Halal Cooperation Between Vietnam and Malaysia: A New Milestone for Bilateral Trade Breakthroughs

Vietnam has achieved a significant milestone in expanding its Halal export market as the Asia-Africa Market Department (under the Ministry of Industry and Trade) signed a Letter of Intent for cooperation with the Malaysian Halal Agency. This document was signed during General Secretary Tô Lâm’s official visit to Malaysia from November 21-23, 2024, marking a new chapter in the bilateral trade relationship between the two countries.

Currently, Vietnam’s Halal export potential remains largely untapped, with only about 1,000 enterprises certified for Halal standards and 3,000 products exported to Malaysia. This figure is modest compared to the global Halal market, which serves nearly 2 billion consumers, representing 24% of the world’s population. Malaysian Minister of Investment, Trade, and Industry (MITI), Mr. Zafrul Abdul Aziz, affirmed that Malaysia would support Vietnam in enhancing its capacity across the Halal value chain, from production to quality control and product distribution.

The Letter of Intent aims to address one of the major challenges faced by Vietnamese businesses in exporting to the Malaysian market: Halal certification.

Malaysia’s Ambassador to Vietnam, Dato’ Tan Yang Thai, commended Vietnam’s potential for developing the Halal industry, citing its strategic geographical location near major Muslim markets such as Malaysia, Indonesia, and Singapore. Additionally, Vietnam’s diverse agriculture with a variety of crops and livestock provides a solid foundation for the growth of the Halal food industry. Notably, Vietnam’s tourism sector holds immense opportunities to attract Muslim tourists by developing Halal-certified tourism services and products.

The newly signed Letter of Intent will promote comprehensive cooperation between the two countries in the Halal sector. According to Mr. Lê Phú Cường, Trade Counselor in Malaysia, the document helps address one of the most significant barriers for Vietnamese businesses—obtaining Halal certification. Both sides will focus on training, organizing exhibitions, specialized seminars, and enhancing business connectivity.

Halal cooperation is considered a strategic priority in Vietnam-Malaysia relations, as reflected in numerous high-level meetings. During Malaysian leaders’ visits to Vietnam in 2021 and 2022, both sides engaged in in-depth discussions on expanding cooperation in Halal-related sectors, including logistics, Islamic finance and banking, and Muslim-friendly tourism. Most recently, at the 4th Joint Committee on Bilateral Trade session (July 2024), the two countries’ industry and trade leaders reaffirmed the critical role of Halal cooperation.

Malaysia is currently Vietnam’s second-largest trading partner in ASEAN (after Thailand) and ranks 11th globally. Conversely, Vietnam is Malaysia’s third-largest trading partner in ASEAN. In the investment sector, Malaysia ranks second in ASEAN (after Singapore) and 11th out of 143 countries and territories investing in Vietnam. As the two countries approach the 10th anniversary of their Strategic Partnership (2015-2025), fostering Halal cooperation is expected to provide new impetus for economic development and open up opportunities for Vietnamese businesses to access the global Muslim market.