19-8-2023 (HANOI) In preparation for the European Union’s Deforestation Regulation (EUDR), which mandates that products must not originate from deforested or degraded land to enter the EU market, the Vietnamese coffee industry is urged to enhance its digital value chain, according to local reports.
Vietnam is a significant coffee exporter to the EU, making it crucial for the country to align with the EUDR’s requirements. To comply with regulations related to deforestation-free products, the integration of digital technology is considered essential, as noted by the Vietnam Trade Office in Belgium.
The Ministry of Agriculture and Rural Development identified origin traceability to specific land plots, a key requirement of the EUDR, as a major challenge, primarily due to the associated costs for many operators. To address this challenge, Vietnam is embarking on the development of a national database that will encompass forest and coffee plantation areas.
Minister of Agriculture and Rural Development Le Minh Hoan emphasized the direct impact of the EUDR on the supply chains of coffee, wood and wooden products, and rubber during a recent workshop. However, he also regarded this as an opportunity for the Vietnamese agricultural sector to progress towards transparency, responsibility, sustainability, and green growth.
In 2022, Vietnam achieved $1.49 billion in revenue from coffee exports to the EU market, marking a 45 percent year-on-year increase. This constituted 40 percent of Vietnam’s total coffee exports, as reported by the Vietnam Import-Export Report 2022.
