Vietnam’s Expanding Halal Trade Horizons

Vietnam has emerged as one of Asia’s most dynamic economies, supported by its extensive network of 17 Free Trade Agreements (FTAs) connecting the country with key markets across Asia, Europe, and the Americas. These FTAs not only reduce tariffs but also foster deeper cooperation in high-value sectors such as agriculture, food processing, and services—all of which have direct implications for the global Halal economy.

Growing Demand in Europe

Among Vietnam’s FTAs, the EU-Vietnam Free Trade Agreement (EVFTA) stands out as a critical gateway to one of the world’s largest consumer blocs. Europe is home to over 25 million Muslims, with populations in France, Germany, the Netherlands, and the UK continuing to grow rapidly. This demographic expansion is driving rising demand for Halal-certified products—from food and beverages to cosmetics, pharmaceuticals, and tourism services.

With the EVFTA eliminating tariffs on up to 99% of goods over time, Vietnamese businesses have a prime opportunity to access Europe’s Halal consumer market competitively. Products such as seafood, coffee, tea, processed foods, and textiles can benefit significantly once aligned with Halal certification standards.

Vietnam’s Agricultural Products on the Rise in the EU

Recent trade data underscores the momentum of Vietnamese agricultural exports to Europe. According to Vietnam Customs, fruit and vegetable exports to the EU in June 2025 reached USD 47.4 million, up 56.3% year-on-year. For the first six months of 2025, total export value hit USD 233.2 million, a 44.1% increase compared to the same period in 2024.

Passion fruit led the export portfolio with USD 58.59 million (up 112.9%), accounting for more than a quarter of total fruit and vegetable exports to the EU. Mango exports reached USD 39.9 million (up 28.6%), pistachios USD 34.2 million (up 102.1%), pineapples USD 19.5 million (up 207.9%), coconuts USD 18.3 million (up 49.1%), lemons USD 9.8 million (up 37.7%), dragon fruit USD 9.36 million (up 10.5%), and almonds USD 6.87 million (up 140.7%). These figures highlight the growing appeal of Vietnamese tropical fruits and nuts in one of the world’s most demanding consumer markets.

In 2024, Vietnam’s agricultural exports to the EU reached a record USD 5.44 billion, with fruit exports experiencing double-digit growth thanks to post-pandemic consumption recovery. Experts note that European consumers increasingly prioritize green, organic, and certified products with clear traceability—trends that align closely with Halal standards. This presents an opportunity for Vietnam to combine its agricultural strengths with Halal compliance, targeting both Muslim and non-Muslim consumers.

Despite impressive growth, Vietnamese agricultural products currently represent only around 2% of the EU’s total import value. With the EU annually importing USD 102 billion in fruits and vegetables, USD 60 billion in seafood, USD 26 billion in coffee, USD 59 billion in wood and wood products, and tens of billions in cashews, rubber, and handicrafts, the potential for expansion is substantial.

Challenges to Overcome

Entering the EU market, however, is far from straightforward. The EU maintains some of the world’s strictest sanitary and phytosanitary (SPS) and technical barriers to trade (TBT) standards. Low pesticide residue limits have led to past rejections of Vietnamese shipments such as dragon fruit, chili, and okra. Seafood exports must meet stringent traceability requirements, and the country continues to address the ongoing “yellow card” IUU warning.

From late 2025, the EU will implement the Deforestation Regulation (EUDR), requiring businesses to demonstrate that imports are not linked to deforestation. Meanwhile, many Vietnamese agricultural exports remain in raw or semi-processed form, limiting value addition.

Beyond food safety, European consumers are increasingly prioritizing sustainability and social responsibility. Products must not only be safe and high-quality but also environmentally and ethically produced. For Vietnam, integrating Halal certification into this framework could serve as both a compliance mechanism and a unique selling point.

Halal Certification: The Key to Market Entry

While tariff preferences provide a price advantage, Halal certification remains essential to gaining the trust of Muslim consumers. Europe maintains strict compliance standards, with Muslim communities often relying on local Halal certification bodies to validate imports. For Vietnam, establishing a reliable, internationally recognized Halal certification infrastructure is as important as trade liberalization itself.

Leveraging FTAs Beyond Europe

In addition to the EVFTA, Vietnam’s FTAs with the UK, ASEAN, and CPTPP members create favorable conditions to export Halal products to Muslim populations across Southeast Asia, the Middle East, and North America. These agreements strengthen supply chain integration and enhance Vietnam’s appeal as a Halal manufacturing hub for global brands seeking efficient access to multiple markets.

Conclusion

Vietnam’s 17 FTAs offer an unprecedented opportunity to integrate further into the US$7 trillion global Halal economy. The EVFTA, in particular, opens a gateway to Europe’s growing Muslim population, where Halal-certified products enjoy increasing mainstream acceptance. With proactive strategies in certification, market research, and trade diplomacy, Vietnam can transform its comparative advantages into genuine leadership within the Halal sector—not just regionally, but globally.