Low risk, high potential: EUDR opens doors for Vietnam’s cocoa industry

Opportunities for Vietnamese cocoa

The EU Deforestation Reduction Regulation (EUDR) requires that agricultural commodities imported into the EU be proven deforestation-free. For Vietnam, this means producers must strengthen traceability and align with environmental standards to maintain access to the EU market.

On May 22, the EC released its official list of countries categorized by deforestation risk. Vietnam’s placement in the low-risk group reflects its progress in enforcing forest protection and sustainable land use practices.

This classification simplifies the export process for Vietnamese product exporters. Cocoa, coffee, rubber, and timber from Vietnam will face only a 1% compliance check rate, making it easier and faster to enter the EU market.

This is more than a regulatory milestone. It’s a chance to boost product value and penetrate premium market segments. By embracing circular economy principles and investing in sustainability, Vietnam can position its cocoa sector for long-term growth. Targeted investments in technology, farmer training, and global partnerships will be critical to turning this opportunity into lasting gains.

Disruption of the global cocoa supply chain

The global chocolate industry is facing a shortage due to climate change. According to a report by Christian Aid, cocoa prices have skyrocketed to a record $12,605 per tonne on December 18, 2024, due to extreme weather events such as unusually heavy rains and severe droughts in Ghana and Ivory Coast, two countries that account for more than 50% of global cocoa production.

In 2023, unusual rainfall during the dry season caused black rot in cocoa trees. This was followed by severe drought in 2024, which affected more than a million people and significantly reduced cocoa production (Helvetas).

Additionally, factors such as tree diseases, illegal gold mining, and lack of investment in agriculture have caused Ghana’s cocoa output to fall to its lowest level in 20 years.

Europe is also facing a chocolate crisis due to climate change and biodiversity loss. A report on 21 May 2025 by Foresight Transitions, led by Dr. Camilla Hyslop (University of Oxford), warns that 96.5% of cocoa imported into the EU has low climate resilience. Europe consumes 77% of cocoa from areas with reduced biodiversity.

Scientists are calling on major chocolate makers to invest in climate adaptation and biodiversity protection in cocoa-growing countries such as Ghana and the Ivory Coast.

Golden opportunity for Vietnamese cocoa

Amid challenges, Vietnam’s cocoa industry stands out for adopting a circular economy model. The EU-funded project “Circular Economy Cocoa: From Bean to Bar”, with a budget of 1.9 million euros, aims to promote sustainable production and consumption across Asia.

Helvetas and the Center for Community Development (CDC) are leading the project, which trains farmers in circular cocoa farming. The project also guides the processing of cocoa by-products into biochar, organic fertilizer, and animal feed while introducing models for fermenting and refining high-quality cocoa beans. 

Helvetas Vietnam and AirX Carbon have teamed up to turn cocoa husks into biomaterials, producing bioplastic pellets from husk powder for use in packaging and consumer goods.

Vietnamese cocoa continues to show strong growth potential and is carving out a place in the global market.

Vietnamese chocolate is gaining international recognition, thanks to sustainable practices, modern technology, and unique flavor profiles. The project supports over 1,100 farmers and businesses in the Central Highlands and Southeast to improve their production. 

By using cocoa husks to make biochar, fertilizer, and feed, these circular farming practices help cut waste and boost value.

One standout example is the Alluvia brand, which makes “bean-to-bar” chocolate from UTZ-certified cocoa beans grown in Tien Giang. Its bold flavors and creative packaging have won over markets like Japan and Taiwan. Similarly, Queenam Chocolate has made an impression with its chocolate-coated beans in flavors like durian, rose, and lemon yogurt, made using advanced freeze-drying technology to lock in natural taste.

By combining quality ingredients, cutting-edge technology, and inventive product design, Vietnamese chocolate not only meets international standards but also delivers a memorable experience to global consumers.