Vietnamese Agricultural Products Still “Overlooking” the Halal Market

The Halal market holds great potential for Vietnamese exports, but businesses are still hesitant and have not invested much due to limited understanding of the consumer culture and business practices in Islamic countries.

At the seminar “Potential to Promote Halal Agricultural Products in the Middle Eastern Market” organized by the Ministry of Industry and Trade, Mr. Le Chau Hai Vu, a consultant on Halal food quality and Director of Consultech JSC, stated that Halal-certified products must not contain any ingredients prohibited by Islamic law and must ensure “purity” in the production process. Import and export services play a crucial role in bringing Vietnamese Halal products to the international market.

Many opportunities for Vietnamese agricultural products to penetrate the Halal market

The global Halal market is valued at over $2 trillion and is estimated to increase to $2.8 trillion in the coming years. This is a potential market for Vietnamese agricultural products. To export to the GCC Islamic market, businesses need to comply with Halal standards according to GSO. Food must be produced from ingredients that do not contain Haram components, the production and packaging process must ensure Halal integrity, ensure food safety and hygiene, and be labeled according to HAS regulations. Logistics companies and international shipping services will play a key role in exploiting this market.

However, Vietnamese agricultural products still have many weaknesses such as management level, lack of investment capital, and suboptimal infrastructure. In the Gulf market, Vietnamese agricultural products have low prices but not high quality, making them less competitive. Cargo delivery services need to be improved to enhance product quality when reaching consumers.

Vietnamese businesses do not understand much about the business culture of Islamic countries, face difficulties in certification, lack knowledgeable personnel, and have not actively researched the market. Vietnamese agricultural products have not created a strong brand and face fierce competition from other countries.

To successfully penetrate, businesses need to research market trends deeply, understand business culture correctly, grasp consumer preferences, and meet specific standards. They need to actively promote products, participate in trade promotion, and aim to produce organic, environmentally friendly products.

Mr. Tran Trong Kim, First Secretary in Saudi Arabia, recommends that businesses study local tastes and quality management regulations. They need to build their own brands and find import channels that do not go through the Red Sea area. Container shipping and sea freight need to be adjusted to suit the new situation.

To avoid risks, contracts should be signed with payment by letter of credit (LC), with deposits, and without prepayment of fees related to contract brokerage. Freight forwarding companies can assist businesses in handling payment procedures and related paperwork.

The Halal market is full of potential but also many challenges. Vietnamese businesses need to prepare carefully in all aspects, from production to logistics, to effectively exploit this opportunity. Support from functional agencies and flexibility in business strategy will be key to opening the vast Halal market.