The EU'S ban on deforestation-linked imports are causing concern among Vietnamese producers as the requirements to trace commodities back to their origin can push up costs and entail finding alternative suppliers.The EU Deforestation-free Regulation (EUDR) will cover imports of various commodities, including cocoa, coffee, palm oil, and rubber, plus products derived from them, such as chocolate, tires, and shoes.Nguyễn Nam Hải, Chairman of the Vietnam Coffee Cocoa Association, said the EU is Việt Nam's largest coffee importer, consuming 40 per cent of the country's coffee export annually. In 2022, Vietnamese coffee exported to the EU topped 689,000 tonnes, up 26 per cent year-by-year.He believed that EUDR would raise new challenges for around 1.3 million coffee farmers in the sector, including the accessibility to technology and ranges of costs. The same goes for coffee companies, which play a major role in the supply chains.It is also worth noting that the total area of coffee at high risk under EUDR was estimated at 13,000 ha.Lê Đức Huy, Director-general of Simexco Daklak, said EUDR had not taken his company by surprise because it had been preparing for the change for many years.Simexco Daklak was the first company in 2012 to cooperate withIDH in promoting sustainable agriculture in the Central Highlands.According to a representative from the Association of Vietnam Timber and Forest Products the EU imports about US$500 million of Vietnamese wood-derived products per year.He said EUDR would not create as much compliance burden on timber companies as it was concerned because the practice of converting natural forests into plantations had become a thing of the past.All timber companies have to do is ensure the traceability of their products as required by EUDR.Trần Thanh Hải, Deputy Director of the Agency of Foreign Trade, said the EU had raised the bar considerably on wood-derived products by ratifying EUDR.Under the regulation, products that have been made from forest degradation-inducing wood would be banned from EU markets. Even wood collected from reforested land would be no exception.EUDR would take effect around December 2024 and January 2025. Microenterprises and small enterprises would have an additional six months to comply with the regulation's requirements.Rui Ludovino, First Counselor in charge of climate action, environment, employment, and social policy at the Delegation of the European Union, said Việt Nam would find itself among low-risk countries under EUDR thanks to its proactive approach to fighting deforestation.For instance, Việt Nam entered into the Voluntary Partnership Agreement on Forest Law Enforcement, Governance, and Trade (FLEGT) with the EU in 2018.The deal gives Vietnamese wood-derived products a big advantage over those from non-agreement countries: Flegt-licensed products are considered legal under EU Timber Regulation, making it easier for Vietnamese producers to enter EU markets.He said EUDR doubles the EU'S effort in promoting deforestation-free supply chains by requiring companies to produce a 'due diligence' statement and 'verifiable' information proving their exports had not been made from wood grown on deforested land.Patrick Haverman, Deputy Resident Representative UNDP in Việt Nam, suggested the next step for Việt Nam in regard to EUDR: review the legal framework and make necessary revisions to align it with the anti-deforestation regulation. (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam News