Vietnam develops a national decree to advance halal certification and trade

Vietnam is developing a national decree to manage the quality of its halal products and services by providing significant support for its certification bodies to achieve international recognition, making their certifications valid particularly in key export markets. 

The initiative is also aimed at Vietnamese entrepreneurs looking to penetrate the global halal market, by offering financial support through aid for trade fairs, preferential interest rates for halal investments and inclusion in national branding programs. 

The Nation reported, the plan serves as a long-term strategy to increase Vietnam’s share in the global halal market– projected to be worth as much as $10 trillion (RM39.76 trillion) by 2028.

“It is well known that the halal economy is a key driver that can help sustain economic momentum and growth in many countries, because demand in the halal economy is clear, reliable, and high in value.

Thailand is consistently ranked within the top 10 to 15 global halal food exporters and is a major player, particularly in Southeast Asia. (photo credit: Chulalongkorn University)

“However, the premium nature of this market has also attracted major competitors seeking to capture market share,” The Nation stated. 

According to the portal, Thailand currently poses as one of the most dominant players in the global halal market as reflected in its halal food exports to member countries of the Organization of Islamic Cooperation (OIC), valued at approximately $8 billion (RM32.12 billion).

However, Thailand can fall behind if the country does not undertake further development and pursue new opportunities in the fast-paced industry.

In accordance with the Office of Commercial Affairs (Thai Trade Center) in Ho Chi Minh City, Vietnam, the country is on track to proactively negotiate and sign international agreements geared towards promoting and supporting entrepreneurs in the halal market.

The Vietnam Ministry of Science and Technology (MoST) is currently playing a leading role in the state management of halal certification and standards in the country. (photo credit: VietNam Net)

Under a draft decree on halal products and services quality management prepared by the Vietnam Ministry of Science and Technology (MoST), halal products are defined as goods certified and compliant with Islamic requirements, while halal services refer to all types of activities related to halal products. 

At the same time, Vietnam will integrate Research and Development (R&D) as well as market promotion for halal products and services into national trade promotion programmes and other related market development programmes.

For instance, the Vietnam National Brand Programme welcomes entrepreneurs with high-quality and reputable halal products and services to elevate their offerings under the national brand, easing their pathway onto the global trading stage. 

In 2023, the Vietnamese government approved an initiative to develop the country’s halal industry through to 2030 by promoting international cooperation, marking the plan as a crucial step in economic diplomacy.

Vietnam's top halal-certified exports are primarily agricultural, marine, and processed food products. (photo credit: Socialist Republic of Vietnam)

“Although Vietnam is not a Muslim-majority country, its strategic location linking China, ASEAN, and the Pacific Ocean, as well as its free trade agreements with many countries, enables it to develop effectively into a hub for distributing halal products to global markets.

“For Thailand, which has a halal certification system recognised internationally, it is well-positioned to share knowledge, inspection technology, and halal certification processes.

“If Thailand takes Vietnam as a trade partner, combining the strengths of both countries, this would help promote ASEAN as a global hub of the halal economy,” The Nation stated.

The partnership would allow both countries to break free from the trap of economic problems and various challenges that threaten trade and investment, driving a new economy known as The Global Halal Economy.