Malaysia eyes Vietnam as rising hub for global Halal supply chain

Vietnam has increased its participation in the Halal market over the past five years, although the number of domestic businesses directly involved in the sector remains relatively small. At the same time, Vietnamese companies have been developing production capacity while importing Halal products from Malaysia to meet domestic demand.

Malaysia is seeking to support this development by helping Vietnamese businesses establish partnerships and gain access to the Malaysian market. Trade-promotion initiatives include programmes designed to connect Vietnamese producers with importers and identify opportunities for cooperation across the Halal supply chain.

Malaysia's Islamic affairs authorities have also maintained cooperation with Vietnamese businesses on Halal certification since 2000. Five Vietnamese certification bodies are currently recognised by Malaysia, allowing local producers to obtain certification for exports to Malaysia and other international markets.

Halal certification in Malaysia places particular emphasis on hygiene, product quality and traceability. The certification process includes detailed checks of ingredients, while medium-risk products are subject to quarterly audits. Standards are also reviewed and updated periodically to reflect technological developments.

The certification system is set to undergo further digitalisation, with Malaysian authorities developing an artificial intelligence-powered system expected to be launched next year. The platform is intended to automate document verification and provide access to an ingredient database, potentially reducing administrative work and avoiding repeated certification of individual ingredients.

The move comes as demand for Halal products continues to expand globally. The international Halal market is projected to reach US$5 trillion by 2030, increasing the importance of production capacity, certification and compliance with international standards for countries seeking to participate in global Halal value chains.

For Vietnam, strengthening its domestic Halal ecosystem could create opportunities to expand exports beyond traditional markets and enter a wider range of sectors serving Muslim consumers.

Malaysia is also preparing international Halal trade events aimed at bringing together producers, buyers and industry stakeholders from across the region. These platforms are expected to provide additional opportunities for Vietnamese businesses to develop commercial links and explore export markets.

Earlier, it was reported that Vietnam had increased its spice exports, thereby boosting supplies to Asian and other overseas markets.