Industry experts and businesses discussed the challenges and solutions facing Vietnam's coffee sector in light of the European Union's Deforestation Regulation (EUDR) at a trade conference in the Central Highlands province of Dak Lak on Tuesday.

The conference, organized by the Dak Lak People's Committee, was part of the ninth Buon Ma Thuot Coffee Festival, held in the upland province from Monday through Thursday.

Thai Nhu Hiep, vice-chairman of the Vietnam Coffee Cocoa Association, said that a primary concern is the EUDR's 2026 enforcement, which mandates that coffee exporters must prove their products shipped to the EU are not linked to deforestation after December 31, 2020.

This requires significant investment in traceability systems, production monitoring, and carbon emission reduction.

Thai Anh Tuan, general director of  Vietnam’s state-owned coffee exporter Simexco Dak Lak, noted that the cost of complying with these regulations -- along with other standards imposed by Japan and South Korea concerning pesticide residues and carbon emissions -- will significantly raise production expenses.

Vanusia Nogueira, executive director of the International Coffee Organization, highlighted the projected global coffee consumption increase of 0.9-3.4 percent annually, equivalent to 8-30 million 60kg bags. 

However, the global coffee market remains challenged by price volatility, limited production land, climate change impacts, and stringent regulations like the EUDR.

In response, the Ministry of Agriculture and Environment has piloted a regional plantation data system in four Central Highlands districts -- Krong Nang, Cu M'gar, Ea H'leo in Dak Lak, and Di Linh -- in neighboring Lam Dong Province.

By December 2024, the entire coffee-growing area in these districts was integrated into the database, providing a robust foundation for meeting EUDR compliance.

Nguyen Quoc Manh, deputy head of the ministry’s newly-merged Department of Crop Production and Plant Protection, stated that the ministry is finalizing guidelines to help both businesses and farmers utilize the system effectively, ensuring transparency and traceability throughout the production process.

Trinh Duc Minh, chairman of the Buon Ma Thuot Coffee Association, advocated for replanting coffee plantations, adopting sustainable farming practices, and enhancing traceability systems to comply with the EUDR. 

He also suggested diversifying into specialty coffee, organic coffee, and value-added products like high-grade instant coffee, coffee capsules, and cold brew to increase export value and reduce reliance on the EU market.

The EUDR, originally set for enforcement on December 30, 2024, mandates that coffee, along with other products including palm oil, cattle, soy, cocoa, timber, and rubber exported to the EU, must be proven to be free from deforestation activities post-December 31, 2020.

In response to industry concerns, the bloc later extended the enforcement deadlines -- allowing large companies until December 30, 2025 and small companies until June 30, 2026 -- to comply with the traceability requirements.

Non-compliance can result in fines up to four percent of a company’s turnover and exclusion from the EU market.

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