Vietnam’s agro-fisheries approach Halal markets amid US tariff risks

A significant milestone was the signing of the Comprehensive Economic Partnership Agreement (CEPA) between Vietnam and the United Arab Emirates (UAE) on October 28, 2024, in Dubai, witnessed by Prime Minister Pham Minh Chinh and UAE Vice President and Prime Minister Mohammed bin Rashid Al Maktoum.

Under the commitments, the UAE will eliminate tariffs immediately upon the agreement’s entry into force for 99% of Vietnamese exports, while Vietnam pledges to cut tariffs for 98.5% of goods imported from the UAE. This agreement lays an important foundation for Vietnamese products to expand their presence in the Middle East market in general.

The Middle East market does not impose as stringent technical standards as the EU or the U.S., and customs procedures are relatively simpler, facilitating Vietnamese businesses. However, if Halal is considered a long-term strategy, it requires a coordinated approach involving policy support, logistics systems, trade promotion, and thorough business investment mindset.

Markets like the UAE and Saudi Arabia have large import demands, but to compete with countries like India and Brazil, Vietnamese enterprises need to obtain Halal certification from reputable organizations and improve product quality.

Currently, Vietnamese businesses face several difficulties. Firstly, there is a limited understanding of Islamic consumer culture, leading to ineffective product and marketing strategies. Secondly, the Halal certification process is complicated and inconsistent across countries, requiring businesses to seek certification from multiple organizations, resulting in increased costs and time. Additionally, the food processing sector lacks sufficient personnel knowledgeable about Halal standards, and sources of certified Halal raw materials remain limited.

Businesses need to invest in training and raising awareness about Halal standards and Islamic consumer culture. At the same time, they should build management systems that meet Halal requirements, ensure hygiene, food safety, and clear traceability. Collaborating with reputable Halal raw material suppliers will help maintain consistent quality and build a sustainable supply chain.

Furthermore, developing appropriate marketing strategies and leveraging specialized sales channels such as Halal trade fairs, e-commerce platforms, and B2B marketplaces will help directly connect with international partners and expand markets.

Source: https://seafood.vasep.com.vn/