Halal Beyond Tomorrow: Penetrating Vietnam's Potential Export Market

1. Halal Beyond Tomorrow Opportunities for Food & Foodstuff Sector’s Penetration into Potential Export Market Potentials & Requirements to Export into Halal Market 7 August 2019 Presentation by: Ramlan Osman Business Director Vietnam Halal Center Version: 1.0 Date: 30.7.2019

2. Contents of presentation General analysis on Vietnam’s potential in halal Requirements to export into halal market Global halal market outlook 5 minutes 5 minutes 10 minutes

3. Importance of Halal products to the Muslims Obligation to Religion and Hygiene Why Halal? Enormous Global Market Potential Increasing Domestic Demand Muslim nations are net importer of various products, including halal products >90% gap between demand and production of global halal products Impact to People Impact to Economy The halal industry provides job opportunities and increases the safety of products Halal promotes trade and investment Source: Halal Industry Development Corporation Malaysia

4. It is all about quality of life…. Halal-Thoyyib concept is not just for Muslim. It is for everyone

5. What industry involve halal? Traditional Emerging Cosmetics, personal care and healthcare products Processed food and beverages Tourism services Organic and non-organic ingredients Modest Fashion Logistics services

6. Increasing demand on Halal products by the growing consumers population Global Halal Market Size (2016) USD 2.8 trillion Global 1,800 billion consumers Asia 1,000 million consumers Asia Halal Market Size (2016) USD 1.5 trillion South East Asia • Large Muslim markets:- • Indonesia • Pakistan • India • Bangladesh 230 million consumers Over 700 million consumers Estimated Muslim Population 2016 Source: Halal Industry Development Corporation Malaysia

7. Potential trade and investment opportunities created by China’s Belt and Road linkages Central Asia Middle East & North Africa South East Asia Halal consumers majority regions

8. Various countries are moving fast in capturing opportunities offered by halal market Malaysia is set to announce its Halal Industry Master Plan 2.0 towards a more visible, prominent and globalised Halal Malaysia Japan announced that Halal has been identified as key source of contributor to Japan’s economy with the 2020 Summer Olympic Game as a catalyst Thailand is one of the world’s largest producers of Halal processed food and branding itself, the “Kitchen of the World” United Arab Emirate is visioning to become the center of Islamic economy focusing on Islamic Finance and Halal South Korea is visioning to become one of the main tourism destinations for Muslim’s tourists Brazil is the largest supplier of Halal poultry to the Middles Eastern countries Australia is the largest supplier of halal beef to the Middles Eastern countries Where is Vietnam? Source: Halal Industry Development Corporation

9. Why do Halal business in Vietnam? Currently, Vietnam’s GDP growth is at average 6% to 7% per annum, which indicating a strong domestic economy for future growth. Vietnam possesses abundant of halal potential raw materials including coffee, rice, marine products, aquaculture products, spices, nuts, vegetables and fruits which indicating high potential in producing end products. Vietnam also has been recognized as one of the top international visitors’ destinations in 2016 where over 10 million tourists were recorded, indicating future potential for hospitality services business including halal restaurants and caterings to grow significantly.

10. Opportunity missed by Vietnam for not capturing halal market Vietnam supply on Halal potential products vs demand by OIC countries (2016) USD23.6 billion missed! USD34.1 billion USD10.5 billion Vietnam’s top 20 Halal potential exports in 2016 Demand by OIC Countries on the same products in 2016 Vietnam’s Top 20 Halal Potential Exports (2016) Green coffee, milled rice, cashew nuts, pepper, fresh fruits, coffee extracts, processed food, roasted coffee, dried cassava, nuts, processed fruits, pastry, tea, sugar confectionery, animal feed, natural honey, cinnamon, non-alcoholic beverages, flour wheat and fruit juices

11. Rule # 1: Understand and meet the consumers demand Reasonable price High quality Brand Look and feel / taste Halal Easy to access Nutritional facts Warranty

12. Rule # 2: Meeting the export requirements Important Requirements Halal as Added Value High quality and halal products Halal logo by most reputable certification bodies … and others according to your existing buyers’ demand Local CB in Vietnam

13. Getting a Halal certificate General process flow in getting a Halal certificate Premise inspection and lab test Monitoring and Enforcement Preliminary site visit Submission of application Preparation of premise and documents Panel approval committee Issuance of Halal certificate Gap analysis report

14. How do we facilitate you? Pre and Post Halal Certification Activities Phase 2: Halal Certification Audit Phase 1: Pre-Halal Certification Phase 3: Post-Halal Certification Our assistance: Our assistance: Our assistance: • Awareness and training • Advisory and consultancy • Halal compliance pre-audit • Supply of halal executives • Business matchings through trade and investment mission / promotional activities • On-boarding to online halal trading platforms • Refresher courses on halal • Troubleshoot on the non-conformance

15. Documentation (based on Halal Malaysia’s requirements) List of documents to be prepared:- Company Manpower Factory • Details of person in-charge on Halal application; • Copies of identity cards and offer letter for two (2) Muslims, working full time at the production area. • Premis floor layout plan and process flow (staff & product) • Premise/factory location map • Other document / certificate such as GMP, HACCP, ISO, etc. • Company Profile; • Copy of Company Registration Certificate and Business License; • Copy of Annual Financial Income Statement/Turnover Product / Menu Packaging and Labelling • Type of packaging material • Label artwork • Name of product/menu • List of ingredients/raw material with supplier name • Copy of valid supporting document for each ingredients/raw material e.g. Halal Certificate or product specification from supplier • Process flow for each product or production procedure/SOP • Note: • Non-mandatory

16. Conclusion • USD1.93 trillion demand globally on Halal food alone with only less than 10% are met. The challenge is to get more players into the global supply chain. Hence, opportunities are enormous. Business Director Come and join us! Please contact:- Ramlan Osman Vietnam Halal Center tkoklipe@gmail.com +60194487683