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Asia Pacific News
Glam Halal | may-june. 2020
Restaurants, eateries, and street vendors all bear the ‘Halal’ mark to serve Muslims.
ASEAN and China – Finding a
separate
path
Forget Halal’s ‘pie’
According to data from the Ho
Chi Minh City Investment and
Trade Promotion Center (ITPC),
the number of Muslims worldwide
is 1.6 billion. Therefore, the
Halal industry (which provides
products and services suitable for Muslims) is
thriving in the world, worth US$2,300b each
year.
In ASEAN, half of the population is Muslim.
The Halal industry has become a potential
industry and is continuing to grow.
Nguyen Thi Ngoc Hang, Head of Marketing
Department of Halal Certification Office, said
the Muslim market has excellent purchasing
power and has a high demand for Vietnamese
products such as agricultural products and
seafood.
They are also willing to spend and buy
halal products and services. This market
does not have many technical barriers and
tariffs. However, the products need Halal
certification. A common misconception is
that Halal foods are simple, just without pork.
Halal foods include the application of processes
related to slaughtering, processing and
other types of livestock and poultry such as
chickens, ducks, cows, goats, sheep and even
seafood.
For example, many people assume that
seafood is Halal foods by default, but if seafood
farmers are using non-Halal foods, this means
the products they create are not Halal foods.
This is also the reason why Malaysian businesses
do not import seafood from Vietnam,
even though this is one of Vietnam’s stable
commodities, and Malaysia is a country
that consumes a lot of seafood. Also, during
processing, management must separate Halal
and non-Halal products.
A franchise consultant for the Malaysian
government, Nguyen Phi Van, said the food
market for Muslims was now very fertile.
According to Phi Van, businesses need to
change mindsets.
Currently, the largest Muslim population
is in Indonesia. But entering this market is
not easy because there are many legal and
import barriers.
ASEAN and China markets have plenty of room for Vietnamese goods,
especially potential market niches that Vietnamese enterprises have not been
interested in a long time.
In the next 15
years, products
and services
imported into
China will
surpass US$30,000b, and
this is also considered an
excellent opportunity for
Vietnamese enterprises.
However, for a long time,
Vietnamese enterprises
have been familiar with
the concept of China as
an easy-going market,
while maintaining the
habit of exporting through
unofficial trade channels,
thus increasing the risks,
challenging to access
information and lacking
information. knowledge
of regulations and market
requirements.”
— Ngo Tuan, Chinese
Consulate General in Vietnam.
Therefore, Vietnamese businesses first
go to Malaysia as a “springboard” to other
markets such as Myanmar and Brunei and
then Indonesia.
There are many Halal certification
organisations in Vietnam. Some enterprises
in Vietnam claim to be halal-certified, but
exports were returned due to non-conformity
certificates. Therefore, for businesses to enter
these markets, needs not only their own
efforts but also the assistance of authorities.
Looking at China in the middlehigh
segment
Like the ASEAN market, China is also a vast
market for Vietnam’s exports. According to
statistics of Vietnam Customs, in the first 11
months of 2018, export turnover from Vietnam
to China was more than US$38.1b, up 23.2
per cent over the same period to Vietnam’s
average to other markets. Export items from
Vietnam to China grew strongly and reached
a value of over US$1b with products such as
vegetables, rubber, textile fibres and textiles.
Sharing with DTTC, Vo Quang Huy, Director
of Huy Long An Co., Ltd, said Vietnamese
farmers and businesses should change their
mindsets about China, which is a natural and
low-price segment. Vietnam has the added
advantage of being very close to China, so the
cost of shipping is also cheaper. Huy Long An’s
bananas are also entering this segment.
Agreeing with this view, Ung Ung Lam,
Director of Global Import-Export Consultancy
Company, also said the most open market
wouldn’t be accessible anymore if businesses
do not change the way they conduct their
transactions.
China is becoming a market with high
requirements on product quality. Recently,
some Chinese localities have issued regulations
on traceability for some agricultural
products of Vietnam. Besides, the Chinese side
also tightened management of food safety
and quarantine barriers.