Vietnamese products expected to expand footprint in Malaysia’s Halal market

Halal council proposed to be established in Malaysia’s Melaka state to offer opportunities for Vietnamese firms to break into this lucrative market

KUALA LUMPUR, Malaysia (MNTV) — Malaysia’s Melaka state has announced its plan to establish the State Halal Industry Development Council, which is expected to offer opportunities for Vietnamese firms to break into this lucrative market, reports VNA.

Melaka Chief Minister Ab Rauf Yusoh emphasized that the council will expedite the entry of investors and the approval of halal certification, without troublesome bureaucracy.

The establishment of the council is seen as a positive signal for Vietnamese enterprises seeking to overcome certification hurdles and tap into both Melaka’s market and the broader regional Halal economy. As Melaka positions itself to become a regional Halal hub, new opportunities are emerging for Vietnamese exporters to expand their footprint.

The Vietnam-Malaysia trade in the Halal sector is experiencing robust growth, yet Vietnamese exporters continue to grapple with a widening trade deficit and the stringent demands of Islamic certification standards.

Statistics from the Department of Vietnam Customs showed that two-way trade exceeded $12 billion in the first nine months of this year, a year-on-year increase of 12.9%. However, Vietnam experienced a trade deficit of $4.29 billion.

Analyzing the Malaysian marketplace, Ngo Quang Hung, Vietnamese trade representative in Malaysia, described Malaysia as an attractive market with strong purchasing power, diverse consumer needs, and cultural consumption patterns closely aligned with Vietnamese products. 

Nevertheless, he acknowledged that Vietnamese exports face fierce competition with those from China, Thailand, and Indonesia.