@ Halal | September-October . 2024

Need for structured approach to governance to capitalise on opportunities

BY ZAFIRAH ZAFRUDDIN

“ This would not have materialised today if there was no intervention from the prime minister himself ,” noted Vietnam Halal Certification Authority ( HALCERT ) Director Ramlan Osman .

Vietnam has approximately 550,000 micro , small , and medium enterprises ( SMEs ) in the food and beverage ( F & B ) sector . However , only about 1,000 have obtained halal certification , highlighting a significant gap in the market .

Vietnam ’ s wide range of food products , such as coffee , tea , confectionery , and other manufactured goods , underscores an immense potential for Vietnam to penetrate the global halal market . The need for a structured approach to halal governance in Vietnam is critical to capitalising on this opportunity .

“ We need to bring together all parties in Vietnam to establish proper governance for the halal sector in the country ,” remarked Ramlan .

There are also considerable opportunities for Malaysian SMEs to penetrate the Vietnamese halal market . According to the General Department of Customs , Vietnam has imported 40 main items from Malaysia , with the total value of these imports amounting to US $$ 2.4 billion in the first quarter ( Q1 ) of 2024 .

Vietnam ’ s main imports from Malaysia were petroleum at US $ 772 million , electronics at US $ 490 million , and machinery and equipment at US $ 145 million .

Ramlan also observed a growing interest in cosmetics among Vietnamese women , with cosmetics from Korea and Japan dominating the market . Malaysian SMEs should consider tapping into this market by offering halalcertified cosmetic products , leveraging this

Ramlan at the Promotion of Trade and Investment Cooperation programme between Vietnam and Malaysia in 2023 .

Ramlan Osman

SINCE its establishment in April 2024 , HALCERT has been at the forefront of halal certification in Vietnam . Operating under the Vietnam Certification Centre ( QUA- CERT ), HALCERT aims to regulate and oversee halal products to ensure they meet Shariah standards .

The recent appointment of the new director , Ramlan Osman , marks a significant step in the agency ’ s mission to improve the credibility of halal certification in Vietnam .

“ The Vietnamese government has recognised about 30 certification companies operating from north to south . Most of these companies do not adhere to halal standards in the Shariah sense ,” said Ramlan .

This calls for stricter halal certification practices due to concerns over many existing certification companies prioritising profit over genuine compliance . This shift is intended to ensure that halal products from Vietnam meet the expectations of Muslim consumers globally .

Ramlan emphasised the importance of collaboration with established halal certification bodies like JAKIM . By emulating JAKIM ’ s practices and adapting them to Vietnam ’ s context , HALCERT seeks to establish a robust certification process . He also highlighted Vietnam and Malaysia ’ s growing trade relationship , which is reflected in their trade figures .

The General Department of

growing consumer base in Vietnam .

He further advised : “ Malaysian SMEs need to engage with relevant government entities to find out what the Vietnamese market is importing from Malaysia .”

Additionally , Vietnam aims to attract more Muslim tourists to the country . The country is working on developing standards for Muslim-friendly products and services . While Vietnam ’ s coastal regions are known for their beautiful beaches , the lack of halal restaurants , prayer rooms , and other Muslim-friendly amenities stresses the need to establish relevant standards .

“ To be recognised as Halal , we must comply with the Department of Islamic Development

The launch of HALCERT .

Customs reported that Vietnam ’ s exports to Malaysia reached US $ 2.61 billion in the first half of 2024 . Meanwhile , Vietnam ’ s imports of goods and raw materials from Malaysia in the first quarter of 2024 totalled US $ 2.4 billion .

South Korea and Thailand are exporting halal products to Vietnam despite the country ’ s small Muslim population . These countries understand that producing halal-certified products can attract a broader customer base .

In fact , it is observed that halal certification adds value and appeal , especially when priced competitively .

Malaysia ( JAKIM ), Halal Management Division ( BPH ), and Standards and Metrology Institute for Islamic Countries ( SMIIC ) standards . However , creating a ‘ Muslim-friendly ’ standard doesn ’ t require benchmarking against anyone . We can develop it independently , and that ’ s the approach I am advising ,” said Ramlan .

Furthermore , Vietnam is promoting ecotourism in regions like Da Lat and Sa Pa . Da Lat , renowned for its cool climate , currently features two halal eateries and Indian and Pakistani restaurants .

Vietnam is also focusing on the potential revenue of attracting tourists from the Gulf Cooperation Council ( GCC ) countries , which have a combined population of about 50 million . To tap into this market , Vietnam is easing visa requirements for visitors from GCC countries , starting with Saudi Arabia .

“ Previously , obtaining a visa required applying two weeks in advance and visiting a counter . Now , they ’ re making the process more user-friendly for Saudi Arabians and other GCC countries to visit Vietnam ,” said Ramlan .

On top of that , the Vietnam has mandated that HALCERT have several local companies certified halal by Q4 . This initiative aims to address the gap in the availability of halal products , ensuring that Vietnam ’ s halal industry can meet demands and compete effectively on the global stage .

Thailand , for instance , exports halal products like ice cream , peanuts , and chocolates to Vietnam . Despite having a small Muslim population , Thailand sees value in marketing these products .

The strategy acknowledges that while local demand might be limited , the influx of tourists and broader market potential justify the investment .

It goes to say that halal certification proves valuable even in countries with a small Muslim population . Therefore , Malaysia should explore the prospects of expanding its presence in Vietnam ’ s halal market . –