30 May 2025

Taking advantage of Vietnam's potential as a Halal-producing country and Singapore's role as a commercial hub — with both nations being members of several next-generation Free Trade Agreements (FTAs) — to penetrate the markets of Islamic countries.

Halal products represent a highly promising trend for the future.

At the Vietnam-Singapore Halal Trade Hybrid Conference, Mr. Trần Phước Anh, Ambassador Extraordinary and Plenipotentiary of the Socialist Republic of Vietnam to Singapore, remarked that in recent years, the Vietnam-Singapore relationship has continued to develop positively.

Notably, in March 2025, Vietnam and Singapore elevated their bilateral ties to the highest level: a Comprehensive Strategic Partnership. Singapore is currently Vietnam’s fourth-largest trading partner within the ASEAN region.

In 2024, total bilateral trade between Vietnam and Singapore reached a record SGD 31.67 billion, up 9.49% compared to 2023. In the first three months of 2025, bilateral trade volume reached over SGD 9.81 billion, marking a 27.32% increase year-on-year. Among this, Halal products made a significant contribution.

Recognizing the importance of Halal products, Ambassador Trần Phước Anh shared that in 2023, the Prime Minister of Vietnam approved a national project titled: “Enhancing international cooperation to develop Vietnam’s Halal industry by 2030,” which outlines clear directions, goals, and implementation strategies.

Vietnam has identified the development of the Halal industry as a strategic direction to diversify export markets and enhance the added value of Vietnamese products. Therefore, efforts to build a legal framework and standards system to support the Halal industry are being actively promoted.

Emphasizing the potential of Halal products in the Singaporean market, the Vietnam Trade Office in Singapore noted that Singapore has a very low share of agriculture in its GDP and currently meets only about 10% of its food needs domestically, with the remaining 90% dependent on imports.

However, processed food is one of Singapore's key export sectors, with export value reaching around USD 9 billion per year, of which up to 70% (about 50,000 items) are Halal-certified. Experts estimate that Singapore’s Halal food market will maintain an annual growth rate of 7-10% in the coming years.

With a high percentage of the population being Muslim and a large number of Muslim tourists visiting annually, Singapore’s Muslim community is among the high-income groups with strong purchasing power. Singapore also has an extensive distribution network for Halal products, with numerous supermarket chains and convenience stores.

In addition, as a regional and global trade hub, goods imported into Singapore for re-export account for about 54% of its total export value (equivalent to SGD 380 billion in 2022), including Halal products.

Singapore also boasts a well-developed Halal certification system, recognized by Muslim-majority countries such as Brunei, Indonesia, Malaysia, as well as major trading partners like the UAE, Australia, Europe, and the US. This makes Singapore an ideal gateway for the production, trade, and re-export of Halal food products to large Muslim markets, supported by its advanced logistics infrastructure for international trade. Halal is a promising trend for Singapore's domestic market and in leveraging Singapore’s role as a transit point to other Muslim-majority countries.

Mr. Cao Xuân Thắng, Trade Counselor and Head of the Vietnam Trade Office in Singapore, stated that this presents a significant opportunity for Vietnamese and Singaporean businesses to collaborate. By leveraging Vietnam’s strength as a manufacturing base and Singapore’s position as a commercial hub — along with the advantages provided by next-generation Free Trade Agreements (FTAs) of which both countries are members — businesses can effectively penetrate Muslim-majority markets.

Adding to the discussion, Ms. Dewi Hartaty Suratty, CEO of Down Horizon, noted that the Halal industry has entered a new phase, driven by ethical consumerism, digital transformation, and the emergence of ASEAN as a Halal trade hub.

Therefore, businesses must understand this shift and take the lead. Countries need to promote the growth of Halal business and strengthen ASEAN’s position as a trusted leader in the global Halal ecosystem.

Source: VNEconomy