Adapting to boost Halal market exports

The Halal food market is undergoing significant changes in demand and new product standard regulations, shifting from certification requirements to comprehensive supply chain control, enhanced management of certification bodies, and transaction data.

On April 6th, the Government issued Decree No. 127/2026/ND-CP regulating quality management and policies for the development of Halal products and services, creating a legal framework to encourage investment, promote production and business, and enhance the competitiveness of Viet Nam's Halal industry.

Ms. Nguyen Thi Ngoc Hang, Marketing Director of the Viet Nam Halal Certification Office, stated: According to Law No. 33/2014 on Halal Product Assurance, Government Regulation No. 39/2021, and Regulation No. 42/2024, Indonesia applies a mandatory Halal management mechanism to all products circulating in the market, including imported goods that must fully meet certification requirements. For imported food, the deadline for application is October 17, 2026. After this date, products without valid Halal certification will not be allowed to circulate in the Indonesian market or may be subject to legal penalties.

Halal certification management and licensing in Indonesia is handled by the Halal Product Assurance Agency (BPJPH), under the Indonesian Ministry of Religious Affairs. This agency also manages the entire national Halal system, including the recognition of foreign certification bodies and the issuance of Halal codes for imported products. To fully meet the requirements, Viet Namese businesses need to implement a comprehensive process, from certification in Viet Nam to registration in Indonesia.

First, businesses must obtain Halal certification from an organization recognized by BPJPH under the Mutual Recognition Agreement (MRA), ensuring compliance with Indonesia's Halal program. Then, the importer or their legal representative in Indonesia will register on the SIHALAL system to obtain a foreign Halal certification number. This process includes application submission, verification, payment, and approval by BPJPH before the product is allowed to be marketed. Additionally, products released to the market must be properly labeled, using the Indonesian Halal logo along with the certification number.

In reality, many Viet Namese businesses are facing difficulties in the implementation process due to choosing certification bodies not recognized by Indonesia; registration documents on the SIHALAL system are incomplete or unsuitable, leading to rejection or the need to redo the entire process, resulting in increased costs and affecting delivery schedules.

Meanwhile, the Halal market in the Middle East is also entering a phase of comprehensive standard upgrades. Mr. Truong Xuan Trung, Head of the Viet Namese Trade Office in the United Arab Emirates (UAE), stated: Previously, Halal was primarily understood as a religious standard applied to food, but now this concept has expanded to many areas, linked to organic, non-GMO, and absolutely safe food standards. New standards are increasingly associated with "green Halal" elements, including products with biodegradable packaging, low carbon emissions; plant-based foods; and an emphasis on product localization…

Furthermore, traceability requirements are being increasingly emphasized through the application of digital technologies such as QR codes and blockchain in supply chain control. In addition, packaging design needs to utilize dual languages (English and Arabic) and images appropriate to Islamic customs. With the growth of e-commerce, and over 80% of Halal consumer goods transactions conducted through super apps, the UAE is also implementing electronic invoicing systems and reporting mechanisms to ensure transparency throughout the supply chain, creating a new standard in the Middle East that requires businesses to adapt quickly.

Enhancing market access capabilities

Given the continuous updating and supplementation of standards, Mr. Le Viet Anh, General Secretary of the Viet Nam Pepper and Spice Association, recommends that businesses exporting to Indonesia proactively review their compliance with the conditions before October 17, 2026, and choose the right Halal certification body recognized by Indonesia; closely coordinate with importing partners during the registration process; and prepare complete documentation, production processes, and related conditions to ensure compliance with regulations.

Meanwhile, according to the Viet Nam Business Council in the UAE, Viet Namese businesses are still not effectively accessing the Middle Eastern Halal market. The reasons include the lack of valid Halal certifications despite attempts to enter the market; many businesses misjudge the pricing structure and logistics costs, leading to reduced product competitiveness. Another limitation is the lack of reliable local partners to support distribution, disrupting market access. Notably, the expectation of "quick sales" is also an inappropriate approach, as the Middle Eastern market requires time to build trust and establish a stable distribution system.

To improve adaptability to market factors, Ta Xuan Hien, Vice Chairman of the Viet Nam Business Council in the UAE, suggested that: Since customers in the Halal supply chain are mainly intermediaries such as importers, distributors, retail systems, or service sectors like hotels and restaurants, businesses must build relationships with the distribution system from the outset instead of focusing solely on the product in order to optimize costs and enhance competitiveness.

“First, complete the Halal certification and select suitable products. Next, send samples and participate in trade promotion activities to explore the market. From there, shift the focus to finding potential distributors and proceed to sign contracts for the first orders. If the market is stable, the business can expand its scale and increase its presence in the region,” Mr. Hien emphasized.

Source: Vietnam.vn