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EU Rules Threaten Vietnam's 'Cheap Coffee' Export Status
10 Nov
Summary
- EU sustainability rules may make Vietnam's cheap coffee exports unattractive.
- Vietnam, a major robusta producer, faces stringent EU environmental standards.
- Nestlé Vietnam develops disease-resistant coffee plantlets for improved yields.
Vietnam's position as a major exporter of affordable coffee is facing a significant challenge as the European Union prepares to implement stringent sustainability regulations. Starting December 30, 2026, the EU Deforestation Regulation will affect companies exporting commodities to the bloc, aiming to combat deforestation and reduce greenhouse gas emissions.
Binu Jacob, chairman and managing director of Nestlé Vietnam, emphasized that "cheap coffee is no longer going to be attractive to export" if Vietnam cannot adapt its production to meet these high standards. This shift presents an opportunity for Vietnam to move up the value chain and enhance the value of its exports.
The EU-backed SustainCoffee project is actively working with Vietnamese businesses and farmers to comply with international environmental, social, and governance standards. Nestlé, in partnership with local research institutes, has been developing and distributing subsidized, disease-resistant coffee plantlets for over 15 years.
These efforts have already led to a threefold increase in coffee productivity in Vietnam compared to the global average. Jacob sees this as a chance for Vietnamese farms to transition to regenerative farming practices, thereby securing a competitive advantage and ensuring greater value retention within the country.
