Illustrative image (Photo: VNA)The EU Deforestation-free Regulation (EUDR) will cover imports of variouscommodities, including cocoa, coffee, palm oil, and rubber, plus productsderived from them, such as chocolate, tires, and shoes.
The extent of data collection imposed on producers will increase significantlyas the regulation requires the visualisation of GPS for every single farm and'due diligence' reports showing the origin of their products, their legality,and the conditions of their production.
Tran Thi Quynh Chi, Regional Director of the Sustainable Trade Initiative(IDH), believed that EUDR would put more pressure on Vietnamese producers asmeeting its traceability requirements demands a comprehensive system to tracetheir products back to farms.
"Consumers are getting more serious about sustainability. Their buyingpatterns are shifting towards environmentally-responsible products to meetcarbon-neutral targets," said Chi.
Nguyen Nam Hai, Chairman of the Vietnam Coffee Cocoa Association, said the EUis Vietnam's largest coffee importer, consuming 40% of the country's coffeeexport annually. In 2022, Vietnamese coffee exported to the EU topped 689,000tonnes, up 26% year-by-year.
He believed that EUDR would raise new challenges for around 1.3 million coffeefarmers in the sector, including the accessibility to technology and ranges ofcosts. The same goes for coffee companies, which play a major role in thesupply chains.
"Vietnam should push the EU for a deferral of its effective date to givecoffee companies more time to prepare for the regulation," said Hai.
It is also worth noting that the total area of coffee at high risk under EUDRwas estimated at 13,000 ha.
Le Duc Huy, Director-General of Simexco Daklak, said EUDR had not taken hiscompany by surprise because it had been preparing for the change for manyyears.
Simexco Daklak was the first company in 2012 to cooperate with IDH in promotingsustainable agriculture in the Central Highlands.
Its decade-long effort in building deforestation-free supply chains bore fruitsas its coffees had gained a huge advantage in the international markets overthose linked to deforestation.
Nguyen Phu Hung, Chairman of the Vietnam Forestry Science and Technology Association,urged the Ministry of Agriculture and Rural Development to send an appeal tothe EU, calling for support to coffee farmers who cannot afford the costsassociated with meeting EUDR standards.
He also called for training courses to keep the farmers well-informed about theanti-deforestation regulation.
According to a representative from the Association of Vietnam Timber and ForestProducts the EU imports about 500 million USD of Vietnamese wood-derivedproducts per year.
He said EUDR would not create as much compliance burden on timber companies asit was concerned because the practice of converting natural forests intoplantations had become a thing of the past.
All timber companies have to do is ensure the traceability of their products asrequired by EUDR.
Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade, said the EU hadraised the bar considerably on wood-derived products by ratifying EUDR.
Under the regulation, products that have been made from forestdegradation-inducing wood would be banned from EU markets. Even wood collectedfrom reforested land would be no exception.
EUDR would take effect around December 2024 and January 2025. Microenterprisesand small enterprises would have an additional six months to comply with theregulation's requirements.
Rui Ludovino, First Counselor in charge of climate action, environment,employment, and social policy at the Delegation of the European Union, said Vietnamwould find itself among low-risk countries under EUDR thanks to its proactiveapproach to fighting deforestation.
For instance, Vietnam entered into the Voluntary Partnership Agreement onForest Law Enforcement, Governance, and Trade (FLEGT) with the EU in 2018.
The deal gives Vietnamese wood-derived products a big advantage over those fromnon-agreement countries: FLEGT-licensed products are considered legal under EUTimber Regulation, making it easier for Vietnamese producers to enter EUmarkets.
He said EUDR doubles the EU's effort in promoting deforestation-free supplychains by requiring companies to produce a 'due diligence' statement and'verifiable' information proving their exports had not been made from woodgrown on deforested land.
Patrick Haverman, Deputy Resident Representative UNDP in Vietnam, suggested thenext step for Vietnam in regard to EUDR: review the legal framework and makenecessary revisions to align it with the anti-deforestation regulation.
He also called for assistance to fend farmers off the costs incurred byEUDR-induced changes in farming practices.
Minister of Agriculture and Rural Development Le Minh Hoan said Public-PrivatePartnerships hold the key to the commercial success of Vietnamese agriculturalproducts abroad in the light of EUDR.
"The regulation is indicative of a global consumer behaviour shift towardsenvironmentally-friendly products. It's time to kick-start a sector-widerestructuring," said the Minister./.
VNA
