Entry into the 2,500 billion USD Halal food market: Early preparation of livestock ‘giant’ in Vietnam

Doubling the export of chicken meat in 2025

At the end of 2018, the C.P. Vietnam Livestock Joint Stock Company (Bien Hoa, Dong Nai) started the construction of the CPV Food complex at the Becamex Bình Phước Industrial Park (Minh Thanh commune, Chon Thanh district, Binh Phuoc) with a USD 250 million investment to prepare for chicken meat exports. Phase 1's utmost capacity is 50 million broiler chickens and 19,200 tons of processed chicken meat annually.

CPV Food commenced operations and officially inaugurated Phase 1 after 2020. At the inauguration ceremony, CPV Food officially exported the first quantity of processed chicken flesh to Hong Kong, thereby establishing C.P. Vietnam's presence in the international processed chicken export market.

CPV Food has since acquired licenses to export chicken meat to various markets, including Japan, Hong Kong, Cambodia, Laos, Russia, and Mongolia. Consequently, CPV Food's chicken meat has been accessible in various international markets over the years.

Notably, in October 2022, CPV Food effectively exported its first shipment of poultry meat to Japan, one of the most competitive markets in the world. This success is contingent upon CPV Food's ability to enter additional difficult markets.

CPV Food's exports of processed chicken meat have continued to increase in tandem with market expansion. CPV Food anticipates that it will export 3,000 tons of chicken meat in 2024, with an intention to double export volumes in 2025.

CPV Food is currently anticipating the conclusion of procedures to obtain export licenses to two high-demand markets, South Korea (application submitted in 2022) and the United Kingdom (application submitted in 2023), in addition to the aforementioned markets.

Mr. Wirat Wongpornpakdee, Senior Vice President of the food business at C.P. Vietnam, stated, "CPV Food concentrates on major poultry importers such as Japan, the United Kingdom, and South Korea, as we are new to the poultry export market and must establish a strong reputation."

To produce safe, high-quality processed chicken meat for export, CPV Food has been highly regarded for establishing a disease-safe zone, ensuring 100% traceability throughout the supply chain—from feed sources to product processing—implementing avian disease monitoring programs tied to food supply chain safety, meeting animal welfare requirements, adhering to veterinary hygiene standards at slaughter facilities, and producing food safely at processing facilities.

Prepared to access the Halal market

C.P. Vietnam, to become the "Kitchen of the World," initially focused on the Halal market and other significant potential export markets for poultry meat during the initial stages of its CPV Food investment. C.P. Vietnam regards Islam as a valuable market for the expansion and boost of exports of compatible products, as it is the world's second-largest religion, with over 2 billion followers (approximately 15% of the global population).

On December 27, 2022, CPV Food obtained Halal certification from JAKIM, one of the three primary Halal certifications that are currently in use in a variety of countries, following this proactive approach. As a result, CPV Food is the first chicken meat producer in Vietnam to satisfy the rigorous criteria of this certification.

As per Mr. Wirat Wongpornpakdee, the JAKIM Halal certification of CPV Food encompasses fast food outlets that cater to Muslim consumers, including vacationers and investors, as well as fresh meat for the domestic market. At present, CPV Food is in the process of obtaining export permits for its raw poultry products. CPV Food intends to investigate the Halal certification requirements of each country as the approval process approaches its conclusion, as standards may differ among Muslim-majority nations.

CPV Food will concentrate on high-potential Muslim-majority markets, prioritizing quality and value-added products to achieve sustainable profitability and benefits. This will support business expansion, and employment creation, and contribute to Vietnam's economy.

It is important to note that CPV Food will collaborate closely with the network of the C.P. Group, which is headquartered in Thailand and includes C.P. Vietnam, to implement strategies that are specifically designed to appeal to Muslim consumers in various countries. C.P. Group is a global leader in the export of poultry meat, having already established networks in Muslim countries such as Turkey and Malaysia and servicing Halal markets like Saudi Arabia.

CPV Food is notably interested in the Halal markets of Southeast Asia, particularly Malaysia, due to the high demand for poultry imports, in addition to the broader Halal market. C.P. Group has a network in Malaysia that is well-versed in the market's scope and requirements. CPV Food aspires to secure an export license through the cooperation of the governments of Vietnam and Malaysia, which will allow the company to execute marketing strategies in conjunction with the C.P. Group's network in Malaysia.

As per international sources, chicken flesh and eggs are considered fundamental foods in Malaysia due to their affordability. Population growth and increasing incomes are the primary factors driving Malaysia's poultry market's steady expansion. The demand for poultry is also being driven by the country's transition to healthier dietary habits, as it is regarded as a lean and healthier protein source.