From June 1, 2026: Decree 127/2026/ND-CP – Vietnam’s First Legal Framework for Halal Products and Services

01-06-26 MTParners

The Government has issued its first comprehensive Halal regulations — a major opportunity or a compliance burden for Vietnamese businesses?

On June 1, 2026, Decree No. 127/2026/ND-CP on quality management and development policies for Halal products and services officially took effect. This is the first legal instrument to establish a comprehensive regulatory framework for the Halal sector in Vietnam, covering quality standards, certification, labeling, and traceability requirements. With the global Halal market estimated to exceed USD 7 trillion and more than 2 billion Muslim consumers worldwide, this represents a significant export opportunity — but also introduces new compliance obligations that businesses cannot afford to ignore.

I. Why Does Vietnam Need a Legal Framework for Halal?

Prior to Decree 127/2026/ND-CP, Vietnam had no dedicated legal instrument governing the Halal sector. Production, certification, and export of Halal products operated primarily according to international practices and the individual requirements of importing markets, lacking uniformity and transparency.

The global Halal market is growing rapidly, particularly in the Middle East, South Asia, and Southeast Asia — regions where Vietnam holds a competitive advantage in agricultural and seafood exports, processed foods, and tourism services. However, the absence of a clear legal framework made it difficult for Vietnamese businesses to gain recognition of their Halal certifications in demanding markets such as the UAE, Malaysia, and Saudi Arabia.

Decree 127/2026/ND-CP, issued on April 6, 2026 and effective from June 1, 2026, fills this regulatory gap.

II. Key Provisions of Decree 127/2026/ND-CP

1. First Legal Definitions Established

For the first time, the concept of “Halal” (from Arabic: permissible/lawful) has been legally defined in Vietnamese law. Halal products are those evaluated and confirmed to comply with applicable Halal standards; Halal services cover transportation, storage, packaging, distribution, and related activities involving Halal products. Notably, the concept of “Halal tourism services” — encompassing accommodation, food and beverage, travel agency, and transport services — also appears in Vietnamese law for the first time.

2. Quality Requirements and Traceability

The Decree requires that production inputs be Halal materials, free of components prohibited under Halal standards. For animal-derived ingredients, slaughter must comply with Halal procedures. The entire supply chain — processing, packaging, storage, transportation, and display — must prevent cross-contamination with non-Halal products or ingredients. For high-risk product categories, full traceability becomes a mandatory requirement.

3. Halal Certification — Voluntary but Potentially Mandatory

In principle, Halal certification is voluntary and based on business demand. However, in certain sectors or specific product categories, certification may become mandatory under the requirements of the relevant regulatory authority or the importing market. To operate in Vietnam, Halal certification bodies must have a minimum of two certified Halal auditors who are Muslim, hold at least a bachelor’s degree, and have received specialized training in Halal auditing and certification.

4. Halal Product Labeling and International Harmonization

Product labels must clearly display the term “Halal” or “Halal product” in a prominent and legible position. Vietnam will prioritize alignment with international standards of the Organisation of Islamic Cooperation (OIC), the Standards and Metrology Institute for Islamic Countries (SMIIC), and the guidelines of the Codex Alimentarius Commission.

III. State Support Measures for Businesses

In addition to regulatory requirements, Decree 127/2026/ND-CP introduces notable support policies:

One-time financial support for Halal testing and certification costs for key export products.
Support for businesses with Halal products to participate in international specialized trade fairs and exhibitions under the National Trade Promotion Program.
Promotion of outstanding Halal products through the Vietnam National Brand Program.
Development of a National Halal Database providing information on Halal standards, a directory of certified bodies, and a registry of certified businesses and products.
The Ministry of Science and Technology will lead efforts to promote mutual recognition agreements on Halal conformity assessment results with foreign organizations and markets.

IV. Practical Impact on Businesses

Decree 127/2026/ND-CP creates three key impacts on business operations:

First, expanded export markets. With a clear legal framework, Vietnamese businesses will have a stronger basis for negotiating mutual recognition of Halal certifications with Muslim markets — particularly within ASEAN (Indonesia, Malaysia, Brunei), the Middle East, and South Asia.

Second, enhanced product value. Internationally standardized Halal certification will increase the competitiveness of Vietnamese products and broaden their acceptance throughout global supply chains.

Third, new compliance obligations. Businesses seeking to use Halal labeling in the domestic market or for export must fully satisfy requirements regarding ingredients, production processes, labeling, and traceability. Non-compliance may be subject to administrative penalties under commercial regulations.

V. Recommendations for Businesses

To capitalize on the opportunities presented by Decree 127/2026/ND-CP, businesses should consider the following:

Audit your supply chain: review ingredient sources, production and processing procedures to ensure Halal compliance before applying for certification.
Select a compliant certification body: only engage certification bodies that satisfy the conditions for operating in Vietnam under Decree 127/2026/ND-CP.
Align with target market standards: individual Muslim-majority countries may have additional requirements. Seek legal advice on the specific standards of each target market.
Monitor implementing regulations: relevant ministries will issue further implementing circulars — stay updated on these documents as they are published.
Leverage state support measures: proactively contact the Ministry of Industry and Trade and trade promotion agencies for assistance with certification costs and access to international promotional programs.

MT & Partners Law Firm, with its experienced team of lawyers specializing in business, commercial, and investment law, is ready to assist your organization in reviewing compliance with Decree 127/2026/ND-CP and developing a structured strategy for accessing Halal markets. Contact us at hotline 0987140772 or email info@mtpartners.vn for consultation.

(*) This article is for reference only and does not constitute specific legal advice.

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