ZeroDeforestationHub
en

Vietnam

Vietnam

The context

Deforestation

Deforestation remains a significant challenge in Vietnam, largely driven by large-scale forest-to-agriculture conversions since the 1990s, particularly in the coffee sector. From 2005 to 2015, coffee-growing areas expanded by 29%, leading to substantial deforestation in the Central Highlands of Vietnam.

Local context

While the EUDR is a critical step toward sustainable supply chains, it poses a significant risk to smallholder farmers, potentially leading to exclusion from supply chains linked to EU market actors and resulting in significant economic and social consequences. Specifically, fragmented and scattered coffee plantations may hinder farmers’ ability to comply with EUDR. 

Biodiversity

Vietnam is one of the 14 regions worldwide recognized as a “Biodiversity Hotspot” and has committed to the Global Biodiversity Framework under the Convention on Biological Diversity (CBD), which aims to protect 30% of the planet’s land and oceans by 2050. Approximately 25 million people, many from marginalized ethnic minorities in mountainous regions, rely on forests for 20% of their livelihoods. These forests also form the backbone of the agricultural, forestry, and fishery sectors, playing a pivotal role in driving Vietnam’s economic development and environmental sustainability.

Agriculture

The Vietnamese coffee sector is an export-oriented industry, accounting for about 15% of total agricultural export turnover and consistently exceeding 10% of agricultural GDP in recent years. Vietnam has secured its position as the second largest coffee supplier to the EU by volume and the third largest by value.
However, the rapid expansion of the coffee sector, while driving Vietnam’s economic growth, has also led to significant environmental consequences.

Decoupling Agriculture from Deforestation

Vietnam is undergoing a pivotal shift toward a sustainable, multi-value agricultural economy, where economic growth and environmental preservation go hand-in-hand. This transition, alongside EUDR requirements, presents a unique opportunity for the Vietnam coffee industry to enhance its brand. Success relies on promoting sustainable coffee production and land-use practices that increase productivity while protecting forests, underpinned by effective policies multi-sector cooperation, and a commitment to safeguarding the environment and local livelihoods.

Approach

In Vietnam, SAFE is implemented in partnership with the Ministry of Agriculture and Environment (MoAE). The project aims to support coffee value chain actors in meeting market and EUDR requirements, fostering deforestation-free, sustainable, and legal supply chains. By facilitating dynamic and multi-stakeholder dialogues, it seeks that both public and private sectors are aligned in their efforts to comply with EUDR, while developing strategic action plans tailored to local and national needs. SAFE Vietnam creates business partnerships that prioritize fairness, transparency and innovation.

A key aspect of the approach is its commitment to gender equality and addressing the unique challenges faced by marginalized groups, ensuring that the EUDR transition is equitable and fosters long-term, sustainable livelihoods throughout the coffee supply chain in Vietnam.

Commodities SAFE is working on in Vietnam

Approach

In Vietnam, SAFE is implemented in partnership with the Ministry of Agriculture and Environment (MoAE). The project aims to support coffee value chain actors in meeting market and EUDR requirements, fostering deforestation-free, sustainable, and legal supply chains. By facilitating dynamic and multi-stakeholder dialogues, it seeks that both public and private sectors are aligned in their efforts to comply with EUDR, while developing strategic action plans tailored to local and national needs. SAFE Vietnam creates business partnerships that prioritize fairness, transparency and innovation.

A key aspect of the approach is its commitment to gender equality and addressing the unique challenges faced by marginalized groups, ensuring that the EUDR transition is equitable and fosters long-term, sustainable livelihoods throughout the coffee supply chain in Vietnam.

Commodities SAFE is working on in Vietnam

Activities

Traceability

Provincial departments and related agencies are supported in piloting national traceability systems for coffee. The project aims at aligning private sector traceability systems and trains producers to manage their traceability information, ensuring better compliance and transparency across the supply chain.

Access to Finance

The development of proposals and guidelines to help SMEs and producers access financial resources is supported. These efforts aim to transform supply chains to meet EUDR requirements. Additionally, training courses on accessing finance are provided to help producers secure the funding needed for sustainable production.

Promoting Sustainability
and EUDR Compliance

SAFE Vietnam supports coordination among stakeholders to ensure EUDR compliance, establishing EUDR Steering Committees at the provincial level. It develops strategic action plans and organizes multi-stakeholder dialogues to share best practices and improve compliance and traceability in the coffee sector.​

Sustainable Production within Agroforestry Systems

The current status of legal land use in coffee production areas is analysed and training materials for the coffee value chain are updated to align with EUDR, land use rights, and forest protection requirements. Through training-of-trainers (ToT) and training-of-farmers (ToF) programs, the project promotes EUDR compliance and sustainable coffee production in combination with forest protection. It identifies and pilots models that balance forest conservation with sustainable livelihoods, ensuring both environmental and economic benefits.

Inclusive Business Partnerships

The development and implementation of inclusive business models that align with EUDR regulations and strengthen connectivity to export markets is fostered. The project documents potential EUDR compliance models in the context of inclusive business and shares these insights with stakeholders to foster broader adoption.

Partners

Region:

(Lower) Kafue Catchment Ecosystem

Target group:

Farmers and community forest management groups

Key activities:
  • Support community forest management groups in the
    sustainable management of natural resources and livelihood creation
  • Support farmers to produce soy in line with the EUDR and increase productivity, and implement transparency and traceability pilots
Commodities:
More infos
Region:

Lampung, West Kalimantan, and Central Sulawesi

Target group:

Smallholder farmers, private sector, and civil society organizations along the value chains

Key activities:
  • Empowering Smallholder Farmers and Farmer Organizations by facilitating traceability and legality, building capacity on Good Agriculture Practices (GAP), and strengthening farmer organizations, ensuring inclusive support for both men and women farmers.
  • Promoting sustainable practices and collaboration by supporting village HCV/HCS conservation efforts, testing and strengthening the National Dashboard for traceability and legality, and fostering national and regional exchanges.
Commodities:
More infos
Coming soon
Coming soon
Region:

Provinces of Orellana and Sucumbíos

Target group:

Smallholder farmers, women, indigenous people and youth

Key activities:
  • Promoting Multi Stakeholder Dialogues
  • Improving traceabilty systems
Commodities:
More infos
Region:

Xingu territory, State of Pará

Target group:

Family farmers

Key activities:
  • Improve market access; value creation and access to finance
  • Integrate farmers into tracability systems
Commodities:
More infos
Global activities
More infos