Impacts of the European Union deforestation regulation on Vietnam’s coffee supply chains

Dang Hai Mai

Article ID: 8852
Vol 8, Issue 11, 2024

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Abstract


In June 2023, the European Union (EU) enacted the Regulation on Deforestation-Free Products (EUDR), which requires agricultural products to enter and leave its territory free from deforestation. The regulation applies to seven commodities: cattle, cocoa, coffee, oil palm, rubber, soya, wood, and their derivative products. The regulations apply to seven commodities: cattle, cocoa, coffee, oil palm, rubber, soya, wood, and their derivate products grown or raised on land subject to deforestation or forest degradation will be banned from entering the EU market. EUDR will have a significant impact on Vietnam’s Exports of Agricultural Products. Coffee, rubber, wood, and wood products are the main industries in Vietnam affected by this regulation, as the country exports a substantial portion of these products to EU markets. This article examines the impacts of the European Union Deforestation Regulation on Vietnam’s coffee supply chains, discusses possible unintended effects on coffee farmers and farming households, and explores strategies to mitigate these negative impacts while highlighting specific challenges that may arise. The results of this study contribute to a better understanding and management of Vietnam’s agricultural exports, particularly in the coffee sector. Additionally, the article gives some recommendations for improving Vietnam’s laws and policies on deforestation-free products.


Keywords


sustainability; deforestation; due diligence system; coffee; traceability; Vietnam

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References


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DOI: https://doi.org/10.24294/jipd.v8i11.8852

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