What are Halal regulations?
In Arabic, “Halal” means lawful and permitted in accordance with standards and values of Islam. It often refers to food suitable for followers of Islam to consume. In Vietnam today, the number of Muslims approaches 100,000 with 90 places of worship[1]. In the context of food, Halah encompasses the dietary restrictions practiced by Muslims. The Halal market is emerging as a significant market due to the enormous number of Muslims worldwide and the rising demand for Halal-certified products in foods and beverages, tourism and consumer goods. This market is being explored by countries across the globe, and Vietnam has also begun to explore this global opportunity.
To standardize production and to facilitate the access of Vietnamese goods and services to the international Halal market, the Government has taken first steps to create a management system that will assure the authenticity and quality of Halal products and services acceptable in the international market. Vietnam has not yet issued a separate decree on Halal products, but the Government is starting to create a legal framework to manage Halal products and services for sale in Vietnam and for export. There is a draft Decree on the management of the quality of Halal products and services (“Draft Decree”). Under the Draft Decree, Halal products are those that have met all conditions under Islamic law and qualify as true Halal products. Halal services are any services related to halal products, including transportation, storage, packaging, display and handling.
Generally speaking, Vietnam’s Halal regulations focus on the management of Halal products and services–their quality, including regulations on the preparation, packaging, assessment on the conformity of Halal products/services, use of Halal labels, certification and inspection. It also involves handling both violations and support policies for Halal products and services. But the legal requirements to certify products or services as being Halal-compliant is a new approach by the Vietnamese Government to ensure that production and products said to be Halal certified, comply with Islamic Law and permit consumption by Muslims. They are intended to support Halal markets in Vietnam as well as to support exports to Halal markets abroad.
How will the Vietnamese Government support the Halal market?
The Draft Decree regulates management principles and standards of Halal products and services, including requirements for labeling and traceability. All Halal products circulating in the market must be clearly labeled with the phrase “HALAL PRODUCTS” or “HALAL” in capital letters that are easily visible. The product label must also display the name, number, and logo of the Halal certification organization. The packaging must not contain images, symbols or elements prohibited by Islamic law. That is, the Government wants to help the halal food industry enforce halal standards and requirements.
Concurrently, organizations and individuals that produce and trade Halal products and provide Halal services must declare the standards that they apply to their products and services. They are expected to follow Vietnamese Law on quality, goods and products and the Halal Draft Decree–soon to be final. The declaration of applicable standards must be completed before circulating Halal products and services in the market or providing them to customers.
The Draft Decree also has a separate chapter that regulates processes to assess whether a Halal product or service does or does not comply with Halal standards. It also sets out procedures and criteria for Vietnamese organizations to obtain a Certificate of registration needed for Halal product certification. Only Halal products and services that have been assessed by a qualified Halal organization in Vietnam or an international Halal organization certified by Vietnam’s Ministry of Science and Technology to meet Halal standard may be circulated in Vietnam.
The Draft Decree also regulates supporting policies for qualified enterprises and Vietnamese Halal testing organizations. For example, the Government may give financial incentives to investment projects specializing in Halal production lines and technology or to projects that set up a quality management system that meets Halal standards. The Government will also support enterprises to invest in science and technology programs to do research and to innovate production technology related to Halal products.
Under the Draft Decree, the Government will support the traceability of origin of Halal products and will support enterprises to access market, legal, and technical information. Particularly, the Government will construct, maintain and develop a national Halal database to ensure connection and data sharing with the current National Database on Standards, Measurements, and Quality of products. The authorities may also provide funds to support the cost of initial international accreditation of laboratories and halal certification agencies if these laboratories and agencies commit to serving the industry’s development.
By developing clear strategies, improving product quality and safety, and pursuing recognised Halal certification, Vietnamese businesses can gradually build consumer trust and secure a stronger position in the rapidly growing worldwide Halal market.
For further information, please contact:
Tran Ngoc Han, Partner, Russin & Vecchi
TNHan@russinvecchi.com.vn
[1] Information from Vietnam Government Committee for Religious Affairs (GCRA) https://btgcp.gov.vn/doi-song-tin-nguong-ton-giao/hoi-giao-o-viet-nam-va-nhung-dong-gop-tieu-bieu-tren-linh-vuc-van-hoa-cua-hoi-giao-postkwnV2GenBM.html
