Indonesia to Boost Ties with Vietnam in Halal Production and Cosmetics

The global halal market is booming, projected to reach $10 trillion by 2030. At the heart of this growth is a blossoming partnership between Indonesia and Vietnam, two Southeast Asian powerhouses eager to capitalize on the rising demand for halal-certified products, particularly in food and cosmetics. With Indonesia’s expertise and Vietnam’s manufacturing prowess, this collaboration is set to reshape the halal industry. Let’s dive into why this partnership matters, the opportunities it unlocks, and how businesses can get involved.

Why the Indonesia-Vietnam Halal Partnership Is a Game-Changer

Indonesia, home to the world’s largest Muslim population, is a global leader in the halal industry, ranking second in halal food and fifth in halal cosmetics. Vietnam, with its robust manufacturing sector and strategic location, is emerging as a key player in halal exports. The recent elevation of their bilateral ties to a comprehensive strategic partnership in March 2025 has paved the way for deeper collaboration in halal-certified production.

At a seminar hosted by the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC) and the Indonesian Consulate General, experts highlighted the immense potential of this alliance. Indonesian Consul General Agustaviano Sofjan emphasized Indonesia’s readiness to share its halal certification expertise, while Vietnam’s businesses are eager to tap into Indonesia’s vast market of over 280 million consumers.

Opportunities in Halal-Certified Production

The halal market isn’t just about food—it spans cosmetics, pharmaceuticals, fashion, and tourism. Here’s how Indonesia and Vietnam are seizing these opportunities:

• Halal Food Processing: Vietnam’s rich supply of raw materials like rice, seafood, coffee, and spices makes it a prime candidate for halal food production. Partnering with Indonesia can help Vietnamese businesses meet stringent halal standards and access Muslim-majority markets.
• Halal Cosmetics: Indonesia’s cosmetics market, the largest in Southeast Asia, is projected to hit $11 billion by 2026. Vietnamese manufacturers can collaborate with Indonesian brands to produce halal-certified cosmetics, appealing to both Muslim and non-Muslim consumers who value natural, ethical products.
• Joint Ventures and Investments: Experts at the seminar urged both nations to foster joint ventures, share technical know-how, and invest in halal-related industries, creating a win-win scenario.

While the potential is vast, entering the halal market comes with challenges:

• Stringent Certification Standards: Halal certification requires compliance with Islamic law, including ingredient sourcing, production processes, and packaging. Vietnamese businesses need support to navigate these complex requirements.
• Limited Awareness: Many Vietnamese firms lack a deep understanding of halal as a lifestyle, not just a certification. Education and training are crucial.
• Competition: Countries like Malaysia and Thailand are also vying to become halal hubs, making it essential for Vietnam and Indonesia to act swiftly.

Indonesia’s experience in halal standardization can help Vietnam overcome these hurdles, ensuring products meet global demands.

How Businesses Can Get Involved

Ready to tap into this lucrative market? Here are practical steps for businesses in Vietnam and Indonesia:

1. Obtain Halal Certification: Work with recognized agencies like Vietnam’s HALCERT or Indonesia’s BPJPH to certify products. This is the “passport” to Muslim markets.
2. Partner Up: Explore joint ventures or collaborations with Indonesian firms to leverage their market access and expertise.
3. Invest in Training: Educate your team on halal standards and consumer preferences to ensure compliance and build trust.
4. Focus on Innovation: Develop high-value halal products, such as vegan halal cosmetics or ready-to-eat halal meals, to stand out.
5. Attend Trade Events: Participate in seminars and trade fairs, like those organized by ITPC, to network and showcase your products.

Indonesia aims to become the world’s leading halal production hub, while Vietnam is positioning itself as a key exporter. Together, they can create a robust ecosystem that not only serves Southeast Asia but also reaches Muslim consumers in the Middle East, North Africa, and beyond. This partnership aligns with Vietnam’s broader strategy to integrate into the global halal economy, as emphasized by Prime Minister Pham Minh Chinh.

By combining Indonesia’s market leadership with Vietnam’s manufacturing strengths, both nations are poised to unlock a $3 trillion market and drive sustainable economic growth.

The Indonesia-Vietnam partnership in halal-certified production and cosmetics is more than a business opportunity—it’s a chance to bridge cultures, meet global demands, and create ethical, high-quality products. As both countries deepen their collaboration, businesses have a unique window to innovate, expand, and thrive in the fast-growing halal market.

Want to learn more about entering the halal market or finding partners in Indonesia or Vietnam?