Vietnam’s Agricultural and Forestry Products Under EU Deforestation-Free Standards: Challenges and Opportunities for Sustainable Transformation

The European Union has adopted the Deforestation-Free Regulation (EUDR 2023/1115), which officially entered into force on 29 June 2023. According to the implementation timeline, the regulation will become mandatory from 30 December 2025 for large and medium-sized enterprises, and from 30 June 2026 for small and micro-enterprises. The EUDR requires agricultural and forestry products imported into the EU to demonstrate that they are not associated with deforestation after 31 December 2020, supported by traceability systems, geolocation data, and clear land-use legal documentation. This regulation reflects the EU’s strong commitment to forest protection, biodiversity conservation, and emissions reduction, while enhancing environmental accountability across global supply chains.

Challenges Facing Vietnamese Businesses:

• Requirements for detailed traceability down to each shipment, including GPS coordinates and farm boundaries, while agricultural production in Vietnam remains small-scale and fragmented.
• Lack of digitized data on land use, raw material areas, and farming history, making it difficult to prove deforestation-free production.
• High investment costs for technology, data management systems, and compliance-related human resources, especially for small and medium-sized enterprises.
• Limited technical skills, awareness, and access to digital technologies among farmers and cooperatives.
• Risks of export disruption or loss of market share if compliance requirements are not met on time.

Solutions to Transform Challenges into Competitive Advantages:

• Investing in digital traceability systems, supply chain management tools, and centralized data storage in line with international standards.
• Restructuring production through concentrated raw material zones and strengthening linkages among enterprises, cooperatives, and farmers to reduce compliance costs.
• Accelerating digital transformation in agriculture, including farm mapping, land management, and satellite-based monitoring systems.
• Enhancing training programs for farmers and businesses on EUDR requirements, data collection skills, and compliance procedures.
• Government support in developing land-use databases, providing technical guidance, and offering financial incentives for businesses engaged in sustainable transition.

Despite short-term pressures, the EUDR also creates opportunities for Vietnam’s agricultural and forestry products to enhance quality, transparency, and added value. Meeting the EU’s high standards will not only help maintain market share but also strengthen competitiveness in other premium markets. In the long run, the regulation serves as a catalyst for Vietnam’s agricultural sector to develop in a more sustainable, modern, and globally integrated manner.