EC highly appreciates Vietnam's quick adaptation to the EU Deforestation-Free Regulation

In order to strengthen Vietnam-EU cooperation in sustainable development, MARD’s delegation, led by Minister Le Minh Hoan, visited and worked with the EC’s agencies in Brussels, Belgium.

During working sessions with the EC’s Commissioner for Environment, Oceans, and Fisheries and Director General for the Environment on September 18, Minister Le Minh Hoan clearly stated the Vietnamese Government's guidelines for transforming agriculture according to an ecological, green, and sustainable direction.

Vietnam considers this direction not only to implement international commitments but also to create new values for agricultural development accompanied by sustainable environmental protection and development, preserving resources for future generations, and contributing to global sustainable development.

Regarding the EU Deforestation-Free Regulation (EUDR), Minister Le Minh Hoan clearly stated that Vietnam's message of compliance with this Regulation is not only to meet requirements of exporting coffee, rubber, wood, and wood products to the EU market but also an opportunity to develop Vietnam's agriculture sector according to the sector's strategic orientation of transparency, responsibility, sustainability, and green growth.

As soon as EC approved the EUDR, MARD participated in many in-depth discussions at both EC’s technical and leadership levels, as well as quickly directed specialized agencies to prepare the Adaptation Action Plan Framework with the EUDR, which proposes specific tasks and solutions and assigns specialized agencies of the Ministry to implement them.

Previously, on June 29, MARD signed a Memorandum of Understanding with the Departments of Agriculture and Rural Development of five Central Highlands provinces (Dak Lak, Dak Nong, Gia Lai, Kon Tum, and Lam Dong), the Trade Association, and relevant international partners. This aims to coordinate and support the construction of production areas that do not cause deforestation or forest degradation; sustainable production combined with the goals of preserving resources and ensuring local social security. The Ministry also sent letters to the leaders of provinces and cities to coordinate implementation.

At the working sessions, Mr. Virginijus Sinkevicius, Commissioner for Environment, Oceans, and Fisheries, and Ms. Florika Fink-Hooijer, Director General of the Environment Department, said that Vietnam's message of turning challenges into opportunities has inspired the EC to carry out its work with partners and become a global model for EUDR adaptation and sustainable development.

The EC's agencies highly appreciate Vietnam's quick action and readiness to adapt to EUDR. The High Commissioner and Director General said that Vietnam's approach has suggested many ideas for EC in cooperation with Vietnam in particular and other countries in general.

The EC commits to actively supporting Vietnam in the direction of sustainable development and green growth. The EC believes that cooperation and partnership with Vietnam will contribute to promoting sustainable global trade. In this first step, EC will implement the project "Sustainable Agriculture for Forest Ecosystems" (SAFE Project) to support the inclusive transformation of sustainable supply chains without deforestation in accordance with EUDR in Vietnam. In particular, the project will focus on the coffee industry, which is the main industry affected by this Regulation.

At the same time, EC encourages large multinational corporations and development organizations such as the Sustainable Trade Initiative (IDH) to cooperate with MARD in the form of public-private partnerships. This cooperation aims to deploy the construction of information systems, growing area data, and traceability in an effective, appropriate, and low-cost way; strengthen the monitoring system; and transform livelihoods for farmers in at-risk areas. This is the foundation to ensure Vietnam is included in the low-risk group when applying EUDR and to build a reputation and brand for Vietnamese agricultural products at present and in the future.

To adapt to EUDR, in the context that agents participating in the industry value chain in Vietnam are mainly small-scale and have limited resources, Minister Le Minh Hoan proposed that the EC’s agencies strengthen cooperation with Vietnam.

First, the Minister requested that the EC have a specific process and roadmap for EUDR implementation. Quickly issue technical guidance documents for affected industries to prepare to meet the EUDR that will take effect in January 2025.

Second, it is necessary to have solutions to minimize costs for agents in the value chain when adapting to EUDR, especially in terms of positioning and traceability data. Clearly classify production according to risk level and minimize requirements for positioning and traceability for safety zones.

Third, it is recommended that the EU coordinate with MARD and international organizations such as IDH and other certification organizations to verify the risk level of Vietnam's coffee production areas in order to apply appropriate measures. This verification is based on the current level of general information.

Fourth, MARD’s leaders suggested the EC build a strategic partnership with Vietnam in the field of agriculture, making Vietnam a typical case of support from the EU and its partners in implementing EUDR adaptation. In particular, it is necessary to pay attention to technical support for Vietnam in implementing EUDR, such as technical guidance, capacity improvement, building a database and information system, forest status maps, traceability, etc.

Fifth, MARD requested that the EC support the development and implementation of sustainable livelihood models for people in areas affected by EUDR.

Sixth, establish a hotline to handle problems in implementing EUDR.

EC partners highly appreciate the Minister's proposal and hope that the two sides will promote the implementation of the Vietnamese side's initiatives and proposals as soon as possible, making Vietnam a global model in cooperation with the EU on green, sustainable development and adaptation to the Deforestation-Free Regulation.

On May 16, 2023, the European Commission (EC) approved the EU Deforestation-Free Regulation (EUDR). EUDR is the EU's latest regulation related to green and sustainable development, which specifically regulates agricultural products that do not cause deforestation.

EUDR prohibits the import of agricultural products with production processes on land originating from deforestation and causing forest degradation after December 31, 2020, including livestock, cocoa, coffee, palm oil, rubber, soybeans, and wood, as well as commodities raised or made with those products, such as leather, chocolate, printing paper, furniture, charcoal, and some palm oil derivatives. Coffee, rubber, wood, and wood products are Vietnam's main industries affected by this Regulation. This Regulation will take effect in January 2025.