Coffee enterprises are urgently perfecting traceability under EUDR, but worry that overlapping raw material zone data affects exports to the EU.

Traceability data becomes a 'passport' into the EU

With less than 6 months remaining before the European Union Deforestation Regulation (EUDR) applies to large enterprises, the coffee sector is facing pressure to perfect raw material zone data and traceability systems to firmly maintain its core export market.

Exchanging with Cong Thuong Newspaper, Mr. Thai Nhu Hiep, Chairman of the Board of Directors and General Director of Vinh Hiep Company, and Vice Chairman of the Vietnam Coffee - Cocoa Association (Vicofa), argued that the largest challenge currently does not lie in resource scale but in the proactive level of enterprises before the green consumption trend. “From now until 2030, enterprises do not possess much time to prepare. Green production, green growth, and green consumption are becoming mandatory requirements across almost all export markets,” Mr. Hiep emphasized.

According to Mr. Hiep, enterprises cannot rely entirely on State support but must proactively invest in data systems, traceability, and satisfy new market standards. Therefore, Vinh Hiep has deployed reviewing each growing zone and each farming household to construct a transparent database. The enterprise coordinates with consulting units, conducting field surveys utilizing mobile devices, updating coordinates and growing zone information, while concurrently working with local governments to verify arising cases. “This is a mandatory investment if wishing to participate in the export market. Traceability data is not merely for compliance but also serves as a competitive advantage in negotiations with international customers,” Mr. Hiep stated.

According to the leader of Vinh Hiep, when enterprises possess full information regarding factories, technology, growing zones, growing zone codes, and positioning, the capacity to negotiate prices with partners will be better. Conversely, lacking data means enterprises fall into a passive position within the supply chain. Even so, one of the issues particularly worried by enterprises is the state of overlapping raw material zone data, currently appearing quite commonly in major coffee-growing localities such as Gia Lai, Dak Lak, and Lam Dong.

Mr. Thai Nhu Hiep stated that previously a manufacturing household could participate in multiple different certification programs without arising many obstacles. However, when EUDR demands traceability and proof of not being linked to deforestation, the fact that one raw material zone appears in multiple data sets will become a major risk. “A household possesses 3 hectares of coffee but simultaneously participates in multiple certification programs of different enterprises. From a single growing zone and an actual output volume, data can be recorded repetitively multiple times,” Mr. Hiep analyzed.

The worrying thing is that currently there are no truly clear regulations regarding responsibilities when data errors occur. If a single land plot and an output volume are declared together by multiple enterprises, determining the enterprise bearing responsibility when importing agencies detect violations remains a legal vacuum. To restrict risks, Vinh Hiep self-funded the review of all raw material zone data under management aiming to detect duplicated cases and determine related enterprises.

From this reality, Mr. Hiep proposed the need to soon form a mechanism for managing and sharing centralized data at the locality. According to him, local governments will be more appropriate than associations in collating, reviewing, and handling the overlapping situation among enterprises. “Before EUDR is officially enforced, localities need to gather enterprises currently constructing raw material zone data to jointly collate, share, and handle duplicated cases, guaranteeing the transparency of the data system,” Mr. Hiep petitioned.

Baseline database needed to protect Vietnamese coffee brand

According to a report by the Ministry of Agriculture and Rural Development, the coffee export volume in June 2026 was estimated to reach 150 thousand tons with a value reaching 552.6 million USD, bringing the total coffee export volume and value in the first 6 months of 2026 to reach 1.1 million tons and 4.78 billion USD, up 9.7% in volume but down 14.4% in value compared to the same period of 2025. The average export coffee price in the first 6 months of 2026 was estimated to reach 4,435 USD/ton, down 22% compared to the same period of 2025.

Vietnam is currently the second largest coffee exporting nation in the world, occupying around 8.3% of the global coffee export market share, merely behind Brazil. The EU market occupies over 40% of Vietnam's coffee export turnover, while concurrently enjoying a 0% tariff level under the EVFTA. According to Mr. Hiep, EUDR should not be viewed merely as a business opportunity but as a requirement to elevate the prestige and brand of Vietnamese coffee on the international market. Vinh Hiep is constructing a value chain in a “green” direction extending from raw material zones and factories to exported products.

From a policy perspective, Mr. To Xuan Phuc, Executive Director of the Forest Policy, Trade, and Finance Program - Forest Trends Organization, argued that the raw material zone database does not merely serve enterprises but also serves as a crucial foundation for state management. “Against enterprises, data primarily serves traceability and supply chain management. But with state management agencies, the value of the database is vastly larger because it helps cover even areas currently lacking full information,” Mr. Phuc evaluated.

However, currently, the raw material zone data of multiple commodity sectors still possesses very massive vacuums. According to Mr. Phuc, the certified coffee area is currently only around 30% of the total area; the majority of the remaining area is still a “blind zone” regarding data. Therefore, constructing a database demands combining both bottom-up and top-down approaches. Enterprises and people serve as crucial data supply sources, but the State needs to play the role of constructing the baseline data infrastructure, standardizing, and verifying information.

A major current risk is that many enterprises have not yet determined whether their raw material zones lie on forestry land or not. This is an exceptionally important requirement in enforcing EUDR regulations. Currently, the Department of Forestry and Forest Protection (Ministry of Agriculture and Rural Development) is deploying the determination of forestry land boundaries counting up to 2020. When overlaying this data layer with the raw material zone databases of commodity sectors, management agencies will immediately determine areas carrying risks of violating anti-deforestation regulations.

“When possessing a unified baseline data, enterprises will not have to self-verify each individual area or confront unnecessary risks during the EUDR execution process. This is also the foundation to construct a more transparent and efficient traceability system,” Mr. To Xuan Phuc emphasized.

Against a backdrop where preparation time for EUDR is not much left, experts argue that investing in data serves as a mandatory investment. Data transparency does not only help enterprises satisfy EU requirements but also serves as a key factor to protect the prestige and brand of the Vietnamese coffee sector on the international market.

Source: Bao Cong Thuong