Businesses advised to meet Halal standards to boost exports to Malaysia
VOV.VN - Vietnamese enterprises should strive to meet the relevant standards in terms of product quality, food safety, and hygiene, especially Halal certification, in order to make inroads into the Malaysian market, suggested industry insiders.
According to the General Department of Vietnam Customs, two-way trade turnover between Vietnam and Malaysia in the opening two months of the year surged by 17.3% year on year to US$2.3 billion.
Vietnamese exports to the Malaysian market enjoyed impressive growth, including iron and steel which rose by 66.9%and phones and accessories which went up by 71.2%.
Among other export items, chemicals witnessed a sharp rise of 269%, while agricultural products such as rice and coffee also experienced impressive growth of 145.3% and 86.3%, respectively.
Le Phu Cuong, Vietnamese Trade Counselor in Malaysia, emphasised that there remains plenty of room for Vietnamese goods to enjoy robust growth in the Malaysian market moving forward thanks to its huge purchasing power, diverse needs, and similarities to Vietnamese goods.
Malaysia boasts large market openness, low technical barriers for Vietnamese exports, while both countries are involved in several agreements within the ASEAN and ASEAN Plus frameworks, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Moreover, Malaysia is currently lacking domestic supplies of many essential foods such as rice and seafood.
Meanwhile, Vietnamese exports to this market face a number of challenges as Malaysia is home to a large native Muslim population, accounting for more than 65% of its citizens. The country is promoting the application of Halal standards for imported food, according to the Vietnamese Trade Office.
Cuong revealed that the application of Halal standards has created non-tariff barriers whilst increasing costs for food export products, but said obtaining this certificate will help Vietnamese products to reach out to a larger number of Muslim consumers.
Aside from non-tariff barriers, Vietnamese exports to this market must face fierce competition from regional peers, including China, Thailand, and Indonesia.
In addition, local businesses also tend to encounter foreign language barriers and cultural differences, as well as risks of trade fraud when gaining entry to the market.
Experts have therefore advised local firms to proactively update information on the trade potential that exists between Vietnam and Malaysia, as well as other Muslim countries, thereby devising proper plans to expand markets and seek investment partners in this market.
