Viet Nam develops decree and national certification to integrate agri products into the Halal chain

A USD 10 trillion market opportunity

According to the Organisation of Islamic Cooperation (OIC), Muslims account for about 25% of the global population, equivalent to 2 billion consumers. The Halal food industry was valued at USD 2.354 trillion in 2022 and is forecast to nearly double to USD 4.987 trillion by 2029. In particular, the Halal tourism and food service sectors are expected to generate annual spending of USD 325 billion by 2030.

With agriculture and food processing as export pillars, Viet Nam is considered to have numerous favorable conditions to participate in the global Halal supply chain thanks to its diverse range of products, clean raw material areas, increasingly advanced processing capacity, and geographic proximity to major Muslim consumer hubs in Southeast and South Asia.

"Halal is not just a market but a new standard for quality, traceability, and ethical production. Meeting this standard will elevate Vietnamese products to a higher level in international trade," said Mr. Nguyen Thanh Duy, Deputy Director General of the Department of Middle East and Africa under the Ministry of Foreign Affairs, at the Conference on Dissemination of Food Safety and SPS Regulations in FTAs with Halal Bloc held on October 23.

However, according to Mr. Duy, Halal remains a relatively new concept for most Vietnamese enterprises and localities. Halal certification is currently conducted by foreign organizations, which entails high costs and long processing times, while Viet Nam still lacks a unified management agency or comprehensive legal corridor for this activity.

"Many enterprises with good production capacity are still unable to export to the Muslim market simply because they lack Halal certification or due to unclear mutual recognition mechanisms between countries," Mr. Duy shared.

In addition, Viet Nam faces a shortage of well-trained Muslim personnel, which is a mandatory element in the Halal certification process. The domestic Halal ecosystem has not fully developed due to the lack of synchronization among production, logistics, trade, and international promotion stages.

Faced with these challenges, the Ministry of Foreign Affairs, assigned by the Government as the focal agency for promoting Halal cooperation, has coordinated with relevant ministries and sectors to implement foundational steps.

The most outstanding step is the development of a Decree on the Management of Halal Products and Services, which is currently being finalized for submission to the Government. The decree will be the highest legal framework that clearly outlines principles, procedures, and criteria for the recognition, licensing, and supervision of Halal certification activities in Viet Nam. "When the decree is issued, Viet Nam will have a unified legal framework for the first time that helps its products gain international recognition," Mr. Duy emphasized.

Viet Nam has established the National Halal Certification Center (HALCERT), a state management agency responsible for issuing and supervising Halal certification for domestic products and services. This is an important step to help reduce costs for businesses and enable Viet Nam to proactively establish mutual recognition with reputable Halal organizations worldwide.

At the same time, the Ministry of Science and Technology has issued six national standards on Halal and is expanding them to key product groups such as processed foods, beverages, pharmaceuticals, and cosmetics. Standardizing national standards not only helps Viet Nam align with international systems but also strengthens the management capacity of specialized agencies, particularly in agriculture and food safety.

To turn policy into tangible export value, the Ministry of Foreign Affairs is accelerating Halal economic diplomacy, integrating cooperation contents into high-level exchanges, joint committees, and political consultations with Muslim-majority countries such as Egypt, Saudi Arabia, Malaysia, Indonesia, the UAE, and Turkey.

Particularly, the National Halal Conference in October 2024 marked a milestone, gathering representatives from more than 40 provinces and cities, 200 enterprises, and international organizations. The event created a connection network for a wide range of products, including rice, coffee, cashew nuts, seafood, dried fruits, and processed goods. "If leveraging this network effectively, Viet Nam could become a key link in the global Halal supply chain," Mr. Duy affirmed.

In addition to trade promotion, the Ministry of Foreign Affairs is also strengthening two-way communication on Halal, preparing to release Viet Nam's first external publication on the Halal economy, along with specialized journals, brochures, and regional newsletters to promote the potential of Vietnamese agricultural products and provide guidance for businesses on this market.

Experts believe that the key to effectively tapping into the Halal market is shifting from a "Halal-compliant products" approach to a "comprehensive Halal production chain," ensuring Islamic standards are applied consistently from raw materials and processing to transportation and distribution.

With completed domestic institutions and certification, Viet Nam could expand exports to 60 Muslim-majority countries, particularly in Southeast Asia, the Middle East, and Africa, which have high demand for clean food, tropical agricultural products, seafood, beverages, and natural pharmaceuticals. "Halal is not just a certificate. It is a way for Viet Nam to affirm its quality, responsible production culture, and vision of an inclusive global economy," said Mr. Nguyen Thanh Duy.

Raising SPS standards is the key

Beyond certification, today's Halal regulations are closely tied to strict standards on food safety and sanitary and phytosanitary (SPS) measures, requiring Vietnamese businesses aiming to enter Muslim markets to meet both technical and religious barriers.

According to Dr. Ngo Xuan Nam, Deputy Director of the Viet Nam SPS Office, Muslim-majority countries currently apply Halal management systems that are closely aligned with the World Trade Organization (WTO)'s SPS regulations. This global legal framework allows nations to establish sanitary and quarantine measures to protect human, animal, and plant health, provided they are based on science, with transparency and publicity.

Viet Nam has integrated this content into new-generation free trade agreements, such as the CEPA with the UAE and the VIFTA with Israel, ensuring information transparency, mutual recognition, and enhanced technical cooperation.

Dr. Nam noted that most Muslim-majority countries have very strict technical standards. In the Gulf region, the GCC Standardization Organization (GSO) requires the entire Halal food chain, from raw materials and processing to storage and distribution, to comply with regulations.

In Saudi Arabia, the Saudi Food and Drug Authority (SFDA) not only monitors imported goods but also has the right to inspect production facilities, slaughtering processes, and traceability records in exporting countries. Only products demonstrating full transparency and strict compliance with these standards are approved for circulation.

In Indonesia, the world's most populous Muslim nation, regulations on chemical limits, microorganisms, and aquatic animal diseases are issued in detail for each product category. Meanwhile, India strictly controls pesticide residues, antibiotics, and heavy metals in food, requiring the entire processing chain to comply with HACCP standards.

Egypt requires inspection certificates issued by authorized state agencies, while Israel, though not part of the Halal market, still mandates Kosher certification for imported goods. These requirements increase compliance costs but also serve as a measure of the integration capacity of Vietnamese agricultural products.

To help businesses overcome these barriers, the Viet Nam SPS Office is coordinating with specialized agencies under the Ministries of Agriculture and Environment, Foreign Affairs, and Industry and Trade to harmonize domestic and international standards, expand information exchange, promote mutual recognition between Viet Nam's quarantine authorities and those of Muslim-majority countries, and participate in SPS dialogue mechanisms within CEPA and VIFTA frameworks to promptly resolve technical barriers. Dr. Nam emphasized that raising SPS standards not only opens the door to the Halal market but also enhances the competitiveness of Vietnamese agricultural products in other demanding markets.

Once regulations on food safety, traceability, and Halal certification are standardized, Vietnam will gain a clear advantage in accessing the trillion-dollar Muslim trade network. "Halal is not just an export condition; it is a measure of quality, credibility, and responsibility for Vietnamese agricultural products in the global market," Mr. Nam affirmed.