Vietnam Halal Food Challenge to Meet Global Standards

Vietnam is emerging as a significant contender in the global halal food industry. Known for its extensive range of agricultural products, seafood, and rapidly developing economy, the country is well-positioned to serve the expanding halal food market. This growing interest reflects the global demand for halal-certified food, especially in Muslim-majority countries across Southeast Asia, the Middle East, and North Africa. Despite its strong potential, Vietnam faces notable challenges in aligning its halal certification standards with diverse international requirements. With a clear strategy, Vietnam could capitalize on this opportunity, tapping into a global market that spans billions of consumers.

This article delves into Vietnam’s current standing in the halal food industry, its efforts to establish a robust certification process, and the economic potential for small- and medium-sized enterprises (SMEs) within the country. Additionally, we explore how Vietnam’s agricultural and seafood industries can meet halal standards, and the country’s approach to adapting to market trends, such as the rising demand for plant-based and functional halal foods.

Halal Certification in Vietnam

One of the primary challenges for Vietnam’s Halal Food exporters is meeting the rigorous and varied halal certification requirements demanded by different countries. While halal certification is based on Sharia principles, interpretation and implementation differ across regions. The Middle East’s Gulf Cooperation Council (GCC) countries—including the UAE, Saudi Arabia, and Qatar—have established strict technical standards, as has the Standards and Metrology Institute for Islamic Countries (SMIIC) in Turkey. Meeting these varying standards is crucial for exporters, but aligning with each country’s specific requirements can be a complex task.

In April 2024, Vietnam took a notable step by establishing its own halal certification body, known as HALCERT, under the Vietnam Certification Centre. HALCERT operates based on the TCVN 12944:2020 standards for halal food and beverages, aiming to give Vietnamese products the credibility needed to enter international halal markets. However, this alone is not enough to ensure market access. Vietnamese authorities need to collaborate closely with global halal certification bodies to ensure that Vietnamese standards are compatible with those of target markets. Building trust with foreign regulatory bodies and consumers will require transparency and consistent adherence to international standards.

Vietnam’s approach includes fostering relationships with organizations such as Malaysia’s Department of Islamic Development (JAKIM) and Indonesia’s Halal Product Assurance Agency (BPJPH), both of which are respected authorities in the global halal landscape. By working with these established entities, Vietnam can bolster its certification processes and boost confidence in its halal exports.

Vietnam in the Global Halal Market

Although Malaysia and Indonesia are well-established halal exporters, Vietnam has unique advantages that could help it stand out in the crowded halal market. For starters, Vietnam’s agricultural diversity includes high-demand products such as rice, coffee, fruits, vegetables, spices, and seafood. Many of these products are already in demand across Muslim-majority countries, giving Vietnam a strong foundation to build upon.

Vietnam’s relatively low production costs also give it a competitive edge, allowing the country to produce halal products at lower prices. This price advantage could help Vietnamese halal products capture the attention of cost-conscious consumers, especially in Southeast Asia, where there is already a significant appetite for affordable halal goods.

To further distinguish itself, Vietnam could implement a strategic “Made-in-Vietnam” branding campaign, promoting the quality, safety, and affordability of its halal-certified offerings. Government agencies, including the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, and the Ministry of Culture, Sports, and Tourism, are well-positioned to support these efforts, drawing on successful branding initiatives from other countries such as Thailand and South Korea. With the right marketing, Vietnam Halal Food products could achieve high visibility and build a strong reputation in global markets.

The Expertise for Halal Standards

Despite its strong potential, Vietnam still faces several critical gaps in infrastructure, technology, and expertise needed to meet rigorous halal standards. The lack of halal-specific infrastructure and limited local expertise in Sharia-compliant practices are significant obstacles to Vietnam’s aspirations to become a major halal hub. For a country with a small Muslim population, achieving a nationwide understanding and adoption of halal principles requires targeted education and awareness efforts.

Vietnam has made strides in educating local businesses, government officials, and consumers about the importance of halal standards. However, there is still much work to be done to increase awareness across various sectors. For instance, developing halal-certified food services, such as restaurants, cafés, and production facilities, will require not only investment but also rigorous training for staff to ensure compliance with halal guidelines.

Infrastructure improvements are also necessary to make major cities and tourist destinations more accommodating for Muslim travelers. This includes establishing Muslim-friendly centers with prayer rooms, providing digital resources like mobile apps to locate halal dining options, and ensuring that prayer facilities are accessible. Although Vietnam has advanced technological capabilities, including access to artificial intelligence (AI) and the Internet of Things (IoT), leveraging these tools to support halal accessibility remains an important step.

