Vietnam, with its diverse natural landscapes and rich cultural heritage, is one of the most attractive tourist destinations in Southeast Asia. However, when it comes to the Muslim-Friendly Hospitality Services (MFHS) segment, Vietnam still has a lot of untapped potential. According to the State of the Global Islamic Economy Report (2024) [1], Muslim tourism spending is expected to grow from $133 billion in 2022 to over $200 billion by 2030, with an annual growth rate (CAGR) of around 5.5%. The rising Muslim population and expanding middle class in Muslim-majority countries present a significant opportunity for Vietnamese businesses to engage in this lucrative market segment.
Source: Ministry of Foreign Affairs [2]
However, Muslim-friendly tourism is not simply about providing general tourism services. It requires compliance with Islamic religious rules, from Halal food to accommodations, travel services, and related amenities. With the growing Muslim population worldwide and the booming travel demand, especially from high-spending Muslim tourists, Vietnam stands before a significant opportunity to tap into a promising and attractive market: the development of Muslim-friendly tourism services. According to Associate Professor Dr. Đinh Công Hoàng from the Institute for West Asia, South Asia, and Africa Studies (ISWASS), this segment is full of potential, but it also poses several challenges for local businesses.
Geographically, Vietnam enjoys a unique advantage as it is close to large Muslim-majority countries such as Indonesia, Malaysia, and Brunei. This proximity makes it an ideal location to attract tourists from these neighbouring markets. Famous destinations in Vietnam, such as Ha Long Bay, Hoi An, and Hue, are not only beautiful attractions but are also well-suited for developing services tailored to Muslim visitors, provided there is proper investment. Another advantage is that the cost of tourism in Vietnam is relatively low compared to other regional destinations, making it appealing to middle-income travellers from Southeast Asia—one of the fastest-growing markets today.
However, this opportunity is accompanied by numerous challenges that businesses in the industry must face, causing hesitation in adopting new business models. This has led to the market being referred to as “sleeping.” According to ambassadors from OIC (Organization of Islamic Cooperation) countries, one of the biggest barriers is the severe lack of Halal infrastructure. In Hanoi, there are only a few Halal-certified restaurants, which is insufficient to meet the needs of both the local Muslim community and international Muslim tourists. This scarcity makes it difficult for many travellers to find suitable services.
Additionally, many travel businesses still do not fully understand Islamic culture or the importance of Halal standards. As a result, they have not made adequate investments in developing relevant services, which has left Vietnam trailing behind neighbouring countries like Thailand or Singapore—countries that have already taken the lead in building Muslim-friendly tourism infrastructure, with a top ranking in the Global Muslim Travel Index (GTMI) among non-Muslim-majority countries (according to Mastercard and CrescentRating, 2024) [3]. A survey conducted at a Muslim-friendly tourism conference in Binh Thuan revealed that the majority of businesses surveyed cited a lack of understanding of Halal standards and financial barriers as significant challenges preventing them from engaging in this market.
Another challenge is the widespread adoption of the national standard TCVN 14230:2024 – Muslim-Friendly Tourism Services – Requirements. The collaboration between the Vietnam Halal Certification Center (HALCERT) and the Vietnam Institute of Standards and Quality (VSQI) to draft and submit this standard for approval by the National Committee for Standards, Metrology and Quality (STAMEQ) and the Ministry of Science and Technology (MOST) is expected to be a significant boost for Vietnamese travel businesses looking for new market niches. However, many businesses are still unaware of this standard and have not yet accessed it, preventing them from adding value to their products by serving tourists from the Middle East and Muslim-majority countries, thus contributing to the development of the Halal industry in Vietnam.
Moreover, training staff and raising awareness about Islamic culture is another key factor. Businesses need to organize training courses for employees on Halal standards to ensure the provision of professional services that meet the specific needs of Muslim travellers. Along with this, investing in developing Halal-compliant infrastructure, such as hotels and restaurants in major cities like Hanoi, Da Nang, and Ho Chi Minh City, will help Vietnam gradually become a familiar destination for Muslim tourists.
Lastly, Vietnam needs to intensify its promotional campaigns to showcase the potential of Halal tourism through international media channels and global tourism events. Only by effectively leveraging both opportunities and challenges can Vietnam position itself on the global Muslim tourism map and open up a promising new path for its tourism sector.
In conclusion, Muslim-friendly tourism is a promising market that Vietnamese businesses need to explore to diversify their customer base and enhance international competitiveness. Although there are many challenges today, with the right solutions such as establishing national standards, training staff, and developing Halal infrastructure, Vietnam can certainly become an attractive destination for Muslim tourists. Investing in this niche market will not only bring economic value but also help raise Vietnam’s profile on the global tourism stage.
Hong Quan – Vietnam Halal Certification Center (HALCERT)
[1] DinarStandard. (2022). State of the Global Islamic Economy Report 2022/2023. Retrieved from https://www.dinarstandard.com/post/state-of-the-global-islamic-economy-report-2023
[2] The World & Vietnam News, Ministry of Foreign Affairs, Halal Special Edition, No. 01/2024
[3] CrescentRating. (2024). Global Muslim Travel Index 2024. Retrieved from https://www.crescentrating.com/reports/global-muslim-travel-index-2024.html
