Entry into the 2,500 billion USD Halal food market: The leading localities of Vietnam

Potential agricultural products

Currently, Ninh Thuan has a total herd of over 220,000 goats and sheep, with an annual meat production of approximately 4,000 tons. More than 99,000 sheep generate more than 2,000 tons of meat annually. 

Since 2009, Ninh Thuan has assigned the Department of Agriculture and Rural Development (DARD) the task of researching and importing sheep varieties from the United Arab Emirates for the purpose of breeding and crossbreeding. Currently, Ninh Thuan is home to the Phan Rang sheep breed and crossbreeds that improve the quality of meat and physical characteristics. 

With a meat processing plant for sheep, goats, and cattle that is outfitted with a -40°C freezer, Nhat Thanh Food Co., Ltd. can supply and guarantee the domestic market demand for these products. This plant is a component of the province's development plan through 2030. 

Furthermore, Ninh Thuan cultivates various commodities suitable for the Halal market, such as asparagus, apples, cashews, grapes, and aloe vera. The Canh Dong Viet Foods Joint Stock Company of the GC FOOD Group offers 11 Halal-certified products. It has exported more than 170 tons of a variety of aloe vera products to the Middle Eastern market annually since 2018. 

In the meantime, fruit products, particularly coconuts, are highly favored by Halal consumers in Ben Tre and have been exported to numerous countries worldwide. 

The province's total annual export value is 25-30% accounted for by the export value of coconut and coconut-based products, which averages over USD 400 million annually. The province produces over 40 coconut-based products. Refined coconut oil, coconut-based cosmetics, coconut milk, coconut milk powder, coconut peat, nata de coco, desiccated coconut, coconut sweets, and coir fiber are among the products in question. 

Furthermore, Ben Tre boasts a 65-kilometer coastline and more than 47,000 hectares of aquaculture land, with an annual aquaculture and fishery yield exceeding 500,000 tons. This yield is sufficient to satisfy the domestic and export demand for seafood processing. 

Early establishment of proactive connections

The People's Committee of Ninh Thuan designated local departments to evaluate and allocate land for the proposed sheep meat processing facility of Nhat Thanh Food Co., Ltd. following two visits by the Chairman of AeroAsia Holdings from Brunei. 

This will enable the export of Halal-standard sheep meat to the 20-million-strong Brunei-Indonesia-Malaysia-Philippines Growth Triangle and other Muslim-majority countries in the future. 

Additionally, the Canh dong Viet Foods Joint Stock Company of the GC FOOD Group promoted its Halal-certified aloe vera products at the annual Malaysia International Food & Beverage Trade Fair (MIFB 2024) in Kuala Lumpur this past July. Furthermore, the Product Showroom of the Vietnamese Embassy in Doha, Qatar is showcasing Ninh Thuan's Halal-certified aloe vera products. 

Ben Tre has also consistently conducted seminars regarding the Halal market, including the "Promotion of Ben Tre's Agricultural and Aquatic Products in Islamic Countries" in Hanoi in 2022 and the "Development of Halal Standard Products from the Mekong Delta to Access Islamic Countries" in 2023. 

These seminars have facilitated exchanges and discussions among provincial and regional enterprises, assisting them in comprehending market information and the requirements for exporting goods to Islamic countries. Ultimately, this guidance has assisted businesses in the development of Halal-standard products for these markets. 

Ben Tre and Ninh Thuan's Departments of Industry and Trade signed a Memorandum of Cooperation with the Saudi Arabian Chamber of Commerce and Industry in September 2023 at the Vietnam-Saudi Arabia Business Forum. The agreement aims to facilitate the promotion of Halal products from these provinces to Muslim countries, with the Ministry of Foreign Affairs support.

Overcoming obstacles and expanding the market

Vietnamese enterprises continue to encounter obstacles in obtaining information about the markets of Islamic countries, particularly in the areas of consumer culture, business practices, and Halal product regulations, despite some successes. 

Consequently, certain practices, including cultivation, processing, preservation, packaging, and branding, continue to violate Islamic cultural norms. 

The business community is in need of assistance, specifically a list of Halal certification bodies that satisfy the requisite criteria, in order to enhance the exchange of Vietnamese Halal products and services with global Halal markets and facilitate the trade of Halal products. 

Additionally, the lack of a unified global Halal standard and the inconsistent certification processes of the numerous organizations authorized to issue Halal certifications are significant challenges. 

Furthermore, businesses incur substantial expenses when they invest in specialized production lines and equipment for Halal-compliant packaging, storage, and transportation. 

This is a significant issue due to the fact that the majority of provincial businesses are small or medium-sized, with limited capacity and resources. Consequently, the number of enterprises that possess Halal export certifications is relatively low. 

Local authorities have responded by expressing their desire for assistance from the Ministry of Foreign Affairs and other pertinent domestic and international agencies to facilitate effective access to the global Halal market and the attraction of resources for the development of the Halal industry. 

More specifically, they are seeking assistance in establishing connections, showcasing, and promoting products at several Vietnamese representative agencies in critical Halal markets. These diplomatic channels can function as bridges, providing regular updates on economic and trade trends, market demand, and the conditions for import and export in Halal markets through in-person or online events. 

Furthermore, it is recommended that Vietnamese regulatory bodies offer guidance on the procedures and prerequisites for obtaining Halal certification, as well as support trade promotion in Halal markets, which includes information on trade barriers and import standards for Islamic countries. 

Also encouraged is the signing of agreements to improve the production and distribution of Halal-standard food to critical markets, as well as the strengthening of bilateral and multilateral cooperation between Vietnam and its partners on Halal products.