The European Union Deforestation Regulation: Impacts on the Coffee Exporting Activities of Vietnam

Abstract

Adopted in April 2023, the European Union Deforestation Regulation (EUDR) imposes
an import ban on agricultural commodities associated with deforestation activities, including coffee.
Accordingly, for Vietnam, the coffee export sector may be significantly affected, as coffee currently
represents the agricultural commodity with the highest export value to the European Union.
Acknowledging the urgency of this issue, this study first provides an in-depth analysis of the
provisions of the EUDR, thereby offering assessments of the challenges and opportunities for
Vietnam’s coffee sector in exporting to the European Union market under the impact of the EUDR,
based on an analysis of production and export conditions. Subsequently, the paper highlights certain
positive aspects that the EUDR may bring, and some primary challenges to the export of coffee in
particular and agricultural products in general to European Union, including challenges related to
traceability, financial capacity, and competitiveness. Finally, the study proposes several macro- and
micro-level solutions to address these challenges. In general, the study contributes to supporting
Vietnamese export enterprises in adapting to the EUDR and inspires public policymakers to establish
appropriate mechanisms to ensure the effectiveness of Vietnam’s coffee exports to the European Union
in light of the EUDR’s official entry into force on 30 December 2024.