Entry into the 2,500 billion USD Halal food market: From wild tree to billion-dong export product

The 'gingseng' of Vietnam

Mr. Tran Van Tan, Director of Phong Cach Moi Construction and Trading Joint Stock Company (Tan Phong Town, Quang Xuong District, Thanh Hoa), elucidated that the decision to utilize Centella for the production of goods on a large scale was based on its status as a common, easy-to-grow plant closely associated with the lifestyle and culture of the Thanh people. Vietnamese cuisine refers to Centella as "Vietnamese ginseng."

Mr. Tan traveled throughout the Thanh region to collect wild Centella samples to research, select, and preserve local varieties to pursue his idea. After effectively selecting seeds, the company established partnerships with numerous cooperatives and farmers in nearly all districts of the province. This partnership secured product buybacks for farmers and enabled the transmission of knowledge on cultivation and production techniques.

Following the establishment of a consistent source of raw materials, Mr. Tan acquired a Japanese technology processing line and dedicated himself to the construction, management, and development of the "Thanh Centella" brand, which was associated with the OCOP product certification initiative.

Consequently, Phong Cach Moi introduced a series of products, including centella powder, centella juice, centella jelly, centella tablets, centella tea sachets, and centella mooncakes. The market enthusiastically embraced these centella-based products from the outset, particularly by restaurants and hotels located within and outside the province.

Furthermore, international agricultural festivals and exhibitions have extended invitations to Phong Cach Moi's centella products. The company's centella products have garnered orders from partners in the United States, India, the Netherlands, Germany, South Korea, and Japan as a result of these trade promotion channels. It is worth noting that an Indian associate has placed an annual order for 3,000–3,500 tons of fresh centella for the purpose of essential oil extraction. Mr. Tan's centella products have procured a 4-star OCOP certification at present.

Mr. Tan disclosed that the model of linked production and stable raw material supply, in conjunction with the establishment of a consistent market, has been instrumental in establishing stable revenues for both farmers and businesses.

At present, Phong Cach Moi's centella products are accessible in all 63 provinces and cities, with each municipality possessing its own distributor. The company generates an annual revenue of 25–30 billion VND from these centella products.

According to the proprietor of the Phong Cach Moi business, their centella products are currently in high demand through e-commerce platforms. Furthermore, the organization has reached out to Vietnamese embassies abroad to facilitate communication with local authorities in those nations, to expand and investigate its market.

Bringing centella to demanding, potential markets

The Ministry of Foreign Affairs of Vietnam recently extended an invitation to Mr. Tan to participate in an investment promotion conference to introduce agricultural products to the Halal market. This presents an opportunity for the company's centella products and local agricultural products to dominate this prospective but highly "demanding" market, according to the proprietor of Phong Cach Moi.

Mr. Tan openly acknowledged that numerous agricultural products from Thanh Hoa have not yet fulfilled the standards necessary to "enter" the Halal market, despite the market's immense potential.

He also observed that for products to be available on international shelves, businesses and cooperatives must alter their mentality and methods, with a special focus on learning consumer needs and preferences.

Mr. Tan had previously established raw material zones in nearly all localities within the province, across 100 hectares, in anticipation of entering the Halal market. The company's technicians collaborate closely with local farmers, providing them with complete instruction on the centella cultivation process to guarantee the highest standards of cleanliness and safety. The company intends to increase its raw material area to 300–500 hectares by 2025 to satisfy the demands of the Japanese, South Korean, and Muslim-majority markets.

Furthermore, the business owner of Phong Cach Moi has been collaborating with the Vietnamese embassies in certain Muslim-majority countries to conduct market research and evaluations. A few months ago, Halal experts traveled to Vietnam to inspect the raw material areas, tour the processing facility, and assess the quality of the company's products.

"According to the preliminary evaluations of industry professionals, our production line, raw materials, packaging, transportation, and storage processes generally satisfy the requirements and standards of the Halal market." The investment costs for facilities and equipment necessary to attain Halal certification are substantially higher than those associated with the production of standard export products.

Nevertheless, we perceive this as an opportunity to broaden our market reach, rather than a challenge. "Our company will have the opportunity to enter this vast and highly promising market if we can satisfy the rigorous standards of the Halal market," Mr. Tan stated.

He also stated that the company has already submitted samples of all centella-based products to a Halal certification body for evaluation. They anticipate obtaining Halal certification in early 2025 and exporting the initial shipment to numerous Muslim-majority countries. In the interim, Phong Cach Moi is finalizing the necessary procedures to lease land, expand production, and pursue partnerships with Middle Eastern investors to develop processing lines and technology. This will enable the company to increase the scale of centella product manufacturing to meet the demand in Muslim-majority countries soon.