Leveraging 'low-risk' country status, Vietnamese coffee to meet EUDR

Capitalizing on low-risk status

According to statistics from the Customs Department, in the first six months of 2026 Vietnam exported more than 1.05 million tons of coffee, earning $4.81 billion, up 7.4 percent in volume but down 13.8 percent in value due to lower average prices across global markets.

Europe remains a key export region for Vietnamese coffee. Germany, Italy, Spain, Belgium, and the Netherlands alone imported more than 409,700 tons of Vietnamese coffee, worth roughly $1.735 billion. Export volumes to Germany, Italy, Spain, and Belgium all increased compared with the same period last year, underscoring the resilience of demand in these core markets even as prices softened.

Viet Nam is the EU's 12th-largest agricultural export partner, reflecting the growing depth of Vietnamese farm produce's integration into the bloc's supply and consumption chains. Complying with the EU Deforestation Regulation (EUDR) is a condition for Vietnamese coffee to keep its foothold in the market and strengthen its competitiveness against other origin countries vying for the same shelf space.

Under the regulation, coffee entering the EU must be proven deforestation-free, legally produced, and traceable to its production area, with documentation required at every stage from farm to final shipment.

The EUDR will take effect on December 30, 2026 for large and medium-sized enterprises, and on June 30, 2027 for most micro and small enterprises. Viet Nam holds an advantage as a country the EU has classified as low-risk, meaning goods of Vietnamese origin are subject to a simplified due-diligence mechanism, though they must still fully meet traceability requirements and cannot bypass the underlying documentation standards.

According to Nguyen Nam Hai, Chairman of the Viet Nam Coffee-Cocoa Association (Vicofa), ever since the EUDR took legal effect in 2023, ministries and government agencies have developed implementation roadmaps for localities and enterprises, laying the groundwork well ahead of the compliance deadlines.

Early preparation has helped a portion of coffee growing areas and supply chains gradually complete their data systems, positioning them to meet the EU market's new requirements without disruption to existing trade relationships.

"Viet Nam has an advantage in being classified by the EU as a low-risk country. Foreign buyers are now showing interest in and seeking out Vietnamese coffee sources capable of meeting EUDR requirements," Hai said.

According to the Vicofa chairman, some compliant supply sources are currently commanding prices roughly $50 per ton above the market rate. While that premium may vary by time and by transaction, the trend shows that transparency in sourcing is gradually translating into commercial value, giving compliant producers a tangible incentive to invest in traceability infrastructure.

"Low-risk status, combined with international buyers' interest, opens an opportunity for Vietnamese coffee to maintain its EU market share once the new regulation takes effect. The ability to meet sustainability requirements can help enterprises boost competitiveness, retain long-term customers, and create additional leverage in negotiations for supply sources with clear data," Hai said.

Expanding the traceability foundation

According to Vicofa estimates, about 35-40 percent of current coffee supply is capable of meeting EUDR requirements. This forms the foundation for the industry to continue expanding growing areas and supply chains that meet requirements before the regulation takes effect, with the remaining share requiring further investment in mapping and data collection.

Nguyen Nam Hai said domestic coffee production relies mainly on smallholder households, while the purchasing process involves cooperatives, agents, and traders. As a result, traceability cannot be implemented only at the growing area or export stage, but must be carried out across the entire system.

Information on land plots, growers, purchasing, sorting, storage, and processing needs to be linked to each export shipment. EUDR-compliant supply sources also need to be identified and separated starting at the point of purchase, ensuring origin data is maintained as coffee passes through intermediary stages.

"When the entire system participates, traceability will not be broken between the growing area and the export shipment. In the long run, this foundation will not only serve EUDR compliance but also support quality management, strengthen chain linkages, and improve the ability to meet sustainability standards worldwide," Hai emphasized.

Hai proposed that the Ministry of Agriculture and Environment continue rolling out the EUDR implementation roadmap to localities, enterprises, and related organizations. Cooperatives, agents, and traders need to be brought into the traceability system, while smallholder households need support with mapping, record-keeping, and the use of digital platforms.