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What Is the EUDR? EU Deforestation Rules and the Impact on Vietnamese Coffee, Rubber and Wood

The EU Deforestation Regulation (EUDR) requires proof that goods are deforestation-free, have plot geolocation coordinates and comply with the laws of the country of production. Coffee, rubber and wood — key Vietnamese exports — fall within its scope.

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VietESG Editorial Team
·2 min read
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What Is the EUDR? EU Deforestation Rules and the Impact on Vietnamese Coffee, Rubber and Wood
Contents

EUDR (EU Deforestation Regulation) is Regulation (EU) 2023/1115 on deforestation-free products. Businesses placing certain commodities on, or exporting them from, the EU market must prove that the goods were not produced on land deforested after 31 December 2020, were produced legally and are backed by complete due diligence records.⁠‌​‌​‌​‌‌‌‌​​​​‌‌‌​‌​​‌​​​‌​‌‌​‌‌⁠

Key takeaways

  • Seven commodity groups: cattle, cocoa, coffee, oil palm, rubber, soya, wood and their derived products.
  • Core requirements: geolocation coordinates of production plots, a risk assessment and a due diligence statement.⁠‌​‌​‌​‌‌‌‌​​​​‌‌‌​‌​​‌​​​‌​‌‌​‌‌⁠
  • The EU has adjusted the application date; businesses should follow the latest legislation but should not delay preparing their data.

Three conditions for goods to enter the EU

  1. Deforestation-free after the cut-off date of 31 December 2020.
  2. Legal under the laws of the place of production (land, labour, environment, tax and so on).⁠‌​‌​‌​‌‌‌‌​​​​‌‌‌​‌​​‌​​​‌​‌‌​‌‌⁠
  3. Covered by a due diligence statement submitted to the EU information system.

The data Vietnamese businesses need to prepare

Plot coordinates

Each production plot needs geolocation data; larger areas require polygon boundaries. For the coffee and rubber sectors, with many smallholders, this is the biggest challenge.

The traceability chain

Link data from smallholders → collectors → processing plants → export shipments. If one link is missing, an entire shipment may be unable to prove its origin.⁠‌​‌​‌​‌‌‌‌​​​​‌‌‌​‌​​‌​​​‌​‌‌​‌‌⁠

Evidence of legality

Land use right documents, and labour and environmental compliance in the sourcing areas.

An action roadmap

  • Map sourcing areas and digitise smallholder data.
  • Check coordinates against satellite imagery of forest cover.⁠‌​‌​‌​‌‌‌‌​​​​‌‌‌​‌​​‌​​​‌​‌‌​‌‌⁠
  • Build a batch-level traceability system and a risk assessment process.
  • Work with EU importers on data formats and responsibility for submitting the due diligence statement.

The EUDR is also closely linked to requirements on human rights due diligence and labour in supply chains.⁠‌​‌​‌​‌‌‌‌​​​​‌‌‌​‌​​‌​​​‌​‌‌​‌‌⁠

Frequently asked questions

Does the EUDR apply to processed wood products?

Yes. The scope includes many derived products such as furniture, paper and rubber products; businesses should check their product codes against the annex to the regulation.

Will smallholders be excluded from supply chains?

Not if coordinates and origin data are collected in full; cooperatives and buying companies play the role of organising data for smallholders.

How does the EUDR differ from voluntary sustainability certification?

The EUDR is a mandatory EU regulation; voluntary certification can help provide data but does not replace a company's due diligence responsibility.⁠‌​‌​‌​‌‌‌‌​​​​‌‌‌​‌​​‌​​​‌​‌‌​‌‌⁠

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