EC’s proposal to delay EUDR implementation by one year give more time for preparation
The European Commission has proposed to postpone implementation of the EU Deforestation Regulation (EUDR) by on year, allowing Vietnamese companies to be fully prepared in their due diligence obligations, according to the Việt Nam Trade Office in the EU.
The European Commission has proposed postponing the implementation of the EU Deforestation Regulation (EUDR) by one year, allowing Vietnamese companies to be fully prepared in their due diligence obligations, according to the Việt Nam Trade Office in the EU.
The trade office said that many companies do not still fully understand the specific regulations and criteria to comply with EUDR.
The EUDR, issued in June 2023, was scheduled to take effect on December 30, 2024. This legislation aims to prevent the sale of seven commodity products – soy, beef, palm oil, wood, cocoa, coffee and rubber – if sourced from areas affected by deforestation or forest degradation practices – two of the main causes of climate change and biodiversity loss.
According to the proposal, EUDB will start to come into effect from December 30, 2025 for bigger companies and six months later for small and medium sized enterprises (SMEs).
Deputy President of the Vietnam Timber and Forest Product Association Ngô Sỹ Hoài said among products under the scope of EUDR, three products of Việt Nam are significantly affected, including rubber, coffee and wood.
The postponement will give Việt Nam more time to be fully prepared for the EUDR, Hoài said, adding that Vietnamese enterprises need more detailed guidance and training to ensure the compliance.
EUDR is a challenge but also an opportunity for Việt Nam’s relevant industries to export sustainably to the EU, Hoài stressed. He pointed out that the supply chains of wood, coffee and rubber are relatively complicated, with numerous requirements in declaring implementation accountability and providing electronic evidence of geographical coordinates which remain unfamiliar to Vietnamese enterprises and farmers.
Agriculture Trade Counselor of Việt Nam in the EU Trần Văn Công said that most of Vietnamese firms are SMEs and products are mainly collected from households, making it difficult to gather information. The focus should be on increasing training to improve green export capacity of enterprises, he said.
Exporters also recommended the Ministry of Industry and Trade to early provide specific and detailed guidance so that enterprises can proactively plan production and comply with EUDR, which is also an opportunity for the agricultural sector to transform towards sustainability. — VNS
