Vietnam promotes a strategy to penetrate the Middle Eastern Halal market

Strategy for Expanding the Global Halal Market

Vietnam is actively pursuing opportunities to expand its presence in the global Halal market, which is projected to grow from USD 2.4 trillion in 2024 to USD 4.5 trillion by 2030. With a strategic focus on the Middle East, recent visits by Prime Minister Pham Minh Chinh to the UAE, Saudi Arabia, and Qatar highlight the ambition to make Vietnam a key supplier of Halal-certified agricultural and seafood products.

Accordingly, the Vietnam Halal Center estimates that Vietnam could produce goods worth USD 34 billion for the member countries of the Organization of Islamic Cooperation (OIC), with the total GDP of the organization reaching USD 8.5 trillion in 2023. With its diverse agricultural foundation and developed food processing industry, Vietnam is well-positioned to meet the global demand for Halal-certified products, driven by the growing Muslim population and increasing consumer spending.

During his visit to the Middle East, Prime Minister Pham Minh Chinh emphasized that Vietnam is ready to adjust its production capacity to align with international Halal standards. Discussions also covered bilateral cooperation in trade, investment, and food security, with a focus on technology transfer and expertise in Halal production.

Vietnam’s Halal Export Potential in the Middle East

Vietnam possesses significant potential to develop in the global Halal market, thanks to its position as one of the top 20 food-exporting countries and 15th in agricultural exports worldwide. Key products such as pepper, cashews, shrimp, catfish, coffee, furniture wood, and rice have solidified Vietnam's reputation as an agricultural powerhouse, contributing about 11% of the national GDP.

Moreover, many Vietnamese businesses have seen success in penetrating the Halal market. Minh Phu Seafood Corporation, one of the largest shrimp producers globally, has seen a significant increase in exports to Muslim countries after receiving Halal certification. Similarly, Vinamilk has expanded its product range to include Halal-certified items, opening up new markets in the Middle East and Southeast Asia.

Vietnam's current production standards, such as VietGap, GlobalGap, and HACCP, align with Halal requirements, providing a solid foundation for expanding the certification process. Additionally, Vietnam is actively cooperating with international Halal certification organizations and OIC member countries to ensure its products meet global standards. For example, recent agreements with Malaysia and Indonesia have made market access easier.

During visits to Qatar, Saudi Arabia, and the UAE, Prime Minister Pham Minh Chinh held significant discussions with regional leaders, especially Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani. These exchanges highlighted Vietnam's strategic intent to strengthen bilateral relations with key Middle Eastern partners.

The talks focused on expanding cooperation in trade and investment, where both sides see substantial potential. Specifically, the discussions emphasized collaboration in the rapidly growing Halal industry, with the clear goal of enhancing shared economic prosperity.

Moreover, the Prime Minister emphasized the importance of food security in the Middle East. With its extensive agricultural experience, Vietnam proposed initiatives to support sustainable agricultural development in the region. One such initiative is sending Vietnamese experts to assist in aquaculture and agriculture development in areas facing food security challenges.

These efforts are not only aimed at sharing expertise but also at fostering long-term, mutually beneficial partnerships between Vietnamese businesses and the Middle East. In doing so, Vietnam strengthens its position as a reliable and capable supplier in the global agricultural market.

PV