Vietnam Keen To Penetrate Lucrative OIC Halal Market Using Malaysian Expertise In Certification, Standards

By Harizah Hanim Mohamed and Mikhail Raj Abdullah

KUALA LUMPUR, Aug 26 (Bernama) -- Malaysia's expertise in halal certification is proving invaluable to kick-start Vietnam's nascent halal sector as Hanoi seeks to penetrate the lucrative 57-member Organisation of Islamic Cooperation (OIC) market with its agricultural products.

The person driving Vietnam’s halal export endeavour,  comprising a broad range of agriculture, aquaculture, pharmaceutical and cosmetics products, is Malaysia’s Ramlan Osman, the director of the newly set-up Vietnam Halal Certification Authority (HALCERT).

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Vietnam set up HALCERT under its Ministry of Science and Technology in April 2024, aiming to standardise and enforce halal standards.

One Vietnamese product that stands out is the country’s highly sought-after coffee, in the form of green beans, pure coffee powder and roasted coffee beans.

“If certified and manufactured incorporating halal standards, these products have enormous potential in penetrating the OIC with its population of 2.01 billion people,” he told Bernama recently.

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Vietnam’s strategy is well placed as the global halal food market is reportedly set to expand to US$4.5 trillion by 2030 from US$2.4 trillion in 2024, boosted by a growing Muslim populace and rising consumer spending.

Ramlan said he is working closely with Malaysia’s Department of Islamic Development Malaysia (JAKIM) to enable Vietnam to incorporate halal standards in food production processes, manufacturing and even in areas such as logistics.

Halal certification is a rigorous process that ensures products and ingredients meet strict Islamic dietary guidelines which means products, including coffee, pastries, and other food items are manufactured using processes that are safe and permissible for Muslims to consume.

“By adopting JAKIM’s established standards, Vietnam aims to ensure its products meet these requirements needed for international halal certification, enabling the worldwide export of halal products and services from Vietnam,” he said. Being an agricultural country, “most of the products that we are trying to get certified are from the agricultural sector.”

Asked how Malaysian entrepreneurs could benefit from Vietnam’s foray into the halal sector, Ramlan said they could obtain raw materials from Vietnam and manufacture the final products in Malaysia before exporting them to OIC countries. Apart from the renowned Arabica coffee, Vietnam also produces cashew nuts and spices such as black and white pepper, cardamom, and cinnamon - raw ingredients which Malaysia can source from Vietnam.

Ramlan, who started a halal consulting company in Ho Chi Minh City in 2019,  stressed that all high potential products from Vietnam must meet halal compliance requirements, consistently maintaining standards adhering to Islamic consumer tastes. In line with this, “the establishment of HALCERT is a significant milestone in Vietnam's journey toward becoming a recognised hub for halal products.”

“The authority is tasked with setting up and enforcing halal standards, which is a critical step for Vietnam to align itself with global halal practices,” he said.

He said there was no denying that Vietnam's approach to developing its halal industry has been heavily influenced by Malaysia - a global leader in halal certification. “The country has closely followed the guidelines and standards set by JAKIM (and) by adopting these established standards, Vietnamese products can easily reach Muslim consumers,” he added.

Asked how developed the existing halal certification was in Vietnam, he acknowledged that previous standards were developed by its private sector which could be lacking certain criteria.

“HALCERT is a government body, and we follow a specific set of requirements, especially as it is aligned with JAKIM’s rigorous standards, which will provide confidence among consumers and businesses keen to do business with Vietnamese companies,” he said.

Elaborating, Ramlan said Vietnam, which is mainly involved in agriculture and aquaculture, is focused on certifying products such as coffee and spices for the export market. “We are ready to supply raw materials and Malaysia can serve as a hub to export finished halal products to OIC countries,” he added.

Ramlan said the development of Vietnam’s halal industry is still in its infancy stage, which is why there are no current statistics on halal-certified products or employment figures within the sector.

Ramlan, who was previously the vice-president of Halal Development Corporation (HDC), said he has been involved in training and consultancy on halal issues with government agencies, enterprises, non-governmental organisations and academia in Vietnam.

“The (Vietnamese) government's goal is to develop this industry significantly by the end of the year, providing quantifiable data on its progress and establishing Vietnam as a competitive player in the fast-expanding global halal market,” he added.

-- BERNAMA