Vietnam's Coffee Industry Works to Adapt to EUDR with Focus on Sustainable Practices and Traceability – CoffeeTalk

The coffee industry in Vietnam is actively adapting to the EU Deforestation Regulation (EUDR), aiming to enhance traceability and reduce emissions at the farm level. Industry representatives see EUDR as both a challenge and an opportunity for Vietnamese coffee beans, with a strong focus on involving farmers in this transition. Phạm Phú Ngọc from Nestlé Vietnam emphasized three key priorities: compliance with EUDR, reducing the carbon footprint, and implementing regenerative farming practices.

The Nescafé Plan organizes 17 regenerative agriculture techniques into three main categories: improving soil health, optimizing water use, and fostering biodiversity. Farmers are encouraged to implement practices that enhance soil fertility and water retention, such as maintaining ground cover, minimizing tillage, and using mowing instead of herbicides. The plan also promotes simple tools for monitoring soil moisture and optimizing irrigation, alongside collaborations with the Western Highlands Agriculture and Forestry Science Institute to develop drought-resistant coffee varieties, potentially reducing water usage by 40–60%.

In addition, the Nescafé Plan advocates for intercropping, agroforestry, and multi-layer canopies to increase shade, stabilize microclimates, reduce pests, and diversify farmer income. The initiative also aims to empower farmers through a network of 300 leaders providing training, resulting in significant increases in household incomes (30–150%) and average yields (from 2 tonnes to 3–3.7 tonnes of coffee per hectare). As part of its sustainability efforts, Nestlé and WASI have distributed over 100 million seedlings to rejuvenate more than 100,000 hectares of aged coffee plantations.

To meet EUDR traceability requirements, the program has mapped over 40,000 plots, with participation from over 23,000 households expected to rise to 26,000 by 2026. This mapping process uses a digital platform to manage polygon data, validated against cadastral records and land-use maps for risk assessments. This enables comprehensive traceability from farms to factories to end customers.

Tô Xuân Phúc from Forest Trends highlighted the critical need for adherence to tighter environmental regulations, positing that not only must EUDR be implemented, but it must be done swiftly and effectively. Integrating traceability, emissions reduction, and regenerative tactics into a unified strategy is seen as essential for maintaining EU market access and fostering a low-emission Vietnamese coffee brand globally. In the first half of 2026, Vietnam exported approximately 1.1 million tonnes of coffee, earning $4.78 billion. While the volume increased by 9.7%, the value fell by 14.4%, reflecting declining average export prices, particularly important as over 40% of Vietnamese coffee is exported to the EU, which benefits from a 0% tariff under the EVFTA.

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