How to Prepare Your Factory or Supplier Network in Vietnam for EUDR

The European Union’s Deforestation Regulation (EUDR) is redefining how global supply chains operate. For Vietnamese manufacturers and exporters, this regulation brings both new responsibilities and opportunities. It requires all products placed on the EU market to be legally compliant and deforestation-free. While Vietnam is expected to be classified as a low-risk country, factories and suppliers still need to strengthen their traceability systems, documentation, and collaboration practices to meet European expectations.

This article provides practical guidance for Vietnamese manufacturers on preparing their operations and supplier networks for EUDR compliance, based on insights from FVSource’s 2025 white paper, “EU Deforestation Regulation (EUDR): Overview and Implications for Vietnam.”

Understanding What the EUDR Requires

The EUDR applies to seven main commodities, including coffee, cocoa, palm oil, soy, timber, rubber, and cattle, as well as their derived products such as furniture, leather goods, and processed food ingredients. Companies that export these products to the EU must be able to provide three types of evidence:

1. Geolocation data for the farms or plantations where the raw materials originated
2. Proof of legality under the supplier country’s national laws
3. A due diligence statement confirming that no deforestation occurred after 31 December 2020

Vietnam’s manufacturing base is closely tied to several of these sectors, particularly furniture, rubber, coffee, and leather. As such, many factories must begin aligning their internal systems to match the regulation’s traceability and reporting standards.

Map and Record Your Supply Sources

The first step toward compliance is building a clear understanding of where your inputs come from. Factories should collect geolocation data from their raw material suppliers. For timber, this means documenting the forest origin verified under Vietnam’s Timber Legality Assurance System (VNTLAS). For coffee or rubber, it involves identifying farms or plantations and ensuring they were established before the 2020 cutoff date.

This data can be stored in spreadsheets or digital traceability tools developed by Vietnam’s Ministry of Agriculture and Rural Development (MARD). Several EU-supported pilot projects are already testing digital mapping systems that can later be integrated with due diligence reports.

Strengthen Internal Management Systems

Factories should review and, if necessary, upgrade their supply chain management procedures. Assign staff to oversee EUDR compliance, record-keeping, and document verification. Create a centralized file that includes supplier certificates, land use records, and environmental permits.

A well-structured management system will make it easier to respond to EU buyer requests and reduce the risk of delays during audits. Vietnamese firms that have already participated in FLEGT-VPA processes will find this step familiar, as these systems share similar principles of legality and traceability.

Verify Supplier Legality and Certifications

Although EUDR compliance is not limited to certified goods, holding sustainability certifications such as FSC, Rainforest Alliance, or ISO 14001 can support documentation and build buyer confidence. Factories should encourage suppliers to maintain valid certifications and verify that these cover the full production process, not just a single stage.

Legal compliance should also be checked through Vietnamese authorities, such as the Department of Forest Protection or local People’s Committees, depending on the product sector. These documents provide an important foundation for EUDR due diligence reports.

Train Staff and Suppliers

EUDR compliance requires not only documentation but also understanding. Organizing training programs for procurement and logistics staff helps ensure that everyone involved knows what information must be collected, stored, and reported.

Suppliers, especially smallholders and family-run operations, may not yet be familiar with terms like “geolocation polygon data” or “deforestation-free verification.” Factories can play a supportive role by explaining these requirements and helping smaller partners prepare their data in standardized formats.

Collaborate with Sourcing Agents and Buyers

Vietnamese manufacturers do not have to handle compliance alone. Partnering with sourcing agencies or EU buyers who specialize in EUDR implementation can help streamline the process. These partners can provide templates for traceability reporting, audit checklists, or coordinate joint field assessments.

Collaboration ensures consistency across multiple suppliers and reduces duplication of work. It also helps build long-term relationships based on transparency and shared commitment to sustainable sourcing.

For practical guidance and examples of traceability implementation in Vietnam’s coffee, rubber, and timber sectors, consult FVSource’s 2025 White Paper: “EU Deforestation Regulation (EUDR): Overview and Implications for Vietnam.” The report explains how local authorities and EU-funded projects are supporting data collection, training, and digital mapping in key industries.

Click Here to Download the White Paper

Update Contracts and Reporting Practices

Factories should revise their supplier contracts to include clauses on EUDR compliance, documentation sharing, and cooperation during audits. Clearly define responsibilities for providing data and specify timelines for submission.

Additionally, factories can implement periodic reporting systems, where suppliers update information quarterly or semiannually. Regular updates help detect issues early and demonstrate proactive risk management when dealing with EU importers.

Participate in Industry and Government Initiatives

Vietnam’s government is actively preparing a national EUDR response framework to support exporters and verify low-risk classifications. Manufacturers should follow updates from MARD, the Vietnam Timber and Forest Product Association (VIFORES), or the Coffee Coordination Board.

By participating in these initiatives, factories can access training, data-sharing tools, and technical support that simplify compliance. This collective approach also strengthens Vietnam’s reputation as a transparent and sustainable sourcing country.

Conclusion

EUDR compliance is not an isolated requirement but a process of improving traceability, documentation, and cooperation throughout the supply chain. For Vietnam’s factories, the key is to start preparing early by mapping suppliers, strengthening management systems, and maintaining open communication with EU buyers and sourcing agents.

Vietnam’s solid governance framework, digital traceability pilots, and commitment to sustainability make it well placed to meet EUDR expectations. By taking a structured, proactive approach, manufacturers can ensure smooth access to the European market while contributing to responsible global trade.

For detailed sector analyses, implementation roadmaps, and sample traceability models, download the full FVSource study: “EU Deforestation Regulation (EUDR): Overview and Implications for Vietnam” – FVSource Market Study 2025.