Business & Environment


October 30, 2023

EUDR and Its Impact on Vietnam: Navigating New Regulations

The European Union's Deforestation Regulation (EUDR) represents a transformative approach to combat climate change, protect biodiversity, and uphold human rights by ensuring traceability of forest-sourced commodities. Vietnam, a significant exporter of agricultural and forest-related products, stands at a crossroads due to the EUDR. This article delves into "What does EUDR mean for Vietnam?" and explores the implications and strategic responses vital for Vietnam's industry.

Overview of EUDR and Its Connection to Vietnam

The EUDR compels businesses to implement due diligence and traceability throughout their supply chains, ensuring their commodities do not contribute to deforestation. For Vietnam, whose robust agricultural sector and logging industry are integral to its economy, the impact is considerable. Statistics indicate that over 45% of Vietnamese coffee, 34.3% of cocoa, and 14.6% of rubber production are exported to the EU, highlighting the importance of adherence to these new regulations.

Implications for Vietnamese Agriculture and Forestry

Understanding the "EUDR implications for Vietnam" is crucial, given that a large portion of its exports falls under the regulated categories. Vietnamese businesses must consider:

  • Due Diligence: Companies must operate a due diligence system to mitigate deforestation risks linked to their products.
  • Supply Chain Traceability: Businesses need to trace product sources with geolocation data to certify a deforestation-free supply chain.
  • Accountability: Operators face stringent accountability and penalties for non-compliance.

Economic Impact and Adaptation to EUDR in Vietnam

While prioritizing environmental sustainability, the EUDR also significantly impacts Vietnam's economy. Recognizing challenges and opportunities is vital for adaptation:

  • Potential Trade Disruptions: Non-compliance may restrict market access, causing trade disruptions and financial losses.
  • Sustainable Practice Promotion: The EUDR offers Vietnam an opportunity to boost its competitiveness and market reputation through sustainable practices.
  • Innovation and Collaboration: Vietnamese businesses must innovate and collaborate with tech providers to implement robust due diligence systems.

The Way Forward: Vietnam’s Proactive Engagement and Collaboration

Vietnam has been proactive in addressing EUDR requirements. The Ministry of Agriculture and Rural Development (MARD) has actively engaged with the European Commission and international organizations to share strategies and solutions. Recommendations presented to the EC include:

  • Issuing technical guidance documents for industries to prepare for EUDR implementation.
  • Minimizing costs and simplifying geolocation and traceability requirements for low-risk areas.
  • Collaborating to assess risk levels and apply appropriate measures for Vietnamese coffee production areas.

Vietnam has positioned itself as a model for other countries in adapting to the EUDR, demonstrating the potential for transformation and sustainable development.

Leveraging Technology: The Role of LiveEO in Compliance

LiveEO's advanced geospatial analytics platform stands as a beacon for businesses in Vietnam to comply with EUDR regulations efficiently. By offering precise geolocation data and traceability, LiveEO facilitates the critical due diligence process, enabling operators to meet EU standards and maintain their standing in the global market.


The EUDR presents both challenges and opportunities for Vietnam's agriculture and forestry industries. Embracing technology and innovative practices is crucial for compliance and sustainability. Vietnam's industry can not only navigate the new regulatory landscape but also contribute significantly to global environmental efforts by leveraging solutions like LiveEO's geospatial analytics platform.

Click here to get a detailed guide on EUDR compliance for timber.

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