Southeast Asia Information Port (www.dnyxxg.com) reports that Vietnam's coffee industry exports over 90% of its production and is deeply integrated into the international market, with the European Union (EU) being its largest consumer market, accounting for approximately 40% of Vietnam's total coffee exports. However, opportunities are accompanied by challenges, as import market requirements are becoming increasingly stringent, particularly regarding environmental protection and sustainable development. The EU Zero Deforestation Act (EUDR), expected to come into effect by the end of 2025, poses a significant challenge to Vietnam's coffee industry, especially to the more than 600,000 coffee-growing households that account for 95% of total production.
According to the EUDR, after December 31, 2020, agricultural and forestry products (including coffee) imported into the EU must not cause deforestation or forest degradation, must fully comply with the laws of the producing country, and must be traceable to specific plots of land. In this context, the role of coffee farmers is particularly crucial.
According to Dr. Nguyen Trung Kien of the Department of Foreign Cooperation, Ministry of Agriculture and Environment of Vietnam, as early as the drafting stage of the EUDR (i.e., a year before its release), with the assistance of the EU Delegation to Vietnam, relevant Vietnamese parties proactively obtained and studied relevant information. Following the official promulgation of the EUDR, the Ministry of Agriculture and Environment immediately issued an action plan to guide provinces in its implementation.
Many localities also developed their own outreach programs to disseminate the regulations down to the township level. Through the coordinated efforts of the government, businesses, industry associations, and farmers, Vietnam was classified as a "low-risk" country in the EUDR—a significant competitive advantage compared to "standard-risk" countries like Indonesia and Brazil. However, being classified as low-risk does not mean exemption; Vietnam must still strictly adhere to all regulations.
In recent years, the Ministry of Agriculture and Environment has actively collaborated with the EU, industry associations, and international organizations such as IDH and Forest Trends to conduct outreach and guidance. Several companies, such as Cienco, Vinh Hiep, and Intimex, have proactively established traceability systems and collected data from coffee farmers. Vietnam is leading the way in adapting to the EUDR, but to maintain its advantage and secure a stable foothold in the EU market, it needs to further improve its forest land demarcation maps and data systems, establish a unified traceability platform, ensure resource allocation, and strengthen coordination among all parties.
Bai Qingquan, representative of the Vietnam Coffee-Cocoa Association, stated that prior to the EUDR's implementation, over 30% of Vietnam's coffee plantations already held sustainable certifications such as 4C, UTZ, and the Rainforest Alliance, laying a solid foundation for rapid adaptation to the new regulations.
To Xuan Phuc, Director of the Forest Policy, Finance and Trade Program at Forest Trends, noted that while not all coffee farmers export directly to the EU, traceability is increasingly becoming a mandatory requirement for major markets. This necessitates farmers changing their farming methods and shifting towards traceable cultivation models. This transformation requires not only time and effort but also the support of businesses and national regulatory bodies.
Meeting EUDR requirements is not only essential for maintaining market share in the EU but also a crucial opportunity for the Vietnamese coffee industry to achieve transparency, sustainability, responsible development, and a restructuring of its production model—an inevitable path to further integration into the global value chain. (End)
