Central Bank of Indonesia Promotes Digitalization of the Halal Industry

Recently, the Central Bank of Indonesia (BI) officially launched the Enterprise Resource Planning (ERP) System, integrating agriculture with information and social technology (Simfratani) at the 6th Indonesia Halal International Conference held on October 31. This initiative aims to accelerate the digitalization of the Halal industry by monitoring and reporting activities related to Halal-compliant crop cultivation and harvesting, supporting the mapping of food production and demand. The system provides real-time data on agricultural development across different regions of Indonesia, laying a solid foundation for the robust growth of the Halal industry.

INHALIFE 2024 Halal Conference in Jakarta, Indonesia

Thailand Aims for Leadership in the Asian Halal Industry

According to Aljazeera, Thailand, a predominantly Buddhist country, is setting its sights on becoming the leading Halal food production hub in Asia. To achieve this goal, Thailand is focusing on enhancing Halal certification standards, developing infrastructure, and expanding product offerings that meet the needs of the global Halal market.

In 2023, Thailand’s Halal product export turnover reached over 220 billion baht (around 6 billion USD), ranking 11th in the world. Thailand expects to achieve an average annual growth rate of about 4% in the coming years. The strong development of the Halal industry is helping Thailand not only increase exports but also expand its market reach, contributing to economic diversification. However, Thailand also faces challenges from competing economies in the region, especially Malaysia, which requires Thailand to maintain and improve product quality to meet the stringent standards of the Halal market.

Bangkok, Thailand, boasts many Halal-certified restaurants.

Malaysia Strengthens Halal Trade and Industry Ecosystem

According to HalalFocus, the Malaysian government has announced the merger of the Malaysia External Trade Development Corporation (MATRADE) and the Halal Development Corporation (HDC) to strengthen the country’s Halal industry and trade ecosystem.

This merger aims to enhance Malaysia’s global competitiveness in the Halal sector, creating a more robust ecosystem to support exports and industry development. The move consolidates resources, boosts productivity, supports small and medium enterprises (SMEs), and opens up job opportunities, strengthening Malaysia’s position in the international Halal market. This is also a strategic step for Malaysia as it prepares to assume the role of ASEAN Chair in 2025, aiming to attract investment and expand exports within the Asia region and to ASEAN partners.

The merger of MATRADE with HDC is a step towards forming a stronger and more connected Halal ecosystem.

Vietnam’s Perspective

The Halal industry in the ASEAN region is growing rapidly, with initiatives and strategies from countries such as Indonesia, Thailand, and Malaysia. From Vietnam’s perspective, it is clear that there are significant opportunities and challenges associated with the Halal sector. Vietnam needs to leverage the pioneering steps of regional countries to develop its own Halal industry, particularly in Halal food and agricultural products. Enhancing Halal certification standards, developing infrastructure, and promoting digitalization will be key factors in helping Vietnam integrate deeper into the global Halal supply chain.

The Halal market has enormous potential, not only within ASEAN but also globally, especially with the growing demand from Muslim-majority countries. Vietnam has the advantage of rich and high-quality agricultural products, so developing Halal-certified products and services will increase export value and expand international markets. Additionally, Vietnam should learn from the experiences of other countries in the region to create a sustainable strategy for developing the Halal industry, contributing to economic growth and enhancing Vietnam’s position on the global Halal map.

Embassy of Vietnam in Brunei Darussalam and Hong Quan – National Halal Certification Center (HALCERT)