Many Agricultural Products Exported to Saudi Arabia Experience Double-Digit Growth

During Prime Minister Pham Minh Chinh’s official visit to Saudi Arabia, Vietnamese transportation and logistics companies received positive signals about opportunities to expand their international shipping services. At a meeting with the Saudi Food and Drug Authority (SFDA) on October 29, 2024, a delegation led by Deputy Minister Hoang Trung discussed key issues related to enhancing goods transport between the two countries.

Export-import and container transportation services to the Saudi Arabian market achieved impressive growth in the first nine months of 2024. Specifically, fruit and vegetable exports reached $10.9 million (up 51.4%), rice exports reached $22.7 million (up 43.7%), and pepper exports reached $12.5 million (up 34%). However, seafood export shipping by sea recorded a slight decline, totaling $59.1 million (down 0.2%).

Vegetable and fruit exports to the Saudi Arabian market in the first nine months of 2024 reached $10.9 million, up 51.4%.

In positive news for forwarders and logistics providers, SFDA has committed to sending a technical delegation to Vietnam to assess the food safety control system for the aquaculture production chain. This step opens the possibility of lifting Directive No. 21174, which temporarily suspended seafood imports, paving the way for stronger development of international transport services in this market.

The global Halal market, expected to reach $10 trillion by 2028, presents a significant opportunity for Vietnam’s logistics industry. With the Muslim population projected to reach 2.8 billion by 2050, demand for Halal-compliant container shipping and specialized sea transport is expected to surge. Logistics companies must prepare to meet the strict standards for Halal-compliant transportation and warehousing.

Under the Vision 2030 Strategy, Saudi Arabia prioritizes diversifying its sources of food and agricultural products. This creates substantial opportunities for Vietnamese export-import services and transport companies, particularly in domestic container transport and international shipping for Halal-certified products. Additionally, sea freight rates need to be optimized to increase competitiveness for businesses.

The consideration of a Memorandum of Understanding (MoU) for cooperation between the two sides will facilitate goods transport and logistics services. SFDA is ready to share expertise and regulations on Halal certification, helping Vietnamese transportation companies and exporters enhance their capacity to meet Saudi market standards. This is an opportunity for Vietnam’s transportation and logistics sector to expand its market share in this promising Middle Eastern region.