Vietnam’s Khanh Hoa seeks investment to tap into $350bn halal tourism market

As part of its long-term tourism strategy, the province sees halal tourism as a key avenue to attract more international visitors and strengthen its appeal among emerging travel segments.

Ideal destination for Muslim travelers

Nguyen Phuong Tra, head of the Department of Middle East - Africa under Vietnam's Ministry of Foreign Affairs, said Khanh Hoa is an ideal destination for Muslim travelers.

According to Tra, to attract Muslim visitors, Khanh Hoa's tourism industry should prioritize meeting halal standards.

This includes establishing a comprehensive halal-friendly ecosystem and building trust among Muslim travelers.

"Muslim tourists are high-spending visitors. If Khanh Hoa succeeds in attracting this market segment, it will make a significant contribution to the province's tourism growth," she said.

Doan Hai Quan, director of Vietravel's Khanh Hoa branch, said Muslim travelers are no longer a niche segment but they have become a strategic market with stable spending power and strong word-of-mouth influence through communities and social media.

Instead of encouraging only a handful of restaurants to obtain halal certification, Quan said Vietnam should adopt the concept of a ‘halal-ready destination,’ making the country a destination ready to welcome Muslim visitors with a seamless halal-friendly experience throughout their journey.

That experience ranges from searching for travel information and booking tours to immigration procedures, transportation, accommodation, dining, sightseeing, shopping, and even sharing their memories after leaving Vietnam.

He added that destinations with strong aviation connectivity, resort infrastructure, and international-standard services, such as Khanh Hoa, should be developed into halal tourism coordination hubs.

Vietnam could also introduce halal versions of iconic dishes such as halal pho bo (beef noodle soup) and halal bun bo (spicy beef soup), Quan said.

The goal is not to internationalize Vietnamese cuisine to the point of losing its identity, but to make it more accessible to Muslim travelers.

Diversifying halal tourism products

Nguyen Huy Toan, communications director of Halal Hub Vietnam JSC, said halal tourism offers tremendous potential, helping diversify Vietnam's visitor markets and reduce dependence on a handful of traditional source markets.

However, he noted that many Vietnamese tourism and service providers still have a limited understanding of halal tourism.

As a result, many businesses provide modest engagement with this market.

"Once halal standards are met and trust is established, Khanh Hoa can become an ideal destination not only for Muslim tourists but also for investment from Islamic countries and Gulf nations," Toan said.

Regarding the province's readiness, Nguyen Thi Uyen Chi, vice-chairwoman of the Khanh Hoa Hotel Association, said hotels in Nha Trang, a tourism hub in Khanh Hoa, have been gradually upgrading their services to meet the standards of Muslim guests while introducing promotional programs targeting this market segment.

Nguyen Long Bien, vice-chairman of the Khanh Hoa People's Committee, said the province will continue encouraging businesses to invest in and upgrade tourism infrastructure while diversifying products and services tailored to Muslim visitors.

The province also plans to expand cooperation with halal certification bodies, businesses, and international partners to gradually establish Khanh Hoa as an attractive destination for Muslim visitors.