Business · Trade · 9 hrs ago

EU sustainability rules could threaten Vietnam’s low-cost coffee exports

EU sustainability rules could threaten Vietnam’s low-cost coffee exports

Nestlé Vietnam’s chair says the EU’s stricter sustainability rules could make Vietnam’s cheap coffee harder to export.

Vietnam is the world’s second-largest coffee producer and the biggest producer of robusta, which is widely used in instant coffee.

The EU is a major market, consuming about 24% of the world’s coffee.

Its Deforestation Regulation aims to curb forest damage linked to products including coffee and applies to most companies from December 30, 2026, with some smaller businesses given more time.

Vietnam is working with the EU to help its coffee sector meet the rules.

A multiyear EU-backed project aims to support more than 400 coffee-related businesses and indirectly benefit an estimated 1.4 million farmers and workers.

Nestlé has also worked with a Vietnamese research institute to develop disease-resistant coffee plants, distributing 100 million plantlets to farmers at subsidized rates.

The rules could push producers toward more sustainable farming and higher-value coffee, helping retain more value in Vietnam.

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What people are saying

Binu JacobChairman and managing director of Nestlé Vietnam
Vietnam was always known to produce cheap coffee, but cheap coffee is no longer going to be attractive to export because [the] EU is coming up with very stringent norms
via Fortune
So if we don’t go up the value chain and create coffee that is sustainable and that meets the very high standards, we will be unable to export
via Fortune
With small farms, it’s quite easy to move from the old ways of traditional farming to regenerative farming
via Fortune
Once you do that, Vietnam has a competitive advantage to export more and ensure that more value stays here
via Fortune