Rubber industry pioneers in meeting EUDR regulations

From September 9 to 11, Vietnam Rubber Group (VRG) in collaboration with the Vietnam Forest Certification Office (VFCO - Vietnamese Academy of Forest Sciences) organized a training session on implementing the PEFC EUDR Due Diligence System (PEFC EUDR DDS) in the Central Highlands region.

VRG currently has more than 120,000 ha of rubber certified for sustainable forest management VFCS/PEFC and 22 member companies with PEFC chain of custody certification. This is a very favorable foundation for VRG to soon meet EUDR requirements and can ensure exports to the European market starting from January 1, 2025.

“In May 2023, the European Union issued regulations on the management of the import and export of goods that cause deforestation and forest degradation. This regulation officially took effect on June 29, 2023. By December 30, 2024, the regulation will be mandatory for suppliers,” said Vu Tan Phuong, Director of VFCO.

According to EU regulations, seven groups of products, including rubber, will be banned from being imported into Europe if the production of these products violates the regulations of the exporting country. Vietnam has a rubber area of ​​nearly 1 million ha, with an export value of nearly USD 5 billion. The potential of the rubber industry is visibly massive, but compliance with EUDR is now deemed essential to export sustainably.

“Through the training session, VRG members receive guidance on building an accountability system according to the standards of the National Forest Certification System. This system has been certified by the Program for the Endorsement of Forest Certification (PEFC). To be more specific, this set of standards stipulates the implementation of the EUDR due diligence system. Companies must provide reports and explanations on raw material areas while ensuring that they do not cause deforestation or forest degradation,” said Director Phuong.

VRG is considered a pioneer in the industries participating in implementing the EUDR. Diep Xuan Truong, Deputy Head of the VRG Industry Department believes that the EUDR is very important for the rubber industry. If Vietnam wants to export rubber to the European market, it must meet the requirements of the EUDR. VRG is thus determined to implement them and secure sustainable exports. After holding awareness training for member companies in early May, VRG continues to issue preliminary guidance on the EUDR.

“The standard module on EUDR was issued recently, so we decided to coordinate with VFCO to organize two training courses on building a due diligence system to meet regulations on the production of goods that do not cause deforestation. We aim to have member companies currently in possession of sustainable forest management certificates meet the standards for EUDR by October 2024,” said Deputy Head Diep Xuan Truong.

Currently, some member companies of VRG have also sold EUDR-qualified rubber products with an added value higher than the market of nearly USD 200 per ton of latex. Such initial steps show optimism. However, in order for the entire rubber industry to quickly access the EUDR, VRG needs to organize more extensive and effective training courses.

Nguyen Hoang Tiep, Deputy Director of VFCO, said that VRG has coordinated with VFCO to organize two training courses for 22 member companies in the Southeast, Central Highlands as well as Laos and Cambodia. The main topics include building and completing dossiers to meet EUDR requirements.

VRG member companies were instructed to supplement information, declare, and update management regulations, and technical processes on the basis of the VFCS/PEFC national forest certification system in accordance with EUDR requirements. According to the established plan, member companies will meet EUDR requirements before December 2024.

“With its pioneering role and the VFCS/PEFC national forest certification platform, VRG is expected to be the core to support smallholder rubber farmers in meeting EUDR requirements in the near future,” said the Deputy Director of VFCO.

Requirements for the Implementation of PEFC EUDR Due Diligence System (PEFC EUDR DDS), was published on 20 July 2024. This module standard supports organizations in demonstrating compliance with the EU Regulations on Deforestation-free products (EUDR). Within the document, PEFC chain of custody certified organizations will find the steps they may follow to implement a Due Diligence System towards demonstrating EUDR compliance using the PEFC scheme.