Phung Van Thanh, Vietnamese Trade Counsellor in Malaysia, said Malaysia remains one of Vietnam’s key trading partners in ASEAN and globally. However, Vietnam’s exports have lagged behind imports, resulting in a trade deficit of US$5.67 billion with Malaysia in 2025 and nearly US$4 billion in the first six months of 2026.

Vietnamese exports to Malaysia grew by an average of 3.89 per cent annually between 2015 and 2025, reaching US$5.33 billion last year. Key products include machinery, electrical equipment, mechanical products and production materials. No Vietnamese export item has yet reached US$1 billion in annual turnover in Malaysia.

By contrast, imports from Malaysia grew by an average of 11.48 per cent annually during the same period, reaching US$11 billion in 2025, mainly comprising machinery, equipment, petroleum products, computers, electronics and components.

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Thanh identified halal certification as a major hurdle but also a significant opportunity for Vietnamese exporters.

Malaysia, with a population of about 34.2 million, of whom 60.4 per cent are Muslim, is a major halal food market and one of the five largest halal food importers among Organisation of Islamic Cooperation (OIC) members, with annual imports exceeding US$20 billion.

Malaysia’s domestic halal food market is estimated at US$50 billion, while its Halal Industry Master Plan targets domestic halal consumption of US$113 billion by 2030 and seeks to position the country as a global Islamic economy hub.

Vietnam has strong potential to tap into this market, ranking among the world’s top 10 exporters of key agricultural products such as rice, coffee, cashew nuts, pepper and medicinal herbs. More than 80 per cent of Vietnam’s plant-based agricultural products inherently meet basic halal requirements.

Thanh said developing halal-compliant products could help Vietnamese businesses overcome export barriers and contribute to achieving the US$20 billion bilateral trade target, with US$25 billion a year as a longer-term goal.

However, businesses still face challenges in obtaining certification due to limited experience, a shortage of specialised consultancy services and differing requirements among Muslim markets.

In Malaysia, the Department of Islamic Development Malaysia (JAKIM) applies stringent certification procedures, including document reviews, on-site inspections of production facilities and supply chains, dedicated halal compliance personnel and staff training. Foreign businesses must also cover inspection teams’ travel and accommodation costs, adding to certification expenses.

Strengthening halal certification capacity and helping Vietnamese businesses meet international standards could therefore be key to narrowing the trade gap and unlocking greater export potential in the Malaysian market.

-- BERNAMA-VNA