Vietnamese businesses are abandoning the food market for Muslims

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20 exported products for food for Muslims are coffee, rice, cashew nuts, pepper, fresh fruits, dried cassava, nuts, cakes, tea …

Demand for Muslim food and food is huge

Nearly 1.8 billion Muslims make up about 23% of the world's population. The Muslim population accounts for the majority in countries such as Malaysia, Indonesia, Brunei, Saudi Arabia, UAE and Middle East countries, but only a few countries produce Halal products. The geographical balance of the Halal industry is still huge.

Vietnamese businesses need to focus on exploiting this market gap because this is the key to opening the door to the markets of Muslim countries and Muslim-citizens, improving the ability to sell products. , opening up great export opportunities for Vietnamese enterprises.

Vietnamese enterprises are preparing to sell products to teachers
The demand for food and food of Islam is enormous.

Pham Thiet Hoa, Director of the Ho Chi Minh City Investment and Trade Promotion Center (ITPC), said Halal food and products are very special for business in Islamic countries. religion or countries with Muslim citizens.

The logo certifies Halal standard on the product as a proof of belief that according to Islam means being allowed to use. Halal certification plays a major role in protecting the interests of consumers because it not only meets religious requirements but also complies with strict food safety and hygiene regulations. Muslims only use Halal-certified products.

Mr. Ramlan Osman, Vietnam Sales Director of Halal Center stated that the industry related to Halal is not only processed food, beverages, but also raw materials for processing; cosmetics, pharmaceuticals, personal care and health products; logistics; restaurant services, hotel … according to standards of service for Muslims, Halal market.

According to 2016 figures, the global Muslim community is 1.8 billion, accounting for 23% of the total world population, of which Asia has 1 billion, Southeast Asia alone is 230 million. A group of four countries – the growing Muslim market of Indonesia, Pakistan, India and Bangladesh – has more than 700 million consumers. The global Muslim community population will increase, forecast to 27% by 2050 with the ability to consume Halal products at about US $ 15 trillion.

Global demand worth up to US $ 1.93 million for Halal food (for Muslims) has only been met by approximately 10%.

This is a great opportunity for Vietnamese exporters to participate in the global supply chain if they take advantage of the resource advantages and take the initiative in carrying out goods quality assurance procedures.

Muslim consumers are interested in Vietnamese products

Mr. Ramlan Osman, Sales Director of Vietnam Halal Center Company, said that major markets consuming Halal foods such as Malaysia, Indonesia, Brunay and the Middle East are all very interested in Vietnamese products. Because Vietnam has the advantage of agricultural sources such as cocoa, coffee, rice, barley, sea products, seafood, spices, beans, vegetables and fruits … can fully meet the real needs. products of Muslims.

Vietnamese enterprises are preparing to sell products to teachers
Vietnam is a country with a plentiful source of food and enough food for the Muslim community.

Vietnam's top 20 potential Halal export products are green coffee, rice, cashew nuts, pepper, fresh fruits, coffee products, processed foods, roasted coffee, dried cassava, nuts, processed fruits, cakes, tea, candies, fodder, natural honey, cinnamon, non-alcoholic beverages, flour and juice.

Meanwhile, the needs of the countries in the Islamic Cooperation Group (OIC) for Vietnam's export products is 34.1 billion USD. Thus, the market of 23.4 billion USD is completely abandoned by businesses.

“Recently, a survey of Vietnam Halal Center Company at the companies producing rice and foodstuff in the Mekong Delta region, there are many businesses with great export potential and quality. It is also possible to obtain a Halal export request certificate. Therefore, we feel very sorry that Vietnamese businesses are leaving the food market for Muslims open, ”said Ramlan Osman.

Many countries are promoting

However, the biggest barrier that confuses Vietnamese businesses is the ability to meet standards-compliant products and services due to Halal certification – Halal standards.

Mr. Ramlan Osman said that the market for Muslims does not require products that meet high technical standards such as the US and Europe. Businesses that have been granted HACCP or ISO 22000: 2005 will be easier to obtain Halal certification.

In particular, Halal certification does not address the technical factors, ie no quality requirements, only the manufacturing process, raw materials must meet the requirements of Halal.

As such, Halal endorsement differs from that of other standards in that it does not mean much in terms of product specifications but it is primarily religious in nature. And Muslims often buy products if they meet the two mandatory requirements of having the Halal mark and have a language friendly to their language.

There are currently around 300 Halal certification organizations in the world, but only 122 organizations are recognized as members of the International Halal Alliance IHIA. In Vietnam, there is also a Halal Certification Center for products exported to the Muslim world recognized as a member of IHIA – Halal Vietnam (HVN).

Vietnamese enterprises are preparing to sell products to teachers
To export to the Muslim community requires a Halah certificate.

Many countries are changing rapidly to seize opportunities from the Halal market, of the 7 most producing countries towards the Halah market, only 2 Muslim countries are Malaysia and the United Arab Emirates (UAE), The remaining 5 countries have joined the Halal market to seize the opportunity.

Malaysia prepares the Halal 2.0 Industry Master Plan towards a clear, prominent and globalized Malaysia Halal. The UAE is aiming to become an Islamic economic center, focusing on Islamic finance and Halal.

South Korea wants to be one of the destinations for Muslim tourists. Australia is the largest supplier of Halal beef to Middle Eastern countries. Japan has identified the Halal market as a major contributor to the Japanese economy since 2020 with the 2020 Summer Olympic Games as a catalyst. Thailand has established itself as a brand of “Kitchen of the World” and the market of Islamic countries cannot be ignored. Brazil is the largest supplier of Halal poultry to Middle Eastern countries.

It is forecast that by 2025, halal-certified foods (Halal foods) will account for 20% of the total value of food consumed worldwide. Therefore, expanding export markets to Muslim countries is a potential direction of countries with strengths in food production and processing, including Vietnam.

Vien Vien – Source: Supply and Demand

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