Almost half of the ASEAN population are Muslims, but Vietnamese businesses seem to be indifferent or not know how to provide products and services for this vast market, heard Export Forum 2018 on December 14.
According to the HCMC Investment and Trade Promotion Center (ITPC) at the forum, the Halal industry in ASEAN holds much potential. This is regarded as a significant opportunity for Vietnamese firms.
Nguyễn Thị Ngọc Hằng of the Halal certification agency said that last year the Muslim population accounted for some 42% of the total population in Southeast Asia. Regional countries with a developed Halal industry include Malaysia, Indonesia, Singapore, Thailand and Brunei.
However, as the number of Muslims in Vietnam remains small, making up less than 1% of the country’s population, the production and provision of Halal-certified products remains new to local firms, according to Hang.
Hang said that though the markets of products for Muslims do not have the high requirements called for by U.S. and European markets, Halal requirements are strict and varied in different countries, making it difficult for firms when working to observe such sets of requirements.
As ITPC director Phạm Thiết Hòa noted, firms should have separate strategies to approach Muslim markets, as it would be difficult for certain firms to penetrate the markets without Halal certification. Firms should well understand Islamic customs and cultures to manufacture appropriate products.
According to speakers at the forum, once it is possible to sell to Muslims in ASEAN, firms can work to expand to Muslim customers throughout the world. The Halal industry is growing, with annual revenues reaching US$2,300 billion.
Regarding the ASEAN and Chinese markets, in general, speakers agreed that there is still room for Vietnamese goods.
However, Hòa said that to well exploit the ASEAN market, firms should participate in trade promotion and market research activities to enhance connectivity with target markets. In addition, they need to research demands, prices, tastes, trends, distribution systems, transport, packaging and cultures, along with other concerns.
Firms should also coordinate and seek support from national authorities to boost trade promotion in potential markets, Hoa noted.
Meanwhile, according to the Chinese consulate, China is the second largest market in the world, with 1.3 billion people. China regards Vietnam as an important market, whereas China is Vietnam’s major export market for phones and components, rice, vegetables, rubber, crude oil, cement, clinker, seafood, cashew nuts, pepper and coffee.
Source: english.thesaigontimes.vn
