Vietnamese agricultural exporters are turning to blockchain technology to break into the rapidly expanding global halal food market, targeting lucrative regions in the Middle East, Asia, and North Africa.
Booming Halal Market Presents New Opportunities
The global halal market was valued at $7 trillion in 2020 and is projected to reach $10 trillion by 2030. The halal food sector alone accounted for $3 trillion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 12.4%, reaching $9.5 trillion by 2034.
Vietnamese firms are tapping into this growth by leveraging blockchain to ensure their products comply with halal dietary laws. By recording each step of the supply chain on an immutable and transparent blockchain, these firms can verify adherence to Islamic regulations, making their products viable for diverse markets with varying halal certification standards.
Combatting Halal Fraud with Blockchain
Despite rising demand, the halal industry has been plagued by fraud. In Malaysia, authorities uncovered over 140 cases of businesses using fake halal certifications in 2023 alone. Similar instances have been reported across Canada, India, the UK, the US, and Cambodia, highlighting the need for stronger verification mechanisms.
Blockchain technology has emerged as a solution to combat fraud and ensure authenticity. In Vietnam, it is unlocking new export opportunities, particularly in the Middle East. A landmark economic partnership signed last year between Vietnam and the United Arab Emirates (UAE) is expected to boost trade, with halal food among the key beneficiaries.
Beyond the Middle East, Vietnam is also eyeing Southeast Asian nations with substantial Muslim populations, such as Malaysia and Indonesia—the latter being home to the world’s largest Muslim population.
Global Adoption of Blockchain for Halal Certification
Vietnam is not alone in adopting blockchain to secure halal food authenticity. The American Halal Foundation, whose certification is trusted by two billion consumers worldwide, has been utilizing blockchain to enhance transparency. The Foundation issues QR codes linked to blockchain-verified certifications, allowing consumers to instantly confirm product authenticity and compliance with halal standards.
In Malaysia, where over 60% of the population is Muslim, the government has been advocating for blockchain adoption to streamline halal certification processes. Deputy Prime Minister Ahmad Hamidi emphasized in September that blockchain could “strengthen Malaysia’s halal processes, reduce trade barriers, and align with global standards.”
Public Enterprise Blockchain: A Game-Changer for Halal Supply Chains
Among blockchain solutions, public enterprise blockchains like the BSV blockchain are gaining traction. UNISOT, a company specializing in food traceability, is championing halal certification on the BSV blockchain. Founder Stephan Nilsson argues that only a public enterprise blockchain with unbounded scaling can ensure comprehensive halal traceability.
“Stakeholders across the halal food supply chain need a better understanding of how public enterprise blockchain works, its benefits, and how it differs from centralized or pseudo-blockchain systems,” Nilsson stated. He believes widespread adoption will accelerate as industry players realize how blockchain enhances transparency, reduces fraud, and fosters consumer trust.
With the halal food market poised for explosive growth, Vietnam’s adoption of blockchain technology positions it as a key player in supplying verified halal products to the world’s expanding Muslim consumer base.
