The European Union Deforestation Regulation: Impacts on the Coffee Exporting Activities of Vietnam

Adopted in April 2023, the European Union Deforestation Regulation (EUDR) imposesan import ban on agricultural commodities associated with deforestation activities, including coffee.Accordingly, for Vietnam, the coffee export sector may be significantly affected, as coffee currentlyrepresents the agricultural commodity with the highest export value to the European Union.Acknowledging the urgency of this issue, this study first provides an in-depth analysis of theprovisions of the EUDR, thereby offering assessments of the challenges and opportunities forVietnam’s coffee sector in exporting to the European Union market under the impact of the EUDR,based on an analysis of production and export conditions. Subsequently, the paper highlights certainpositive aspects that the EUDR may bring, and some primary challenges to the export of coffee inparticular and agricultural products in general to European Union, including challenges related totraceability, financial capacity, and competitiveness. Finally, the study proposes several macro- andmicro-level solutions to address these challenges. In general, the study contributes to supportingVietnamese export enterprises in adapting to the EUDR and inspires public policymakers to establishappropriate mechanisms to ensure the effectiveness of Vietnam’s coffee exports to the European Unionin light of the EUDR’s official entry into force on 30 December 2024.