Vietnam Expands Cinnamon and Tea Exports to Halal Markets
Vietnam’s spice and tea industries continue to see remarkable growth, with Yên Bái province taking strategic steps to tap into the lucrative Halal market. With 57 countries and a rapidly growing demand for Halal-certified products, the Halal market presents a significant opportunity for Vietnamese exporters, particularly for cinnamon and tea.
Halal Certification: A Key to Unlocking Market Potential
To meet the strict requirements of Halal certification, businesses in Yên Bái are implementing rigorous standards from cultivation to processing. According to Nguyễn Đình Chiến, Deputy Director of the Department of Industry and Trade, obtaining Halal certification is essential for Vietnamese exporters looking to enter and compete in these high-potential markets. Among 20 Vietnamese agricultural products identified as having strong Halal market potential, Yên Bái’s cinnamon and tea stand out as key export commodities.
Vietnam’s Strength in Tea & Cinnamon Production
1. Tea Production and Export
Yên Bái province boasts over 7,443 hectares of tea plantations, primarily in Trấn Yên, Văn Chấn, Trạm Tấu, and Mù Cang Chải. With an annual output of 69,000 tons, tea is a major agricultural product of the region. Currently, more than 50 processing facilities operate within the province, with 7 major projects covering 290 hectares certified to VietGAP standards. Additionally, Suối Giàng Cooperative has received EU certification for its tea products.
One of the pioneers in Halal-certified exports is Hữu Hảo Tea Processing Company, located in Trấn Yên district. The company exports black tea to the Middle East, Pakistan, and Afghanistan, with an annual output of 18,000-20,000 tons, generating $45-50 million in revenue.
According to Nguyễn Trọng Hữu, the company’s director, penetrating the Halal market requires extensive research on product standards, cultural practices, and ethical requirements to ensure smooth trade relationships.
2. Cinnamon: A Leading Export Commodity
Yên Bái is one of Vietnam’s top cinnamon-producing regions, with over 82,000 hectares of cinnamon plantations, including 38,000 hectares of specialized cultivation. The province harvests 18,000 tons of dried cinnamon bark and 85,500 tons of cinnamon branches and leaves annually, supplying essential oil, pharmaceutical, and food industries worldwide.
Vietnamese cinnamon is highly regarded in the Halal market due to its high essential oil content and strong aroma. Yên Bái’s cinnamon products, such as cinnamon oil, cigarette cinnamon, and cinnamon-infused cleaning products, have already been exported to China and Europe. However, achieving Halal certification will further open doors to Middle Eastern and Southeast Asian markets.
Challenges and Opportunities in the Halal Market
Despite the potential, Vietnamese businesses face significant challenges in entering the Halal market:
- High production and certification costs: The process of obtaining and maintaining Halal certification is complex and costly.
- Strict compliance standards: Halal requirements span from cultivation to processing, necessitating dedicated facilities.
- Limited market knowledge: Many exporters are unfamiliar with Halal cultural and regulatory expectations, creating barriers to entry.
To support businesses in overcoming these challenges, the Vietnamese government has introduced the Halal Market Development Plan, focusing on:
- Promoting awareness of Halal requirements and regulations.
- Investing in research to ensure compliance with international standards.
- Supporting branding and marketing efforts to strengthen Vietnam’s presence in Halal markets.
- Expanding trade promotion activities to connect businesses with potential buyers.
Future Prospects: Strengthening Vietnam’s Position in the Halal Market
With growing global demand for Halal-certified products, Yên Bái’s cinnamon and tea industries are well-positioned for long-term growth. By adopting sustainable agricultural practices, investing in certification, and enhancing export strategies, Vietnamese exporters can secure a stronger foothold in the Halal market.
At VietGlobal Export, we are committed to providing high-quality, Halal-compliant cinnamon and spices to meet the demands of our global partners. If you’re looking for reliable, certified Vietnamese cinnamon, contact us today to learn more about our offerings!
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