From VietESG’s perspective – Updates on global sustainability trends
The EU market is no longer an easy “slice of the pie” for those who focus only on quality and price. A new wave of regulations is arriving, with the EU Deforestation Regulation (EUDR) at its centre. At VietESG, we see many businesses still in “wait-and-see” mode, but in reality the countdown clock has already started.
- The biggest question: “Will my products be shut out?”
This is what businesses are searching for most. It is not just timber or rubber: the EUDR sweeps across a wide list: coffee, cocoa, palm oil, soy, cattle and derived products. If your product is produced on land deforested after 1 January 2021, you officially lose access to this market of 450 million people. This is not a warning; this is the law.
- “Blind spots” in legal documentation and geolocation data
What businesses are really struggling to find is not flashy software, but the answer to: How do we get clean data?
- GPS coordinates (Geolocation): Many businesses have sourcing areas of thousands of hectares involving tens of thousands of farming households. Determining the precise coordinates of every plot of land is an enormous operational challenge.
- Legality: The EU requires proof that products comply with the laws of the country of production. Do you have complete documentation on land use rights, environmental protection and labour rights to international standards?
- Not just the EUDR: A “storm” of regulations is piling up
At international forums, the EU is signalling a comprehensive control ecosystem:
- CSRD (Corporate Sustainability Reporting Directive): Requires partners in the supply chain to disclose ESG data.
- CSDDD (Supply Chain Due Diligence): You are responsible even for the conduct of your tier-2 and tier-3 suppliers.
VietESG’s view: Europe is shifting from “encouraging sustainability” to “imposing sustainability”. Vietnamese businesses cannot be sustainable only in their annual reports; they must be sustainable at every coordinate of their growing areas.
- The real need: Turning risk into advantage
Our clients often ask: “How much will it cost me to comply?”. But the right question should be: “How much market share will I lose if I do not comply?”.
In Vietnam, smallholder farmers make up a large share of the supply chain. This is the weakest link but also the biggest opportunity. Businesses that build inclusive data systems and help farmers transition will hold the “golden ticket” that EU importers compete for.
- Closing words from VietESG
We understand that getting to grips with regulations from faraway Brussels (Belgium) is a high-pressure journey. Information is noisy and requirements are stringent.
VietESG is here not to sell you a tool, but to work with you to decode the language of the European market, turning dry regulations into a sustainable growth strategy for Vietnamese agricultural products.
