Hồi giáo ver 3

Group 2
Islam & implications for international
trade and business - Contact with
Vietnam

Vu Hoang Dung – Nguyen Hai Long


Understanding Islam:
A Brief
Introduction
Islam
(Ikhlas & Salam)
(peace-purity) : from the
spiritual point, it means
peace and complete
submission to the will of
God. When we submit to
the will of God then we will
have true peace.
2


Islam Today: Demographics

There are an
estimated 1.2
billion Muslims
worldwide

There are an estimated 1.5 billion

Muslims worldwide

3

Where Do Muslims Live?
The Top 9: 1) Indonesia, 2) Pakistan, 3)
Bangladesh, 4) India, 5) Turkey, 6) Iran,


The Muslim: Practice
◎
◎
◎
◎
◎

Prayers
Charity (Zakat)
Fasting (Ramadan)
Pilgrimage (Hajj)
Others (e.g. being a good
neighbour)

4


The Muslim consumption
pattern

•

•
•
•

Islamic dietary terms
Halal - lawful
Haram - unlawful
Makrooh (disliked or
offensive act ) -discouraged
Mashbooh (suspicious)

5


The Muslim consumption
pattern

Allowed* (Halal):
◎ Properly slaughtered
cattle, sheep, goats, deer,
camel, chicken, etc.
◎ All non-poisonous
vegetables and fruits

*

This list is not exhaustive

6

The Muslim consumption
pattern

Prohibited (Haram):
◎ Dead meat or carrion.
◎ Pork and all products and
ingredients derived from
swine.
◎ Flowing or congealed blood.
◎ Alcohol.
◎ Carnivorous animals with
fangs and birds of prey with
sharp claws
* This list is not exhaustive

7


The Muslim consumer: Sources of law

• The Quran (Muslim Holy book)
• The traditions of the Prophet
• The consensus of learned
Muslims on emerging issues
derived from the Quran and the
traditions of the Prophet
(PBUH).

8

Global event and the
Muslim consumer
In 2006, 'spinning whirl' ice creams look similar to
the word Allah written in Arabic script
 Ice creams are being withdrawn from Burger King —
because a design on the lid looks like the word Allah.
/>

Contact with
Vietnam


Trade with Middle East countries
◎

◎

Middle East: In 2016, two-way trade turnover reached $
10.887 billion, up more than 100% compared to 2011.
Of which, Vietnam exports to the Middle East reached $
8.059 billion and imports from the Middle East reached
$ 2.828 billion.
Main export product are agricultural products (rice,
coffee, pepper, etc.), aquatic products (fish, shrimp,
etc.), industrial products (textiles and garments, fabrics,
machinery and electronic component, etc. ).

◎ Main import Product: Raw materials for textile industry,

crude oil, DAP, medicine, fish meal for cattle.


Trade turnover with Egypt


Trade turnover with UAE

Source: Ministry of Industry and Trade.


Trade with Islamic Southeast Asia
countries
◎ Southeast Asia: Mainly trade with Malaysia and
Indonesia with two-way trade turnover of more than 13
billion dollars in 2015.
◎ Main Export Products: Agricultural products(rice, coffee,
rubber, etc.), computer, electronic device, smartphone,
raw oil.
◎ Main Import Products: Computer, electronic component,
fuel, chemical, plastic, etc.


Trade Turnover with Malaysia

Source: VCCI


Trade turnover with Indonesia

Source: VCCI


SWOT Analysis for Vietnam to do business in Islamic
countries
Strength
+ No major conflict with Islamic Nations.
+ The Workforce is cheap and abundant.
+ Experienced in producing agricultural
and aquatic products.
+ Many big factories of foreign companies
with export orientation is located in
Vietnam.
+ Tax incentives under agreements in
South East Asia.

Weaknesses
Weaknesses
+ Most of the exported
are raw products.
Most of
the exported
are raw products.
++
Heavily
dependent
on FDI.
Heavily
dependent
on FDI.

++
The
unawareness
of other
culture.
The
unawareness
of other
culture.
++
The
quality
of exported
goods
is low
+
The
quality
of
exported
goods
is low
+ The lacking of information
The lacking
of information
++
Vietnamese
Brands
is still weak
+ Vietnamese Brands is still weak

Opportunity
+ Biggest import market for agricultural
and aquatic products.
+ Potential market to promote tourism
(Malaysia and Indonesia).
+ The rising need of labour in Middle East.
+ Large market for Halal food.

Threat
+ Political Instability and Insecurity.
+
+ The
The diversification
diversification of
of development
development level
level
in Islamic world.
+ Differences in culture.
+ Inadequate knowledge of Islamic Finance
and the way of making transaction.


Some advices in Islamic countries
◎

Do not eat or drink in an Islamic houses during Ramadan. Because
they are in fasting time.

◎

Do not use your left hand - especially while eating. It is considered as a
non-clean food in the Middle East.

◎

Never cross your legs, point your toes at someone, touch the head of a
child.

◎

Ordinary Muslims don’t eat pork, don’t drink alcohol. They also don’t
touch the person with opposite sex.

◎

Friday is the holy day of Islam. Work is possible from Saturday this
week until next Wednesday.

◎

Never interrupt the prayers of the Muslims, they perform this religious
ceremony five times a day.


Doing business in Middle East

◎ Fair contract and partnership is
preferred.

◎ Speculation is not interested (No
gambling).
◎ Interest rate is not allowed in
transaction.
◎ Compassion is required in trouble
time
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Implication for Vietnam
◎ Apprehend precisely the culture of Islamic
Nations through market research and internet
sources.
◎ Focus on marketing and brand building to
increase the awareness of Islamic customers.
◎ Avoid any incidents relates to religious matters.
◎ Research rigorously the way of doing transaction
and the financial system in Islamic World.
◎ Prepare for the scenario of unrest or violence.


Thanks!

Any questions?
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