Promoting Vietnam as an example case in the adaption of EUDR

The two sides discussed the development of Vietnamese coffee in order to align with the regulatory framework set forth by the European Union pertaining to goods that are free from deforestation (referred to as the EUDR).

Minister Le Minh Hoan recently highlighted his working visit to the European Union, during which he engaged in discussions with the Commissioner for Environment, Oceans, and Fisheries. During their meeting, the Minister was apprised of the latest European Union regulations related to anti-deforestation, known as the European Union Deforestation Regulation (EUDR). This regulation will have a significant impact on three key Vietnamese sectors, namely coffee, rubber, and wood. Hence, in response to this regulatory framework, the MARD and the European High Commissioner reached a consensus that Vietnam is a proactive nation in adapting to the newly introduced regulations by the European Union.

Hence, the Minister believes that in the years to come, coffee will be examined not alone based on its flavor or quality, but also as a responsible factor with regard to the environment and society. According to the Minister, the contributions made by JDE Peet's Group to Vietnam's agricultural business in the Central Highlands area during the previous decade serve as the fundamental basis for the coffee industry to effectively respond to new regulations and embrace sustainable development trends.

The Minister expresses optimism over the potential for JDE Peet's collaboration with the Sustainable Trade Initiative (IDH) and the coffee sector public-private partnership group under the Partnership for Sustainable Agricultural Development in Vietnam (PSAV) to reach unprecedented levels.

During the discussion, the Minister conveyed that the Ministry of Agriculture and Rural Development is in the process of planning an action plan to present to the Prime Minister in order to effectively respond to EUDR. Hence, the Ministry aspires to establish an ecosystem including partners, in collaboration with IDH and the firm, with the objective of collectively devising a strategic plan to adhere to forthcoming rules.

The Minister indicated that a significant challenge lies in the presence of ethnic communities, small-scale farmers, and smallholder farmer groups within the coffee-growing sector, which necessitates the enhancement of their capabilities and restructuring efforts. In recent times, JDE Peet's Group, in collaboration with specialists, has undertaken the training of several farmers with the objective of implementing landscape coffee thinking. It is anticipated that both entities will accord more significance to this aspect in the next period.

According to Laurent Alexandre Sagarra, the Vice President of Sustainability at JDE Peet's, there is a pressing need for a forward-thinking nation to take the lead in implementing solutions that address emerging market demands, mitigate the effects of climate change, and safeguard the values and rights of local communities.

To address new market demands, IDH and JDE Peet's have put out a proposition to enhance collaboration with both central and local management agencies, as well as supply chain partners. In line with the aforementioned, it is imperative to enhance collaboration between the public and private sectors, as well as foster pre-competition efforts, in order to effectively implement strategies aimed at addressing deforestation and forest degradation. This approach will also facilitate the necessary preparations for complying with the forthcoming EU regulations on sustainable accountability for businesses, anticipated to be introduced in 2026/2027.

This proposal aims to advocate for increased investment and use of coffee products that effectively mitigate emissions. Additionally, it emphasizes the importance of implementing synchronized systems for monitoring, assessing, and reporting the environmental impacts of such goods. Furthermore, the proposal highlights the need for benefit-sharing mechanisms to ensure equitable distribution of the positive outcomes resulting from these initiatives. The objective is to establish standard procedures, collaborative frameworks between private and public sectors, and effective commercial strategies with the purpose of replicating methodologies employed in the Central Highlands and other agricultural producing areas within Vietnam.

Enhance the productivity of farmers and cooperatives, bolster the connections within the supply chain and ensure traceability, facilitate the adoption of digital technologies in agricultural production, and establish an open-source information system that is regularly updated and validated by relevant stakeholders.

Mr. Sagarra expresses his aspiration for Vietnam to emerge as an example of goodness in the establishment of a coffee industry that aligns with the regulatory criteria set out by EUDR.