Vietnam taps blockchain to target $3T halal food market

As the global halal food market explodes, agricultural exporters in Vietnam are tapping blockchain technology to target expanding markets in the Middle East, Asia, and North Africa.

The halal market was valued at $7 trillion in 2020 and is projected to hit $10 trillion by the decade’s end.  The halal food market, in particular, was valued at $3 trillion last year and is expected to grow at a compound annual growth rate (CAGR) of 12.4% to hit $9.5 trillion by 2034.

Vietnamese firms are targeting this rapidly growing sector, employing blockchain to prove that their food products are halal, reports one local outlet. By recording all the processes and products used from farm to fork on the immutable and transparent blockchain, these firms prove they adhere to Islamic dietary laws and are able to sell their products in any market despite varying local halal regulations.

Despite the ballooning demand for halal products, fraud is rampant. In Malaysia alone, over 140 businesses were busted last year for using fraudulent halal certificates to falsely pass off their products as halal and make millions in profits. Thousands of similar fraud incidences have been reported in Canada, India, the United Kingdom, Malaysia, the United States, Cambodia, and elsewhere.

Blockchain has emerged as a leading solution. In Vietnam, the technology is opening up a vast market for halal products in the Middle East. Last year, the Vietnamese government signed a historic economic partnership agreement with the United Arab Emirates, opening up trade between the two nations, with halal food products among the industries set to benefit the most.

Vietnam is also targeting other Southeast Asian nations with significant Muslim populations, including Malaysia and Indonesia; the latter has the world’s largest Muslim population.

“Blockchain records every step of the halal certification process, allowing stakeholders to verify product authenticity and compliance instantly,” the Foundation says.

In Malaysia, where over 60% of the population is Muslim, the government has been pushing food producers to adopt blockchain to certify halal products.

“By adopting this technology, Malaysia can strengthen its halal processes, reduce trade barriers, and align with global standards,” Deputy Prime Minister Ahmad Hamidi stated last September.

UNISOT is one of the companies championing food traceability on the BSV blockchain, with halal certification among the products its platform offers. Founder Stephan Nilsson has maintained that halal traceability is only possible on a public enterprise blockchain with unbounded scaling, which only BSV offers.

“Stakeholders across the halal food supply chain need a better understanding of how the public enterprise blockchain works, its benefits, and how it differs from centralized or pseudo-blockchain systems,” he told one outlet.

He added that adoption will skyrocket once stakeholders get an insight into how a public enterprise blockchain “improves transparency and efficiency, reduces fraud and enhances consumer trust.”

Watch: Supply chain traceability powered by blockchain tech