The new FTA provides a boost for Vietnamese goods to enter the Halal market
15/06/2026 18The synergy from new FTAs and the global Halal consumption trend is opening up vast growth opportunities for Vietnamese agricultural products and processed foods.
Potential from new FTAs
Amidst the strong growth of the global Halal market, new-generation FTAs are becoming crucial levers for Vietnamese agricultural products and food to increase their presence in the Middle East and South Asia.
According to Ms. Tran Thi Thuy Trang, Specialist at the Import-Export Department ( Ministry of Industry and Trade ), Viet Nam currently participates in 19 free trade agreements (FTAs), creating a favorable foundation for businesses to expand export markets. In particular, the Viet Nam-UAE Comprehensive Economic Partnership Agreement (CEPA), effective from February 2026, is considered a breakthrough that will help Vietnamese goods access the Middle East more deeply.
According to the agreement, the UAE will eliminate tariffs on approximately 99% of Viet Nam's exports. Many key agricultural and aquatic products such as shrimp, pangasius, tuna, rice, coffee, cashew nuts, pepper, along with processed products such as instant noodles, milk, beverages, and functional foods, will benefit from preferential tariff rates as soon as the agreement comes into effect.
"CEPA offers tariff advantages, while Halal certification is a passport for businesses to access the market. If these two factors are utilized effectively, Vietnamese goods will have many opportunities to expand their market share in the Middle East and South Asia," Ms. Trang commented.
In addition, the Viet Nam-Israel Free Trade Agreement (VIFTA) came into effect on November 17, 2024. The Viet Nam-GCC Free Trade Agreement (VGFTA) is currently in the preparatory phase for negotiations, and the review and upgrading of the ASEAN-India Goods Trade Agreement (AITIGA) is also opening up more opportunities to access the South Asian market.
According to the Import-Export Department, the Middle East and South Asia are the core of the global Halal food market. In 2024, this segment exceeded US$2.7 trillion and is expected to continue growing strongly in the next decade. This growth is driven by the global Muslim population, projected to reach 2.9 billion by 2050, coupled with a growing consumer trend prioritizing food quality, safety, and traceability.
Nevertheless, there is still enormous potential for Vietnamese goods. In 2025, Viet Nam's exports of agricultural, forestry, and aquatic products to the Middle East are only expected to reach approximately US$1.5 billion, mainly concentrated in items such as cashew nuts, seafood, and pepper. Meanwhile, Viet Nam has the advantage of abundant raw materials, increasingly advanced processing capacity, and a favorable geographical location to access large Halal markets such as Indonesia, Malaysia, Pakistan, and the Middle East region.
"Travel permits" and strict rules
"The question now is not only what opportunities exist for Vietnamese agricultural products, seafood, and processed foods in the Halal market, but more importantly, why this is the right time and what businesses need to do to bring their goods into this market," Ms. Trang stated.
Despite its great potential, to enter this market, representatives from the Import-Export Department stated that businesses must overcome stringent technical barriers. In Arabic, "Halal" means "permitted." Halal products must meet core requirements including being alcohol-free, not using pork, and the animals must be slaughtered according to Islamic rituals.
However, Ms. Trang noted that Halal certification is not just about the ingredients but encompasses the entire supply chain. One of the strictest requirements is preventing cross-contamination, meaning Halal products cannot be stored or transported together with non-Halal products.
Mr. Vu Minh Tam, Head of the General Policy Department, Import-Export Department (Ministry of Industry and Trade), said that in addition to Halal standards for Muslim countries, businesses also need to pay attention to Kosher certification when exporting to markets such as Israel. Building a production system that meets both standards simultaneously will help optimize costs and expand market access.
Once the "passport" is obtained, the next challenge is getting the goods to consumers. In the UAE and the Gulf Cooperation Council (GCC) countries, traditional retail channels still dominate, holding over 50% of the market share.
Ms. Trang emphasized that businesses should view the UAE as a "hub"—a regional transit center for goods re-export to Africa and Europe. Cooperation with licensed and knowledgeable local importers is almost mandatory. At the same time, the Vietnamese Trade Offices abroad play a crucial role in assisting with partner verification and warning of trade risks.
The effectiveness of this strategy has been proven by businesses. Mr. Dang Quy Nhan, General Director of Nam Mekong Agricultural Products JSC – Somekco – a company with 3 years of experience exporting to the UAE market with only one product, peeled fresh coconuts, shared that after nearly 3 years of pursuing the Halal market, the value of coconuts has doubled, from about 14,000 - 15,000 VND/coconut when exported to China to about 28,000 VND/coconut when meeting Halal market standards.
"When products meet Halal standards, businesses can achieve stable exports and significantly increase product value," Mr. Nhan affirmed.
To support businesses in successfully conquering the Halal market, representatives from the Import-Export Department proposed a four-step approach.
First, standardize certification by identifying the target market and selecting a certification body recognized by the importing country.
Secondly, review HS codes and rules of origin to maximize the benefits from CEPA and related FTAs.
Third, choose a distribution channel that suits the company's capabilities and the specific characteristics of each market.
Fourth, proactively connect with Vietnamese trade offices abroad to update market information, find partners, and minimize risks during transactions.
Despite the wide-ranging opportunities, Mr. Vu Minh Tam also warned of geopolitical risks, such as tensions in the Red Sea, which could disrupt transportation and increase logistics costs. In addition, limited market information, the cost of investing in standardized production lines, and competition from multinational corporations also pose significant challenges for Vietnamese businesses.
According to experts, the CEPA agreement offers tariff advantages, Halal certification acts as a 'passport', and the distribution system is a decisive factor in revenue. Businesses need to implement all three elements simultaneously to effectively exploit opportunities in the Halal market.
Source: Vietnam.vn