On the sidelines of the Training Workshop on New Areas in Trade for Business Support Organizations - Component 3 of the Vietnam Trade Policy and Export Promotion Project funded by the Swiss Government, a reporter from the Industry and Trade Newspaper had an interview with Mr. Vu Tan Phuong - Director of the Sustainable Forest Management Certification Office (VFCO) to clarify this issue.

Currently, green export is becoming one of the important and increasingly urgent criteria for businesses. However, the barriers of certificates and strict regulations are becoming obstacles for Vietnamese businesses. So, sir, can you share how the green and sustainable standards are applied to Vietnamese businesses today?

Mr. Vu Tan Phuong - Director of Sustainable Forest Management Certification Office (VFCO)

In order to move towards green exports following the global trend, it is inevitable that businesses need to meet the standards of importing countries. Currently, businesses in the forestry sector in Vietnam have begun to apply standards to certify sustainable forest management. This includes certification of compliance with laws, environmental protection and labor standards. In particular, popular certifications include Forest Management Certification - PEFC-FM (Forest Management Certification) for organizations/units planting and exploiting forests and Chain of Custody Certification - PEFC-CoC (Chain of Custody Certification) for the process of exploiting, processing and manufacturing products. However, the application is still in the development stage and needs more time to complete.

Specifically, PEFC-FM Forest Management Certification means that all forest management activities must comply with a series of standards such as legal compliance requirements, environmental protection requirements, etc. Forest stakeholders and products that meet that set of standards will be certified for sustainable forest management.

Chain of Custody Certification - PEFC-CoC means that after being harvested from the forest, raw materials will undergo monitoring of the preliminary processing, processing, and production processes along the chain to create the final product, and when it is brought to the consumer market, there will be a certificate to ensure that the source is legal. For example, a table made from at least 70% wood materials from a PEFC-FM certified forest will be labeled with the certification of the International Forest Certification System PEFC (Programme for the Endorsement of Forest Certification) for market recognition.

In addition, to meet the requirements of EUDR (European Union Deforestation Regulation) - related to the management and control of the exploitation of natural resources, especially forests, it is necessary to prove that the product is produced throughout the entire supply chain, not related to deforestation and forest degradation after December 31, 2020.

The proposed EUDR targets commodities that have a high impact on deforestation and certain products derived from them, such as coffee, cocoa, soy, palm oil, cattle, wood and wood products. The EUDR requires businesses to declare the geographical coordinates of the harvesting area. Failure to comply could result in the product being refused entry into the EU. The regulation applies to products from many countries, regardless of country of origin.

For example, enterprises in Vietnam, currently producing in Vietnam, must comply with all laws prescribed by Vietnam including: legal land use rights; labor issues; proving environmental protection issues such as environmental impact assessment, use of pesticides must comply with the law... In addition, enterprises must have a due diligence system (DDS) to ensure transparency and full compliance with EUDR requirements.

It is known that the EUDR prohibits the import of many groups of goods into the EU if the production of these goods causes deforestation. So, what laws do businesses need to comply with regarding the environment, land use rights and labor safety, sir?

EUDR prohibits the import of 7 groups of goods into the EU if the production of these goods causes deforestation. In Vietnam, the 3 main affected industries include wood, rubber and coffee. To meet the requirements for the production of goods without causing deforestation of the European Union (EUDR) applied to import-export enterprises into the EU from January 1, 2025, VFCO has a plan to coordinate with the Trade Promotion Agency (Ministry of Industry and Trade) in developing and organizing training for enterprises in the wood, rubber and coffee industries on this standard.

The implementation of the chain of custody certification system and accountability in Vietnamese enterprises is making certain progress, especially for large and experienced enterprises. Recently, the Vietnam Rubber Industry Group (VRG) coordinated with the Sustainable Forest Management Certification Office (VFCO) to organize training for 22 rubber companies under VRG in the Southeast region (from September 4-6, 2024) and the Central Highlands region (from September 9-11, 2024) with 98 participants.

Vietnamese coffee affected by EUDR regulations

By June 2025, this regulation will only apply to micro, small and medium-sized enterprises when exporting goods to EU countries, meaning that from now on, micro, small and medium-sized enterprises must prepare complete documents when importing wood, rubber and coffee products into the EU. However, many small and medium-sized enterprises, especially smallholder rubber producers, still face many difficulties in meeting these requirements. Some enterprises do not fully understand the regulations and do not have enough resources to implement an effective management system. This shows that there is a need for stronger support from the state and business associations to help enterprises access information and implement compliance measures.

Faced with strict EU standards, how do you evaluate the current ability of Vietnamese enterprises to meet them ?

I think that the accessibility of businesses is not too difficult, depending on the level of support from the State, associations, and industries so that businesses can access information about these standards.

For example, for rubber products, if the process is not understood, the goods exported to the EU market will be traced back to the seller to prove their origin. At that time, the enterprise and related parties must be obliged to provide information and valid documents according to a chain that ensures the correct and valid process. Therefore, we must do it right from the beginning, from the source of export, the group of product buyers, and the person signing the contract with Europe. Accordingly, associations and industries play a very important role in this case, so that when problems arise that need to be resolved, individual companies and enterprises can coordinate to resolve them through associations and industries.

On the other hand, the issue of governance and the governance system is very important. Vietnam wants to have reputable enterprises that bring high commercial and brand value, so it is necessary to have close links in the chain and with relevant agencies.

Previously, immediately after the EU issued the EUDR, the Vietnamese Government issued Resolution 88/ND-CP dated June 8, 2023, in which the Ministry of Agriculture and Rural Development was assigned to preside over and coordinate with relevant agencies to develop an action plan to adapt to the EUDR. According to the newly issued regulations of the EU, large enterprises must comply with the EUDR from December 30, 2024, and small and medium-sized enterprises must apply from June 30, 2025. The Ministry of Agriculture and Rural Development has also proactively worked with relevant parties in Vietnam to develop and issue an Action Plan Framework to comply with this regulation. This Action Framework provides comprehensive guidance for national and provincial organizations, ensuring that practical actions are taken to support appraisal processes.

Thank you!