Implementing EUDR effectively starts with local governance capacity

On December 24, Forest Trends organized a webinar titled "Effective EUDR implementation in Vietnam in the future: A local perspective." The online workshop focused on clarifying the pivotal role of local authorities in coordination, management of data on cultivation areas, and promoting the participation of enterprises and farming households in EUDR compliance.

Speaking at the online discussion, Dr. Pham Tuan Anh, former Director of the Dak Nong Department of Agriculture and Rural Development, provided a comprehensive overview of EUDR implementation practices at the local level, with coffee as the focal commodity.

With more than 140,000 hectares under cultivation, coffee is the province’s key crop, directly supporting the livelihoods of around 120,000 farming households. However, fragmented production, where each household owns on average only 1 - 1.5 hectares, divided into two to three small, interspersed plots poses major challenges for management, traceability, and meeting the stringent requirements of the EUDR.

At present, the area of coffee certified under sustainability standards such as 4C, Rainforest Alliance, VietGAP, GlobalGAP, or organic in Dak Nong stands at only about 25,000 hectares, equivalent to 17% of the total area. This figure points to significant potential, while also reflecting considerable pressure on the province to scale up sustainable production and enhance supply chain transparency.

To prepare for the EUDR roadmap, the province has rolled out a range of coordinated measures. Alongside communication efforts to raise awareness among stakeholders, local authorities have established a provincial-level task force, issued an overarching Action Plan framework, and proposed EUDR-related tasks such as developing a risk-level zoning map for the coffee sector, building a digital data platform for agriculture, implementing a landscape coffee program, promoting certified production, and proposing ODA projects.

According to Dr. Pham Tuan Anh, effective EUDR implementation requires the convergence of both “necessary conditions” and “sufficient conditions.” The necessary conditions primarily involve data systems and governance platforms: forestry and agricultural land data must be transparent, integrated, and regularly updated; there must be precise mechanisms for data sharing, information security, and public–private cooperation; and a sufficiently strong focal point at the local level is needed to coordinate implementation.

The sufficient conditions relate to organization and stakeholder participation: all farm plots must be geo-referenced and traceable; smallholder farmers need support to provide transparent information proactively; cultivation area maps must be established to coordinate raw material zones for enterprises; and businesses should be encouraged to participate within the local governance framework.

Drawing from Dak Nong’s experience, the proposed approach is to strike a balanced combination of administrative and non-administrative measures, with trust-building as the foundation. Local authorities maintain a unified communication channel with enterprises on implementation methods, coordination mechanisms, and mutual expectations, while strengthening information input management and providing continuous accompaniment and information sharing throughout the implementation process.

From a business perspective, Mr. Thai Nhu Hiep, Chairman and CEO of Vinh Hiep, emphasized that companies should view EUDR more as an opportunity than a barrier. Adapting to export requirements, demonstrating compliance in ESG reports, and ensuring transparent traceability not only help reduce risks but also expand markets and build coffee brands linked to smallholders and local communities.

"When the origin is clarified, emissions are reduced, and certifications are achieved, downstream costs decrease and competitive advantages increase," he said, highlighting that the coordinated participation of local authorities and businesses in tracing individual farm plots and supporting data sharing is a key factor.

Thus, EUDR is not just a technical or compliance issue, it is a test of local governance capacity and public–private collaboration. The question is whether localities are ready to partner with leading enterprises to build data platforms, cultivation area maps, and transparent sharing mechanisms, turning EUDR into a driver for sustainable development. Lessons from Dak Nong show that by shifting the role of authorities from “control” to “partnership and sharing,” EUDR can become an opportunity to elevate Vietnamese agricultural products on the international market.