meeting and discussion with Saudi Ambassador Abdullah I Alkhorayef, together with the Delegation of the General Department of Foreign Trade and the Saudi Chamber of Commerce and Industry.

The Vietnam - Saudi Arabia Business Forum, held by the Ministry of Foreign Affairs, was attended by a delegation from the General Department of Foreign Trade and the Saudi Chamber of Commerce and Industry earlier this week. Deputy Minister Tran Thanh Nam expressed confidence that the meeting will contribute to the further enhancement of trade and investment relations between the two nations.

Deputy Minister Tran Thanh Nam provided information about the substantial improvement of Vietnam's agricultural and rural infrastructure, particularly in some central provinces, facilitated by the Saudi Fund for Development (SFD). According to the Deputy Minister, Saudi Arabia is providing support and facilitation to assist Vietnam in the development of its agricultural sector and to secure food security. The leaders of the MARD have also proposed that Saudi Arabia maintain its focus on this sector in the near future.

Saudi Arabia possesses several strengths. Vietnam primarily engages in the importation of iron and steel resources, chemicals, and other related commodities in order to facilitate its industrialization endeavors within the context of import-export activities between the two nations. Nevertheless, the Deputy Minister expresses the expectation that your party would prioritize agricultural issues and, specifically, foster the participation of Arab investors in the field of agricultural processing and deep processing, with a particular emphasis on Halal products.

The Deputy Minister noted that there has been a notable surge in international collaboration pertaining to the advancement of Halal food production in Southeast Asian nations. Vietnam, in particular, has actively undertaken several initiatives in this domain. The current implementation involves the coordination of various parties, such as the Ministry of Foreign Affairs, Ministry of Industry and Trade, Ministry of Science - Technology, and Ministry of Agriculture and Rural Development, in the area of the "Project on Strengthening International Cooperation to Build Vietnam's Halal Industry to 2030."

Vietnam seeks to acquire knowledge from Saudi Arabia about the production and certification of Halal goods. The Deputy Minister talked to Saudi Arabia, seeking their assistance in providing market and taste-related data. The objective is to develop effective strategies that may foster a conducive business climate and facilitate the entry of Vietnamese agricultural goods into the Halal food market of Saudi Arabia. The Deputy Minister further put out policy recommendations aimed at fostering the mutual acceptance of Halal certification between the certification agencies of Vietnam and Saudi Arabia, with a particular emphasis on aquatic and animal goods.

Since January 2018, the Saudi Arabian Food and Drug Administration (SFDA) has issued Directive No. 21174 temporarily suspending the import of fish, crustaceans, and other aquatic products from Vietnam. Since 2019, the MARD has undertaken extensive efforts to engage in discussions and negotiations with SFDA. As a result of these endeavors, Saudi Arabia has granted approval to a total of 38 Vietnamese seafood processing firms, permitting them to engage in the importation of seafood to the Saudi Arabian market. Nevertheless, Saudi Arabia continues to enforce a ban on the importation of seafood produced in Vietnam.

Deputy Minister Tran Thanh Nam has formally requested the Embassy of Saudi Arabia in Vietnam and the Delegation of the General Department of Foreign Trade of Saudi Arabia to promptly inform about the intention to send a delegation to Vietnam. The purpose of this delegation would be to conduct an on-site assessment of the food safety control system for the farmed seafood production chain, specifically focusing on farmed shrimp and pangasius. The ultimate goal of this assessment is to expedite the lifting of the temporary import suspension order for farmed seafood originating from Vietnam. 

The Saudi Ambassador, Abdullah I Alkhorayef, has emphasized the profound bilateral partnership that has developed between the two nations in recent years. The Ambassador expressed his optimism over the substantial prospects for bilateral collaboration in the realm of commerce, particularly within the agricultural sector.

According to the Ambassador, Saudi Arabia has launched agricultural support programs for many nations through the Saudi Fund for Development (SFD). The primary objective of the funding is to enhance the bilateral ties between Saudi Arabia and its partner nations, such as Vietnam.

Ambassador Abdullah I Alkhorayef disclosed that the forthcoming 5th meeting of the Joint Committee between Vietnam and Saudi Arabia is scheduled to be held in December. The primary focus of this meeting will be for discussion on strategies aimed at enhancing bilateral trade and export activities between the two nations. Of particular interest will be the exploration of opportunities to enhance the importation of Vietnamese goods, specifically agricultural and aquatic products.

According to Dr. Abrihem Altuerky, Head of the Agriculture Department within the Riyadh Chamber of Commerce and Industry, the food and agriculture sectors provide a significant contribution to the overall economy of the kingdom. Saudi Arabia has expressed a keen interest in enhancing collaboration with Vietnam, particularly in the realm of private-sector engagement.

According to Mr. Altuerky, there exists a significant demand inside the kingdom for the importation of Vietnamese agricultural goods, particularly coffee beans. The Riyadh Chamber of Commerce and Industry is actively monitoring and considering matters and suggestions pertaining to this matter.

Mr. Altuerky noted that there are several prospects for collaboration between the two nations. He highlighted that Vietnamese rice products possess great compatibility with the Saudi market, so fostering trade in this field is a shared aspiration for the near future.