Vinamilk: 'Halal logo' on milk cartons is a commitment to consumers

In addition to adhering to production standards for the Halal market, a representative from Vinamilk stated that the company's commitment to consumers is a key factor in ensuring its success in this market.

During his third visit to Vietnam, Mr. Inam Ahmad Zia Ahmad, an importer from the Middle East, expressed his ongoing amazement at the advanced technology and modernity of Vinamilk's dairy production facilities. Not only does Vinamilk meet the Halal certification, which is a mandatory requirement for exports to Muslim-majority countries, but the company also holds a comprehensive range of world-class standards. These include GlobalG.A.P, Organic EU, FDA, ISO 9001, and FSSC 22000, among others. This impressive "collection" of certifications enables Vinamilk's products to be present in even the most demanding international markets.

Having first encountered Vinamilk's products at an international trade fair more than 10 years ago, Mr. Zia Ahmad decided to collaborate with the company to distribute Vietnam's infant formula into the Afghan market. "Not only do their products fully meet Halal standards, but they also provide highly professional services that support us in reaching consumers, organizing promotional programs and conducting health and nutrition workshops for customers. In addition to infant formula, we are expanding into other milk products to meet the growing demands of the market", Mr. Zia Ahmad added.

Along with a significant increase in revenue after more than a decade of market penetration, Vinamilk's Alpha brand has become widely recognized, appearing commonly across various locations. Halal markets now account for nearly 80% of Vinamilk's export sales. Some market segments have experienced substantial growth in both contribution share and value, with certain markets projected to see an estimated increase of more than 80% in 2024.

A multi-trillion-dollar market has become more accessible

With around 2 billion consumers across the Middle East, South Asia, Africa, and parts of Southeast Asia, the Halal product market is considered a "golden opportunity" for export businesses. Specifically, a report from the United Nations Food and Agriculture Organization (FAO) reveals that the global Muslim community is expected to spend around USD 1.9 trillion in 2024, with projections to rise to USD 15 trillion by 2050. High-quality agricultural products, particularly clean and organic products with Halal certification, represent a significant share of this market.

Vietnam is a country with significant advantages in agricultural exports, and it is located in Asia, home to about 62% of the world's Muslim population. In the coming years, both Vietnam and several Muslim-majority countries have set goals to increase bilateral trade. For example, Vietnam and Malaysia aim to boost their trade turnover to USD 18 billion, Vietnam and the UAE aim for USD 10 billion, and Vietnam and Turkey target USD 5 billion.

From the perspective of the business community, Mr. Vo Trung Hieu, the International Business Director of Vinamilk, shared, "The Halal product market holds tremendous potential. It's not only the Muslim community that is interested in these products, but consumers in developed countries such as the United States, Russia, and the European Union are also increasingly attentive to this standard because of its safety, quality, and sustainability. Furthermore, Vietnam's expansion of free trade agreements, especially the recent Comprehensive Economic Partnership Agreement (CEPA) between Vietnam and the UAE, is creating substantial opportunities for domestic companies to reach this large and growing customer base."

Regarding Vinamilk’s approach to this market, Mr. Hieu explained that the company aims to sustain a growth rate of 5%-10% in production for its traditional markets. At the same time, Vinamilk is actively researching and developing suitable products to expand into major markets like Malaysia and Indonesia, with the goal of serving the Muslim communities in these regions more effectively.

Is the opportunity available to the majority?

Experts suggest that while the Halal market is vast and holds great potential, along with favorable geographic advantages, Vietnamese products in general, and agricultural and seafood products in particular, have only just begun to explore this market. Although Vietnam ranks among the top 20 exporting countries in the world, it has yet to break into the top 30 countries that supply Halal food globally. Currently, fewer than 1.000 Vietnamese companies have products that are Halal-certified.

To tap into the potential of markets that exclusively consume Halal-certified products, it is crucial for businesses to obtain certification and select reputable certification bodies. A representative from Vinamilk further emphasized that exporters should engage in discussions with their partners to gain a clear understanding of the specific regulations for each market. Not all markets require third-party certification; companies may sometimes have the option to self-certify or follow established guidelines tailored to specific products or industries.

"Depending on the nature of the industry and the origin of the product, businesses need to be adaptable in their approach, ensuring cost-effectiveness while simultaneously creating a competitive edge for their products. The Halal logo on a product is not the only "barrier" to entry in the market. What is truly important is having in-depth knowledge of the target market segment, which will allow businesses to implement practices and strategies that are in harmony with market expectations", said Mr. Hieu.

At Vinamilk, the process of understanding and adhering to Halal standards began early, even before Vietnam had an official certifying authority. Today, all 387 of the company’s export products, including powdered milk, condensed milk, nutritional powders, yogurt, and drinking yogurt, meet Halal certification requirements.

"For Vinamilk, achieving Halal certification is not particularly challenging because we already have extensive experience and confidence in our quality management processes, from production to distribution. However, we view the Halal logo on our products not just as a certificate, but as a commitment from the manufacturer to the consumer. This commitment encompasses various factors, from sourcing the right products and flavors, ensuring that production practices strictly adhere to Halal standards, to offering after-sales services and packaging that cater to the specific demands of the market", the Vinamilk representative further explained.

In addition to certification, Vinamilk stresses that establishing strong and lasting relationships with partners is one of the key strategies that have helped the company firmly root itself in markets for 10 to 20 years. By working closely with local partners, Vinamilk is able to offer products that are finely tuned to meet the specific needs of consumers in each region. This approach also extends to designing packaging, marketing campaigns, and branding images that are in harmony with the cultural norms and tastes of each individual market. For Muslim-majority countries, this customization is even more critical.

Moreover, Vinamilk has found that actively engaging in trade promotion activities such as trade fairs, exhibitions, and networking events is an effective and valuable way to expand its export markets—not just for Halal products, but for all of its offerings. In 2024 alone, Vinamilk participated in nearly 20 trade fairs and promotional events, which led to the signing of several multi-million-dollar contracts. Looking ahead to 2025, this exporter will once again attend the world's largest food fair, Gulfood in Dubai, which is considered a gateway to Halal markets in the Middle East, Africa and South Asia.