AI and IoT technology can enhance Vietnam’s halal industry by providing tools for quality control, certification management, and customer support. For example, AI-powered applications could help certification bodies monitor compliance in real time, while IoT devices can track food production processes to ensure they meet halal requirements.

Opportunities in Halal Exports

Vietnam’s entry into the halal food market holds substantial economic potential, especially for small- and medium-sized enterprises (SMEs). SMEs make up the backbone of Vietnam’s economy, and halal certification opens new avenues for these businesses to expand into global markets. This opportunity is particularly significant given the success seen in Malaysia, where halal exports contribute significantly to GDP.

Vietnamese products such as coffee, spices, rice, and seafood are in high demand in Muslim-majority countries, and halal certification provides an entry point for these goods to reach new consumers. For SMEs, however, navigating the complexities of halal certification can be challenging, particularly given the diverse standards required by different countries.

To support SMEs in entering the halal market, the Vietnamese government could establish a central coordinating body similar to Malaysia’s Halal Industry Development Corporation (HDC). Such an organization could help SMEs understand the requirements of halal certification, facilitate training, and provide assistance in marketing and exporting halal products. It could also manage government-to-government relations, helping Vietnamese SMEs build partnerships with foreign importers and halal certification bodies.

Vietnam Halal Food Production

Agriculture and seafood are integral to Vietnam’s economy and are central to its ambitions in the halal market. With rising global demand for sustainable and organic halal products, Vietnam’s agricultural producers have a unique opportunity to meet these consumer needs while capitalizing on their natural resource base. However, strict adherence to halal standards is essential for building trust with Muslim consumers.

Agricultural producers must ensure that their farming and processing practices align with halal guidelines. This includes avoiding prohibited substances and adhering to ethical practices throughout the supply chain. Vietnam’s seafood industry, a major export sector, can also meet halal standards by following guidelines on breeding, feeding, and processing seafood in a Sharia-compliant manner. By prioritizing halal certification, Vietnamese producers can attract consumers who seek not only halal but also sustainable and ethically produced food options.

In addition to conventional halal foods, Vietnam can explore the organic halal segment, which is seeing a rise in popularity. Organic halal certification could give Vietnam a foothold in niche markets focused on health, wellness, and sustainability, enhancing the country’s appeal to environmentally conscious consumers in the halal market.

Adapting to Emerging Trends

One of the most notable trends in the halal food industry is the increasing demand for plant-based and functional foods. Health-conscious consumers are turning to plant-based diets, creating a demand for halal-certified alternatives to traditional animal-based foods. Vietnam is well-positioned to respond to this demand, as it produces a variety of plant-based foods, including rice, soy, fruits, and vegetables.

Functional foods, which offer health benefits beyond basic nutrition, are also gaining traction in Muslim-majority countries. Examples include foods fortified with vitamins, minerals, or probiotics. Vietnam can tap into this trend by developing functional halal products that align with consumer preferences in these markets. By positioning itself as a provider of plant-based and functional halal foods, Vietnam could differentiate itself in the competitive halal landscape.

Participation in global trade shows is essential for showcasing these unique products. Vietnam already participates in nearly 60 global halal trade shows each year, including high-profile events like the Malaysia International Halal Showcase (MIHAS) and the Dubai Halal Expo. These platforms offer valuable networking opportunities and allow Vietnamese producers to engage with international buyers, industry leaders, and potential partners.

By highlighting its unique offerings, Vietnam Halal Food products, particularly in the plant-based and functional food sectors, could gain international attention. Effective marketing and participation in trade events will be crucial in establishing Vietnam as a key player in the halal industry.

Vietnam’s the Halal Food Industry

Vietnam’s journey to becoming a global player in the halal food market is filled with both challenges and opportunities. By addressing the gaps in infrastructure, fostering a greater understanding of halal principles, and building international partnerships, Vietnam can overcome obstacles to achieving its halal certification goals. The agricultural and seafood sectors provide a solid foundation, while the country’s competitive production costs and abundant natural resources offer an edge in the global market.

With the right support and strategic marketing efforts, Vietnamese SMEs could thrive in the halal industry. The establishment of a central body to oversee halal export development would streamline the process for smaller businesses, allowing them to capitalize on the economic potential of the halal food market.

As demand for halal-certified products continues to rise, particularly in the plant-based and organic food sectors, Vietnam is well-positioned to meet these needs. The country’s active participation in international trade events and collaboration with established halal certification bodies will be essential in building trust and reputation.

By aligning with global halal standards, focusing on market trends, and strengthening its branding as a reliable halal food source, Vietnam has the potential to become a major player in the international halal food industry, creating new economic opportunities and boosting its global standing.