The path to the Halal market

World and Vietnam Newspaper conducted the Press Corner Ambassador & Business, third session with the theme "Path to the Halal Market" on the afternoon of December 15th, on the sidelines of the Roundtable between Heads of Vietnamese Representative Offices abroad and Vietnamese associations and businesses.

Vietnamese Ambassador to Saudi Arabia Dang Xuan Dung. (Photo: Nguyen Hong)

Attending the third session of Press Corner were the Vietnamese Ambassador to Saudi Arabia, Dang Xuan Dung; Mr. Nguyen Thanh Binh, Chairman of the Vietnam Fruit and Vegetable Association (Vinafruit); and Mr. Hoang Trong Dinh, Business Director of NhoNho Technology Co., Ltd.

Commenting on the Halal market, the Vietnamese Ambassador to Saudi Arabia, Dang Xuan Dung, said that it is a very new market for Vietnamese businesses. However, it is also a very large market with great potential and a very rapid growth rate.

By 2025, the global Halal product market is projected to reach over $7 trillion and has the potential to increase to $10 trillion by 2027. The Muslim population is also growing rapidly compared to other demographic groups, and this, as a key consumer group, will further enhance the market's attractiveness.

Assessing the potential of the Halal market, Ambassador Dang Xuan Dung stated that Vietnam is facing many opportunities, and the biggest opportunity comes from the vast Halal market, which encompasses not only the consumer market but also many other markets.

"Halal is a very broad concept, not simply about food, but also encompassing many other fields such as tourism , pharmaceuticals, Halal finance, etc.," Ambassador Dang Xuan Dung added.

The second opportunity, according to the head of the Vietnamese representative office in Saudi Arabia, is that recently the State, Government , ministries, and agencies have been paying more attention to the Middle East and Africa region and the Halal market. "With interest comes determination to explore this market," Ambassador Dang Xuan Dung remarked.

The third opportunity is that importers and exporters in Saudi Arabia in particular, and in the Middle East and Africa region in general, are very interested in products from Vietnamese businesses, opening up opportunities for us to penetrate this market.

Regarding the challenges facing Vietnamese businesses when entering the Halal market, we currently lack sufficient information, and businesses themselves haven't truly prioritized the Middle Eastern market. Sometimes we think Europe and America are enough, but in reality, the Halal market has enormous potential, yet we remain indifferent and haven't focused on exploiting it. Furthermore, in the Halal market, our products face fierce competition from rivals such as Thailand and Malaysia.

Over the past period, the Vietnamese Embassy in Saudi Arabia has made efforts to support Vietnamese businesses in exploring the Halal market. “Not all businesses have the financial means to travel to Saudi Arabia for trade promotion, so we will try to provide and update information about the market to businesses. Businesses should proactively suggest information that the Embassy can assist with.”

"Currently, fraud is more prevalent in some markets in the Middle East. Therefore, the Embassy will also support businesses in verifying fictitious businesses or those showing signs of fraud. If there are any suspicions or unusual activity, businesses can immediately contact the Embassy for assistance," Ambassador Dang Xuan Dung noted.

In addition, the representative office will continue to support and accompany businesses in trade promotion and product advertising, actively participating in trade fairs and exchanges in Saudi Arabia and the Middle Eastern market.

"We sincerely hope that businesses will trust our representative offices," Ambassador Dang Xuan Dung urged.

Mr. Nguyen Thanh Binh, Chairman of the Vietnam Fruit and Vegetable Association (Vinafruit). (Photo: Nguyen Hong)

Speaking about the Halal market, Mr. Nguyen Thanh Binh, Chairman of the Vietnam Fruit and Vegetable Association, said that after attending the discussion session on the topic "Developing the Halal Industry" at the seminar between Heads of Vietnamese Representative Offices abroad and associations and businesses, he felt excited, mixed with worry and concern.

The Ministry of Foreign Affairs organized a separate discussion session on the Halal market, demonstrating significant interest in this market. However, through discussions with ambassadors and businesses, it was found that accessing the Halal market is very difficult for small and medium-sized enterprises.

Mr. Nguyen Thanh Binh also commented that many small and medium-sized enterprises (SMEs) do not yet have much understanding of this potentially lucrative market.

"According to announcements from Ambassadors and Heads of Representative Offices of various countries, the cost of obtaining Halal certification is very high. This significantly increases the cost and price of products. Furthermore, this certification is not permanent. Therefore, when the certification expires, it needs to be renewed. This is a major difficulty for small and medium-sized enterprises," shared the Chairman of the Vietnam Fruit and Vegetable Association.

Mr. Hoang Trong Dinh, Sales Director, NhoNho Technology Co., Ltd. (Photo: Nguyen Hong)

According to Mr. Hoang Trong Dinh, Business Director of NhoNho Technology Co., Ltd., the potential of the halal market is undeniably huge, but the challenges are also considerable.

Large businesses have mostly entered this promising market, but in reality, Vietnam has nearly 20,000 cooperatives and small and medium-sized enterprises. For this sector, the cost of participating in Halal is very high.

“Many businesses have called us for advice. They are all concerned about the Halal process and certification. Therefore, it is crucial for business owners to broaden their thinking, allocate significant resources and costs, and identify their target market,” Mr. Hoang Trong Thinh emphasized.

The third session of the Press Corner Ambassadors & Businesses, themed "The Path to the Halal Market," was the final session in a series of seminars organized by the World and Vietnam Newspaper at the Ministry of Foreign Affairs building (2 Le Quang Dao, Hanoi), broadcast live on the International Media channel of the online newspaper baoquocte.vn.

Source: https://baoquocte.vn/press-corner-duong-vao-thi-truong-halal-253971.html